Where Are They Now? Foodtronix (Dec. 2010)
By The Business Solutions Network
The December 2010 issue of Business Solutions featured a solutions provider whose story brought together a few things we and our editors and readers hold dear.
First, the article featured a software developer (there are about 10,000 software developers who receive BSM). Specifically, Foodtronix, a company that specializes in making software for mom-and-pop eateries.
Second, the article had a strong payment processing focus. As you might know, I'm a huge proponent of solutions providers getting involved in payment processing for the recurring revenue potential.
Finally, the article also covered SaaS (software-as-a-service), which can be leveraged many ways to help solutions providers. In the case of Foodtronix, husband and wife team CJ and Melinda Winslow weren't offering a SaaS-based solution, they were using a SaaS-based payment gateway to allow their software users to processing credit cards and stay ahead of PCI DSS (payment card industry data security standards) compliance requirements.
When we left the Winslows, they were expecting 25% growth. So, what's been happening since we last saw them? I caught up with CJ Winslow to get an update.
How has your business fared since we last spoke with you?
Winslow: 2010 was pretty unchanged, 2011 slight improvement, 2012 we've seen just under double sales thus far
What has contributed most to your success since we last spoke?
Winslow: I believe our success is attributed to our perseverance in operating under a biblical code of conduct. We've also put a lot of energy into our VARs establishing fully functional regional service centers.
Are there any new technologies/solutions you're offering which are impacting your business?
Winslow: The wireless offering has helped -- be it Android or iOS
Speak to any failings you've experienced since we last spoke.
Winslow: Our honest approach to combating the "free" POS systems dubbed "The Lower Cost Alternative to the 'Free' POS" hasn't worked effectively. While many of those customers do call back asking if we can help them out of those contracts, in the end that business is lost (well for 5 years).
Are there any other tips/tactics that you think are worth mentioning that are contributing to your success?
Winslow: Simple: Service is King, as we run our business modeled after the King of servants, we embrace the opportunities to help and provide service to our customers, resellers and service providers. In many cases this even ends up being for unrelated products or competing products (as their VARs/ISVs have abandoned or under-served them).
How has payment processing contributed to your company's bottom line?
Winslow: Credit card residuals have obviously done their part. I really believe with Apple, LevelUp, and other payment brands appearing that those residuals aren't here to stay forever. There will be more Durbin-style amendments and surely at some point regulated disclosure for merchant services that will crush those that play on the uninformed merchants for profit. We're partnering with these new brands and embracing the new wave of payment processing technology. I wonder if mobile payments will trump, or severely check, chip and pin in the US...