Free POS VS POSaaS
Free POS ( For example Aldelo Free POS or Harbor touch Free POS )
in the Retail and Hospitality Marketplace stands for Fees Rarely Ethically Exposed. The reasoning behind this is very simple; a POS System cannot be FREE, There are many components and vendors that needs to be involved in order to assemble a POS System. These different components are Software, Hardware, Installation services and Credit card processing, and all of these components have a cost associated with it. Most of the vendors that advertise FREE POS System have very stiff contracts that is virtually impossible to get out of. If you do decide to break the contract you will have to pay the cost of the remaining contract and that might cost you thousands of dollars. In addition to that they make certain that there is a monthly fee associated with the system, sometimes by naming them “support fees”, also they require you to have Credit Card Processing which they can use to hide numerous fees that the buyer pays daily without their knowledge. After the contract is over, paying for this “Free POS” you will end up costing you three times or more than what you would pay for the original POS System at retail Cost. To put it in few words, “FREE POS” is just an unethical way of doing business.
POSaaS ( POS as a Service )
is a modern way of doing business started recently with new Software Cloud Technology. The POSaaS model means that all the components of the POS System carry the Warranty, Care and Software updates for all time of the agreed period, Hardware Vendors carry the responsibility to update, replace or repair their hardware in a short timely manner, Software Vendors carry the responsibility to update and support their software and Service Vendors are there to support the end user at all times. There is no need to hide any fees the system and the vendors are there to serve the buyer and all together recognize what a mission critical system is and what effect can have to the bottom line of the business if the system is malfunctioning, they all care and are available always. The POSaaS agreements usually have no or a small startup cost and there is a monthly fee associated with it to assist the vendors to be in business, Some of the credit card processors may participate and they are helping the buyer by paying some of the systems depreciation fees of the therefore they reduce the cost of the monthly payment, in addition there is no commitment of using the system, the right agreements have a soft exit clauses. Think as you are leasing a vehicle that you receive all the care from the factory and no service fees but you have the option to return similar as renting but after the agreed period you have the option to keep it at no cost or continue with the agreement if the buyer decides to continue with the agreement vendors have the responsibility at this point of time to renew the whole system hardware and software by updating it to the technology standards of that point of time. In conclusion POSaaS model is the ethical way of doing business and the recommended way.