Magazine Article | January 14, 2014

Low Margins, High Volume: The New POS Sales Model

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Matt Pillar

By Matt Pillar, senior executive editor, Innovative Retail Technologies

New POS resellers might not know the rush that came with big-time hardware deals, but what they don’t know isn’t hurting them.

There’s a big advantage to being a relative newcomer to the POS hardware and software channel. If you’ve been in business less than a decade, you never knew the halcyon days. You’ve only read and heard about the era of big margins on $6,000 per-station hardware, software, and add-on peripheral deals. Unlike your veteran competition, you’re not still suffering the shakes from profit margin withdrawal.

Take Brian Harrison, for example. Ten years ago, he launched POS Touch Solutions, a small Harbortouch POS dealership serving independent retailers, restaurants, and salons in the greater NYC area. Since that day, he’s never walked out of a sales call riding the high of a fat sale, with fat margins, replete with an equally fat up-front paycheck.