How VARs Can Compete With Free POS Systems

By Felicia Jordan, BlueStar

Today’s POS resellers have had some unexpected hurdles to jump in the past few years, to compete with a multitude of free POS models and peripherals have appeared. These free models have their drawbacks, but end-users are still seizing the opportunity to get their hands on free software or hardware bundles, cutting into your profits as a reseller. How to compete against this model has been a crucial discussion in the channel recently, and being armed with knowledge about these “free” models can be the first step.

FREE POS SOLUTIONS AREN’T ALWAYS FREE

The most important thing to realize, when responding to an end-user considering free solutions over your own is that “free” comes with more than a few strings and caveats, and assumes the buyer won’t look too hard at long term expenses.

As individual consumers, most of us are familiar with “free” or “freemium” products that we’re still paying for in some way. A wireless provider may offer the latest smartphone for free when you use their service and sign a contract. The fine print typically indicates that you are still paying for the phone by way of fees in your monthly bill, often adding up to more than the flat price of the phone itself. Financing a home or car is no different: if you can’t pay a certain amount up front, you pay more for the convenience of paying smaller amounts over time.