By Brian Jones
The payments industry is shifting away from stand-alone credit card terminals toward more integrated payment solutions such as touch-screen point-of-sale (POS) systems. While this can be an intimidating change for many ISOs and merchant level salespeople (MLSs), this shift can actually provide a needed boost for many payment professionals.
Merchants have become numb to the countless solicitations they receive from credit card providers offering to lower their rates and fees. Leading with POS systems allows you to get in front of more decision makers. Instead of being just another credit card rep, you can present yourself as a POS consultant - a vendor that most business owners will provide with a much warmer reception.
If this isn't reason enough to learn more about selling POS systems, here are five more reasons why such systems should be part of your sales arsenal:
1. It's easier than you think: The thought of learning how to sell POS systems can seem daunting, but there is a lot of overlap with the knowledge and skills ISOs and MLSs already utilize in the daily sales process. The time you invest to learn about POS systems is negligible compared to the benefits provided by this knowledge. Additionally, many POS providers offer comprehensive training as well as marketing tools to assist with the sales process itself.
2. Enjoy higher margins: Due to the high value offered by POS systems, there is no need to decrease your margins by lowering the merchant's processing rate. You are no longer relying on a rates-and-fees sales pitch and are instead selling on value. POS systems provide countless time and money saving features for merchants, generally saving the merchant anywhere from 4 to 8 percent on their gross revenue.
Additionally, POS systems offer robust reporting, employee management, sales tracking and countless other valuable tools. These features take the focus away from the processing fees and shift the discussion toward the ways in which you are helping the merchant's business.
3. Lower your merchant attrition: A POS system becomes integral to a merchant's daily operations. It literally runs the entire business. Once a merchant has installed and begun using a POS system, it would require significant operational changes in order to switch to another payment solution. This allows you to build a more stable portfolio instead of constantly having to worry about retaining your existing accounts or replacing accounts that have been lost.
4. Obtain more profitable accounts: Large restaurants and retail stores require the features that POS systems provide. The increased efficiency and advanced reporting capabilities offered by these systems are essential for these large-scale merchants. The only reason more merchants do not have POS systems is because of the high cost. By offering free POS systems, you can obtain the high-volume accounts that you would not be able to reach with a standard credit card terminal.
5. Protect your future: Many ISOs and MLSs are concerned about emerging technologies, such as near field communication and mobile payments, and the uncertainty that they bring. However, a POS system is indispensible since it manages a business's entire operations.
By gaining control of the POS, you take control of the transaction process at the business. This means that if new payment technologies do gain mainstream adoption, you will be the one to implement those solutions for your merchants.
A POS system is a system for managing the sale of retail goods. Short for point of sale system, the term refers to the hardware and software that enable merchants to accept and process payments at checkout, as well as carry out a host of related tasks, such as inventory, accounting or loyalty program tracking. POS systems offer more functionality than stand-alone POS terminals and can be tailored to specific business types, such as restaurants or grocery stores.
Brian Jones is Executive Vice President of Sales and Marketing for Harbortouch, an established payment processing company and an emerging leader in the POS industry. Jones is responsible for managing the recruitment of sales agents for Harbortouch, as well as for overseeing the company's marketing initiatives. If you would like to know more about Harbortouch, contact Brian at email@example.com.
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