With the reports last week at Smart Company about Neto POS software, Tower Systems reminds small business indie retailers that it is a well-established, debt-free POS software company offering solutions in specific retail channels.
Software user frustration with Neto was expressed following a reported significant price increase for users of the software, imposed on them by Neto. In the same article, there is also information about the financial status of the company:
In an email sent to Neto clients on February 28, seen by SmartCompany, Neto chief executive Ryan Murtagh said the business needed the extra money.
“We have to balance our current costs while investing in our future,” he said.
Murtagh separately told Kofoed over social media that Neto, which is majority-owned by Telstra, could “no longer endure significant losses” associated with its legacy pricing model.
Three separate clients said they weren’t consulted about the change prior to the February 28 email informing them of the restructuring.
However, the company has been considering the move for several months.
Select clients were informed and asked for feedback on the prospective changes earlier this year, while clients informed last week have just a month to prepare for the hike if they are billed monthly.
Asked whether Telstra pressured Neto into changing its pricing structure, Murtagh said the telecommunications giant holds various board positions as the majority owner of the business and is “party to all decisions the company makes”.
Here at Tower Systems, our view on POS software companies that rely predominantly on a low-price subscription model is that the cashflow from such models will not be sufficient to fund the necessary and expensive software development and support infrastructure that retailers require in the proper and successful use of POS software.
The Tower Systems model is a mixture, where customers can choose what works best for them: purchase, lease or rent, or a mixture of all three if they wish.
Tower Systems invests heavily in its future. This is evident already in 2019 with a major software update already released, delivering access to new facilities along with the announcement of the imminent release of Retailer Roam, a new product for pop-up, outpost, mobile and queues-busting retail. Retailer Roam is already in preview and feedback has been terrific.
The result of long-term investment, Retailer Roam will be a valuable opportunity step for indie retailers who want to themselves evolve what retail means in their businesses.