The POS Software Blog

The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

Tagpayment processing

What Is Actually Included With Your POS Software?

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When retailers compare point of sale software, the first thing they look at is usually the price. It is an understandable instinct. A monthly figure is easy to grasp and easy to compare. But price alone rarely tells the whole story, because two systems with similar headline costs can differ enormously in what that cost actually covers.

The more useful question is not “how much does it cost?” but “what is included?” The answer often reveals the real difference between one provider and another.

The trouble some headline POS software pricing

A low advertised price can be genuinely good value, or it can be the visible tip of a larger bill. Some providers keep the monthly figure low and charge separately for the things a retailer needs to actually use the software. Training might be an added cost. Support could be tiered, with faster help reserved for higher plans. Integrations, updates and setup may each carry their own fee.

Then there is payment processing. A number of POS providers tie their software to a particular payment processor, earning a margin on every transaction the retailer makes. That cost does not appear on the software invoice at all, yet it can quietly become one of the largest expenses of the whole arrangement. A low software price paired with a locked, high-cost payment processor is not the bargain it first appears to be.

What inclusive POS software looks like

Tower Systems takes a clear and inclusive approach, so retailers know what they are getting from the outset. The software comes with local Australian and New Zealand support, delivered by people who understand the businesses they serve. Personal training is included when a retailer starts, and regular customer training continues afterwards, so teams keep getting value as their needs grow.

Software updates are part of the package too, and many of them come directly from customer suggestions. This means the product keeps improving in ways that reflect how retailers actually work, rather than being shaped only from the inside.

Importantly, Tower Systems does not force a payment processor. Retailers choose their own payment provider and negotiate their own rates, and there is no Tower transaction fee added to sales. What a retailer earns from a sale stays with the retailer.

How to compare POS software fairly

The way to cut through the noise is to build a like-for-like comparison. For each provider under consideration, a retailer should list not only the monthly price but everything that price includes, and everything it does not. Training, support, updates, integrations, setup and payment processing all belong on the list.

A few direct questions help. Is support included, and is it local? Is training part of the price? Are updates included? Is a specific payment processor required, and if so, at what cost? Once the full picture is laid out, the true cost of each option becomes clear, and a low headline price hiding high extras loses its shine.

It is also worth considering the cost of change over the longer term. Software a retailer stays with for years should keep improving without constant new charges, and support should remain responsive as the business grows. A package that includes ongoing training and regular updates protects that investment, because the system keeps pace with the shop rather than falling behind it.

The bottom line

Value in point of sale software is not the lowest number on a brochure. It is the total cost of running the system well over time, weighed against the support and capability that come with it. Transparency from a provider is itself a good sign, because a company confident in its value has no reason to hide the details.

Tower Systems provides point of sale software for specialty and independent retailers, with local support, training and updates included, and freedom to choose your own payment provider. To see exactly what is included, retailers can contact sales@towersystems.com.au or visit www.towersystems.com.au.

Payment choice: why the freedom to choose your processor can save you thousands

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When you choose POS software, you are often also choosing who processes your payments. With some systems, that choice is made for you. The software and the payment processor are bundled together, and the rate is set by the vendor. At Tower Systems, you keep the freedom to choose your own provider and negotiate your own rate.

That freedom has a real dollar value.

One retailer switched from software that locked them in on a payment platform and is not saving thousands of dollars a year.

Many international POS platforms tie their software to their own payment processing. To use the software, you use their payments, at their rate. It is easy to set up, and that is partly the appeal. Easy can be expensive.

This is like a tax on every sale.

When your sales grow, the money the software company makes from you grows. What are they selling: software, or a taxation system on your success?

When one vendor controls both the software and the payments, there is no pressure on the rate. You cannot shop around and you cannot negotiate, because the processor is built into the system you depend on. A small margin on every transaction across a year’s trading adds up.

A worked example

A specialty retailer turning over $1.5 million a year in card payments, on a bundled platform-tied processor, might pay an embedded margin of around 0.7% above the underlying cost of acceptance:

  • $1,500,000 in card turnover
  • 0.7% embedded margin
  • Around $10,500 a year

If that same retailer can choose their processor and negotiate directly, moving to a competitively priced provider could save more than $10,000 a year. That stays in the business.

The exact figure depends on turnover, card mix and the deal negotiated. The basic calculation is the same for any retailer: when you can shop and negotiate, you can lower the cost. When that option is gone, you pay what you are charged.

Why we leave the choice with you

We could bundle payments into our software. We chose not to.

You know your turnover, your margins and your existing banking relationships better than any software vendor. Keeping that choice with you means you can shop the market, compare providers on rate and service, negotiate using your own volume as leverage, and change processors later without changing your POS software. When payments are locked to the software, switching processor can mean switching systems entirely. When they are separate, your options stay open.

A locked-in processor takes a quiet margin on every sale. Over a year, for a busy specialty retailer, that can be more than ten thousand dollars. The freedom to choose and negotiate puts that decision back where it belongs.

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