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There is a trend in the POS software world to charge for the POS software on the basis of a percentage of sales revenue in the business. As the business sells more, the POS software company makes more.

The thing is, the POS software company is contributing as much to the business at $100 a day in sales as they are to the business at $1,000 a day in sales yet at $1,000 a day in sales the POS software company is being paid a lot more.

Here at Tower Systems we are a POS software company. We choose to prove what we sell at a fixed price, so that retailers can budget and know for certain what the overhead is. This lets them bank more money themselves as they grow their business.

We think this is fair.

For any business owner considering a point-of-sale (POS) system, understanding the pricing structure is crucial. While percentage-based pricing might seem appealing at first glance, a fixed monthly rental cost often proves to be a more predictable and cost-effective option in the long run. Here’s why:

Predictability and Budgeting:

• Fixed Fee: A fixed monthly fee provides clear and consistent budgeting. You know exactly what your POS system will cost each month, regardless of sales fluctuations. This allows for easier financial planning and avoids surprises at the end of the month.
• Percentage-Based: With a percentage-based system, your POS cost fluctuates with your sales. This makes budgeting difficult, especially for businesses with seasonal variations or those aiming for growth. A sudden surge in sales can lead to a significant increase in your POS bill.

Cost Control and Growth:

• Fixed Fee: As your business grows and your sales increase, the fixed monthly fee remains the same. This allows you to scale your operations without worrying about additional POS costs eating into your profits.
• Percentage-Based: With a percentage-based system, growth translates to higher POS costs. This can hinder profitability and discourage scaling efforts, as a significant portion of your increased revenue goes towards the POS system.

Peace of Mind and Risk Management:

• Fixed Fee: A fixed monthly fee eliminates the worry of exceeding a certain sales threshold and incurring additional charges. This provides peace of mind and allows you to focus on running your business.
• Percentage-Based: The variable cost associated with a percentage-based system introduces an element of risk. A slow sales month could lead to cash flow issues, as your POS bill remains high regardless of your revenue.

While a fixed monthly fee offers numerous advantages, it’s important to consider your specific business needs. Take your time. Do your research.

We mention this today because a retailer we have recently spoken with is locked in on a contract for their POS software paying a percentage of sales. The business has taken off, doubling in size in a year. This means the cost of the POS software has doubled. They had not expected this increased cost. Some of the growth has come from deals and sales, making margin tight. This is where the percentage of sales approach of POS software companies does not work.

Be aware, informed and careful.

Tower Systems makes, sells and supports POS software for retailers in New Zealand. Wee are grateful to serve plenty of retailers in New Zealand already using our POS software. We have been serving New Zealand retailers for for more than fifteen years.

Our POS software for New Zealand retailers comes with facilities designed to save time and enhance business value for small business retailers across a range of retail sectors including garden supply, pet shops, jewellers, bike shops, gift shops, toy shops, dairies, bookshops and plenty more.

Our New Zealand POS software customers have access to a toll free number for support. Support coverage suits hours for NZ businesses too.

We’re local too. One of our senior help desk team members lives near Christchurch and one of our senior POS software developers lives in Auckland.

Our POS software is integrated with Shopify, Magento and Woo commerce and easy online selling. We also develop POS software connected websites.

Plus, our POS software is integrated with Xero and has been for years.

We’re an odd POS software company in that since 1996 we have owned and run shops – 3 gift and homewares shops. 2 in Westfield centres and 1 on the high street. We walk in the shoes of our customers.

The new quote and invoice management POS software integration solution from Tower Systems is helping computer shops, garden centres, produce businesses, building businesses and other businesses that provide quotations to provide quotations, appropriately manage stock and deliver solutions all from within the POS software.

The new quote and invoice management solution from Tower Systems is a complete replacement from what was there before. It’s expanded in scope and function, based on wonderful feedback from our customers with whom we actively consulted before starting work on the upgrade project.

We first developed the facilities over last year and into 2024. Then, we embarked on a comprehensive in-field trial process during which we further enhanced the software. This was followed by a comprehensive beta release process that resulted in further enhancements.

The new POS software integrated quote and invoice management solution is now live and in commercial use across a broad range of businesses. here is some of what we shared with our customers in the release announcement email:

• New Facility: We are excited to introduce a new capability within our Quote & Invoice Management system that allows users to reserve items from their inventory. This ensures that your stock levels are accurately reflected, preventing overselling.
• Proforma Invoice Status: A new interim status, “Proforma Invoice,” has been added to our Quotes & Invoice management. This status acts as an accepted quote that has not yet been processed as an invoice but has already reduced the available stock quantity by moving it to a new “Reserved Quantity.” This significant update allows you to issue proforma invoices to customers without making the reserved stock visible on your website or in-store.
• We have enhanced the Quote & Invoice Management system to support the acceptance of deposits and progression payments for Proforma Invoices. This feature facilitates flexible payment options for your customers and streamlined financial management for your business.

This was accompanies by a video preview of the software facilities as well as documentation for those who prefer to learn by reading text. These new facilities for quote and invoice management come with a full set of training and documentation, we have made sure of that.

Quote and invoice management is something we have always done. This re-write allowed us to take the solution to the next generation based on evolving needs.

We are grateful to the customers who engaged with us through this process. we think, together, we have made something wonderful and business beneficial.

With so much change in retail and POS software solutions for retailers, it is reasonable to ask: What is the future of POS software?

We are a POS software company, we have a vested interest for ourselves as well as for all who rely on us. When we consider a question like What is the future of POS software?, we do so with honesty and clarity, because we owe ourselves that.

Not a black and white question, not a yes or no situation. Retail and and what POS software does are more complex than that. Indeed, the nature of retail has changed considerably in recent years. So, too, has POS software. Whereas in the past it was about inventory management and cash register replacement, today it is about workflow, maximising business performance and helping businesses be everywhere all at once, easily.

Good POS software evolves at pace with change in retail, or faster. It remains relevant while at the same time offering retailers the opportunity to leap forward into new revenue opportunities. It is also about helping retailers to be challenges as to what they do in their businesses, to help them reach beyond their expectations. This is where flexibility plays a key role.

This need for flexibility, for playing outside the boundaries of traditional, is relatively new in retail, in our world of specialty retail for sure. Whereas for decades retailers stayed within their lanes as defined by the shingle under which their businesses trade, today a shingle can mean little as to what a retail business offers. This is where it can be interesting for POS software in the sense that the traditional POS software for a type of retail business may not be as flexible as it needs to be in this more open world.

While some POS software companies have pivoted to focus more on collecting revenue for themselves with tollway type charing at the transaction level, the POS software that we think will have a brighter future is the software that delivers measurable and loved benefits ton retail business owners and those who work in retail.

Yes, functionality in the software is the key. What the software does is what matters to the future of the POS software. And to be clear here, in this world of considerable and rapid changes, rapidly evolving POS software is the key.

The future of POS software as a category is as strong as retail itself. The future of any specific POS software solution will depend on the attention those who control the software pay to changes in retail. Speed is as important as functional change.

Now, if this sounds challenging, rapid changes, new technology … these are things smart software developers love as these changes help them enhance their own skills and that’s something for which they are grateful.

Tower Systems is a vertical market POS software company. We serve 16 specialty retail channels. We love change and we love retail. We are grateful to have engaged customers who keep us abreast of changes in retail.