Value Added Resellers Challenged By Direct To End User POS Models

www.sintelsystems.comChange in the point of sale (POS) landscape is fast-paced and fraught with the creative destruction typified by new enabling technologies and business models.

Take, for example, a post we spotted at, “The New POS Model: Direct to End User?” The post states that the existing model of value added resellers (VARs), that of being middlemen between point of sale (POS) providers and end users, is now being challenged by direct-to-merchant POS solutions.

As the only full-service point of sale (POS) provider — from software development to franchise incubator to ongoing support — part of Sintel’s commitment to our customers and industry is to share information on how to achieve success. Whether you’re a first-time franchise hopeful, a small business owner or an established chain, it’s always smart to stay on top of information technology.

Here are a few more of the highlights of the post, below, followed by Sintel’s take on what’s currently happening, given our unique, direct to end user, POS point of view.

• The new wave of “small footprint” systems elbowing their way into the traditional POS structure includes Square, Flint and eMobile. Features touted include the following:

– Low-priced, often tablet-based, hardware and software “Pick and Play” alternatives
– Lower transaction fees in an era of increased processing fees which went into effect back in January, 2013

• Square, which has recently become one of the largest mobile payment processing POS providers, has introduced the Square Stand which transforms an iPad into a low-profile, true POS system. Inexpensive and simple, the Square Stand is likely to be attractive to retail, restaurant and hospitality venues. writes, “Their payment processing fee is one of the lowest in the industry, giving a merchant the option of paying a blanket rate of $275 per month with no individual fees, or 2.75% per sale with no monthly fees.”

• Flint allows retailers to use a phone or tablet to take a picture of customer credit cards to receive payment. Flint’s fees for debit card transactions are 1.95% + $0.20 per charge, and 2.95% + $0.20 for credit cards.

• Another POS solution business model positioned to retailers is Sales as a Service (SaaS), essentially a bundled POS solution that can include everything a retailer needs: hardware, software, credit card processing, security and infrastructure. notes the steady revenue stream created by such a service provided by a “middle man.”

•, writing to its decidedly VAR readership, provides a list of “hard” questions for VARs considering these changes in their business plan:

– Is your corporate mindset ready to change?
– Is your staff, technical and sales, prepared to offer and support a new model?
– Is the company solvent enough to fund it in the short term?
– Will your vendors be flexible as you transition?

As a direct to end user provider of robust POS systems, we form lasting direct to end user partnerships with our clients that you simply can’t get from an POS-affiliated reseller. Our service and offerings allow larger franchises to grow and providing startups the foundation for future growth from the very beginning by acting as a franchise incubator. Our expertise can help you avoid common pitfalls of entry into this thriving but complex industry — including the challenge of using technological advances to meet customer expectations

Whether you’re a first-time franchise hopeful, a small business owner or an established chain, it’s always smart to stay on top of technological, and social, industry trends.

If you are interested in learning more about Sintel’s POS systems and how our knowledge and support can impact your future success, call us for a www.SintelSystems.comcomplimentary phone consultation.

Check out the post here.

Sintel Systems is the only full-service provider of tailored Point of Sale systems across retail, restaurant and service industries, including frozen yogurt shopspizzeriassushi restaurantscafés and retail stores.

As a single source for business solutions, our experienced, knowledgeable team negotiates the complex POS landscape for you to enable you to find the right POS system for your business and budget. Hardware – Software – Support

Questions or Comments: Contact us 855-POS-SALES


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