POS As A Service HUNTER ALLEN – SEPTEMBER 2014
My hair is grey Cyclical Sales Cycle Sales impacted by things I couldn’t control (staff departure, weather) Stressful Vendor Relationships Dialing for Dollars Stress everywhere (work, staff, home) No long term value, exit plan. WHAT AM I DOING ??
POS As A Service Provide a POS System to a customer for a nominal installation fee and a monthly use fee Monthly fee includes use of Hardware, Software, Support & Upgrades Dealer retains ownership of the POS System Frequently bundled with payment processing Customer pays as long as they use the system
POS As A Service Illustration 3 Terminal POS System Installation Fee - $1500 Monthly Fee - $400-$450
Where we are today Very predictable revenue streams Increased business assets Greater company valuation Good nights sleep
Obstacles HW & SW Acquisition Sales Support – Agreements, Documents, etc Sales process & compensation
Obstacles HW & SW Acquisition SW Subscription HW – Alternate sources (used, reclaimed, etc) Financing - Partner Sales Support – Agreements, Documents, etc RSPA – Join Today Sales process & compensation Cash / No Cash – Sell vs Leasing
Sales Compensation Installation / UpFront Commission Increases upfront financial burden Maximize future financial benefit Lets rep pay bills today Residual Commission Eases upfront cash Golden handcuffs / Motivation concerns Rep cash flow issues
Other thoughts - AAS is the basis for a deeper customer relationship. - Can start with AAS opportunities other than the POS System.
Every $1 that you sell on a residual model becomes a dollar you can count on month after month, and may return $30 - $40 later.
Questions ??