Introduction
For every business, be it a restaurant, retail store, or service provider, selecting the appropriate EPOS system is essential. Investing in these systems is crucial since they manage transactions, keep track of inventories, and simplify operations.
But not every EPOS supplier uses open and honest marketing and sales strategies.
Numerous businesses employ dishonest strategies to entice customers by making what appear to be unbeatable offers before subsequently disclosing hidden costs, restricted agreements, and pricey upgrades. As a result, customers may end up spending far more than they had anticipated.
This post will outline some of the most prevalent covert strategies employed by EPOS providers and offer advice on how to stay clear of them.
False Pricing & Hidden Charges
Advertising deceptive pricing is one of the main strategies employed by EPOS suppliers. An EPOS system may be advertised by a business as being extremely inexpensive up front or even free, but the consumer may subsequently learn of a number of additional costs that make the system much more costly than they had originally thought.
The following are some of the most typical hidden costs:
- Program licensing fees: Even after a company buys hardware, many vendors demand recurring payments simply to utilize the software.
- Installation and setup costs: Despite the fact that certain systems are advertised as “plug-and-play,” many businesses demand additional fees for setup, installation, and training.
- Support fees: Although some basic customer service may be covered, many businesses charge more for on-site help, priority support, or extended hours.
- Transaction costs: Some EPOS suppliers impose extra transaction fees on each sale in order to compel companies to utilize their payment processing services.
How to Stay Out of This Trap
- Request a thorough pricing breakdown from an EPOS supplier before deciding to work with them.
- Make sure you know what is included by the offered price and what other expenses could be necessary.
- Examining internet evaluations and grievances from other companies can also be useful in determining whether or not hidden costs have been a frequent problem.
Long-Term Contracts with Lock-In Clauses
Another popular strategy is to lock companies into long-term agreements that are expensive and difficult to break. It is practically hard to transfer EPOS suppliers without incurring significant fees since some force consumers to sign contracts that span three to five years.
Typical lock-in strategies consist of:
- Early termination fees: If a business wants to end a contract before it ends, they must pay a hefty cost.
- Costs associated with equipment repossession: If an EPOS system is rented, companies may be required to pay extra to return the equipment or face legal repercussions.
- Automatic renewals: Unless the company cancels within a predetermined window of time, which isn’t always made apparent, some contracts automatically renew.
How to Stay Out of This Trap
Examine the cancelation conditions and penalties before signing any contracts. Instead of long-term obligations, look for suppliers who provide flexible month-to-month contracts. Make sure you completely comprehend the conditions and whether they meet your company’s demands if a provider insists on a multi-year contract.
Limited Capabilities Needing Expensive Upgrades
An EPOS system could first appear to provide all of a company’s requirements. Customers are forced to pay for expensive upgrades since many carriers restrict essential services in lower-tier contracts.
Typical features that could be restricted to pricey premium plans include:
- Advanced analytics and reporting: Without an update, it is more difficult to monitor business success because some providers charge more for comprehensive sales data.
- Inventory management: Businesses may have to pay more for a full-featured solution if basic plans only provide limited inventory tracking.
- Third-party integrations: A lot of EPOS suppliers charge extra for connecting to CRM, online ordering, or accounting software.
How to Stay Out of This Trap
List the key characteristics your company need before selecting an EPOS system. Find out from the supplier which features are covered by the base plan and which ones cost extra. An EPOS system’s reputation for unforeseen upgrade expenses can also be determined by reading customer feedback.
Pricey Hardware That Is Exclusive to Their System
Only their software may be used with proprietary hardware sold by some EPOS providers. At first, this can appear practical, but if a company want to transfer providers, it becomes a big problem. The company must purchase brand-new equipment since the hardware is incompatible with other platforms.
Typical instances consist of:
- Exclusively compatible with the provider’s payment processing service are proprietary card readers.
- Tablets or tills that are locked down prevent the use of third-party EPOS software.
- Exclusive barcode scanners or receipt printers: These devices are incompatible with other EPOS systems.
How to Stay Out of This Trap
Look for an EPOS system that supports open hardware while making your selection. Numerous contemporary EPOS systems are compatible with commonplace gadgets like iPads, generic receipt printers, and universal barcode scanners.
This guarantees that you won’t have to replace all of your gear if you ever need to transfer providers.
False “Free” EPOS Promotions
To get clients, a lot of EPOS businesses falsely advertise “free” till systems. Even while this could seem like an incredible offer, firms frequently wind up paying far more in the long term.
The following are typical traps behind “free” EPOS offers:
- High monthly costs and long-term contracts: Although the system may be free up front, companies are forced to make costly monthly payments for years.
- Limited functionality: Free systems sometimes have extremely minimal capabilities that must be unlocked with expensive add-ons in order to use critical tools like complex inventory management, reporting, and integrations.
- Mandatory payment processing: Some companies compel companies to utilize their payment processing services, which frequently have transaction fees that are greater than usual.
- Equipment leasing traps: Companies may have to pay high costs to keep the equipment or return it at the conclusion of the contract.
How to Stay Out of This Trap
Ask for the entire cost of ownership over time rather than giving in to “free” offers. Examine the costs of several suppliers and calculate your total expenses for a year or longer.
Find out the terms and restrictions of any free system offered by an EPOS supplier.
How to Avoid EPOS Scams?
Take these crucial actions to prevent being a victim of these dishonest strategies:
- Examine multiple suppliers; don’t choose the first offer you come across; instead, look at contracts, prices, and customer feedback.
- Request a complete cost breakdown: Ask for comprehensive pricing details, including any additional charges.
- Carefully read the contract; keep an eye out for hidden costs, long-term obligations, and cancellation penalties.
- Select adaptable and open suppliers: Choose businesses that give month-to-month plans, unambiguous pricing, and hardware compatibility.
In conclusion
Although EPOS systems are an essential investment, companies need to be wary of deceptive pricing, unstated fees, and restricted contracts.
Businesses may steer clear of expensive blunders and select an EPOS supplier that provides clear pricing, flexibility, and dependable support by being conscious of these dishonest practices.