Wasting time with Just Eat and other aggregators – ridiculous fees – part 2

Wasting time with Just Eat and other aggregators – ridiculous fees – part 2

This is the second part of our series on how you can improve your business with your own eatPOS online ordering website which can be integrated with your EPOS system/POS system.

In this segment we’ll focus on fees, amongst other things!

Going through an aggregator like Just Eat – huge fees!

One of the main complaints we hear about Just Eat and Hungry House are the huge commission (and other charges). This can be up to 20% of your revenue through Just Eat.

That is a huge chunk of your revenue, especially when you have to factor in the other costs of fulfilling an order, including wages and ingredient costs.

Now, one of the main concerns that we hear is yes, Just Eat is a rip off but we are struggling to lure customers away. The easiest way to combat this is with a loyalty scheme and discounting model for people moving away from Just Eat, which we’ll come to soon.

How does this compare to fees on eatPOS?

responsive online ordering just eat hungry house no commission

Well, our model is based around a flat fee per month. Rather than paying huge commissions on Just Eat and dealing with a support team that from the experience of our customers appears to be sporadic at best, you pay a fee that starts at just £39/month.

Apart from being a far most cost-effective model, this also means that cash-flow is far more stable. You can account for just one flat fee in your future projections.

Let’s say that your online ordering monthly revenues are £20,000/month from Just Eat.

Amongst the other problems with this aggregator, a bit issue is obviously the 20% fees, which equates to £4,000/month.

Wow!

That’s right. £4,000 every month gone! That leaves you with a net of £16,000.

Let’s say you gradually move your customers to eatPOS.

food-salad-restaurant-person

In the first month, you move a quarter over to eatPOS EPOS and online ordering (maybe you offer the customers a 10% discount to entice them). This means that you have £15,000 on Just Eat (a net of £12,000 after taking fees of £3,000) and £4,500 (after the 10% discount) on your eatPOS online ordering website (£4,451 net after taking into account monthly fees of just £49) which is a total of £16,451.

Yes, you read that right, an increase of £451. In the first month. Just 30 days! Remember, you also have happier customers, a quarter of them have just saved 10% on their orders!

And that doesn’t even take into account the other benefits that we mentioned in the first part of this series!

Month 1
Let’s go to MONTH 2

In the second month, you move another quarter of the Just Eat business, again offering the 10% discount to encourage customers to place orders on your eatPOS online ordering website.

This means in your second month, your net revenues have increased to £17,326 (£9,000 from Just Eat and £8,326 from your own online ordering website). We have assumed that the 10% discount is for first time customers and that the previous customers who ordered last month pay the full price.

That is an increase of £1,326 from your last month with Just Eat.

That goes some way to paying a staff’s wages for that month!

So, what is stopping you?

Of course, the benefits of online ordering from your own website are not just limited to lower fees. There are a whole host of other great advantages which we will discuss in part 3 of our online ordering benefits series in which we will take a more detailed look at how an online ordering website with integrated EPOS system can make your life much easier!