This is the second part of our series on how you can improve
your business with your own eatPOS online ordering website which can be
integrated with your EPOS system/POS system.
In this segment we’ll focus on fees, amongst other things!
Going through an aggregator like Just Eat – huge fees!
One of the main complaints we hear about Just Eat and Hungry
House are the huge commission (and other charges). This can be up to 20% of
your revenue through Just Eat.
That is a huge chunk of your revenue, especially when you
have to factor in the other costs of fulfilling an order, including wages and
ingredient costs. Self Service Kiosks
Now, one of the main concerns that we hear is yes, Just Eat
is a rip off but we are struggling to lure customers away. The easiest way to
combat this is with a loyalty scheme and discounting model for people moving
away from Just Eat, which we’ll come to soon.
How does this compare to fees on eatPOS?
Well, our model is based around a flat fee per month. Rather
than paying huge commissions on Just Eat and dealing with a support team that
from the experience of our customers appears to be sporadic at best, you pay a
fee that starts at just £39/month.
Apart from being a far most cost-effective model, this also
means that cash-flow is far more stable. You can account for just one flat fee
in your future projections.
Let’s say that your online ordering monthly revenues are
£20,000/month from Just Eat.
Amongst the other problems with this aggregator, a bit issue
is obviously the 20% fees, which equates to £4,000/month.
Wow!
That’s right. £4,000 every month gone! That leaves you with
a net of £16,000.
Let’s say you gradually move your customers to eatPOS.
Month 1
In the first month, you move a quarter over to eatPOS EPOS
and online ordering (maybe you offer the customers a 10% discount to entice
them). This means that you have £15,000 on Just Eat (a net of £12,000 after
taking fees of £3,000) and £4,500 (after the 10% discount) on your eatPOS
online ordering website (£4,451 net after taking into account monthly fees of
just £49) which is a total of £16,451.
Yes, you read that right, an increase of £451. In the first
month. Just 30 days! Remember, you also have happier customers, a quarter of
them have just saved 10% on their orders!
And that doesn’t even take into account the other benefits
that we mentioned in the first part of this series!
Let’s go to MONTH 2
In the second month, you move another quarter of the Just
Eat business, again offering the 10% discount to encourage customers to place
orders on your eatPOS online ordering website.
This means in your second month, your net revenues have
increased to £17,326 (£9,000 from Just Eat and £8,326 from your own online
ordering website). We have assumed that the 10% discount is for first time
customers and that the previous customers who ordered last month pay the full
price.
That is an increase of £1,326 from your last month with Just
Eat.
That goes some way to paying a staff’s wages for that month!
So, what is stopping you?
Of course, the benefits of online ordering from your own
website are not just limited to lower fees. There are a whole host of other
great advantages which we will discuss in part 3 of our online ordering
benefits series in which we will take a more detailed look at how an online
ordering website with integrated EPOS system can make your life much
easier!
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