So, You Want To Sell Kiosks?

According to a Frost & Sullivan report, revenue from the interactive kiosk market is predicted to reach over $3 billion by 2006. Kiosks can be used to gather information, make purchases, and access the Internet. Retailers can use kiosks as marketing and advertising tools. POS (point of sale) VARs can certainly profit by selling kiosks to their established customer base, but as with any new endeavor, they must first educate themselves about the product. Selling kiosks is not as simple as buying the components, putting them together, and reselling the unit to end users. If VARs want to be successful in the kiosk market, they had better do their homework.

A kiosk consists of three major components: a physical enclosure, a computer/engine, and application software. According to Louis Hebert, printer product manager at Star Micronics America, "The key to successful kiosk applications is choosing the proper components. While kiosk manufacturers can supply kiosk housing, it is up to VARs to configure the system." Mike Smith, marketing director for PanelTech, adds, "VARs need to research how long the specific application software development takes. Sometimes it may take longer and cost more than the VAR had originally estimated."

Educating The End User
In addition to learning about the hardware and software that constitute a kiosk, VARs need to educate their customers on how to successfully utilize their kiosks. "Kiosks, like real estate, depend on location, location, location. Kiosks should be located in high-traffic areas where people feel secure using them. End users need to incorporate means of attracting customers as they pass by, such as on-screen advertisements," said Hebert.

VARs should make sure end users understand the importance of training their personnel on how to use the kiosks. For example, a store has an in-store kiosk that enables customers to order merchandise not available on the shelf. "The store personnel should not only be helpful in directing customers to the kiosk, but also be comfortable with helping them through the process initially," said Smith. For this reason, he suggests that VARs keep applications simple.

After-Sale Revenue Generators
According to Hebert, VARs should offer to install kiosks and provide after-sale service and support. "Maintenance agreements could include supplying receipt paper or correcting component failures. Address the hours of operation, response time, and damage to equipment. Maintenance contracts can be a great revenue builder when you're servicing 50 or 100 kiosks," said Hebert. "The sale of 'vendor messages' is another revenue builder," said Hebert. "Displaying messages for a specified period of time costs the VAR only a few keystrokes. The messages can be changed from a home office or at the kiosk." Additionally, if a retailer is using a kiosk to gather marketing data from customers, the questions on the kiosk can be easily changed.

It seems clear that there are many opportunities for POS VARs to profit from the growing kiosk market. However, it seems equally evident that VARs need to do their research before delving into the market.