MaxTool
CLIENT:
MaxTool
Industry:
Ecommerce
Customer Story
MaxTool is an ecommerce retailer that sells name-brand tools, outdoor power equipment, automotive tools, and home goods equipment. They started as a small catalog company nearly four decades ago, but MaxTool has become an industry leader in the online tools space—carrying products from popular brands like DeWalt, Stanley, Bosch, Honda, and more.
With a 100,000 sq. ft warehouse in California and a 300,000 sq. ft. warehouse in Tennessee, MaxTool has strategically positioned its distribution centers to provide US customers with one-day, two-day, and three-day shipping options. They also ship products worldwide.
With a 100,000 sq. ft warehouse in California and a 300,000 sq. ft. warehouse in Tennessee, MaxTool has strategically positioned its distribution centers to provide US customers with one-day, two-day, and three-day shipping options. They also ship products worldwide.
Problem
MaxTool uses a large bank and leading credit card processor to facilitate transactions. Based on their own research, MaxTool knew that they were being overcharged, but they didn’t know how much they were being overcharged or where those overages were coming from.
They tried to negotiate directly with their processor. But their provider continued to say that they were already offering the best possible rates.
Furthermore, MaxTool signed a five-year contract with the processor that was covered by an $85,000 liquidated damages clause. Without wanting to break the contract or switch processors, MaxTool reached out to Merchant Cost Consulting (MCC) for help.
They tried to negotiate directly with their processor. But their provider continued to say that they were already offering the best possible rates.
Furthermore, MaxTool signed a five-year contract with the processor that was covered by an $85,000 liquidated damages clause. Without wanting to break the contract or switch processors, MaxTool reached out to Merchant Cost Consulting (MCC) for help.
Solution
- MCC reviewed a year’s worth of MaxTool’s processing statements
- Hidden costs and miscellaneous fees were identified
- MCC got unnecessary surcharges removed from MaxTool’s processing account
- A lower processing rate was negotiated with the bank
- Ongoing monthly statement monitoring by MCC to further reduce costs
Results
$91,000
in credit card processing fees saved in the first four months
$275,000
in processing fees saved in the first year
- Total processing costs reduced from 3.95% to 2.51%
- Projected $1.3+ million in savings over the next five years
- MCC’s monthly monitoring service secured a $5,000 refund to MaxTool
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Why MCC?
- We identify hidden fees and inflated rates.
- Our team negotiates directly with your processor.
- You won’t have to switch providers or change operations.
- We’ll get you refunded for bogus charges and protect your account against rate increases.