4% Can Suck It.

Source

Sometimes I get some really great questions via email (feel free!) and sometimes I get brides just looking for a place to vent (I sooooo get it). I recently had an exchange with a bride who was bitching about her venue and all the up-charges and fine print (which she diligently read and so should you). She wrote something that made me guffaw out loud at my computer screen, but that I also thought needed some explaining:

And, last thing...what the French toast is up with wedding industry people (Anonymous Venue included) only accepting checks/cash as payment?! Anonymous Venue will let you use a credit card, but they charge a 4% "convenience fee" and you have to either call them and give them the number over the phone or e-mail it.

I guess I'll just drive my covered wagon down to Anonymous Venue whenever I owe them something and give them a bag full of cash. Or perhaps I could barter some homemade preserves and livestock in exchange for wedding services. I mean, what the hell?! It's 2010 people! Even people who sell shit on eBay offer PayPal! And in the case of a lot of wedding vendors, we're not talking about small amounts of money here! It's total clown shoes, if you ask me.

OK, first: "what the French toast" and "total clown shoes" have just been added to my vernacular.

Second, I get her gripe. It didn't make sense to me either. However, I do know a little something about PayPal. For every payment one receives, PayPal takes in 3.2% of whatever you just got paid. So, if I sell something on my Etsy Shop for $100, I only actually get $96.80. As a business person, I know that if I need to have $100 in my pocket to make a profit, that I'd better charge the buyer $103.31, to cover the 3.2% fee.

I read an interesting article here about fees, credit cards and small businesses. The credit card companies make a fucking killing on small businesses and the fees they charge for a business simply to run credit cards. There are monthly processing fees, equipment rental fees, fees per transaction - the list goes on and on and is mind-boggling. I understand why a wedding vendor, particularly a small one,  might not want to incur those costs.

However, from a customer/bride's standpoint I can totally get the frustration. There are a lot of factors that go into paying your wedding vendors. If you were like me, it was easy. We saved. We paid. We paid however folks wanted us to pay, but that's because the wedding was totally on us. No one else was helping us pay for stuff. And while more and more couples are sporting the bill themselves, that's not always the case. Sometimes Aunt Bertha from Des Moines wants to buy your wedding cake. It would be easy-peasy for her to jump on PayPal and work it out versus writing and sending a check or calling. And by the way, NEVER EVER EVER EVER EVER send your credit card number in a fucking email, people! The fact that this venue requested that makes me wonder if they are shady or smoking crack on the job. You really shouldn't give it over the phone either, but sometimes that can't be helped. And check writing is a bitch. I wrote one to my florist and mailed it to her. She never got it. Seriously. I had to pay $30 to my bank for a stop-payment and send her another, which ended up being late because she never got the first check. My florist was totally cool because she knew I was good for it, but still - a pain in the ass and an extra $30 down the drain.

After I checked out this venue's website and saw how big they were, I was actually pretty surprised that they charge a fee for their credit card services. Particularly because the amount of money that folks spend there isn't something to sneeze at. Let's just say that it costs $5000 to rent a space. That ain't chump change folks, and lots of people don't have that kind of cash on hand. And you know what 4% of $5K is? It's $200! I don't know about you guys, but I'd feel the same way as this bride does.

Fees are a bitch and we all have to pay them, but you really, really, really need to investigate all the fine print and understand what it means. In the state of Tennessee we have a whopping 9.25% sales tax (but we don't pay state taxes, which is nice). That can be a huge chunk of change at the end of a reception. Don't forget built in tips that most venues charge at 20%. What about if you don't use their preferred catering services - is there a surcharge? How much? Is it assigned just to the food or to the total bill? You need to ask the same questions this bride asked her venue. Don't just accept a "service charge" without asking what the service is and why. Do your homework, ladies. If a vendor doesn't want to explain it, I'm sure there is another vendor willing to take the time to explain where your money is going. Go hire that one.

And to vendors out there - you need to take the time on occasion to explain to brides (and maybe their parents) what they are being charged for exactly and why. You might think it unnecessary. You might not want to waste your time. You might think the bride an idiot for not understanding what goes into the cost of a particular service. But guess what? If they are asking then THEY DON'T KNOW. For most women, this is the first time they have ever planned this kind of event.  This might be your 50,000th bride and you might be balking at them throwing a wrench in your finely tuned and well-oiled Wedding Machine. It doesn't matter - you need to explain it to our dumb asses if you want the business. My photographer took the time to show me what he did and why he did it. I was so happy he did because I had no idea why wedding photography could be so expensive. Now I know. It justified the expense and I hired HIM because he was the one who was patient and understanding. A little respect goes a long way.The same goes for brides out there. Be polite. Be patient. Be kind and you'll get a whole lot more appreciation sent your way.

And if you are patient and kind and polite and you still don't get what you want or the answers you need, it's decision making time. It might be time to find a new vendor or hire some hit men. You know, your choice.

Would love for both brides and vendors to chime in on this! Share the feedback if you've got it!

Comments

[Ryan Sweeney Photography]

I agree that vendors should offer PayPal. So far, I have not had anyone ask me if I take credit/debit cards or PayPal, but I do definitely take PayPal! Most of them just write checks or pay with cash without us even discussing their payment options.

Vendors, especially those selling a service and not a tangible product, should offer PayPal as a method of payment. They should instruct their customers to use the "Personal" tab on PayPal, and choose the "Payment Owed" option under that. No fees should be incurred by either party.

[Ashley Hicks]

My mother always told me to read the fine print. Read anything you plan to sign the dotted line. I fully agree with the need for vendors to vocalize the steps for payment. Kudos to your photographer for taking the time to explain. From our perspective, brides want to spend the money on fantastic vendor, but no one wants surprises. It's the nickel and diming that drives people to mistrust. AND I too will be adding What the French Toast to my vocabulary which is in constant check by my girls.

[The Candyman]

Is my beautiful bride advocating patience kindness and politeness? Haawaaat? However, I was just looking into establishing credit card payment options for our clients at our budding firm. While paying a 4% fee on every transaction (as well as all the other fees) is pretty pricey, it can actually bring you more business if your clients have the option to pay with credit. It also reduces or eliminates the need for collections in the event of non-payment and fighting with clients over non-payment. Gotta get that cheddar up front. So from the business owners perspective, it seems like a no brainer. Good Post French Toast.

[Sharon]

Well said Candyman & Candywoman!

[Kristin]

Great Post!! Here are my thoughts as a vendor: I feel if you are a reputable business in this century you do need to offer a way for your clients to pay via credit card. If you choose not to than you should tell them up front that you only accept cash/checks and risk losing their business. I think it's appalling that a venue would ask the client to pay the full 4% processing fee (and I believe legally that's a no-no). I can understand them charging a small fixed convenience fee for taking a credit card to help offset the costs but forcing a client to pay the whole thing is definitely "total clown shoes". Personally, I prefer a check from a client but I still offer Paypal to those who request it.