The software of the software you choose for your retail; business is the cost of renting access to the software as well as any mandatory costs associated with the software.
Some software companies make it hard to understand the total cost of using their software. They are clever at how they dress up their data.
Take a nameless POS software company. Their monthly rental for a small shop is $200 a month. They require you to use their payments platform at a cost of 1.6% of all transactions. A business doing $500,000 a year using this software has a total cost of ownership of $2,400.00 + $8,000 =$10,400.00 $10,400.00.
That same small retail business using Tower Systems and a price competitive payments gateway would pay $2,800.00 for the software and $4,500.00 for payments, making a total cost $7,300.00.
That’s a saving of $3,100.00 in one year alone on the cost of the software and the payments processing.
If you add in enhanced functionality that supports better productivity and a more useful focus on profitability we can make a case for benefits of more than $50,000 to the bottom line.
Our point here is to note that it is vital for any retailer to understand the cost of ownership of the software they are considering as there are big differences in the costs, especially when comparing with businesses that require you to use a payments platform connected to their software. Oh they will pitch productivity gains and other good-sounding benefits. the thing is, these benefits are available outside their business.
Take your time. Do your research. get the numbers in writing. Compare, and compare again.
Slick marketing can cover many sins, including a higher cost for your business.
Here at Tower Systems our approach to pricing is transparent. The choice you make about payments is 100% yours to make, meaning you can shop the market for the best deal for you.
Look beyond the sticker price; ongoing expenses and limitations imposed by a software provider can significantly impact your bottom line. By forcing you into their payment ecosystem, some companies effectively create a captive market, limiting your ability to secure more competitive processing fees. This lack of transparency and control can erode your profit margins over time, making it crucial to look beyond the surface-level monthly subscription and delve into the complete cost structure, including any mandatory integrations or transaction-based charges.
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