Where Are They Now? Dumac Business Systems (July 2010)

By The Business Solutions Network

Back in our July 2010 issue, I interviewed brothers Howard and David McCarthy of Dumac Business Systems in an article entitled "A New Twist On POS." In the article, the brothers spoke about how they're leveraging two of the RSPA's (Retail Solutions Providers Association) member benefits to reduce expenses and increase sales. (If you've ever wondered if the membership fees of the RSPA are worth it, read this article to see how valuable the benefits can be). I recently caught up with Dave, the company's co-chairman and CFO, who shared with me some of the lessons learned in the months since we last spoke.

Monocello: How has your business fared since we last spoke with you?
McCarthy: Dumac finished 2011 with an annual increase of just over 50% which was our largest growth ever in 60 years. We added 22 new employees [The company had 88 employees in 2010] -- most in the services area (no new sales people). We did a 6,500 foot remodel/expansion last year so that we now use all 26,500 sq. ft. of our building.

Monocello: What has contributed most to your success since we last spoke?
McCarthy: Some of our growth came from our Cloud product SBOnet but most came from POS sales including our delivery of services -- ranging from the installation to ongoing help desk support.  It is difficult to describe, but we have a tremendous amount of synergy between our sales people who are focused on a single market segment and become “virtual consultants,” to our installers who have to be “MacGyver” on some installs, to the trainers and help desk personnel. We survey each account after the install and get very high grades right down the line.  I know it sounds like bragging but we started making big investments in these services about 6 years ago -- working hard until we got nothing but praise from our customers.  Our customers have become our best sales people giving us leads and references that get us business from our competitors.

Monocello: Are there any new technologies/solutions you're offering which are impacting your business?
McCarthy: We are still trying to find a hand held device for some of our customers.  Hand held technology is in high demand but very few devices are affordable, adequately featured, or rugged enough (a challenging combination). The Apple iPad sets the tone for price but (normally) one drop and the unit is history.  We are still testing various units for the right fit.

Monocello: Are there any other tips/tactics that you think are worth mentioning that are contributing to your success?
McCarthy: I know a lot of advice is to invest in new growth markets (e.g. medical and the like).  Our belief is to hyperfocus on what we do best and do it better than anyone else that we compete with.  That doesn’t mean we won’t do something new like our investment in SBOnet, but we have no desire to waste money getting into something new (like medical) unless we see our existing market(s) going to hell permanently.