VARs Boost Stickiness By Integrating Product And Service Offerings

In the retail and hospitality verticals, where both POS hardware and software are threatening to become bargain-priced commodities, many VARs are seeking greater “stickiness” by creating an integrated stack of technology and service offerings tailored for individual customers’ business requirements.

These VARs’ menus have expanded from break-fix maintenance and training to include payment processing, payroll, customer loyalty programs, mobile POS, inventory management, business reporting, and analytics. Many are delivered via the cloud and use as-a-service models and creative financing to overcome traditional hurdles, moving beyond simply making hardware sales with thin margins toward producing recurring revenue streams.

“Point of sale is our wedge into the door,” says Scott Spitzburg, owner and president of Restaurant Software Solutions, West Orange, NJ. “Once we’re in, we try to sell complementary services such as electronic menus, online ordering, and tablet systems. For several customers, we’ve expanded our existing base by installing tablet systems on top of already installed legacy terminal-based POS systems.”

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