There are a number of simultaneous, unfavorable trends for today’s point of sale (POS) dealer. We’ve written several articles about these trends if you’re curious, and we’re going to paste the relevant text here as a reminder. It’s important to lend close attention because the result of these confluences might just mean the end of POS dealers as we know them… unless they make drastic changes.
First is competition with direct, corporate offices from their own POS providers. This has been a growing trend with well-capitalized legacy POS companies, and the preponderance of cloud POS companies have gone straight to direct models with no channel program more hefty than a referral model. To be fair this makes sense: how much revenue share exists for a dealer on a product that costs $100/mo? The smaller merchants that are picking up cloud systems aren’t exactly open to splashing on dealer services either. Unless a dealer has 500+ accounts, cloud is a tough (though inevitable) pricing model for dealers to take up from scratch.
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