GS Logo
The Green Sheet, Inc

Please Log in

A Thing
View Archives

View PDF of this issue

Care to Share?

Table of Contents

Lead Story

Health care: When will payments stake its claim?


Industry Update

Hats in the ring for ETA awards

All clear for Intuit, ECHO merger

California chomps on gift card leftovers

Acquiring today, a shapshot

L60 at odds with Pipeline

EC interchange ruling: Merchants applaud, MC digs in

Swipe 'n shred, self-service fraud foiler


Terence Van Horn

Triton layoffs changes, challenges

Tracy Kitten



Hot, hotter contactless and mobile

David Talach


Street SmartsSM:
Winter profit-land

Dee Karawadra
Impact PaySystem

Drill down to the fine print

Jeff Fortney
Clearant LLC

B2B and B2G: The road ahead

Aaron Bills
3Delta Systems Inc.

POS system power

Maxwell Sinovoi
United Bank Card Inc.

Interviewing for quality

Curt Hensley
CSH Consulting

PCI compliance: Don't forget the little guys

Ken Musante
Humboldt Merchant Services

Company Profile

Credit Cash

New Products

Eco-friendly two-sided receipt printing

2ST thermal receipt printer
NCR Corp.

Wireless terminal for mobile pros

Blue Bamboo H50 POS terminal
Blue Bamboo


Clean slate, new fate





Resource Guide


A Bigger Thing

The Green Sheet Online Edition

January 14, 2008  •  Issue 08:01:01

previous next

Street SmartsSM

Winter profit-land

By Dee Karawadra

While spending the Christmas holiday in Maine, I became very familiar with what I call winter merchants. Given how winter is often a bleak time for residuals (excluding those generated by retailers catering to holiday shoppers), I was reminded of the surge in activity arctic blasts bring to some businesses. From snow ploughs to heating oil, the weather creates a need for unique services.

My father-in-law arranged a sleigh ride for the family. As I glided through the snow with my in-laws, my thoughts drifted to how winter merchants can increase transaction volume when the thermometer plummets. (I also wondered if the sleigh business we were using accepted credit cards; visions of money danced in my head until a snowball brought me back to reality.)

Winter merchants are often overlooked and even passed by intentionally by some merchant level salespeople. For example, one of our agents called, wondering why his residuals took a nosedive in November.

When we looked at his book of business, we realized it consisted entirely of restaurants in one geographical area. He had no diversity whatsoever in his portfolio. So when it got cold and people didn't feel like braving the weather to dine out, he was stuck eating canned ravioli.

I never pass up a winter merchant. They are like rain in the jungle: not much all year, but when it rains it pours. And by adding diversity to portfolios, they can prevent large fluctuations in residuals.

Hot cold-leads

Generally, winter merchants have to capitalize within a few months, as their busy season is very short. The following businesses are a good place to start prospecting:

Many more possibilities exist, and each area has its own niches. The important thing is not to pass by these merchants. Their volume will benefit you greatly and add some consistent value to your portfolio. At the end of the day, you will have a thriving business with consistent revenue throughout the year.

Chilly stickiness

One of our merchants in Maine is a family-run ski slope that I decided to visit over the holiday. I thought this would be a good time to frequent my customer's business and take a ski lesson.

I did learn a few good lessons from this business owner (skiing was not one of them). He told me he was very pleased with the new terminal that he purchased from my agent and that our service was great. He also said that by adding a faster terminal, he was able to get his customers through the line faster and happier. He also asked me about putting an ATM in his business.

I was excited that our service allowed him to better his business. Plus, he is now thinking outside the box. My agent not only has a loyal merchant to help him through the winter, he now can diversify even more by adding an ATM in the product mix. Once you start thinking about winter merchants, your ideas should snowball. Offer your merchants seasonal set-up (closing them down in the off season, and turning them on in the busy season).

I hope this article gets you to take action to diversify your portfolio. It may even mean that you need to add some new partners to your business so that you can accommodate merchants outside of your norm.

Next winter I hope you're sitting in front of a warm fire with a cup of hot cider, reaping the benefits of a diversified portfolio.

Dee Karawadra is the founder, Chief Executive Officer and President of Impact PaySystem, based in Memphis, Tenn. He and his team have a wealth of knowledge on the merchant services industry, with a niche in the petroleum market. Dee's experience on the street as an agent has guided him in laying a foundation for an agent program that is both straightforward and lucrative for his agents. Contact him at 877-251-0778 or

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

previous next

Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Board Studios