Business Solutions interviewed Dave Iava, senior account representative for Plymouth Rock Merchant Services, for the article “Take A ‘Pay It Forward’ Approach To POS.” After Iava established Plymouth Rock, which offers payment processing services, he began providing point of sale (POS) systems for a monthly fee. Iava offers advice to other solutions providers selling “Free POS.”
BSM: What have you found to be the best way to market “Free POS”?
Iava: I’ve found that it’s best to lead with payment processing. This is often the company’s biggest expense and pain point, and there are a lot of payment processors that overcharge small business owners. I met with a small pizza shop owner recently who was getting hit with a 25-cents-per-transaction fee for credit card payments and with higher rates for over-the-phone credit card transactions. Each month, the credit card company was earning $550 from him, and the sales rep that sold him this plan was making an additional $250. I was able offer the customer a plan that saved him $480 per month, which immediately offset the cost of upgrading from a cash register to a fully functional, subscription-based POS system.
BSM: Who is your typical customer?
Iava: The typical customer is a small business owner who is running the business while trying to handle IT at the same time.
BSM: How do you price your services?
Iava: Unlike other payment processors that try to make $600 or more per month from a small retailer, I normally make about $120. Even though at that lower rate it takes longer to build up a healthy recurring revenue stream, it creates higher customer loyalty and leads to longer term customer relationships with steadier growth.
BSM: Has this approach opened the door to new customers?
Iava: Selling a subscription-based POS offering that is bundled with a low-cost payment processing plan enables me to reach the small business owner that often has not been able to afford a traditional POS system.