Discover New Sources Of Retail POS Revenue

Bookstores are a specialty retail market you don't often hear VARs talk about. Yet, according to the U.S. Census Bureau report in 2004, there are nearly 11,000 of them in the United States (14,000 if you include college bookstores). Computerworks of Chicago is an ISV specializing in retail POS (point of sale) solutions for bookstores. Of that market, the ISV primarily targets independent bookstores, including Christian and college bookstores. In 1983, Computerworks saw an opportunity in this underserved market and has been creating custom POS software and hardware solutions for the vertical ever since. While most of the ISV's success can be attributed to the sale of its own Booklog software, a considerable portion of its 25% revenue increase in 2007 came from revenue earned via its support offerings and from returns on its marketing and lead generation.

Earn Recurring Revenue With Support
If you're not selling support contracts to your customers, you may be missing a huge opportunity. Jean Fishbeck, president of Computerworks, explains that while her company initially didn't consider support a major source of revenue, the ISV made more than $800,000 in 2007 from recurring support fees alone due to the addition of some large customers. A Computerworks customer initially is given three months of free maintenance when it purchases one of the ISV's Booklog (Windows-based POS and inventory control system designed for booksellers and specialty retailers) software packages. After the three months, the ISV charges $500 a year for single-user store support. Stores with more than one user can purchase support starting at $750 a year, depending on the size of the organization.

Computerworks also earns revenue from offering training services. When customers purchase the ISV's Booklog software package, they receive a complimentary online training session. The ISV has developed 19 different training sessions. Once a customer uses its free sessions, it is able to purchase bundles of four, 1-hour online training sessions for $100. Fishbeck explains that Computerworks uses GoToMeeting and Unlimited Conferencing (at a cost of $390 a month) to deliver the online classes and tutorials. Additionally, the ISV offers on-site training — at a cost of $750 a day, plus expenses — to those customers needing or wanting training in their own operating environment. In 2007, Computerworks earned $86,251 by hosting just over 100 on-line and on-site training sessions.