There are so many aspects to consider before a merchant purchases a new point-of-sale system for their business. Since the owner, management, and staff will be relying on the POS system for their daily operations, it is an important investment that requires time and research for the right fit. There are a number of common mistakes merchants can make when deciding on a system to buy or rent. This is where value-added resellers come in. When it comes to POS systems, resellers are the subject matter experts.
The process itself requires time, patience, and financial commitment, all things that business owners do not have readily available. Helping a business owner navigate through this process not only builds trust but it helps save them a lot of headache and earns you a customer for life. Knowing which mistakes merchants tend to make can help you sell more systems and fine-tune your knowledge on all of the options available for them.
Here are a few common mistakes that merchants tend to make when choosing a POS system and how resellers can help them to steer clear:
Mistake #1: Basing Decision on Price Alone
The biggest and most common mistake merchants make, especially newer ones, is going for a cost-effective POS system. Although cost-effective POS systems are not necessarily bad, it is important to let merchants know how detrimental it is to their business if they compromise important features in the pursuit of saving money. A cheap and low quality POS system could lack the features that help run a competitive business. Saving a little bit of cash is always a positive, but it could result in wasting unnecessary time making up for the shortcomings of a system.
Overall, a cheaper system could end up costing more in the long run with all the extra effort and energy. Resellers can help merchants create a budget and find options within that budget that offer all of the necessary features. Sitting down with an actual person who is interested in helping their business is more likely to win a merchant over than a cheaper system.
Mistake #2: Not Accounting for Hidden Costs
It is easy for merchants to look past hidden fees associated with POS systems, especially with how busy they typically are. Sitting down with a merchant and showing them all of the fees and costs associated and also pointing out potential hidden fees in other processors or systems could help towards building trust. It is important for you to ask a business owner how much they plan to budget towards cost of training staff, maintenance of the system and payment processing. A lot of merchants going through the process on their own will more than likely forget to account for all of these additional expenses.
Helping merchants cover all of the bases when it comes to the entire costs associated with a new POS system will show them that you have their back. Some important costs to bring up are: migration costs, hardware and software, payment processing, maintenance, setup fees, and additional registers.
Mistake #3: Limiting Customer Payment Options
One of the most important jobs of a reseller is urging merchants to go for options that accept EMV payments. With more and more customers today expecting a lot of options when it comes to paying for their goods and services, it is important to ensure merchants can keep up. Beyond the convenience of accepting chip cards, EMV helps eliminate fraudulent charges that the business owners would otherwise be responsible for. Explaining to merchants how much safer EMV is and how much money it will save their business will position you as a security advisor of sorts, looking out for their best interest.
Beyond EMV, customers are becoming interested in mobile payments and mobile app purchasing. Most merchants are unaware of these technological advancements in the payments sphere, which is where resellers have an advantage and a prime opportunity to sell POS systems.
Mistake #4: Purchasing a One Size Fits All System
As a reseller, you know better than most, that there is no one simple POS system that is the right fit for every type of business. What a retailer needs is different than a restaurant, or a gas station, or a nail salon. Each of the vertical markets have unique needs. Finding out what merchants need and what their specific vertical market needs will help you find a solution that offers unique features that increase profit and productivity for them. Resellers can help merchants choose an industry specific POS system that will provide larger ROI compared to a generic, one size fits all solution.
Mistake #5: Skipping the Support System
One of the biggest selling points to working with a reseller is having a reliable support system. A reliable support system is so important for a business owner who is juggling a lot of different moving parts. Having a knowledgeable reseller who can help with technical questions and problems that come up is a total peace of mind for merchants. A lot of merchants do not know that technical and customer support is not always included with POS hardware and software.
Few things are more frustrating than waiting on hold for an hour or speaking with a machine when a problem arises. Positioning yourself as on-call and available for their POS problems is a definite selling point that most merchants cannot resist. The last thing a business owner wants is a problem to arise that dampens a customer’s experience or results in a loss of sales. Resellers can leverage the comfort and security of picking up the phone and speaking with a real human being who can answer questions about the POS system.
Helping merchants choose the right POS system for their business is one of the biggest gifts a reseller can give. The decision is a serious one for merchants, one that requires money, time, and energy. A POS system can make or break a business, making mistakes in choosing one can result in loss of profits and loss of business. Utilizing these common mistakes can help resellers sell more systems and build greater trust with merchants across the board.