Company News • 23.07.2015

POS Solutions as a Service: A viable model?

VARs have concerns of how to fund a HaaS model

POS Solutions as a Service: A viable model?
Source: APG Cash Drawer, LLC
How would you like to pay for that cash drawer? Increasingly, consumers prefer to pay for technology purchases through leasing or financing to avoid large up-front cash outlays.

At APG Cash Drawer, we recognize the POS market is heading in that direction, and we need to find ways to accommodate the shift.

We are working with one of our partners, Datacap Systems, on a hardware-as-a-service (HaaS) (model) that VARs can extend to their customers. In addition to Datacap, we are working with other partners to determine the best ways to support a HaaS model.

Software, which has been sold under licensing agreements to business customers for decades, is a more natural fit for an as-a-service model. Although it’s been discussed for years, HaaS is beginning to become much more popular. Hardware as-a service poses a special set of challenges that companies must overcome before launching a full-fledged program: upfront capitol, invoicing, and managing hardware assets on a monthly basis.

Most tier one and two POS hardware purchases are a 5 – 7 year commitment. The upfront cost of this hardware can range from $10,000 to $15,000 per lane. The HaaS approach requires VARs to either partner with a leasing company or self-fund deals to ease their customer’s payment burden.

POS Solutions as a Service: A viable model?
Source: APG Cash Drawer, LLC
HaaS is especially welcome in the lower tiers of retail, helping to remove the cost of entry into the market. And that’s why more and more VARs are looking to adopt a HaaS approach. They understand that if they can figure out how to extend hardware financing to customers at a reasonable cost to themselves, they are buying stability for their business.

VARs undoubtedly have concerns of how to fund a HaaS model—it requires a shift in mindset on how to sell point of sale. However, through the HaaS model, there are now more opportunities than ever before to become trusted advisors. A reoccurring revenue model will also empower VARs to build a legacy of revenue for their future family and company.

Changing buying habits from customers requires VARs to reinvent themselves to accommodate retailers’ growing needs. The irony of exploring ways to finance the purchase of cash drawers is not lost on us, but APG realizes the appeal of offering solutions as a service. It brings stickiness to the VARs, and gives us an opportunity to support the VARs for the long term.

Source: APG Cash Drawer, LLC

Supplier
Logo: APG Cash Drawer (Germany)

APG Cash Drawer (Germany)

Leichtmetallstr. 22a
42781 Haan-Gruiten
Germany

related articles:

popular articles:

Thumbnail-Photo: Offline stores sales in US department stores decline by 75% in Q2 2020...
25.09.2020   #e-commerce #brick and mortar retail

Offline stores sales in US department stores decline by 75% in Q2 2020

... as e-commerce is set to grow by 20% in 2020

According to the research data analyzed and published by StockApps.com, US department stores reported a 75% drop in sales during Q2 2020. The report estimated a decline of 60% for the whole year, while predicting a 20% increase in e-commerce for the ...

Thumbnail-Photo: CCV announces consolidation of its international payment division,...
02.07.2020   #mobile payment #payment systems

CCV announces consolidation of its international payment division, focuses on market innovations

Under the flagship of CCV GmbH, the company plans to bring its innovation into specific international markets

CCV Group B.V. has announced that all of its international business activities will now be consolidated and run within its Germany-based division - CCV GmbH. CCV GmbH will carry out the activities of the former CCV Deutschland GmbH and CCV Easy, a ...

Thumbnail-Photo: Knowledge is (retail) power
07.09.2020   #brick and mortar retail #digitization

Knowledge is (retail) power

The Germany Research Center for Artificial Intelligence (DFKI) wants to attain knowledge to assist the retail sector and creates digital twins of stores to make it a reality

Knowledge for all retailers - DFKI has launched the Knowledge4Retail (K4R) project series to achieve this goal. The driving force is an open-source platform for complex AI and robotics applications in retail.  The project relies on a digital ...

Thumbnail-Photo: Automated delivery services sprang up during China’s Covid-19 lockdown...
03.06.2020   #coronavirus #delivery

Automated delivery services sprang up during China’s Covid-19 lockdown

Retail technologies at Smart Retail Expo (SRE 2020)

In response to the Covid-19 outbreak, China’s retail giants JD.com and Meituan both deployed their smart deliver robots/vehicles in heavily locked down cities, such as Wuhan and Beijing. Insiders believe automated delivery technology will be ...

Thumbnail-Photo: Disposition and shelf maintenance in times of Corona...
19.08.2020   #POS marketing #shop equipment

Disposition and shelf maintenance in times of Corona

Tools for shelf management

The CPG industry is currently experiencing turbulent times just as much as retail. Challenges such as the ban on field sales force visits or the sudden increase in demand for some articles, which leads to gaps in the shelf and loss of sales, are ...

Thumbnail-Photo: RetailTech Lab opened a national test center in Denmark...
23.06.2020   #payment systems #marketing research

RetailTech Lab opened a national test center in Denmark

The store of the future has opened in Lyngby. One of the partners is the IT company Delfi Technologies.

On June 16, 2020, RetailTech Lab opened its doors to a national test center in the Danish mall “Lyngby Storcenter”. New technology for the retail industry will be tested in close interaction between entrepreneurs, retailers and ...

Thumbnail-Photo: Checkout-free service at Giant Eagle’s GetGo Café+Market store...
07.09.2020   #self-checkout systems #app

Checkout-free service at Giant Eagle’s GetGo Café+Market store

Retrofitting an existing store

Grabango announced the launch of commercial service with one of its retail partners, Giant Eagle, Inc, owner of GetGo Café+Market. Grabango’s checkout-free system is now available to save shoppers time by letting them skip the line. The ...

Thumbnail-Photo: “Dear shopping cart, please show me the way!“...
06.07.2020   #self-checkout systems #scanner

“Dear shopping cart, please show me the way!“

Shopping Cart 2.0 – gimmick or idea with intrinsic value?

Not all shopping carts are the same... far from it! Digitization and automation also put their stamp on this aspect of the retail sector. What’s usually a plain, large basket on wheels that makes it easier for shoppers to transport products ...

Thumbnail-Photo: Payment and retail - what happens after the crisis?...
09.07.2020   #brick and mortar retail #payment systems

Payment and retail - what happens after the crisis?

Interview with Christine Bauer from CCV

We ask Christine Bauer, Vice President International Sales of the payment service provider CCV, which has been firmly established in Germany for 25 years and internationally for 60 years.Mrs Bauer, CCV has been on the market for a very long time, ...

Thumbnail-Photo: eBay’s management of payments begins scaling globally...
24.07.2020   #online trading #e-commerce

eBay’s management of payments begins scaling globally

Payments initiative reaches a milestone as the Operating Agreement with PayPal expires

Starting today (July 20th), eBay will begin expanding its management of payments around the globe. The company embarked on its journey to manage the end-to-end payments process on its marketplace platform in late 2018 and is already seeing success ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
Apostore GmbH
Apostore GmbH
Uferstraße 10
45881 Gelsenkirchen
Poindus HQ - Taiwan
Poindus HQ - Taiwan
5F., No.59, Ln. 77, Xing-Ai Rd.,Neihu Dist.
Taipei City 114
Adasys GmbH – a Poindus Company
Adasys GmbH – a Poindus Company
Max-Planck-Straße 10
70806 Kornwestheim
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
CCV GmbH
CCV GmbH
Gewerbering 1
84072 Au i.d.Hallertau
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal