Profit First requires multiple bank accounts, which big banks often charge fees for. Rachel and Kyle Wright got all their fees waived by citing the methodology and threatening to leave. Banks are vendors you can negotiate with or replace if they won't work with you.
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So in profit first, you have to have all of these accounts. But what if you have a problem with the bank? What if they charge you a lot for each account?
It's normal to be working with a bank and you like working with them and want to continue the system with them. But particularly larger national banks will have rules and systems where they say, well, if you set multiple accounts beyond xyz, we're going to charge you a fee. Or if you don't maintain a minimum balance, we'll charge you a fee. So one thing I want our listeners to realize is that a bank is a vendor to you. They're a private institution just like any other business you work with. And if you don't want to work with that vendor, it's within your right to go with another vendor. And they can also negotiate. All these banks can. So when you go to a bank and they say, well, we charge fees, say, well, I'm not willing to pay fees, the system will allow me to store more money at your bank, so what are you going to do for me? And some banks will say, let me get the manager, and they'll do it. One of my favorite stories is from Rachel and Kyle Wright. They have a business that implemented Profit first and they went to a large national bank that they like. The bank said they're going to charge fees and they said they pulled out the profit first book. And it says if your bank is going to charge you fees, tell them that you're going to negotiate or walk out. So they said in here we're about to negotiate or walk out. And the bank said, don't walk out. We're going to give you the fees. And they waive all the fees because of the books. You have the right to negotiate. And if a bank is not willing to negotiate and reduce your fees, that shows their degree of interest in your business. I think maybe you should go somewhere else in that case.