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How VARs Can Compete Against Free POS Systems

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free pos system

Say the word “free” and consumers get excited, thinking they are getting a great deal on a product or service. In the case of a free pizza this might be true, but not so much when it comes to a free point of sale (POS) system. Here are some major issues that are likely to arise when a customer signs up for a “free” POS system:  

  • “Free” software but high-priced hardware that is required to run the software, which ends up costing the consumer more in the long run
  • Hidden merchant account fees, which can hurt a business’s bottom line
  • No training or support to help the retailer if they have issues or technical errors during a busy rush
  • Limited transactions mean the consumer ends up paying a large sum of money if they have a high volume of sales
  • Lack of integrations, which doesn’t give the consumer everything they need to run an efficient operation
  • Long, strict contracts that are restrictive and lock them in to something they might not like or end up needing

The Key: Value-Based Selling

As a POS reseller, you may know that “free” isn’t really free, but how do you show that to your prospects? When planning to compete against free POS systems, resellers should focus on selling the value of their solutions, not just the price and product details.

When selling POS systems to retailers, there is more to discuss than just the features of your solution. You’ll want to discuss the business benefits specific to the industry you’re selling to, and your knowledge and experience that sets you apart in that realm. For example, gift card and loyalty points programs are a POS feature, but their benefits include higher sales per transaction and a stronger customer loyalty base.

Also critical to note are the continued support services included with your solutions. This detail alone is extremely beneficial to both prospects and their customers, and shows them that your value goes beyond the sale.

Honesty is the Best Policy

What your parents always told you still holds true today; honesty really is the best policy. Resellers should be honest and explain the disadvantages of free POS systems, but avoid being pushy, sneaky, or defensive when explaining this to prospects.

Instead, be sincere, discussing the common loopholes, missing items, added costs, and lengthy contracts that come with most free POS systems. Your customers will value your honesty and view you as a trustworthy industry expert. 

Eliminate Uncertainties

After you explain the risks of free POS systems, you’ll want to eliminate uncertainties about the solutions you offer to your customers.

Make sure to leave nothing in the dark by explaining the process start-to-finish, describing exactly what is included with your systems and sales process. Prospects will be impressed with your thoroughness and transparency, which can help build your relationship with them.

Also, allow for plenty of time for customer questions. Leaving the conversation open to discuss their questions and concerns will put prospects at ease and give them the chance to speak up about any uncertainties. Afterwards, don’t be afraid to ask questions yourself. By asking questions such as if they have multiple locations, when they are planning to implement, or what is driving their decision to make a purchase can help you better understand their needs and create a value-based relationship to find them the right POS system.

While the promise of a free POS system may win over some customers, the important thing to convey as a value-added reseller is the value and relationships you bring to the table. Make sure prospects know that you value long-term business relationships, not just making a quick sale.

Auto-Star provides our partners with all of the support and tools they need for selling success. For more information on our partner program, contact us today!

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