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Nip and Tuck for Terminals

Y our merchant is thinking about upgrading his or her system. You're eager to comply and stand at the ready with an appealing assortment of the latest terminals, scanners and readers. Then the merchant asks, "What do I do with my old equipment?" Your reply: "Call POS Plus."

As a leading provider of refurbished IBM, NCR, Symbol, PSC and other notable manufacturers' point-of-sale terminals, scanning devices and control units, POS Plus is always in the market for used equipment. Its niche is serving the needs of general retail, hospitality and grocery businesses. That niche was discovered by POS Plus President Steven Shipley, who got his feet wet back in 1982 when he worked for a company called Dataserve handling a variety of things, including leasing and maintenance of POS terminals, banking units and various computer equipment. Dataserve subsequently was purchased by Bell South.

Bell South didn't see a future in payment-processing equipment and decided to get out of the POS business shortly after the acquisition, so Shipley decided to get out of Bell South. His belief is that one never leaves the business, one just changes companies. He ultimately took his network of business relationships and started his own company - namely, POS Plus.

"I wanted to control my own destiny rather than have someone else control it for me," says Shipley. "I wanted to build a customer-oriented business."

That was in 1991 in Minnesota. For the next 2 1/2 years, Shipley did it all, from invoicing to packing boxes to selling. In 1994, he expanded his staff, outsourced refurbishing and took POS Plus to the next level.

Then in 1996, POS Plus went through another major restructure. When a competitor purchased his refurbishing partner, Shipley brought all POS Plus refurbishing operations in-house. The company moved from a 300-square-foot space to an impressive 15,000-square-foot headquarters.

"We now have a new 26,000-square-foot building with 24 employees," Shipley says with pride.

That pride is reflected in Shipley's business philosophy. "We believe in keeping the customer happy, doing whatever you can. It's much easier to keep existing ones than finding new ones," he says.

How does POS Plus keep its customers? "We have a tremendous amount of knowledge and more than 50 years of collective experience," says Shipley. "All of us are experts in the field. We are honest and ethical. I guess you could say our differentiators are knowledge, experience and integrity."

POS Plus works with businesses across the board, internationally as well as domestically. "Within the last 12 months, we've shipped to Germany, England and Australia, though we probably buy more equipment internationally than sell it," says Shipley.

Within the last 12 months, POS Plus also has sold more than 3,000 terminals alone, not including scanners and control units. While its prices are competitive, Shipley admits some frustration in getting some merchants past the price tag.

"Merchants may be more aware of technology, more sophisticated about the marketplace, but our frustration comes when customers just look at the dollar quote," says Shipley. "They think they're comparing apples to apples."

According to Shipley, that is not the case. POS Plus provides a level of refurbishment quality that no one else can. Upon arrival at POS Plus headquarters, all components are disassembled and thoroughly cleaned. Technicians will repair or replace components as needed and repaint covers if necessary to ensure a like-new appearance.

In keeping with the POS Plus commitment to customer satisfaction, machines are assembled to the client's specific configuration, with memory installed and the correct cables connected. All machines are tested for display brightness, keyboard operation and printer quality. Any components that fail these tests are repaired or replaced, then tested again.

The renewed and improved machines are then packed for shipping in custom-fitted boxes with machine type, model number and serial number printed on the box exterior for easy reference.

If all that isn't enough, POS Plus covers each refurbished piece of equipment with a warranty. Three types are available - manufacturer's warranty, third-party maintenance warranty or self-maintenance warranty.

"We guarantee all equipment will be accepted by the corresponding original manufacturer or third-party maintenance organization," says Shipley. "As for the self-maintenance warranty, some of our customers have in-house staff that maintain their equipment, and we offer 30 to 90 days in that case."

POS Plus gets its stock from other retailers or leasing companies, bankruptcies and acquired companies that are doing technology upgrades. In addition to the major merchant market, from time to time POS Plus also sells to software vendors who provide used equipment as part of their hardware and software packages.

One area of the business that POS Plus doesn't need to expend a lot of resources for is customer support. While it does overnight parts if something go down, POS doesn't require a large customer-support division.

As Shipley puts it, "We are a cash-and-carry business, a simple operation. We don't deal in software and we don't deal with unknowledgeable customers. We're not educators or trainers. We're just suppliers of equipment."

However, Shipley is quick to point out how closely POS Plus works with its customers. "We talk every day to retailers, helping them plan what equipment they need," says Shipley. "We'll get those hard-to-find terminals for them or recommend something similar. We'll even send out test machines."

Whether it's a new or existing customer, POS Plus will provide test machines for those who aren't quite sure refurbish is the way they want to go. The trial period can be as short as 30 days or as long as six months - another example of going the extra mile to keep its customers happy.

POS Plus would appear to be meeting its challenges head on. One of the biggest challenges Shipley faces on a regular basis is continuing to grow the company with the right people. Another challenge is the seasonal aspect of the business.

Refurbished equipment specialists usually are busy from mid-April through October, but the last year was a bit different for POS Plus. "We've been going steady for the last 12 months," says Shipley. "We haven't been able to catch our breath this year, but it's a good thing."

For merchants, the good thing that POS Plus brings them is the ability to keep equipment costs down. "People like to save money, and not every retailer needs the greatest technology and the newest product," says Shipley. "On the other hand, some people see the creation of an opportunity to get rid of the old generation and bring in the new. That's where we step in. We'll help you get rid of the old."

Despite the obvious direction POS Plus is headed in, Shipley doesn't have big plans.

"I don't have great aspirations of building a giant company. I'm happy with where we are," he says. "We will grow based on what our customers want us to do. We don't want to be everything to everybody. It takes away from our core. Many companies lose sight of what they're really good at as they branch out into other areas. We know what we're good at and plan on staying good at it."

POS Plus, Inc. ISO contact: Steven Shipley Phone: 800-677-5913 E-mail: Shipley@posplusin.com

Company address: 8185 Upland Circle Chanhassen, MN 55317 Phone: 800-677-5913 Fax: 952-448-9725 Web site: www.posplusinc.com

ISO benefits: Excellent source of used terminals. Equipment is thoroughly cleaned and refurbished. Machines rebuilt to customer's exact specifications. Three types of warranties available.