Posted by Harrison Friedes on Mon, Sep 16, 2019 @ 12:04 PM
Brandes Elitch is the director of Partner Acquisitions here at CrossCheck, Inc. Apart from that, he has years of experience being involved with the payments and automotive industries.
Elitch (on the right in the above photo) worked in cash management for a Fortune 500 company, consulted for bankcard acquirers, and has sold cash management services for major banks. He was the also the first cash manager at Charles Schwab and directed middle-market sales group at Wells Fargo.
His automotive experience includes being the owner of numerous collectible cars; attending well-known collectible car shows (e.g. Pebble Beach and Concorso Italiano); and authoring Lancia Loraymo and the Loewy Logic of Industrial Design, a comprehensive history of Raymond Loewy’s specially designed car.
He has a storied history writing articles relevant to both the payments and the auto industry for the Green Sheet, VeloceToday, and the CrossCheck blog.
Below are some relevant works from his writing career.
- Payments Analyzed by Generation
- How the Auto Industry Makes Money
- 2019 Payments Landscape
- The Payments Expert’s Favorite Payment Type
Payments Analyzed by Generation
On Patch, Elitch describes for his readers “How Boomers and Millennials Differ in Their Approach to Payments.”
In this article, he explains that different generations prefer to use different payment methods, younger generations have less buying power than more established ones, and that Millennials prefer to pay for experiences rather than things.
He cites some relevant stats and trends:
- "It will take four Millennials to replace the spending power of one Baby Boomer in the automotive retailing marketplace.” — NADA chief economist Steven Szakaly
- “Millennials don't drive or even like cars as much as Boomers.” — U.S. Public Interest Research Group and the Frontier Group
- “8% of older Millennials (age 26-34) and 53% of younger ones (18-25) wrote checks in 2014.” — Sizing P2P Payments in the U.S.
How the Auto Industry Makes Money
In this article, Elitch answers “Why Is Fixed Ops Important to a New Car Franchise?”
Elitch illuminates that parts and services operations makes up 49% of dealerships’ gross profits. He explained the term “fixed ops” since the number of cars that show up to be serviced is usually a fixed amount, as opposed to the variable amount of cars that are sold.
As it turns out, more than half of the dealership visits included more than one type of service. Only a third of consumers are willing to drive more than 11 miles to service their cars.
He advises dealerships to remain competitive with general repair stations. This includes pick-up times, pricing, and convenience of locations.
2019 Payments Landscape
Lastly, Elitch maps out the modern payments landscape as a whole in Greensheet’s “The payments landscape 2019: What's real, what's not.”
This article debunks three common beliefs about the future of the payments industry:
- Checks aren’t used anymore.
- Mobile payments are the future.
- Cash is on its way out.
First, Elitch points out that “more than 17 billion checks were written in 2016”, and that checks are typically cheaper for merchants to process than credit card payments. Next, a JPMorgan Chase study reported only 36% of merchants accept mobile payments, and only 16% of consumers have tried using them. Lastly, a Federal Reserve study stated, "Data from the Federal Reserve's Diary of Consumer Payment Choice shows that cash remains the most frequently used payment instrument, accounting for 31 percent of all consumer transactions."
Elitch sums up his point about the viability of checks by saying resellers can use this information to help their merchants with their pain points when it comes to payments, and by offering a clear view of what the future of payments does and doesn’t hold.
The Payments Expert’s Favorite Payment Type
CrossCheck’s Multiple Check has been Brandes Elitch’s favorite payment service since its origin in 2001.
Multiple Check allows merchants to accept 2 – 4 checks from consumers (all bearing the same transaction date) that are guaranteed by CrossCheck. Multiple Check gives customers hard on cash additional time to complete their payments (usually 30 days), and doesn’t require credit checks or financing. This payment option translates to more sales revenue and less risk for auto dealerships, all while saving time and money.
Multiple Check is included in CrossCheck's Auto Industry RDC Solution (C.A.R.S.) along with other premium check guarantee services.
To learn more about C.A.R.S., download our free guide.