Client Overview
Jeff Schmitt Auto Group, Dayton’s premier automotive family, operates multiple dealership locations across renowned brands, including GMC, Chevrolet, Cadillac, Nissan, Mazda, Mitsubishi, and Jeff Schmitt Lawn and Motorsports. Known for exceptional service, repair, and maintenance, Jeff Schmitt Auto Group has built a reputation for delivering quality vehicles and outstanding customer care.
The Challenge
Operating a multi-location automotive business with diverse service offerings comes with complex financial management challenges, including managing credit card processing fees. Despite their sophisticated supply chain management team maintaining strong relationships with their payment processor, they faced key obstacles:
- Embedded Systems: Deep integration with their Dealer Management System (DMS) made switching processors impractical and costly.
- Perceived Non-Negotiable Rates: After years of collaboration with their processor, they believed their rates were already optimized and non-negotiable.
- High Switching Costs: The costs of changing hardware, integrating new systems, and retraining employees created significant barriers to exploring alternatives.
- Limited Leverage: They felt they had little bargaining power due to their reliance on their existing vendor.
“We thought our pricing was as low as it could possibly go, and the idea of switching processors was never a realistic option for us, so this seemed like a great solution.”
The VeriFee Solution
Jeff Schmitt Auto Group was referred to VeriFee by another satisfied client. After an initial consultation, VeriFee conducted an in-depth analysis and uncovered an opportunity to optimize their fees. While their rates aligned with market standards, VeriFee identified a critical adjustment point:
- Optimization Opportunity: A better balance between discount rates and transaction fees, tailored to their large average ticket size.
- No Disruption: VeriFee assured Jeff Schmitt Auto Group that no changes to their software, hardware, or workflows would be required.
- Streamlined Negotiation: VeriFee managed the entire process, including analysis, strategy, negotiation, and follow-ups with the processor.
- Vendor Relationship Maintained: VeriFee worked collaboratively with the processor to achieve favorable terms without straining their existing partnership.
The Results
- 13% Fee Reduction: Achieved through strategic optimization without requiring operational changes.
- Rapid Implementation: The entire process was completed within one month.
- Minimal Effort: Jeff Schmitt Auto Group invested no more than 30 minutes throughout the entire engagement.
“VeriFee handled everything seamlessly, and we saw results almost immediately. It was an incredibly low-effort process.”
Key Takeaways
- Strategic Optimization: VeriFee identified and implemented a fee structure tailored to Jeff Schmitt Auto Group’s unique transaction patterns.
- No Operational Disruption: Existing systems, software, and vendor relationships remained unchanged.
- Effortless Collaboration: VeriFee’s expertise minimized client involvement, saving valuable time and resources.
The Bottom Line
Partnering with VeriFee provided Jeff Schmitt Auto Group with a strategic advantage in managing their credit card processing fees. Through a data-driven approach and collaborative negotiation, VeriFee achieved a 13% reduction in fees within just one month, all while preserving their existing vendor relationship and requiring minimal client involvement.
“Working with VeriFee was the easiest, no-risk, cost reduction we’ve ever implemented. The results speak for themselves…”
About VeriFee
VeriFee specializes in payment processing optimization, helping businesses save on unnecessary fees without requiring changes to their existing systems or processors. With a focus on transparency, efficiency, and long-term partnership, VeriFee empowers businesses to maximize profitability effortlessly.
For more information, visit www.verifee.com.
