Embracing Efficiency with Lumino: Just Baked Café & Bakeshop's Switch to a Cash Discount Model

Introduction

In the fast-paced world of small businesses, every cent saved on operational costs can dramatically enhance profitability and sustainability. Just Baked Café & Bakeshop, a bustling coffee shop and bakery, discovered this firsthand when they switched their payment processing to Lumino, adopting a cash discount model that not only eliminated their processing fees but also equipped them with state-of-the-art Clover equipment at no extra cost.

Client Background

Just Baked Café & Bakeshop serves a daily flurry of customers, offering everything from fresh coffee to artisan pastries. Previously burdened by high processing fees on a volume of $23,825.01 across 1,448 transactions monthly, the café found these costs significantly cutting into their bottom line. The variety of cards processed, including Visa, Mastercard, Discover, and American Express, contributed to an existing effective rate of 3.64%.

Analysis Overview

The decision to switch to Lumino was prompted by a detailed analysis comparing the existing burdensome fees with Lumino's innovative cash discount model. This analysis focused on transaction types, volumes, and the overall financial impact of processing fees under the current setup.

Cost Savings Breakdown

Transitioning to Lumino's cash discount program brought Just Baked Café & Bakeshop substantial financial relief:

• Monthly Savings: $717.29

• Annual Savings: $8,607.48

• Three-Year Savings: $25,822.44 Under Lumino, the effective rate plummeted to just 0.63%, mainly due to the introduction of the cash discount model which offsets the typical processing fees against customer transactions, thereby nullifying them.

Benefits of Switching to Lumino

The switch to Lumino was transformational for Just Baked Café & Bakeshop, yielding several significant benefits:

• Elimination of Processing Fees: By implementing the cash discount model, where customers are incentivized to pay cash, processing fees were entirely eliminated, leading to direct cost savings.

• Free State-of-the-Art Equipment: The provision of free Clover equipment modernized the café's transaction handling, offering features that streamlined operations and enhanced the customer experience.

• Immediate Cost Reduction: The immediate drop in effective rate and elimination of passthrough fees translated to more funds available for reinvestment into their business.

Client Testimonial/Impact

The owner of Just Baked Café & Bakeshop shared their enthusiasm about the switch: "The adoption of Lumino’s cash discount model was a game changer for us. Not only have we saved thousands in fees, but the new Clover equipment has also made transaction handling a breeze. Our customers love the speed and simplicity, and we love the cost-effectiveness. It’s truly a win-win situation."

Conclusion

Just Baked Café & Bakeshop’s experience is a testament to the benefits of Lumino’s cash discount model, particularly for businesses looking to cut costs without sacrificing service quality. The substantial savings and operational improvements they've achieved illustrate why more businesses should consider this model. Interested merchants can contact Lumino to explore how this approach can be customized to fit their business needs, ensuring they too can enjoy the advantages of efficient and cost-effective payment processing.