Forget POS – think EPOS!
- January 5, 2016
It’s only a very small change, but gradually, I’m seeing fewer and fewer people referring to POS and more and more referring to their Electronic Point-Of-Sale system or EPOS. Anyone would think that we had finally arrived at our destination – but here are some numbers. These are United Kingdom statistics but they will give you a rough idea of the ‘scale’ of what is going on in the High Street.
1. Nowadays, 75% of all retail transactions are completed using credit or debit cards.
2. Nearly 65% of consumers indicate that the credit or debit card is their preferred method of payment.
3. About 35% of small retailers or independent traders do not accept payment by credit or debit card.
There is quite a mismatch between the three simple statistics above and it is not surprising that it is now estimated that small retailers lose a total of approximately £30MILLION PER DAY while they watch what could have been profitable business walk out of their front door.
It is therefore surprising that a good EPOS system still has to be SOLD – especially as the modern spender practically demands technology at point-of-sale.
Let’s face it, the retail industry is now way behind the curve.
Perhaps the EPOS industry itself is not presenting its case well enough to the average retailer because let’s face it there isn’t a single merchant who should not be using some form of EPOS, unless they don’t have electricity!
Perhaps too many retailers consider some sort of modern electronic system is a bit of a luxury or possibly waiting for The Cashless Society when they will be forced to accept electronic payments.
If you are a small retailer and are reading this, you should also be aware of the fact that because of the semi abstract nature of the card payment, where many individuals do not believe that they are spending real money, if you accept electronic payments, you will make more sales. That’s a fact.
The only time that you should be cash-only is if your electronic system breaks down irretrievably or when there is a total power blackout. Otherwise, you are losing money every day and probably still wondering why your sales are heading south.
The modern customer requires totally flexible payment options, he does not carry as much money as he used to, he is computer literate and if you do not provide such an environment for your customers – you are definitely losing business.
Providing your clients with the full range of payment options should not be an option. It is an absolute necessity, otherwise as a business person, you are planning to fail.
The last two years have seen a massive increase in card spending – just look at the vast increase in Internet sales. The modern customer is not interested in folding money – only pressing buttons or nowadays, merely pointing their debit or credit card at a sales terminal.
On the one hand, we have the customer with his modern shopping preferences and on the other hand we have far too many retailers and merchants who are still failing to satisfy their customers needs – and that is a very VERY expensive disconnect between retailer and customer.
I am fully aware of the main reason why retailers are unhappy with anything new. Firstly, they fear change. Secondly, they fear technology. Thirdly, they worry about the cost – in many cases without even knowing what the cost might be.
The three excuses (because that is what they are) for a retailer not investing in an up-to-date EPOS system are easily dealt with but sometimes I wonder whether the point-of-sale suppliers are even attempting to solve the above three issues….or perhaps they are looking for problems that don’t even exist. In reality, EOPS should be selling itself!
I have heard retailers saying that it is going to be too complicated, too technical or that their customers prefer to pay by cash but interestingly, if the EPOS salesman was to say to them: “ Would you accept a modern EPOS system if it was free?”, what do you think the answer would be?
In 99% of all cases the answer is a resounding “YES!”
Remember, all you retailers, that with the incremental revenue that a good EPOS system is going to generate for you, in the short to mid-term it is not only going to be free but it is also going to be generating a profit!
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