By: Jim Roddy, President & CEO at the RSPA
I’ve seen the numbers on restaurant-focused VARs shifting to the retail vertical, and it makes sense because of the intensely competitive and margin-obliterating VC-backed, 800-number POS providers in hospitality.
At the 2024 Retail Management Hero (RMH) Partner Conference Sept. 24-26 at the Royal Sonesta New Orleans, I heard firsthand from several solution providers why they’re making the switch:
- Restaurants aren’t fun anymore.
- Our team is happier working with retail people.
- There’s less cutthroat competition in retail and grocery.
- Restaurants switch systems with no notice.
- Hospitality is now like a one-night stand. Retail is a long-term relationship.
- I want a deep and fulfilling relationship.
- [Vendor name redacted] is the Tinder of POS.
These VARs aren’t suddenly anti-restaurant; they just want business relationships based on shared success, not a transactional race to the bottom. RMH CEO Jeff Riley touched on that point during his State of the Union that opened the retail ISV’s sixth annual conference.
Riley detailed how the reseller business model – and their attitude – has changed over time. Through the 1990s, “Dealers” resold analog and electronic cash registers and were happy to repair those machines when they broke. “VARs” focused on implementation, support, and training related to computer-based POS systems and payments.
Today’s “Solution Providers” want to serve merchants as trusted advisors – a consultant and an integrator. In addition to providing merchants their core technologies and services, Solution Providers focus on hybrid cloud and edge computing technologies including AI, IoT, and RFID.
“Solution Providers want to be the sherpa who helps their retail merchants climb the mountain of technology,” Riley said. “We are helping them navigate a river that turned into rapids.”
Riley then challenged the conference-record 135 attendees, a quarter who are new RMH partners testing out the retail vertical. “If you’re operating as a Dealer or even a Reseller, you are a step or two behind where you need to be,” he said. “Once you have a business model that works, you’re comfortable to continue it. What’s less comfortable is to look into the future and change. You have to continually survey the landscape of technologies and determine what’s best for each of your customers.”
“The opportunity in front of you that’s bigger than the product is understanding your retail customer’s business. Our vision is that RMH will be a platform for Solution Providers. Be a Solution Provider.”
News & Notes from the 2024 RMH Partner Conference
- What’s a solution provider to do when a merchant opts to instead “do my own research” and then leans on Google and their gut for IT decisions? Riley said don’t get defensive or combative. Get inquisitive. “Have a discussion around their business needs for IT,” he said. “Ask how the solution they’re leaning towards handles e-commerce. How does it handle data processing? What does it do for database management? What about digital marketing? Once you get into specific retail scenarios, it’s kind of overwhelming.”
- When doing my research for this year’s RMH Conference, I re-read the RSPA blog post analyzing the 2023 RMH event. I think the list of what VARs and vendors should look for in an ISV partner beyond product functionality is worth your review – and it served as the backdrop for this year’s partnership-centric RMH event: 2023 RMH Conference Analysis: “Vendors Can’t Do It All On Their Own”
- Shawn Collins of VAR Multi Computer Systems in New Hampshire shared his nine steps for solution provider success reselling software: (1) know the software, (2) know what hardware works best, (3) know what processors work best, (4) know the operating system, (5) know your add-ons, (6) know how networks work, (7) know how to market the software, (8) know how to get answers, and (9) answer every single customer question. “If you don’t answer their questions, your customer is going to become mine – because I’m going to get all the answers for them,” Collins said.
- Did you follow that blog link I shared earlier? While you’re on the RSPA site, take a listen to Riley’s acceptance speech when he was named RSPA Board Chair earlier this year. My favorite portion of his speech was this: “One thing I believe wholeheartedly is that independent and growth-minded retail business owners will always need an expert guide to help them with their selection and implementation and support of technology solutions. The moment they want their IT systems to step up and help grow and streamline their business is the moment of our calling. I don’t believe that there will ever be one vendor that will singly be able to meet all of their needs.”
- I was honored to moderate the panel “Success with Larger Customers” featuring Tae Kang of POS Unlimited, Victor Lopez of BCPOS, George Muchae of New West Technologies, and Alan Gidekel of Visibility Solutions. I couldn’t jot many notes because of my moderating duties, but a couple themes stuck with me. First, the size of the solution providers ranged from a one-man shop to 80+ employees proving that VARs of any size can win a large deal (20+ locations). Second, thorough up-front analysis of the opportunity – working in concert with your vendor partners for guidance – is key to ensuring the installation, customization, and support will meet the customer’s needs and exceed their expectations.
- I also assisted for a talk on recurring revenue which referenced the RSPA’s Ultimate List of Recurring Revenue Products and Services. During my recent channel travels, I’ve learned of new recurring revenue avenues which will expand this list beyond its current list of 49 products and services in our next update.
- Dennis Wilson of RSPA ISV member DBC Technologies was a featured presenter with his talk “Leveraging AI for VARs and Retailers.” He started with a warning for solution providers who fear this new technology: “AI will not erode your company’s market share,” he said. “Your competition who is using AI and selling AI – they will erode your market share.” Wilson’s suggestion for VARs to use AI to help create customer training materials really resonated with me. When RSPA conducts merchant surveys on behalf of our VAR members, a frequent customer request is “more training, please.” Wilson said, “We should all have more training programs, but it’s a real pain in the ass to create training. With AI you can import your materials and it can export a PowerPoint presentation for you to tweak. That’s one of the easiest savings and sales growth opportunities for VARs and ISVs.”
- What do you say we go back to the RSPA website one last time for some recent RMH-related content? We just launched an episode of the RSPA Trusted Advisor Podcast talking leadership with Riley and Brett Bennett of VAR POSitive Technology and ISV OpSuite: VAR/ISV Best Practices for Handing Off Leadership Responsibilities
RMH Annual Award Winners
Three RSPA members were among the partners recognized by RMH for their contribution to the ISV’s channel over the past 12 months:
- RMH Partner of the Year: POS Unlimited
- Globetrotting Award: New West Technologies, for their efforts to expand RMH’s footprint
- Vendor of the Year: Touch Dynamic
