Managing payments efficiently is a critical aspect of running a successful coliving space. While payment processors like Stripe and others offer convenience and a suite of features, they come at a cost—transaction fees that can eat into your profits. MangoBeds provides a flexible solution that allows you to automate payments without incurring these extra fees by using automated email communications.
In this article, we’ll explore how you can manage payments effectively by either adjusting your room prices to cover processor fees or by using automated emails to share your custom payment details, such as bank transfer information, directly with your guests.
The Cost of Convenience: Payment Processor Fees
Payment processors like Stripe, PayPal, and others simplify the payment process by handling transactions securely and providing additional features like fraud protection and easy refunds. However, this convenience comes at a price:
- Transaction Fees: Typically ranging from 2% to 3% per transaction, plus a fixed amount.
- Currency Conversion Fees: Additional charges when dealing with international payments.
- Withdrawal Fees: Costs associated with transferring funds to your bank account.
These fees can accumulate, especially for businesses with tight margins, affecting your bottom line.
Covering Payment Processor Fees by Adjusting Room Prices
One straightforward way to offset these fees is by slightly increasing your room prices to cover the additional costs.
How to Adjust Your Prices
- Calculate the Average Fee: Determine the average percentage fee charged by your payment processor.
- Increase Your Prices Accordingly: Adjust your room rates by this percentage.
- Example: If the processor charges a 3% fee, increase your room prices by 3%.
- Update Prices in MangoBeds:
- Navigate to Accommodations in your MangoBeds dashboard.
- Adjust your pricing for each accommodation.
- Save your changes.
Benefits
- Maintains Profit Margins: Ensures you don’t lose money on each booking.
- Transparent Pricing: The cost is built into the price, avoiding surprise fees for guests.
Considerations
- Competitive Pricing: Ensure that the price increase doesn’t make your rooms less competitive.
- Guest Perception: Be cautious if your rates become significantly higher than similar properties.
Using Automated Emails with Custom Payment Details
Alternatively, you can bypass payment processors altogether by accepting payments through methods like bank transfers. MangoBeds allows you to automate this process using customized email communications.
How It Works
- Step 1: Guests make a booking request or confirm a booking. More information about booking requests
- Step 2: An automated email is sent to the guest with your custom payment instructions.
- Step 3: Guests complete the payment through the provided method (e.g., bank transfer).
- Step 4: You verify the payment and confirm the booking.
Benefits
- No Transaction Fees: Avoid the fees charged by payment processors.
- Direct Payments: Funds go straight to your bank account.
- Personalized Communication: Customize emails to enhance the guest experience.
Considerations
- Payment Confirmation Delay: Bank transfers may take longer to process.
- Guest Convenience: Some guests may prefer the ease of online card payments.
Additional Resources
- How to Automate Your Communication Emails in MangoBeds:
- A detailed guide on setting up and customizing automated emails.
- How to Use Booking Requests in MangoBeds:
- Learn how to set up booking requests to manage reservations before confirming them.
Tips for Effective Payment Management
- Clear Instructions: Ensure your payment instructions are straightforward and easy to follow.
- Payment Deadlines: Specify a clear deadline for when the payment should be made to secure the booking.
- Payment Confirmation: Inform guests that you will confirm their booking once the payment is received.
- Multiple Payment Options: Offer alternative payment methods if possible to accommodate guest preferences.
Conclusion
While payment processors offer convenience, their fees can affect your profitability. By either adjusting your room prices or utilizing MangoBeds’ automated email communications to share custom payment details, you can manage payments more efficiently and maintain your bottom line.
Automated emails not only help you avoid extra fees but also allow for personalized communication with your guests, enhancing their overall experience. Take advantage of MangoBeds’ flexible communication tools to streamline your payment process today.