By Todd Farber, CEO, BFC Enterprises
Running a barber shop or hair salon isn't getting any easier. With the cost of just about everything going up, customers are watching what they spend, employees are feeling the pinch, and business owners are struggling to keep up with rising expenses.
Recently, a barber shop owner in the St. Louis suburb of Chesterfield gave me a call. A friend of his, who owns a hair salon, had an ATM we installed a few years ago and suggested he talk to me.
As we talked, I learned that credit card processing fees were eating into his profits. Customers were stretching the time between haircuts, and some longtime customers were cutting their hair at home. His barbers had seen a dramatic drop in tips, and he was worried about losing good employees.
He was even considering lowering his haircut prices to keep customers coming through the door. But he knew lower prices across the board would mean making less money on every haircut, with ripple effects throughout his business.
He needed a way to help his customers save money, put more tips in his barbers' pockets and protect his own bottom line.
After hearing his concerns, I walked him through the different ways an ATM could help his customers, his employees and his business — without adding another expense to his plate.
Reduce Credit Card Processing Fees & Help Customers Save Money
Every time a customer swipes, taps or inserts a card, the shop pays a processing fee. It might not seem like much on one haircut, but multiply that by hundreds of haircuts a month, and you're talking about real money.
I explained that having an ATM in his barber shop would make it easier for customers to pay cash. The more customers who pay cash, the fewer card transactions he has to process, which means lower processing expenses.
We also talked about offering customers a discount for paying cash instead of lowering haircut prices across the board. Gas stations have been offering different cash and credit card prices for decades. Businesses can do the same when prices are clearly disclosed and the program follows applicable rules.
I even offered to connect him with a merchant services provider who could help him set up a cash discount program correctly.
He liked the idea. His customers could save a few dollars, and he could reduce his processing expenses without cutting his regular prices.
Make Cash Tipping Easier for Barbers & Stylists
One of his biggest concerns was keeping his barbers. As customers tightened their budgets, tips were among the first things they cut back on. His barbers were earning less, and he was worried about losing good employees.
I explained that having an ATM inside the shop makes it easier for customers to leave cash tips. With credit card tips, the barber may not get the entire tip due to processing fees, and more than likely they have to wait to get their money. With cash, the barber gets the tip right away.
When customers save a few dollars by paying cash, they may be more inclined to pass those savings along to their barber. That's a win for customers watching their budgets and for hardworking barbers who depend on tips to make a living.
Generate Additional Revenue Without Adding Expenses
Naturally, he wanted to know what it would cost to put an ATM in his barber shop. He was surprised when I told him it wouldn't cost him anything. In fact, it could actually make him money.
With BFC Enterprises' free, full-service ATM placement program, barber shops and hair salons earn a share of the surcharge revenue generated when customers withdraw cash. How much I explained, depends on how often customers use the ATM.
And the best part? All he had to provide was the space and an electrical outlet.
We provide the ATM, install it, keep it stocked with cash, monitor transactions and handle service, repairs and maintenance. His barbers can concentrate on cutting hair and taking care of customers while we take care of the ATM.
Why His Friend Recommended BFC Enterprises
His friend had already been working with us for a few years, so he knew someone who could tell him firsthand what it was like having an ATM in a hair salon.
My family has been serving businesses throughout the St. Louis Metro area for nearly 80 years. I'm the third generation to run BFC Enterprises, and I've learned that taking care of customers is what keeps them coming back.
We're local. When our customers call, they talk to people who know their business, not someone in a national call center. We answer the phone, take care of problems and do what we say we're going to do.
That's how we've built relationships with local businesses for generations. And it's why referrals like this one mean so much to me.
So, How's the Barber Shop Doing Today?
He decided to have us install an ATM, and I'm happy to report things are looking up.
He's now offering customers a discount for paying cash and running promotions to bring more people through the door. He's saving money on credit card processing fees, and his barbers are happier with the tips they're taking home.
He told me he has no way of knowing how many customers are cutting their own hair at home. But he's seeing familiar faces walk through the door more often, and that's encouraging.
For me, that's what this business is all about. Helping local business owners find practical ways to save money, take care of their customers and keep their businesses growing.
If you own a barber shop, hair salon or another business in the St. Louis Metro area and want to find out whether a free ATM makes sense for your location,
contact BFC Enterprises. I'd be happy to talk with you about it
FREQUENTLY ASKED QUESTIONS
How Can an ATM Help My Barber Shop or Hair Salon Save Money?
An ATM makes it easier for customers to pay cash instead of using credit or debit cards. More cash payments mean fewer card transactions and lower processing fees. For busy barber shops and hair salons in the St. Louis Metro area, those savings can add up over time.
Can I Offer Customers a Discount for Paying Cash?
Yes. Barber shops and hair salons can offer cash discounts when the pricing is clearly disclosed and the program complies with applicable laws and card-network rules. This gives customers an opportunity to save money without requiring the business to lower its regular haircut or styling prices.
Can My Barber Shop or Hair Salon Make Money From an ATM?
Yes. With BFC Enterprises' free ATM placement program, participating barber shops and hair salons can earn a share of the surcharge revenue generated by ATM withdrawals. How much you earn depends on transaction volume and your placement agreement. It's an opportunity to generate additional income without selling more services.
Is ATM Placement Really Free for Barber Shops and Hair Salons?
Yes. BFC Enterprises offers free, full-service ATM placement for qualifying businesses throughout the St. Louis Metro area. We provide and install the ATM, supply the cash, monitor transactions and handle maintenance and repairs. All you need to provide is a suitable location and an electrical outlet.
Why Choose BFC Enterprises for ATM Placement in the St. Louis Metro Area?
BFC Enterprises is a third-generation, family-owned company with nearly 80 years of experience serving local businesses. Unlike national ATM providers, we offer personal, local service backed by decades of industry experience. We handle everything from installation to ongoing maintenance, so you and your employees can focus on your customers.
