| Keep retail software sales up by focusing on changes in point of sale
software. Think vertically. That's Dave Lakhani's advice to VAR's
selling point of sale (POS) software to the market. Lakhani is director of sales and
public relations for Reporting to the MAX including Point of Sale and Non-profit Versions (Boise, ID). The 17-year-old software
development company specializes in POS and accounting software. Reporting to the MAX has 63
employees and annual gross sales of $5 million in 1998.
"POS software is becoming branded within specific verticals,"
says Lakhani. "The benefit to the VARs is that it is easier to sell, if they
understand that particular niche." A POS software package for liquor stores is one
example. "You can bundle the software with POS hardware and sell the total solution
to liquor stores," says Lakhani. "To be successful, you have to know how liquor
stores operate. Read the liquor store industry trade publications, search the Internet for
information, and talk to liquor store owners to learn more."
Lakhani followed his own advice to move his company ahead in the hobby
and craft market. "We went to hobby and craft trade shows and interviewed hundreds of
users," says Lakhani. "In addition, we have a company representative on a
national hobby and craft association board as a technical advisor. Networking with peers
and industry leaders is a very important -- and often overlooked -- piece of the selling
puzzle."
The internet is also impacting retail. "Many retailers feel they
need a Web site, when if fact, they don't," says Lakhani. "A local dog grooming
business doesn't need a Web site to do business, for example. A retailer in Vermont
selling syrup, on the other hand, can benefit from a Web site. That retailer's POS
software must accommodate order receipt and fulfillment, and possibly tie into a retail
store operation."
Microsoft Changes POS Software
"Microsoft development tools are making it easier and more affordable for software
developers to create applications for niche retail markets," says Eric Thueson,
president of RegistWare (Boise, ID). The privately held POS software development company
has 27 employees and annual gross sales of $2.5 million in 1998.
"VARs can sell a bundled solution -- the application and the
operating system -- to retailers, Five years ago, remote polling involved a third-party
interface. Today, retailers use polling tools such as RAS in the operating system."
More rapid applications development means software is brought to market more quickly,
giving VARs and retailers more options when choosing a POS package.
To sell POS software successfully in the retail market, VARs need to
understand retail's core feature -- inventory control. "The point of sale is where
the cash is collected, but inventory is also money to retailers. Bar Coding then, is
given," says Thueson. "Controlling inventory with a POS system helps control the
retailer's bottom line."
A key trend in POS software development is the increase in the number of
Windows-based products. "People say they know Windows when they really don't,"
says Thueson."At a minimum, VARs need to know how to set up a Windows 95 network and
understand the basic peer-to-peer network. Unless they have retail knowledge, VARs will
have a hard time selling retail POS software."
Thueson predicts Microsoft will continue to affect retail software.
"Windows 2000 will have a huge impact on the overall computer industry. It is a
completely new product that will replace Windows 98. It's as different form Windows 98 as
Windows 95 was from Windows 3.1. Windows 2000 is essentially Windows NT. Windows 95 and 98
will be dead." |
