Emphasize Training To Sell POS

Don't underestimate the complexity of installing and maintaining a POS system. That's what you should be conveying somehow to your potential customers. In some cases, that's going to be tough, especially if your client has its own IT department. Still, you shouldn't — actually you can't — resort to selling strictly on product features or even (gasp!) price. Use your services to get your foot in the door, not your products. Prove to your customers that they can't maximize the potential of their POS solutions without your company's industry know-how and training expertise. Do that, and you'll succeed like J.D. Associates, a $5 million POS VAR that specializes in the retail specialty store market.

J.D. Associates' typical customer has between 1 and 10 retail stores and has been using a competitor's POS software for five years or more. Most of these customers are unhappy with their current software provider, which accounts for the fact that 70% of the VAR's sales are replacements of other systems.

"There are some POS hardware/software solutions that are basic and promote themselves as being plug and play," explains John Deery, who founded J.D. Associates and holds the title of treasurer. "While those systems may work for some clients, we still get a lot of those types of customers calling us with questions about installation and configuration problems or general user issues. For instance, some questions are specific to the software's features while others are more general, such as how a new Internet connection will affect the existing system or how a manager can access the POS system remotely from home."

Always Include POS Hardware/Software Training
Deery says his company is different from many smaller POS VARs because it doesn't act as though it is simply a computer systems reseller. In fact, J.D. Associates is often double the price of many of its competitors because of all the services it provides. Deery explains that many of his competitors give lowball quotes and then add on costs on the back end for services such as training. For example, a lowball quote may include 20 hours of training on the hardware and software. "Anyone who knows this business knows that most retailers require more than 20 hours of training," he asserts. "Furthermore, that limited amount of training will only scratch the surface of the functionality inherent in many POS software applications."

As an example, Deery notes that many of the retailers he has worked with have little understanding of one of the most desired features/modules of a POS application — inventory control. Sometimes, the customer may be using the inventory control feature but not implementing an effective process to flow information into the module. The result is a retailer that, despite collecting inventory data into its POS application, only trusts its periodic physical inventory counts. Thus, during training, J.D. Associates does more than simply review a software application's functionality; the VAR also helps the client uncover whether existing problems are software- or process-related.

Training is, in fact, the service J.D. Associates is best known for. Seventy percent of the company's clients choose on-site training, while 25% prefer J.D. Associates' classroom courses. Only 5% of the company's clients use the Web for training. Deery thinks that number is so low because, although inexpensive, most customers still prefer the trainer to be there in person.

The company always includes training as part of an initial customer engagement. Deery estimates training costs account for at least 20% of any quote. Ongoing training (e.g. for new employees) is offered at an additional cost. Furthermore, customers with current support contracts are offered free monthly refresher training classes, which are often used to review new features or those that may have been forgotten. "It's not uncommon for customers to say something like, ‘I invested in a POS system with inventory control three years ago, and I got trained then, so why should I upgrade now or invest in training new employees?'" Deery adds.

Certifications Are Expensive, But Boost Your Credibility
Part of convincing customers your training is worth paying for is making sure the people teaching those courses are viewed as experts. That means paying to have your staff certified on your hardware and software solutions. J.D. Associates' staff has software certifications such as MCSE (Microsoft Certified Systems Engineer) and MCSA (Microsoft Certified Systems Administrator). The staff also achieves A+ Certification, which is a testing program sponsored by the Computing Technology Industry Association (CompTIA) that certifies the competency of entry-level (six months experience) service technicians in the computer industry. J.D. Associates pays approximately $55,000 a year for certification-related expenses. Deery believes these certifications give his company credibility, setting him apart from his competitors.

Follow Up To Qualify Customers' POS Satisfaction
No matter how J.D. Associates delivers its training, Deery tries to position this as a value-added service the customer is paying for that it wouldn't receive from an Internet reseller with a lower price. To justify the cost, J.D. Associates helps the retailer identify any operational efficiencies, increased sales, or decreased inventory costs the solution and the associated training will offer. After the service or solution is completed or installed, the J.D. Associates staff member tasked with quality assurance calls the customer asking for metrics concerning the success of a project. Some of the questions the customer is asked include:

• How has this new system helped you?
• What is your inventory turn now as compared to before?
• Is your inventory lower now than before this system was installed?
• How has your profitability been impacted?

"Specialty retail has been hit hard in recent years by the increase of Internet sales," says Deery. "Those retailers that have not only survived but are thriving are using technology to increase efficiencies and profitability. To do so, they need experts to help train them on implementing and maintaining this technology. That's where we come in."