Magazine Article | July 15, 2001

The Rodney Dangerfield Of POS Gets More Respect

VARs can leverage the graphical display and open architecture capabilities of an underappreciated tool - the pole display - to increase sales.

Business Solutions, July 15 2001

Until recently, pole displays were typically the first POS (point of sale) system components that retailers were willing to sacrifice. Faced with budgetary constraints or limited counter space, they often failed to see the value of installing pole displays. But with advances in graphical display technology, retailers now realize that pole displays can contribute to marketing initiatives. By optimizing the messaging capabilities of pole displays in custom applications, VARs can profit from a somewhat neglected, "oh, by the way" piece of hardware.

Mike Englehart, retail product marketing manager for IEE (Van Nuys, CA), confirms the changing attitudes about pole displays. "Retailers used to think of the pole display strictly as a cost item. Now the trend is to see it as a customer service item," he said. "They are looking for ways to differentiate themselves from everybody else - to be more intimate with their customers."

Compatibility - The Key To Adoption
In selling pole displays, POS VARs should capitalize on developments in open architecture systems. They should look to manufacturers and software developers who are responding to requests for OPOS (object linking and embedding for POS) and USB (universal serial bus) compatibility. Sarah Ahmadinia, VP/COO for EMAX International, Inc. (Santa Fe Springs, CA), points out that limited ports on POS systems have often limited retailers in the choice and number of peripherals they could run. "USB addresses the issue of limited ports for customers who are looking to daisy chain several peripherals, such as scanners, printers, and pole displays," she said. Ahmadinia also notes that the OPOS standard was developed to make a former hurdle - software compatibility with pole display drivers - a nonissue. "If the software is OPOS-compatible, you can choose the software you want without having to worry about issues concerning different drivers."

Englehart agrees that users are looking for compatibility in an open architecture environment. "Until recently, POS systems were proprietary. When you bought registers, you got the display, keyboard, scanner, and back office interface," he explained. "Now customers are demanding open systems such as NT and UNIX. As a peripherals manufacturer, we are being asked if our displays are OPOS-compatible or have USB interfaces."

Ahmadinia notes that OPOS should help VARs to control the costs of building integrated POS systems. "OPOS keeps them from being limited in what peripherals they can use - not just pole displays, but any OPOS peripheral," she said. "Now they won't be forced by the software application to use products from certain vendors."

Finding And Mastering Niche Markets
With the technology in place for software compatibility, VARs should look for unique applications that go beyond mere cash control functionality. For instance, pole displays can help retailers to take advantage of the knowledge gained in customer loyalty programs. "Data mining is increasingly popular with retailers," Englehart said. "If stores are already running software for loyalty card programs, a swipe of the card can trigger the pole display to identify and welcome the customer. With data mining capabilities, the display can do more than that. It can target specials that appeal to that particular customer."

The search for pole display uses doesn't have to stop with traditional store environments. Ahmadinia encourages VARs to work with vendors who can produce customized pole displays for special POS needs. "One of our displays was used in a water park, where it had to be waterproof," she said. "We've also had requests for pole displays that can be used in taxis to show the fare."

Despite the wide array of potential implementations, Englehart cautions VARs against trying to sell to too many niche markets. "It may be limiting for some VARs to stay focused on, for example, big box department stores. But the needs in those stores are very different from those in a gas station or convenience store," he said. So unless VARs are willing to study how different businesses operate, Englehart advises them to stick with one market they can thoroughly understand. For the determined, imaginative VAR, there are plenty of markets out there, waiting to be served with pole displays.

Questions about this article? E-mail the author at TomV@corrypub.com.