Steep Discounting of POS Software is a Reason to Beware

Retailers have every right to be suspicious of POS Software companies which discount heavily through a sales process. 

A company which is not making money from each installation will be challenged to properly fund support and development in the future.

A company which has the capacity to go from $28,000 to $20,000 to $15,000 to $12,000, for example, was either trying to charge way too much to start with or is worryingly desperate to get your business.  We have seen this several times over the last few months from one company.  They discover we are quoting and drop their price several times.  In one case we saw them offer their software for free just to keep a customer.

These are not structured published offers.  No, they are in response to a competitive situation.  Sometimes hardware and software, sometimes just software.  There appears to be no pattern to the discounting except, in our view, an air of desperation.

Our advice to retailers is – be suspicious of chunky discounts.  A cheap POS System today may not be so cheap tomorrow.  

Retail is tough and some POS Software companies are finding this tough to deal with.  Using price as your differentiator is not sound business.

Here at Tower Systems we have a structured and transparent approach to discounts based on our package deals.   We reward loyalty, as all good businesses do.

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