Three Reasons Why POS Is Going Strong
When I first began writing about POS technologies, I thought, "How much can POS technology change?" After all, a cash drawer is just a cash drawer, right? And touch screens? How much can they change? Can they get touchy-er? Of course, I soon realized that there's a lot more to POS and that the industry is anything but stagnant. In fact, based on what POS VARs and ISVs (independent software vendors) have been telling me, this is an exciting time to be selling POS solutions for three reasons: sales of traditional POS hardware still is strong, the POS industry organization is actively giving VARs new sales and educational outlets, and new POS technologies and verticals have appeared.
1. Traditional POS sales — We've interviewed and written about nearly 50 VARs and industry experts in the past year who continue to find great success selling standard POS systems (i.e. cash drawers, receipt printers, touch screens, bar code scanners, and keyboards) to the retail and hospitality verticals. The average sales growth rate of the POS VARs we've interviewed for our articles is 20%. In addition, in the past year, nearly every type of POS hardware has seen advances (color double-sided receipt printing, new touch technologies, and keyboards with onboard security enhancements), meaning you can target existing customers for upgrades.
2. Your industry organization — The RSPA (Retail Solutions Providers Association) has never been stronger. Since the debut of the RSPA's PCI (Payment Card Industry) educational DVD at last year's RetailNOW convention and expo, the organization has been on an educational mission. Webinars have been held on lead generation, selling services, and marketing. In addition, the RSPA staff went on the road to hold regional "Sales Essentials" training classes. Finally, the organization revealed its plans to create an RSPA certification that would properly identify POS professionals and help raise the standards of the retail technology industry.
3. New technologies and verticals — Sure, digital signage, video security, and kiosks have been around for a while, but this past year, the three technologies have gained traction. Indeed, Business Solutions spoke to one VAR expecting to double sales of digital signage solutions. Analyst firm iSuppli/Stanford Resources expects sales of indoor and outdoor retail dynamic displays to reach $1.5 billion in 2008, nearly a 300% increase from 2003. On top of all that, every touch screen manufacturer we talk to says that digital signage now is a viable sale.
When it comes to video security, advances in analytics (using computer algorithms to examine digital video) have paved the way for a boost in sales of video systems used not only for theft, but for analyzing customer buying behaviors.
In addition, many VARs have found the transition to selling all-in-one terminals to healthcare and gaming markets a natural one. Indeed, due to the legalization of gaming by state legislatures, commercial, race track, and tribal casinos now can be found in over 30 states. As a result, the gaming industry has grown from a $9.1 billion industry to more than $60 billion in annual revenue. Experts point to this market as one of the hottest for selling touch screens, as the units can be used in multiple areas (e.g. in the dealer areas, in cashier booths, for digital signage) of a casino.
According to one expert, there are more than 30,000 long-term care and assisted living facilities in the United States today. In December 2007, I spoke to one ISV whose custom kiosk solution for a healthcare facility generated $33,000 in revenue.
Regardless of what POS solutions you currently sell, there are a host of opportunities out there to either revisit existing customers or target a whole new audience using your knowledge and experience.