I just read Business Solutions writer Matt Pillar's upcoming feature article on POS startup Congruity Solutions. If this article -- which will appear in our May issue -- doesn't serve as a wake up call for POS dealers, I'm not sure what will. Here's the gist: Chris Pace, CEO of Congruity Solutions was a business analyst for a healthcare organization when his friend, who operates a coffee shop, asked Pace for help in getting a new POS system.
Pace did some research and settled on ShopKeepPOS for the software and iPads as the hardware. His friend liked the solution. In no time, Pace was taking calls from other small businesses looking for similar solutions. That was less than two years ago. Today, Pace now has 40 retail and hospitality customers in his area and he reportedly holds the distinction of being ShopKeep's leading VAR in the country by volume.
“One of the beautiful things about falling into the mobile POS business is that there’s no investment to speak of but time and expertise,” he says. "The initial hardware investment we made was little more than an iPad to demonstrate the solution."
This is what you old school traditional dealers are up against. Pace isn't a third generation POS dealer. He didn't grow his business off of big hardware margins. He's a new breed of POS dealer offering low cost software and hardware. His growth strategy is built on recurring revenue from a SaaS model, upselling various card processing products, and online ordering. What's your growth strategy built on?