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RSSExplore New Markets For POS Success
June 18, 2009
The majority of POS VARs typically fall into a few categories: retail, hospitality, grocery, and c-store. As today’s economy is shrinking your sales funnel, what options do you have? One option is to expand your vertical reach by selling into new markets. A recent conversation with Stephen Bergeron, President of PrehKeyTec, reveals some new markets your might want to consider for a revenue boost.
OpEd, July 2009
Bergeron: Of the VARs we are coming in contact with, we see strong focus in: Government, Healthcare, and even Banking. Government and Healthcare sectors currently appear to have the most readily available funding for new projects. These types of installs most often require a broad solution that includes hardware, software, and on-site services. The more sophisticated integrator, who is able to present the total solution, should do well in these areas.
What kinds of hardware and software solutions are being used successfully in this market?
Bergeron: Security and encryption are hot topics right now. For instance, PrehKeyTec products provide the ability to encrypt any combination of mag-stripe, alpha, numeric, and even biometric input. Encryption of social security or credit card numbers occurs within our product’s processor so the information is secured before it ever leaves the keyboard for the host.
How are these installations different from traditional retail/hospitality POS installs?
Bergeron: While a POS VAR should be able to migrate to any transactional-based application/process, vertical expertise is obviously required to be successful. Partnering with an ISV who has this expertise can be beneficial to VARs looking to enter new verticals.
What special training/clearances/certifications are necessary to work in these markets?
Bergeron: For government, VARs should be familiar with GSA, which offers businesses the opportunity to sell products and services to federal agencies. For healthcare, a sound understanding of HIPAA compliance standards would be very helpful. Knowledge of PCI compliance has become important in any vertical application. Finally, it’s helpful to have knowledge of data encryption methods as well as the circumstances under which the methods are most applicable.
What advice do you have for VARs who want to break into this market?
Bergeron: Align yourself with a strong ISV who has a solution you’re comfortable selling. Ensure the solution is tailored to the vertical(s) you will be pursuing. Working together with an ISV to build on core competencies of the other party is important.
In addition, consider pursuing smaller opportunities where the sale cycle will be shorter and have fewer competitors. For example, try to work with healthcare facilities in a community setting rather than a major metropolitan area.
