Hi-tech Retail John Bertoli's post
Reducing costs with affordable and resourceful mPOS
OCT 01, 2019
mPOS systems offer increased agility and decreased overhead costs, making them an increasingly attractive investment. In fact, the ease-of-use, reduced TCO and improved ROI are all significant contributors to the increased demand and growth in the mPOS terminals market. 9 Resourceful mPOS leverages and repurposes a company’s current tech assets, making the system more affordable for companies to deploy sooner rather than later. In general, mobile devices are a much lower cost of capital than traditional POS equipment. Companies that choose a MaaS program continually update their devices based on a service contract rather than buying devices outright, which further mitigates the risks associated with legacy equipment and eliminates large capital costs.
Another source of cost reduction is the technical support offered by mPOS suppliers, which can be a hefty cost for companies to handle internally. In fact, outsourcing support services can often save companies 30 to 50 percent of the internal fully loaded costs to manage mPOS programs.
Labor costs are an additional consideration for companies implementing a new mobility management program. While labor costs may be initially high due to deployment and training, they generally level out as the mPOS system creates efficiencies that help managers and employees better facilitate strategic outcomes, increase revenue, improve client experiences and enhance competitive advantages.
The ability to implement mPOS at scale makes it an affordable investment that’s especially fitting for enterprise businesses with multiple locations and hundreds to thousands of employees.
Moreover, it’s important to note that these lower costs and increased profitability of mPOS systems require aligning project expenses with the intended ROI. While DaaS and MaaS eliminate the steep up-front capital expenditures for hardware or labor costs for the deployment of legacy systems, the ROI will still take time to become clear. For instance, mPOS systems collect money at the completion of transactions, which can increase receivables and reduce bad debt. If these are the goals, the payback should be measured over months. Alternatively, if the main objective is to convert floor space to revenue-generating product displays, the ROI on the conversion should be measured in total sales per square foot over months or years.
The net value of mPOS takes companies back to the strategic outcomes of the system. MaaS and DaaS solutions mean there’s no need to purchase millions of dollars’ worth of mobile devices. Companies will instead be investing in service pipelines that can support greater sales and marketing objectives.
Improve ROI by partnering with innovators in mPOS
Historically, point of sale solutions are complex systems with several moving parts. With clear value in implementing mPOS systems, the hassles of mPOS management may feel like par for the course. However, innovators in mPOS are adopting service-based solutions to eliminate the most challenging hurdles.
When there are six or seven different suppliers at work behind the scenes, the disconnect between them can make it difficult for companies to manage their mPOS - especially if technical issues arise. The idea behind MaaS is to provide all the moving parts and offer all necessary support through one supportive and informed point of contact.
MaaS or DaaS solutions provide mPOS planning, procurement, deployment and management for one monthly fee. With this model, companies benefit from several generations of devices as opposed to investing in permanent assets. This makes it easier to keep up with consistently updated technology and meet consumer expectations of the most cutting-edge experiences.
Companies that struggle with multiple supplier contracts, complicated cellular billing agreements, steep volumes of various devices, frequent updates or security threats may be especially inclined to switch to this mPOS system model. The results point to enhanced consumer experiences, maximized efficiencies, reduced costs and, ultimately, higher ROI.
Learn about Samsung SDS' offering
Samsung SDS is pioneering DaaS and MaaS, providing a true end-to-end mPOS solution, combining on-demand hardware, services and analytics into one predictable monthly payment. Companies can operate seamlessly, knowing there is accountability on Samsung SDS’ end to make their mPOS a successful, revenue-driving system.
Consistent support & cost savings: avoid the headache of maintaining and refreshing hardware and turn it into an opportunity for consistent cost savings.
Focus on revenue growth: gain significant savings that can be reinvested into revenue generating activities rather than costly overhead.
Leading-edge technology: Mitigate retail risk associated with dated legacy technology by leveraging a platform that offers a state-of-the-art mobile POS solution that prevents potential reliability and security issues.
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