BizeeBee Adds Payments, But The Transaction Fee May Sting
Owning and running a fitness studio has got to be a pain in the ass. Besides all of the health concerns, needing to procure the appropriate equipment, and relying on post-New Year's sign-ups, many studios are forced to rely on dated technology to manage their customers and sales systems.
Poornima Vijayashanker had the same thought in 2010 after visiting a yoga studio for several months and realizing how clunky the business' systems were. Vijayashanker started Bizeebee to help make life a little easier for small business owners – fitness studios, specifically – manage their customers on the cheap. The company is now working with Balanced, a new payments platform, to help these fitness studios manage their finances as well as their customers.
Balanced offers its users a white-label marketplace and handles all of the financial
magic tech on the back end. Vijayashanker says that she chose Balanced for its branding opportunities and ease-of-use. Payments are processed and deposited in one day and don't require any special hardware, unlike solutions like Square or a different point-of-sale system that require a card reader or specific terminal.
Unfortunately this ease-of-use will come with a price. Square charges a 2.75 percent transaction fee for each swipe; BizeeBee will charge a 4 percent fee on top of each transaction on top of the $100 per month businesses have to pay to access the feature.
If businesses are only interested in a payment platform they will probably be better served by a different solution. But businesses looking for a CRM system tailored to small businesses and fitness studios might be willing to accept the higher transaction fee in exchange for access to the other features.
"The whole value that we're offering is trying to take in different sources for small businesses and trying to add a level of analytics on top of that," Vijayashanker says. "[Business owners] see it as a way to see what their small business is doing."
[Image courtesy Kevin Dooley]