How Safe Are POS VARs From Extinction?

A friend of mine outside the world of resellers and IT reads this blog on a daily basis just because he wants to be a supportive friend and help boost my Google Analytics ego. Since its launch, we’ve posted 80 articles here on various topics. Of course, certain themes have presented themselves which even my friend the outsider has caught onto. Just the other day he asked me about the POS industry and what was happening.

“It sounds like these guys are getting squeezed from every angle,” he said. “Is this typical for them to be experiencing?”

I went on to explain that there’s been an evolution in all technology segments, and the POS industry has been no different. However, I added that there have been a lot of changes recently which probably feel to many dealers like the sky is falling.

Mobile POS, cloud-based POS, POS software sold direct in app stores, PCI liability, “free” POS hardware and software, internet box movers, the migration of some card processing ISOs and agents into the world of POS, ever-shrinking hardware margins, etc. The list of things that keep POS dealers up at night goes on and on.

Everyone’s reacting differently. Some are responding by adjusting their business models in smart ways. Others are making wild desperate adjustments. Some put up their blinders and are doing nothing (ugh!). Sadly, some are exploring early retirement and selling their dealerships.

“Wow,” he sighed. “Are these guys going to go extinct?”

Here’s where I got excited because while there are a lot of changes taking place, there are also a lot of new opportunities. “As long as these guys hold onto their Ace card — their trusted advisor status — they will remain the best equipped person to handle the technology needs of their customers,” I said. “In fact, other types of VARs should be concerned about POS VARs who get aggressive and evolve along with the changes taking place in IT.”

If you’re a POS VAR, you know that no piece of IT is more important to your customer than its POS system. If that goes down, money is being lost. By installing and supporting the POS system, you become “the man!”

Today there’s heightened interest and adoption in things like digital signage, video surveillance solutions, mobile POS, mobile marketing and loyalty apps, etc.

Who’s better able to explain the business value of these technologies to your customer?

Who’s better able to integrate these technologies with the POS system you installed?

Who’s better able to support these solutions for your customer?

You, the POS VAR! …As long as you’re willing to adjust with the times, adopt these hot technologies, and leverage your trusted advisor status to win the business. If not, maybe your time has passed. I hope you enjoy golf.

Photo: net_efekt