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19/02/2012

Cheap POS Systems and Their Consequences ...

When a manufacturer presents me with a new POS system, I thankfully immediately and intuitively know, after 20 years of experience, how many returns during the...

When a manufacturer presents me with a new POS system, I thankfully immediately and intuitively know, after 20 years of experience, how many returns during the warranty period I can expect. If I have seen the factory in China, Taiwan or anywhere else in Asia, then I know that my guess is accurate. The brand name of the manufacturer does not impress me much. There are also well-known global brands who produce POS systems, of which 30% per year get returned. The record holder is a Far East manufacturer with a rate of 230%, meaning that in the first three years every system was returned more than twice.

That of course is a catastrophe. If we are talking about an end customer with only one POS system, then the retailer can quickly explain that he was simply unlucky, since the devices, and particularly this model, normally are "top". But once the purchaser is part of a chain, then you can forget it.

This is why we are very particular with our POS system selection. Whether it is from HP, NCR or Glancetron: if our product management is not impressed, then we do not buy that product. But Country Managers still come to me: "In country X we need a system for less than Y euros, with Z years of warranty, otherwise we will not sell anything." Of course I can buy a POS system somewhere in the world for 300 euros, with super performance data and a cool design. But then I should also write in the catalog: "This device, which looks great on the outside, comes with only one year's warranty when purchased from us. Because of the servicing which is to be expected, we do not repair the device ourselves, but rather, send it to the manufacturer in the Far East. Please take into account a waiting time of four months. As an alternative we offer our customers a pre-exchange service with a warranty extension, for a mere 300% surcharge."?

It is also interesting that most cases come from central Europe. Thermal overload. In southern Europe every restaurant and every shop is air-conditioned - in Germany or Holland there are only two or three days a year anyway which are hotter than 90 degrees - and that is when the cheap POS systems drop like flies.

I understand the desire to have a more inexpensive market-entry system. But as was the case with the topic of energy consumption (see my blog from 14.2.2012), there must be a little respect for the follow-up costs.

14/02/2012

No Audience for Energy-Saving Devices

It's not really a new trend anymore: manufacturers advertise that their products have low energy consumption....

It's not really a new trend anymore: manufacturers advertise that their products have low energy consumption. In our case, printers do not use much power, checkouts too, and most of all, every device uses less electricity than those of the competitors. Is this about being environmentally friendly? Not really. In the ADC/POS industry, all devices consume less electricity than they did five years ago, and since that time, the implementation of mobile devices has multiplied. The environmental effect of the battery packs and batteries that cannot be recycled is hardly foreseeable. At the checkout, most printers still use thermal paper, a flattened chemical bomb.

Logically, the topic of "Go Green" in our industry is not about protecting nature or its resources, but rather, saving money. This would be really good if the basic approach would be to sell energy-saving devices. The manufacturers champion the cause: hardly a printer/scanner/touch screen out there that according to advertising does not save a whole lot of euros in energy consumption, which leaves you with so many that you can hardly stack. "Are you saving more than you are spending?" would be a more appropriate slogan here.

But the reality is: our retailers check the shelves for the device with the combination that has the best price, the best performance and a resilient quality. No one, and really no one asks us about follow-up costs during sales talks. And if our retailers do not do that, then this topic is obviously not important to end customers. Pity.