Tuff Shed Reduces Rates and Bad Debt using Chargent Terminal
See how Using Salesforce CPQ, Paytrace, Poynt Smart Terminals and Chargent, Tuff Shed saves millions of dollars a year in this fireside chat from Chargent’s Payments Summit at DF18.
View the 4 minute video:
Or read the transcript:
Steve Stessman, VP National Retail Sales, Tuff Shed
Micaiah Filkins, President & Co-Founder, AppFrontier
MICAIAH FILKINS: I'd like to introduce Steve Stessman. He’s vice president of retail and sales at Tuff Shed. We appreciate you being a customer, Steve.
STEVE STESSMAN: You bet. Well, it’s been a great solution for us, and you've been able to solve really a lot of our problems.
37-year-old company. Last year, we sold and installed our one millionth building, which I've never thought that the shed market is that big.
MICAIAH FILKINS: [chuckles]
STEVE STESSMAN: And the current state was, we can sell it faster than we can manufacture it. We manufacture everything locally. And so, we embarked on this project with Salesforce CPQ and a bunch of other things to improve our construction processes.
But one of the challenges we really had is payments. People would call and give their credit card over the phone, and then my salespeople would write it down on a Post-it Note, and then they would walk over to a terminal and then they would punch it in.
The other thing is, I really didn't have an e-commerce site so I couldn't really allow people to transact, even though they could design a building on the web.
And then the other thing is, because it’s a construction project and they're sort of progress payments, the progress payments were manually taken.
So, we had three big scenarios when we came to Chargent and said, “Okay, help us solve.” One of the goals of the project, let the customer transact. We need to communicate with them how they want to be communicated to throughout the entire process, and this is a great way for us to enable it.
We have customers that, you know, they buy a $5,000 or $10,000 building, but they don't have the $5,000 or $10,000 credit limit. So, with Chargent I'm able to send them a, if you want to pay by check, we’ll send them an ACH. It’s really a great system.
And then the other thing is that our old system was so manual between entering to the credit card machines, as well as our ERP, there's just so much error. And so, we’ve eliminated almost all of the people-induced errors by utilizing Chargent.
There are really two main things. So, I expect a 90% decrease in our bad debt for next year because of scheduled future payments that we’re using with Chargent. That'll save my company just right at a million dollars, just because at the time of sale we’re going to say, “Okay, at this point in the transaction, we’re going to take more money,” and then we do it automatically with Chargent.
And yes, I still want a bigger discount. Yes, I know you're saving me a million dollars.
MICAIAH FILKINS: [laughs]
STEVE STESSMAN: But still . . . So—
MICAIAH FILKINS: I was about to say, we’re not charging you nearly enough.
STEVE STESSMAN: Yeah, I—
MICAIAH FILKINS: You got like 500% ROI—
STEVE STESSMAN: Right.
MICAIAH FILKINS: in no time flat.
STEVE STESSMAN: Well, and then the other thing is, I guarantee that because of the way the Chargent terminal is, you're guaranteed to get a swipe, or a chip read, because of the design of the terminal.
MICAIAH FILKINS: Yeah.
STEVE STESSMAN: So, I can guarantee that if they have a chip, I get the best rate.
MICAIAH FILKINS: Sure.
STEVE STESSMAN: So, I expect anywhere from around half a percent decreased credit card fees for next year, which should equate to about half a million bucks.
We’ve learned so many things that just happen, as you're painfully aware of, “Oh, by the way, Micaiah, I need this,” or, “I need that,” because we just didn't know. So, knowing what happens day in and day out with a customer is really the—
MICAIAH FILKINS: Right.
STEVE STESSMAN: The customer and the person using it.
Create a community of users. You know, the testers now, because what I did is, I put a CPQ, which is our title of our project, CPQ help in Chatter. Now, I have sales people helping other sales people.
MICAIAH FILKINS: That's great.
STEVE STESSMAN: So, it’s become this whole community of like, “Hey, I have a problem.” I can literally put something in Chatter, “Hey, this is the best salesman last week,” and 30 people will read it. Somebody complains about any business process in CPQ help—
MICAIAH FILKINS: Sure.
STEVE STESSMAN: 120 read it, because they're just curious. So, creating sort of a self-sustaining group, that's been very, very powerful.
MICAIAH FILKINS: Well, thanks again for making time for us today. I really appreciate it, Steve.
STEVE STESSMAN: Oh, yeah. Glad to do it. Thanks. Thanks, Micaiah.
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