There is a very wide range of retail outlets, all of which offer great opportunity to Point of Sale Resellers and Dealers.
The range is so broad that it is impossible to cover all the areas. It is like an orange tree with covered in beautiful ripe juicy fruit
all ready for the picking.
But some of those fruit are right at the top of the tree. To get them you need to expend more effort. Get a ladder, climb the tree and run the risk of falling.
Other fruit hang low. They are just as fresh and juicy. But you just have to reach out your hand.
This article is about finding the "low hanging fruit" in the Point of Sale market. Segments of
the market that are easy to target, require less work for a dealer and in most cases where
there is less competition. But first we will start with some areas to avoid.
Avoid Highly Regulated Markets
These are markets where Point of Sale operations are covered by regulations and require approvals.
For example, oil industry retailing is
regulated in many countries, and often the POS equipment used must go through an approvals process. This is generally because the POS
equipment is connected to and controls the fuel pumps, and safety regulations require testing to ensure that it can be switched off
quickly in an emergency and that measurements are accurate.
Another example is in pharmacies. In many cases there are government run health schemes, or restrictions on prescription medication which require testing and approvals.
There are a ,lot of opportunities in these markets. But the approvals process takes time and is costly. The size of the market is reduced so the price per unit must increase.
And when regulations change, you have no choice about having software updates made if you want to continue servicing that market. This is an attractive market. But there are
other fruit just as juicy that are far easier to reach.
Avoid Unusual Operation Methods
Some retail markets have special requirements that are different to other retail operations. For example, with magazines and books
distributors often supply the stock on consignment without it being ordered by the retailer.
Usually supply more than the retailer wants, and unsold copies are returned. In these types of business, the handling the returns are a major issue.
Another example is clothing and footwear. These stores have a size and color matrix. For
example, each model of trouser, dress or shoe comes in a range of sizes and colors and
the POS and stock control system has to handle it.
Once again, these markets are profitable for Point of Sale, but there are easier segments
where the pickings are just as good, but easier.
Avoid Large Multi Store Operations
Yes, it would be lovely to sell a Point of Sale system to every Burger King or Pizza Hut in the world.
But it would take you a very, very long time to get the sale. And of course, every other POS company
is trying to get that business as well, so it is very competitive and your profit margin would be very low indeed.
Even in franchise operations where individual store owners make the buying decisions,
head office often influences the buying decision to a great extent. And those head offices can
make life difficult if they don't want to have more POS vendors in "their" market.
Many of these retailers have product or other files that are administered and updated from head office, and custom work has to be done to integrate their
head office systems.
These retail operations can be like the really big piece of fruit that is very very difficult to reach,
and after all the effort you discover that it actually tastes sour.
Low Hanging, Sweet Tasting Fruit
These are the small independently owned retailers with between one and ten outlets. Other POS vendors are not
really interested. They are too busy chasing McDonalds.
These stores specialise in a wide variety of merchandise. For example:-
- food shops
- restaurants
- cafes
- bars
- health food
- giftware
- convenience store
- grocery
- sports store
- fishing tackle
- pet care
- computer
- jewellery
- golf
- diving
- camping & outdoor
- kitchenware & cooking
- homeware
- irrigation & rural supplies
- wineries
- garden & nurseries
- and many more
With these stores, it is easier to talk with the decision makers. Those who make the decisions know the business, and are not miles away in an ivory tower head office.
They are local businesses that prefer local support from a dealer like you.
This is not an exhaustive list, but it illustrates the type of retailer that is a very good fit for SELLmatix
Point of Sale where results can be achieved the most quickly and easily.
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