Q&A: Vendors Of All-In-One POS Terminals

1. What are some common objections your VARs encounter when selling all-in-one POS terminals?

Partner Tech USA, Keith Schroer: End users are not fully aware of the difference between the mass-produced-for-home PC offered by Dell and the hardened all-in-one terminals designed and manufactured for the retail/hospitality industry. Some end users open the Sunday paper, review the Dell ad, and automatically believe that all PCs should cost $400.

POSIFLEX Business Machines, Tim Becerra: Price is still a common objection in the marketplace. While the cost of an all-in-one terminal has decreased dramatically in recent years, so have PCs. Hospitality has embraced integrated technology where all other markets are transitioning from PCs to all-in-one solutions.

Ultimate Technology Corp., John Rainsberger: Some VARs suffer from a perception that the cost of new touch screen technology is prohibitive to end users -- until they understand the benefits. Transactions are processed faster and more efficiently using all-in-one terminals. This labor savings translates into significant savings for end users. Also, employee training is greatly reduced with all-in-one units. Less training can lead to significant cost savings in vertical markets with high employee turnover.

2. Which new features of all-in-one POS terminals are in demand?

POSIFLEX Business Machines, Tim Becerra: We have experienced an increase in demand for secondary LCD monitors, for promotions and customer information, and for integrated biometric solutions. Tablet PCs are also increasing in popularity.

Ultimate Technology Corp., John Rainsberger: Fingerprint recognition is gaining acceptance in the marketplace. In addition to the obvious benefits realized from eliminating time card fraud, employee verification by fingerprint recognition speeds up system entry and eliminates the cost of managing employee ID cards.

Partner Tech USA, Keith Schroer: Two come to mind, if you can call them features:

a. There has been a surprising number of VARs/ISVs(independent software vendors)/resellers reviewing thin-client solutions. Through years of providing service and replacing hard drives, fans, and other moving parts, the channel is now searching for all-in-one solutions with no moving parts.

b. XPe (Windows XP embedded) and WEPOS (Windows embedded for point of service), a new version of Windows XP that is intended to replace XPe. WEPOS is supposed to be easier to use and does not require a development license. XPe is not new; however the industry usually takes several months or years to adopt a new solution. What is new is that ISVs and resellers can now take advantage of the benefits of XPe with Microsoft's WEPOS without the financial and technical burden.

3. Do all-in-one POS terminals afford VARs more opportunities for service or integration revenue than ECRs (electronic cash registers)?

POSIFLEX Business Machines, Tim Becerra: Many customers sign a service agreement for all-in-one units versus PC-type solutions since they feel they can easily replace monitors, keyboards, or CPUs without assistance. The fact is that an all-in-one unit is much more reliable than a PC solution. It's engineered to operate in harsh environments and withstand high usage. With an integrated unit, swapping positions with another unit in the restaurant is easy, putting the customer at ease. Additionally, integrated terminals can be installed in less time than traditional PCs, so less time is spent on-site equating to more margin dollars to the VAR.

Ultimate Technology Corp., John Rainsberger: All-in-one systems provide flexibility to the VAR in how the POS solution can be implemented. Available PCI (peripheral component interconnect) slots, for example, allow for different integration options such as modem or wireless connectivity. These integration options are not available to VARs installing ECRs.

Partner Tech USA, Keith Schroer: Absolutely. Today, an end user cannot walk into a local chain department store and purchase an all-in-one unit. However, they can purchase small ECRs there. End users who truly desire a professional solution that works will pay for the service and integration expertise needed to automate their businesses.

4. What is affecting margins in the all-in-one POS terminal industry?

Ultimate Technology Corp., John Rainsberger: There are many manufacturers entering the all-in-one market, so the competition is significant. It is important for VARs to understand that in addition to product quality and price, they need to consider the level of POS expertise, service, and support they are going to get with a particular manufacturer.

Partner Tech USA, Keith Schroer: There are too many factors to list. Examples of some factors include the Internet, entry into the market by nontraditional all-in-one vendors, increased longevity of all-in-one units, nontraditional POS and AIDC (automatic identification and data collection) distributors' entry into the marketplace, and customer expectations of all-in-ones. As an industry, we are still plagued with companies that market all-in-one terminals on a Web site at several points above cost, virtually eliminating the VAR's profits.