Cloud Based Point of Sale Systems: Things to Keep in Mind

2015 has really been the year for cloud and mobile point of sale systems for retail stores, restaurants and museums. About 65% of the businesses and organizations that contact me are only considering point of sale systems that work on mobile devices and are cloud based.  A few things to keep in mind if you are looking at the cloud based point of sale systems like Clover, Vend, Lavu, Shopkeep, Lightspeed, or Silver...

1. In most cases the cloud based point of sale systems will only cost around 10%-30% less than a point of sale system that you lease to own or purchase outright (eg: Retail Pro, Sapphire, NCR CounterPoint, Retail management Hero, Etc.).  This assumes that you plan on keeping your point of sale system for 5-7 years and that you pay an ongoing monthly fee to use a cloud based point of sale system (which normally also includes support and updates).
2. You lose some control when using a cloud based point of sale system. Best example is that a traditional point of sale system puts all the hardware, software, and data onsite within your business or organization. If a router fails, you simply replace it.  With the cloud based point of sale systems you have no control if their router breaks or if their server goes down. Look at the reviews for any cloud based point of sale system and see that users mention outages lasting several hours. The point of sale companies tout off line modes or similar features but the reality is that system wide failures are possible and there is nothing you can do about it when it comes to cloud based point of sale systems.
3. Ownership: most cloud based systems are rented so you never actually own anything - very easy on your budget but you have to be comfortable with this pricing structure.
4. Hidden fees and contracts: I've been very disappointing with several of the cloud based point of sale systems who require long term contracts with early termination fees and limitations on who you can use for your credit and debit card processing services. As with any point of sale system, due diligence is required on your part when it comes to reading and signing any agreements or contracts.

Now, this may all sound somewhat negative but I actually do feel that some of the cloud based point of sale systems are great solutions (I've previously used, sold, and supported several).  However, they are only good solutions in one or more of the following situations:

• Single location or less than 10 locations with annual sales of less than $800,000 per location.
• OK with never owning the actual software but paying an ongoing fee each month.
• Low technology needs: OK with canned reports and don't have complex  inventory needs.
• No internal IT person or "computer geek": cloud based systems are generally very easy to learn and use and do not require internal IT resources.

Are you  in the US and in need of no cost retail point of sale advice?  I'm happy to help and can be reached on my cell at 208-340-5632 (I am on Mountain Time) or via email at kevinantosh@gmail.com. There is also a contact form to the right that can be used to reach me.

Continued Cover Complaints

As I don't always have time to post every time that someone is kind enough to provide me with feedback on their POS system, I did want to mention that I continue to receive regular negative feedback on Clover POS. Several folks have taken the time to call or email me with recent details about their negative experience with Clover.

The complaints similar to what I have posted about Clover in other posts (excessive fees, long term contracts, promised features/functions not available, etc). You can always contact me if you need more details but obviously Clover is not on my recommendation list when it comes to reliable and reputable point of sale systems.

Are you  in the US and in need of no cost retail point of sale advice?  I'm happy to help and can be reached on my cell at 208-340-5632 (I am on Mountain Time) or via email at kevinantosh@gmail.com. There is also a contact form to the right that can be used to reach me.

New User Feedback on Clover Point of Sale

Some helpful feedback from a convenience/liquor store in Georgia that was using Microsoft Dynamics POS 2009 and attempted to switch to using Clover point of sale:

Here are my comments on Clover.  This physical POS design and look are beautiful.  The swivel feature is handy.  Overall transaction and payment procedure is simple and easy for customers and cashiers.

The problem I have with it is there is no Cash Payout option for purchase of delivery from vendors.  Also no vendor setup menu.

The main reason I am returning it is there is no mix and match pricing on special.  For example if I wanted to mix 3 different wines and sell them a discount, my cashiers would have to do it manually.  I can not take risk of possibly selling an expense wine at a discount because the cashier includes it in the special.  This needs to be done at the item level.

Please visit my contact page for information on how to reach me.

Why You Should Be Avoiding Clover, HarborTouch & QuickBooks Point of Sale

As I am now receiving near daily calls and emails from folks considering the Clover point of sale solution, I wanted to explain why you should not be considering point of sale systems like Square, Clover, HarborTouch, and QuickBooks point of sale.

The only assumptions I am making is that your business is generating at least $60,000 in annual gross sales and 90% of payment is made using debit or credit cards.

When you purchase a point of sale system that requires you to use one specific company for merchant services, you are at the mercy of that company when it comes to the rates that they charge you for merchant services. What I have seen happen time and time again is that these companies will raise your rates every 90 days or so.

While paying 1/2% more in merchant service fees (which is what seems to be the norm with these companies) may not seem like much - lets see how that adds up over 5 years.

If your business processes $200,000 in debit and credit card transactions annually the 1/2% is $1000/year so you could easily end up paying $4000+ in excessive merchant services fees over the course of 5 years.

I don't know about you but I would rather have that money as profit!

Are you  in the US and in need of no cost retail point of sale advice?  I'm happy to help and can be reached on my cell at 208-340-5632 (I am on Mountain Time) or via email at kevinantosh@gmail.com. There is also a contact form to the right that can be used to reach me.

Recent Reviews & Feedback on Clover Point of Sale

Update July 6, 2015: no shortage of complaints against Clover specific to expensive long term contracts, costly buyout clauses, unable to transfer licensing if the business is sold, and sales reps making promises for features/functions that Clover just can't do.  I believe the overall tally is over 400 verified complaints against Clover.

In the last 2 weeks I have received a larger than usual number of calls and emails related to the Clover point of sale solution for Android devices. Since many of you appear to be considering Clover as a possible point of sale solution for your business, here is the feedback/reviews that folks have been sharing with me:

• "Returned it (Clover) the next day"
• "(sales rep) couldn't even demo the system"
• "they will raise my (merchant services) rates"
• "don't want to be locked in to a credit card contract"
• "good step up from a cash register"
• "missing features"
• "went with Bindo which does more and doesn't require me to use a specific company for credit and debit card processing services"

The Bindo solution was mentioned a couple of times.  Folks noted that Bindo does more than Clover and is even offering some various incentives like free hardware currently. If you are curious about Bindo Point of Sale, check them out at www.bindopos.com.

Are you  in the US and in need of no cost retail point of sale advice?  I'm happy to help and can be reached on my cell at 208-340-5632 (I am on Mountain Time) or via email at kevinantosh@gmail.com. There is also a contact form to the right that can be used to reach me.

Vertical Specialties for Various Retail Point of Sale Systems

As July is not a big month for point of sale news and information, I thought that I would pass along some information related to what vertical markets various point of sale programs focus on. This is not meant to say that the program will not work in a different vertical - just that the program has an established presence in the verticals listed below.

If you recall, my point of sale workshops stress that you should focus on point of sale programs that are designed for your type of business.

NCR Silver

• Small general retail stores and food service businesses like food trucks, counter serve restaurants/cafeterias/coffee shops, and concession stands.
• Temporary or seasonal retail businesses
• Mobile retail or service only businesses
• Kiosk businesses
• Thrift and second hand stores
• Clothing and Apparel Stores
• E-Cig Stores

First Data Clover

• Same as NCR Silver 

Bindo Point of Sale

• Wine, Beer and Liquor Stores
• Pet Stores
• Health and Beauty 
• Clothing and Apparel Stores
• Sporting Goods Stores
• Museums
• Gift Shops
• Candy Stores
• Salons and Spas
• Thrift and second hand stores
• Pro Shops

NCR CounterPoint

• Museums
• Thrift and second hand stores
• Garden Centers
• Pet Stores
• Sporting Goods Stores
• Clothing and Apparel Stores
• Liquor Stores
• Sporting Goods Stores
• Gift Shops
• Tobacco and E-Cig Stores 
• Pro Shops

Retail Pro

• Same as NCR CounterPoint

Microsoft RMS

• Same as NCR CounterPoint and Retail Pro
• A lot of government entities (since it is a Microsoft product) as well as government run businesses like golf courses and pro shops.

I realize this is not a complete list but I used information from the companies websites, what trade shows these companies attend, and my own 15 years of personal experience.

Can I help by offering some free point of sale advice or answering your retail or museum point of sale related questions?  If you are in the United States then please use the contact form to the right, email me at kevinantosh@gmail.com or call me on my cell at 208-340-5632. I've worked with thousands of businesses over the years to help them find the best point of sale solution and have also negotiated some pretty cool discounts as well.

Review of Clover Point of Sale for Android Devices

Update January 14th, 2016: same ole horror story with numerous complaints specific to Clover and businesses selling Clover. Specifics include excessive and unusual fees hidden in the contract, rates being raised even when specific rates had be promised (read the fine print in the contract - they can raise your rate), sales reps making promises to keep the rates low and competitive but then raising the rates anyway, salespeople saying that Clover has features/functions that don't exist, etc. etc.

I'm aware of at least two proposed class action lawsuits related to Clover so that should be a huge warning sign not to invest in Clover.

Update September 4th, 2015: to summarize all the information below - 3 years ago Clover looked promising but todays advice is to avoid Clover like the plague - I've stopped tracking the number of complaints specific to Clover as its clear that choosing Clover is a bad decision. 

Update July 6, 2015: no shortage of complaints against Clover specific to expensive long term contracts, costly buyout clauses, unable to transfer licensing if the business is sold, and sales reps making promises for features/functions that Clover just can't do.  I believe the overall tally is over 400 verified complaints against Clover.


Update 1.January.2015:

Based on user feedback and the fact that First Data locks you into a costly merchant services contract when purchasing Clover, I do not recommend that anyone considers Clover as a possible point of sale system for your business or organization. There are much better systems on the market like NCR Silver and Bindo Point of Sale that perform at a same or better level and do not lock you in to costly merchant services contracts.

One of the newer tablet and cloud based retail point of sale solutions to come on the marker is Clover. The folks at Clover sent the company that I worked for a complete demo system with a tablet, cash drawer, customer price display, credit card swipe, and high speed thermal receipt printer.  I used this equipment at nearly all of the point of sale workshops that I conducted in 2012 and parts of 2013.

In the end, Clover has been acquired by First Data and is not currently available for sale (per the Clover website).  Still, in case the program becomes available again, here are my thoughts in working with clover as a retail or food service point of sale system.

The Good:

• Very easy to learn and use
• Simple touch screen user interface
• Easy to navigate back office functions via a web browser
• Set monthly price

The OK:

• Appeared to handle both basic retail and basic food service sales well 
• Has some modifiers for food and beverage items
• Decent amount of reporting
• Doesn't try to be a true point of sale system (ie: no inventory tracking or purchasing/receiving)
• At the time, there appeared to be various options to pick and choose who would handle your merchant services

The Needs Improvement:

• Lack of basic item cost/margin tracking
• Limited hardware compatability
• Unclear future - if First Data requires the customer to use First Data for merchant services than merchants could be locked in to paying excessive merchant service fees

Summary:

While I really liked Clover as a viable solution for very small retail stores and food service businesses, the unclear future of Clover makes it tough to even consider Clover as a point of sale option - especially since it has not been available for several months now.

*Updates 7/24/2014*  *Feedback Received in July 2014*

• Returned it (Clover) the next day"
• "(sales rep) couldn't even demo the system"
• "they will raise my (merchant services) rates"
• "don't want to be locked in to a credit card contract"
• "good step up from a cash register"
• "missing features"
• "went with Bindo which does more and doesn't require me to use a specific company for credit and debit card processing services"

The Bindo solution was mentioned a couple of times.  Folks noted that Bindo does more than Clover and is even offering some various incentives like free hardware currently. If you are curious about Bindo Point of Sale, check them out at www.bindopos.com.

Are you in the US and in need of no cost retail point of sale advice? I'm happy to help and can be reached on my cell at 208-340-5632 (mountain time) or via email at kevinantosh@gmail.com.

Updates on Clover Point of Sale

Updated September 4th, 2015: to summarize all the information below - 3 years ago Clover looked promising but todays advice is to avoid Clover like the plague - I've stopped tracking the number of complaints specific to Clover as its clear that choosing Clover is a bad decision. 

Update July 6, 2015: no shortage of complaints against Clover specific to expensive long term contracts, costly buyout clauses, unable to transfer licensing if the business is sold, and sales reps making promises for features/functions that Clover just can't do.  I believe the overall tally is over 400 verified complaints against Clover.

Update 1.January.2015:

Based on user feedback and the fact that First Data locks you into a costly merchant services contract when purchasing Clover, I do not recommend that anyone considers Clover as a possible point of sale system for your business or organization. There are much better systems on the market like NCR Silver and Bindo Point of Sale that perform at a same or better level and do not lock you in to costly merchant services contracts.

As I have mentioned in the past, I came across some issues with Clover point of sale when it came to actually selling the Clover solution (the folks at Clover said that they were "moving in a different direction" and didn't feel that they could support any new customers at the time).

I liked Clover as it worked well in both a retail and quick-serve environment.  Well, it turns out that First Data Corporation (one of the largest payment processing companies) has acquired Clover point of sale and relaunched Clover with updated hardware.  It will be interesting to see how this effects the merchant services options that Clover previously offered.

Even more interesting is that the Clover website states that Clover will be sold through First Data but there is no pricing information and only a "wait list" to be "one of the first" to get a Clover system.  You can see more information at https://www.clover.com/waitlist or www.clover.com.

NCR Silver is one direct competitor to Clover so it will be interesting to see how First Data markets Clover.  I suspect that there will be some incentives to use First Data for merchant service since there is more money to be made off of merchant services in the long term than off of the Clover hardware and software.

Bottom line: wait and see or look at a different solution if you need a point of sale system sooner than later.

*Updates 7/24/2014**Feedback Received in July 2014*

• Returned it (Clover) the next day"
• "(sales rep) couldn't even demo the system"
• "they will raise my (merchant services) rates"
• "don't want to be locked in to a credit card contract"
• "good step up from a cash register"
• "missing features"
• "went with Bindo which does more and doesn't require me to use a specific company for credit and debit card processing services"

The Bindo solution was mentioned a couple of times.  Folks noted that Bindo does more than Clover and is even offering some various incentives like free hardware currently. If you are curious about Bindo Point of Sale, check them out at www.bindopos.com.

Are you in the US and in need of no cost retail point of sale advice? I'm happy to help and can be reached on my cell at 208-340-5632 (mountain time) or via email at kevinantosh@gmail.com.