The Real Cost of Not Having a Payment Partner

August 9, 2024 3:45 pm

Pet-Groomer-dog-Tuft-UK

Let’s talk money. Specifically, how you can keep more of it in your pocket by using Ryft for deposits & payments. Tuft is going to show you the difference between using a payment partner like Ryft and going it alone. Spoiler alert: Ryft wins!

“ Deposits really help! I very rarely get no-shows. It’s not a massive problem as it used to be.” – Julian Sandy Owner of Woofterz Dog Grooming

The Convenience of Deposits

Before we talk about costs, let’s understand why taking deposits is so important for businesses today. Deposits help secure bookings, reduce last-minute cancellations, and show customers are committed to their bookings. By requiring deposits, you make the booking process more reliable and efficient. This allows you to focus more on your services and less on dealing with no-shows. In fact, Tuft Pet Groomers have seen, on average, an 81% decrease in no-shows if deposits are switched on. Which is huge! Hang tight the next part can be a little tricky.

The Real Cost of Using Ryft for Deposits

Let’s break it down! Here’s what it costs to use Ryft for deposits. Ryft charges 2.5% plus 5p per transaction, which is very competitive with other payment providers. Let’s see what this looks like with a typical £40 booking, where you take a 50% deposit:

  • Booking: £40
  • 50% deposit: £20
  • Ryft fee: 2.5% of the deposit + 5p

How it works:

  • Percentage fee: 2.5% of £20 = £0.50
  • Fixed fee: £0.05
  • Total Ryft fee: £0.55 per transaction

So, for each transaction, you would pay approximately £0.55 in fees to Ryft for processing a 50% deposit. Now you’re probably thinking: “£0.55 over time adds up.” But how much would it cost you not to take deposits? £0.55 for complete security is a pretty good deal.

The Benefits of Having a Payment Partner

Now, let’s look at what can happen if you don’t use a payment partner like Ryft and don’t take deposits. The biggest risk is losing money when clients cancel or don’t show up, which is a problem for all pet groomers. Without deposits, clients might not take their bookings as seriously.

​​If two clients no-show every month and each booking is £40, you would lose £80 every month! That’s £960 in a year. Which is a huge amount of money you’re passing by.

Comparison: Ryft Fees at a 50% Deposit vs. Lost Income not using Ryft

  • Annual cost of taking a deposit with Ryft: £13.20 (based on 24 no-shows)
  • Annual loss without Ryft: £960 (based on 24 no-shows)
  • Savings: £948.80

Think about it: How much are you losing by not taking deposits?

Want to work out how much you would save by taking deposits on Ryft? Plugging in your numbers based on the example above. How much did you get?

The Verdict – Use Ryft & Take Deposits!

If you don’t use a payment partner and don’t take deposits, you could end up losing about £960 each year because of cancellations or no-shows. On the other hand, using a reliable payment partner can save you around £948.80 a year or more!

Still Not Convinced? Check Out More Benefits of Using Ryft

Beyond the financial comparison, using Ryft offers other advantages:

  1. Improved cash flow: Receiving deposits ensures you have a steady cash flow, which is vital for managing expenses.
  2. Enhanced customer experience: Clients appreciate the convenience of online payments, which can improve satisfaction and loyalty.
  3. Professionalism: Offering modern payment options positions your business as professional and up-to-date, attracting more customers.
  4. Administrative efficiency: Automating payments reduces administrative tasks, giving you more time to focus on grooming.

In fact, “On marketplace platforms, sellers would see a more than 10% increase on average in payments taken when they add the Ryft gateway as an option.” – Dom MacKenzie, Commercial Manager at Ryft.

Tuft users taking advantage of Ryft will see at least a 10% uptick in bookings. You’re out there, you’re seen, and it’s convenient. And you will see growth as a result. Or, to be more accurate…

Taking Deposits Drives on Average 10% Growth in Bookings

Having a payment partner like Ryft far outweighs the transaction fees associated with using one. By securing deposits, you not only mitigate the risk of lost income due to cancellations but also enhance your business’s professionalism and customer experience. For Tuft groomers looking to grow and thrive in the competitive pet grooming industry, partnering with Ryft is a smart financial decision that ensures stability and fosters growth.

Make the switch today and see the difference it makes in your business. If you need more information or assistance, Tuft is here to help you every step of the way.

Need some help getting started? With an average response time of 4 minutes, Tuft support is always ready to help you.

Contact Us
Get Ryft