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In all seriousness Mira, what kind of retail store do you have? It's really interesting to see what the affects of the US economy is having on our neighbor countries, and other various parts of the world.
Some retail businesses have a very low profit margin due to the kind of products that they sell. I'd imagine in some form or another, that is also being stymied by the world economy. Some retailers ont he other hand, are very profitable due to being diverse int heir products, and services offered. I have a customer who sells little truck trinkets. Ford stickers, key chains, small food items, but also does engine work on tractor trailers, box trucks, and other large commercial vehicles. To even further diversify himself, they also do body work.
His profit margins are absolutely sick. The guy is cash flowing at almost 2 to 1 on the business, and is pushing 2.5 globally.
Commercial D & I businesses are flourishing under the right circumstances right now too. Not many lenders are even doing these due to the market. Those who can get them, can get them at an awesome rate. Something like 5.5% for a 3, 5, 7 balloon with a 20 year amortization schedule.
As for the fee's from banking in general though, I agree, they are too high, and really do take advantage of people. I've set up my income stream to be based more off of spread, and other fee based products that we offer like Commercial Paper Sweep Accounts, Merchant Processing Services, and Online Banking. That way I can be more liberal to my consumer customers when they have an issue and have overdrawn their accounts.
The bank I work for charges $19.00 per item when you overdraw for the first "situation" which can be a total of 6 items maximum. The second "situation" ramps up to $35.00, with the same other terms, and the final step is $37.50 from that point on. Maximum 6 per day. The computer system automatically charges the customer if they are even .01 overdrawn.
So, they have tailored it to not be as bad for someone who has a one off situation, and needs some help, but it get's more expensive after that.
Personally, I work in a very bad part of town that is really run down, and my customers need help from time to time. So, I try my best to give that to them, but still make my own money for the bank in other ways.
Unfortunately, not all managers treat their branch as a business of their own, and really doesn't care how the community is doing around them. In the end they will fail. Without customers coming to our office, we are dead, and don't have a job.
If I waive 1 of the maximum overdraft fee's of $37.50, I have to do about a $23,000.00 installment loan with a spread of 2% to make up for that income in that particular month. So, when someone overdraws 6 times at $37.50 a piece, and wants them all waived, I would have to do $138,000.00 in balance bearing loans to keep up. That simply does not happen in my market.
Such is life though. I'm off my soapbox now!
What kind of store is that again Mira? haha
P.S. Leo, stop misplacing your shit man....
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Not this time...
