Turn Customer Demand Into New POS Software Revenue Streams

When it comes to selling and installing POS hardware and software, despite the economy, there are still opportunities out there. When I consider the number of cars in restaurant parking lots on weekends and even weeknights, it’s clear that U.S. consumers continue to dine out. So, does that equate to potential sales for POS VARs? According to a couple POS software experts, there are definitely opportunities out there. The trick is knowing where to look and what products to offer.

Three Trends In Restaurant POS
When trying to identify trends in POS, be careful. Michael Paycher, president of SoftTouch POS says VARs need to make sure they aren’t pushing technologies that aren’t being demanded. “Look at how computers are impacting social and consumer behavior,” he says. “Restaurants aren’t operating in a vacuum. Consumer behavior will dictate what solutions VARs should be selling.” For an example of a technology that really is demanded, Paycher points to online ordering and a continual increase in consumer adoption.

Nancy Brown, director of sales and marketing of Aldelo Systems, agrees. “Not only do customers want online ordering, but restaurants want this functionality because online ordering automatically does cross-selling and upselling. The alternative is an employee who might forget or not be comfortable with asking,” she says. “This leads to higher sales for the restaurant.” Additionally, depending on the online ordering software, VARs can earn residuals on the online sales. In some cases, giving online ordering to your customers requires no additional hardware expenses, making it an easy sell if you can show the ROI.

Brown also says there’s a trend toward tableside ordering and payments. “These solutions give restaurants faster table turnover,” explains Brown. “Plus, numerous sources point to increased customer satisfaction, higher sales, and higher tips due to the increased interaction with the wait staff.” To offer such a solution, you’ll need to make sure your POS software can either run on a PDA-style device or interface with software running on such a device.

Another trend in POS is with gift cards. Brown says simply that restaurants love them. “Gift cards create loyalty by bringing someone back to the restaurant,” she says. “Plus, patrons typically buy more than what’s on the gift card.”

Don’t Miss Out On Payment Processing Revenue
Simply put, the residuals you can earn selling payment processing can be phenomenal. Many VARs are coming to realize this, creating additional competition for traditional card processing agents. There’s so much competition, in fact, Brown says she’s been contacted by ISOs wanting to sell POS equipment to be able to compete with POS VARs. So, is it more of a stretch for a POS VAR to sell payment processing or an ISO to sell POS? “VARs have the technical expertise,” states Brown. “Adding card processing involves merely working with a third party. You aren’t doing the processing, so it’s a pretty easy transition.” The more difficult transition, she continues, is for ISOs to learn the technical end of POS. Additionally, if something goes wrong with the card processing portion of a POS system, the VAR can call to get the help. If something goes wrong for an ISO with the POS equipment, they don’t have anyone to turn to for help. “Restaurants want someone technically strong to be there for support. That’s the POS VAR,” she says. Paycher drives home the topic with a simple statement. “Any time a reseller can provide more of a comprehensive solution and not turn the operator over to another party, I think it’s a better scenario for everyone involved,” he says.

Coping With The Economy In 2009
When asked about coping with the economy, both experts have valuable advice. “The companies that have been established for a long time and have developed relationships with customers are still getting sales, just a little more slowly,” says Brown. “The successful companies are doing a good job of identifying the customer’s needs before they try to make a sale.” Brown continues by saying once you’ve found the customer’s needs, show how the product is going to meet those needs and provide benefits.

Paycher’s response to the economy is similar in its simplicity. Basicically, do what you’ve always done. “Provide a solid product, at a reasonable cost, and follow up with excellent customer service,” he says. That might seem like common sense, but many VARs are forgetting sales basics and frantically reacting to the economy. “Don’t change your business philosophy and begin offering cheap solutions,” he says. “You shouldn’t sell cheap solutions, only cost-effective ones.” In fact, ask whether something that costs less truly is a solution. Paycher says it probably isn’t. In fact, he says the aggregate cost of using a “cheap” solution might cost more in the long run.

Changing your business philosophy is just one mistake Paycher says VARs can make. However, there are others. For instance, he says VARs typically underappreciate their roles as business analysts. He recommends VARs get into their customer’s business and “become” the operator before doing the configuration. This basically boils down to fully understanding your customer’s needs. Brown agrees. “Don’t rush in to make a sale,” she says. “If the customer feels that the person they’re dealing with is more interested in selling something as opposed to making sure what they’re selling fits its needs, they won’t buy. They don’t want a canned solution, they want something that will address their every concern.”

Paycher also warns VARs not to accept everything the operator says during planning stages. “Operators don’t intentionally mislead, but it’s not their job to provide you with all the information you need to recommend and implement the perfect solution,” he says. “It’s the VAR’s job to extract the information and make sure a solution’s right the first time.” Finally, he says you should make sure you lay out expectations clearly with the operator. “Misunderstandings most often are due to poor communications, not bad intent,” he concludes.