Each morning, my routine usually starts with a glance at my calendar. Typically, it’s a quick, cursory view—checking my first event and then scanning what the rest of the day holds. This time, however, a familiar chill ran down my spine. I noticed that a period I approach with apprehension each year has arrived: the month of July. Another Year, Another Hot July, Another 4th and another 3-4 Day Weekend.
You see, every year I harbor high hopes for July. I envision business booming, merchants eager to sign up for services, and our sales professionals maintaining their strong marketing pace. Yet, year after year, as July draws to a close, I find myself sorely disappointed.
While processing volume from our existing merchants often shows growth, new production tends to stagger. By the month’s end, production typically hits its second-lowest point of the year, just a notch above December. It truly shouldn’t have to be this way.
It was about nine, maybe ten years ago now when I first became aware of this unsettling trend. Initially, I attributed it solely to the Independence Day holiday, especially when it fell mid-week, effectively creating a lost week of productivity. So, naturally, production was lower.
However, I soon observed that even when the 4th landed on a Monday or Friday, minimizing disruption, July’s production figures still seemed to dip. Over the years, I’ve written several similar blog posts discussing this phenomenon, offering suggestions on how to combat the slowdown.
Unfortunately, my suggestions don’t seem to have made a significant impact. That’s why this year, I decided to take a different approach. Instead of offering my own theories, I reached out to my contacts at various credit card processing companies and asked for their perspective on why July, well, often underperforms. Here’s a sample of the responses I received:
- “It seems like a good time to take a break. The year is half over, the kids are home, and it’s been a good year. A vacation seems warranted.”
- “No one else seems to be out working. I can be confident my merchants aren’t getting hammered with offers, so I usually use the month to catch up on a few things.”
- “It’s too hot.” (my personal favorite)
- “July is going to be slow, so I just accept it as a fact and make plans for August.”
All these responses share a common thread: they indicate that calls on prospects for credit card processing services either slow down significantly or cease altogether for a period. The inevitable result? Any momentum built over the preceding three months vanishes, and the effort required to regain that momentum leads to a sluggish start to August.
Interestingly, when I asked if they would be open to proven techniques that could improve their July productivity, most admitted they probably wouldn’t use them. To me, this suggests they either find the July slowdown acceptable or perhaps even view it as an expected part of their annual business cycle.
However, I must highlight two contrarian viewpoints that emerged:
- “I have found over the past several years that July has been one of my better months. You know why? There’s no competition. I walk into a merchant and I am not the fifth, tenth, or twentieth merchant salesperson to walk in the door. They have more time and they listen.”
- “July is the month when I can sign merchants without pitching better rates. In fact, it’s a month when most merchants aren’t demanding cost savings because there isn’t some ‘salesperson’ out there making a bunch of bogus promises.”
Notice the common theme here? These individuals find that less competition creates an environment where substantial business can still be found. Without the usual barrage of competitors, they feel less pressure and can sign merchants with greater ease.
It doesn’t matter how hot it is or if there are opportunities for time off. Instead, they save their vacation time for later. They leverage their existing momentum, knowing that the merchants they sign in July are likely to be more profitable and more loyal in the long run.
July still gives me pause, primarily because the majority of merchant services salespeople still seem to align with the first group. However, for those who choose to stay focused, persevere, and perhaps seek out effective sales strategies from credit card processing resources, success and a strong start to August await.
Happy Selling,
David
Payment Lynx Daily 