When they become a tax collector.
More Point of Sale (POS) software companies have shifted focus to sourcing revenue from each transaction completes in retail businesses using their software.
Some even impose a penalty on retailers who choose to use payment methods that do not provide the software company the revenue share opportunity.
We think this is what makes the approach a tax. It’s a cost of business retailers using such POS software systems are unable to avoid, unless they switch software.
The software companies imposing this charge, imposing the requirement that retailers use their payments platform, off of which the software companies profit, say they are doing it to fund software development, to make their products better.
Software companies used to fund development out of software sales and software rental. Plenty of us still do.
By disconnecting the revenue from the sale or rental of the software and binding it to every sale undertakes in a retail business using the software, a software company shifts focus, we think.
One thing local small business retailers hate is imposed fees. That’s what some software companies are doing with this demanded clip from each transaction.
We think better software is created when the success of a software development business depends on the continuous improvement of the software it offers.
Selling or renting the software is clean, neat, and what many of us went into business to do. Pivoting to being a tax collector may offer a revenue bump today, it won’t last.
Retailers will see the per transaction charge for what it is. Software companies imposing the tax will eventually hunt down another thing behind which they can increase revenue. They’d be better off backing themselves and making better software.
Just as local retailers are vital to the local communities in which they live and serve, our locally based POS software company is vital to the community of local retailers and local IT professionals.
Tower Systems is a software company, not a tax collector.
Tower Systems is a small business focussed POS software company developing, and supporting POS software for niche specialty retailers.
Jewellers, garden centres, bike shops, toy shops, produce businesses, farm supply businesses, fishing shops, pet shops, charity businesses, landscape gardening businesses, antique shops, sewing shops, haberdashery businesses, newsagents and more benefit from this software.
Find out more at www.towersystems.com.au Call 1300 662 957 or email sales@towersystems.com.au
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