Note: I do not own a small business. I do not condone deceptive pricing. I do not condone rude business owners (based on the threads I have read). This is not about them.
I’ve been reading a lot of the threads on here lately about the recent card surcharge changes, and the amount of hostility toward business owners is difficult to watch.
This may be an unpopular opinion, but I’d like to offer a different perspective.
- The surcharge issue is against both the everyday punter and the businesses.
Why are we paying card processing fees in the first place? Banks and payment processors could easily afford to absorb card fees. They simply choose not to because card processing is a multi billion dollar profit machine. The actual cost for a bank to process an electronic tap and go transaction is a fraction of a cent.
Small businesses have to pay an extra $500 - $1000 per month (some more) just to let you tap your card… Directing anger towards a small business for adjusting their price is like licking the boot of the multi billion dollar corporations ripping us off.
Perhaps this is a little conspiratorial of me, but from my perspective, I believe this was a power play by the government to direct anger away from the financial sector and onto your average local business owner. The regulatory bodies knew this is exactly what would happen. Everytime I saw a surcharge pop up when I’d go to pay, I’d get pissed off at the bank for forcing it on me. Now, that anger can be redirected to the business owner instead. How convenient.
- The reality of running a small business in Australia.
Now, I am not a business owner, but I have seen plenty of businesses rise and fall behind the scenes. There seems to be a common narrative in this sub that if a business owner is worried about margins, they "just aren't very good at running a business." However, the deck is actually very heavily stacked against local/small business owners.
It is well known that the survival rate of businesses is often quite low. I believe Westpac did a survey some time ago which stated that it took an average of 2.3 years for a business to turn a profit. 2.3 years of putting everything back into the business and having pennies left for yourself. I don’t know about you but that sounds incredibly difficult, especially considering the hardship everyone is facing in our current economy. No wonder so many businesses fail.
Beyond that is all the payments businesses have to account for. Think about your local coffee shop and how much profit they’re likely making annually. I’m not talking about well known coffee shops in the middle of a busy city. Think about your local cafe in your suburb, or the local convenience store, or the local mechanic. They have to consider: GST, company/income tax, payroll tax, FBT, super, workers comp, accounting software, accountants, leave/penalty rates, commercial rent (which is so expensive), council rates, utilities, building maintenance, subscriptions, bank loan interest (for startups), registrations, industry licences/permits, insurance, and on and on. Not to mention specific expenses relative to the business whatever it may be.
That’s A LOT. I don’t know about you, but yeah, if I was running a small business and suddenly I had to front an extra $500-1000+ per month for bank fees, I’d probably adjust my prices too.
Not to mention service based businesses like mechanics, tradies etc. who are capped by how many people they can see in an hour.
- What happens if we lose small businesses to all these expenses?
I see a lot of people praying on the downfall of small businesses. I don’t like that one bit.
I wanted to run my own business. But when I watch people grind themselves into the ground trying to make a an independent business, only to get burnt out by the complexity, costs, or even fines (if they were doing something wrong without realising because we all make mistakes), it makes me not want to run my own business. To be totally honest, it looks FUCKED. Like so unenjoyable. And so many business owners I have met (e.g., my local kebab shop) aren’t living lavish. They’re way below the greedy multi billion dollar corporations we should be taking our frustration out on. They’re just trying to live a normal life, not build a big corporate machine that scams the local consumer for profit.
If we keep treating small businesses like the enemy, people are just going to stop opening them. We’ll end up in a country where the only places left to eat, shop, or get a service done are massive corporate chains. There will be no local themes/flavour or personal customer service.
Shop owners are literally just everyday people trying to earn a living without working for a boss. Stop getting mad at your local shop owner and instead consider why banks get to profit on every transaction we make. And despite what some of you were saying about “support your local business” being a “scam” statement, I completely disagree. I will continue to buy my herbs and spices from the local family grocery that is terribly located right next to Cole’s.
This post isn’t strictly about surcharges, but more about the way that people on this sub seem to view business owners as these scammy, scummy overlords raking in profits while they complain about how hard their life is. Which isn’t a one size fits all opinion.