Point of Sale Competition Escalates With Buybacks
It seems the competition for business in the point of sale industry is only continuing to increase. The lifetime value of a customer has never been more highly valued, and switching customers from one POS platform has never been easier. Perhaps the most aggressive move to gain customers from competitors is being executed by Revention, an eleven year old company from Texas.
Written by Craig Aberle
What caught my eye about this POS software company was the national "POS buyback" offer that was circulated last month.
Revention’s National Point of Sale Buyback Program allows for restaurateurs to receive up to $15,000 for trading in their current POS technology for a Revention system. Eligible equipment for trade-in includes any and all POS and POS related technology – regardless of make, model or provider.
“The biggest obstacle restaurants and bars face when trying to switch POS vendors is their current investment in old technology,” stated Jesse Mund, Revention’s Director of Sales. “This new program is designed to alleviate that stress and allow existing restaurants to take advantage of the newest technology. The program has proven extremely successful regionally. To date, we’ve exceeded $1 million in trade-in value with our Regional Buyback Program. We’re excited to roll this campaign out nationally, and expect to buy back over $10 million in used point of sale systems over the next 12 months.”
I called the company and arranged an interview with Jeff Doyle, President and CEO of Revention. Jeff, a proud founder with 15 years in the point of sale business, cheerfully spent time giving me the low down on his growing business. In 2013 Revention received numerous awards from Houston Business Journal, including HBJ’s Houston Fast 100, Best Places to Work, and Fast Tech 25 awards. Read on, because Revention is quite intriguing.
Fast facts about Revention:
* Over 10,000 installations
* The company is privately held and self-funded
* Has installations in every single U.S. state, as well as Canada and Mexico
* Pizza was 80% of their business five years ago, but is now 40% to 50%
* Their online ordering product does over $150 million in online sales per year
* Over 50% of their business comes from replacing a competitive product
* The company has a 99% customer retention rate over the last ten years
* Revention offers mobile ordering apps for clients – the company has published over 125 online apps for various national food chains, including Hungry Howie’s, which has 545 stores (www.hungryhowies.com
The buyback offer has been nothing short of huge success. There has been so much interest that the company is in the process of greatly expanding its sales department. “Our job is to take all the competitive junk off the street,” stated Doyle. He also added that customer service operates out of Revention’s own facility and the call center is manned 24/7/365, with the average phone call being answered in 30-60 seconds.
Where are the bulk of the buybacks happening? I was curious to know which competitors were losing clients. Two that were mentioned are both nationally known POS companies in the restaurant/hospitality niche; one is the well-known public company Micros (NASDAQ:MCRS). Others were some of the “free POS” systems provided by companies who are focused on capturing the payment processing revenue - a niche that Revention does not seek nor gain any revenue from. Doyle humorously remarked that he thought that accepting kickbacks, bribes or residuals off of their customers’ credit card transactions is like doing business with the devil.
Doyle stated that the day the buyback offer press release came out was the busiest day Revention’s sales call center had ever experienced, with the company website also experiencing record web traffic. Revention has had several inquiries from companies with 300 to 500 stores and one inquiry from a chain with more than 1,000 locations.
“Revention will be exhibiting at the NRA (National Restaurant Association) show in May and will be one the largest POS exhibits there,” Doyle said.
What does Revention do with all those POS systems they buy back? The company gives them away, having donated over 3,000 PCs in the last two years. Clearly Revention is a hungry competitor in a space where no shortage of competition abounds. Having grown over 250% in the last 3 years, Revention is demonstrating that it is not a company to be taken lightly! Will this start a trend of other companies making buy back offers? We’ll be watching and checking back in with Revention later this year.
Click here to read the original article via The Point of Sale™ News website
Click here to read more about Revention's National POS Buyback Program