Everyone tells you how to set up your booth for a Craft Fair but how in the world do you accept payments? Should you invest in Square, Paypal or bring a cash lock box?
Today I’ll walk you through the practical side of how to price your items, taxes, sales licenses and what the best payment methods are and how to set yourself up to be merchant ready.
Merchant Payment Plans discussed
– Apple Pay
– Android Pay
– Samsung Pay
You’re going to start selling your planners, your books, your journals, or whatever physical products you are creating, in person, face to face with somebody. So how are you going to collect money from them? I’m going to go today, through my top three options, and how those might or might not work for your business.
Hi everyone, I’m Lisa from Pretty Fabulous, and I help online businesses create beautiful digital downloads, using Adobe InDesign. Now, we also can take those downloads, and create physical books, and journals, and notebooks, and pads, and tons of other things from that as well. Now, if this sounds like you, or something you might be interested in, make sure to hit the subscribe button below. I post new videos every Monday and Thursday.
All right, today let’s talk about my top three favorite tools for selling in-person. When you see somebody, and I’m going to assume you have already taken care of ordering the books, you have a stack right there, ready to go, the first thing you need to do, and this probably goes without saying, is make sure that you understand the sales tax and rules within your state or municipality, and whether or not you need a license on file, or some other sort of certificate in order to sell. Because I can confirm I am not a lawyer, but I have gotten in trouble for not always having the proper paperwork ahead of time.
Now, if you were going to a fair, like let’s say an Etsy craft fair, or San Diego, for some reason, they call them swap sales, or whatever, sometimes the person hosting the event may have a master sales certificate on file for everybody that is selling within there, but not always, so just make sure to double and triple check, and get it in writing.
Now, the second piece, once you are ready to go, is you can obviously take money the old fashioned way, you can take cash. And if you’ve never taken cash before, you’re going to need a cash drawer. When I say a cash drawer, I’m not sure how your products are priced, but I would price them so that you don’t need a lot of singles, right? So don’t charge $19, $17, I would always try to round up. If you can, I realize you can’t always do this, but try to round up to $5, $10. And then, as far as tax is concerned, I would just embed the tax inside of there, if you in an event, like a swap event, where it is mainly cash.
Now, if that is not the case, and you expect people to be paying with credit cards, then you definitely want to have PayPal or Square, those are the two main ones. Now, if you have PayPal, that’s the one that I use. PayPal will send you one of these handy little credit card readers, and you can just pop them into your phone, and from there, you’re going to be able to swipe credit cards. Now, you will have to load the PayPal app. You have to make sure you have PayPal for business, you can’t just have PayPal personal, that is not going to work. And you’re going to have to set it up well ahead of time, because you may have some problems connecting your back accounts, and setting yourself up to take in-person payments.
And of course, it’s going to take, well actually, it didn’t take that long, I think it came within two days, to get your chip reader. Now, your chip reader is free, so you shouldn’t have to worry about that. And for Square though, I am not sure. But Square is a little more popular, and you see Square actually as a permanent payment processing fixture at many different restaurants, bakeries, pretty much in a lot of different small businesses. Now, they have those machines that look like iPads, and they swivel and flip around. That’s not what you need. You are going to be able to get a Square reader that looks just, well I shouldn’t say just like this, very similar to this, but it is white. It works the same way, you need to download the app, it’s going to plug into your phone or to your iPad.
The other really important thing, and I hope this goes without saying, is you can’t process payments unless you have a wifi connection, or you have cellular data. Now, if you’re using your phone, obviously, you have data on your phone plan. But if you’re bringing an iPad, and that iPad is not a cellular iPad, then you’re going to need to bring another form of wifi connection. So you could use your phone, and tether that, but remember, your battery may run out. So bring lots and lots of extra battery packs to make sure everything stays charged. The other thing too is, they may have wifi on site, everybody may be using that wifi. I always bring my own Jetpack, pretty much everywhere I go, just as a backup, just because you never know. So that is the big one.
Now, obviously, if people write checks, that is up to you. I, personally don’t take checks. I know it sounds really easy because you aren’t having to pay any transaction fees, but quite honestly, lots of checks can bounce, and I’m pretty sure I don’t know if anyone’s taking checks anymore.
Now, aside from that, so we talked about cash, we talked about credit cards, and we talked about checks. The fourth way that you can take payments is via Venmo. So you could have the person standing right there in front of you Venmo you money, and once you receive that money, it should be instantaneous, you can see it on your phone, and you can give them that product.
Now, if you are doing that, it is possible again, I would say, this is why I always, always say, embed the sales tax within your pricing, if you can. Mostly because, if you’re not setup for selling physical products all the time, trust me, you’re gonna have 10 people in line, you’re gonna get really flustered about the sales tax. Just embed the sales tax within your pricing. So, what do I mean by that? If you know that your sales tax for your particular area is, let’s say, 3.1%, then just make that product … I can’t even do the math, but make that product something slightly less than $10, so 3.1% of that adds up to the $10. So when you go to reconcile the money later for your taxes, then you can say that you already collected that money.
Because it will confuse people … well I don’t think it’ll confuse people too much, but it will confuse you, if you’re not really sure if you’re taking payments from different areas, because Venmo’s not going to be able to calculate that tax information right there, on the spot.
Now, in addition to Venmo, people could pay you with Apple Pay, and with Android Samsung Pay, I believe it is. But not if you are not setup for that. And so, if you use Stripe, which is an online payment, they do have the ability to take Apple payments, I believe. But again, you would have to have that setup and available kind of like, I know this sounds a little weird, it’s almost like they’re doing an online transaction, ’cause Stripe does not like it when you take credit card information, and write it down, and enter it yourself. However, Stripe does have an option, and honestly, I’ve never used this, so I’m just speaking hypothetically, where you can take payments with credit cards. I don’t know if they have a credit card reader, like PayPal, but that might be something that you can look into, especially if you’re thinking about taking Apple Pay, or Android Pay.
So, that’s a fourth area, which I said I was only going to talk about three because those fourth areas, the Venmo and the Apple Pay, I have never actually done myself, so I’m not as familiar with that. But I think that is something that more and more people are going to start using in the future, so it should be something that you could look into as well.
Now, let’s talk about processing fees. I’m gonna switch over. Now, if you go onto PayPal, you’re going to see that it pretty much has the same fees as Stripe, there’s 2.2%. If you go onto Square, it’s 2.75, 2.5, 3.5. Now you’re probably never going to key in payments, so I wouldn’t worry about this. And then, you’re also going to use Stripe, which has 2.9% plus 30%.
So they’re all relatively about the same, so I wouldn’t worry too much about that. And again, I’m not as familiar with the processing fee for Apple or for Android, but that’s something you could definitely look into. And 100%, there is no processing fee for Venmo. But again, it’s something that you probably want to look more into, as far as how those are classified. Because I think Venmo is sometimes just friends to friends, versus you as a business using that all the time, because otherwise, everyone would probably just use Venmo instead of using the credit card processing fees.
So I hope that was helpful, and let me know if you have another solution that you like, when you like to sell things in-person. All right, I will see you guys next week. Bye.