Online channels are multiplying where software, including POS systems, is sold as "used" software at low prices. While the deals seem great, there's a lot to know about before making the decision to buy. We thought we'd share some things to keep In mind.
Vendor
Contact the company that makes the POS. It might be out of business, merged with another company, or gone through some other change you need to know about. You need to talk to them directly to find out about the process and fees associated with license reactivation, name change, support contracts, training, software updates and upgrades, and so on.
License
Software licenses are rarely transferrable—if you want to run the software legally, you're going to have to pay new license fees. Once you license the software, you'll find you're usually limited in terms of how many people can use the POS—if you need more, your license fees increase. Something else to consider: until the license is changed with the vendor, there's a high possibility all your receipts and reports will carry the original owner's name.
Software
Software versions are determined by "the point." The number to the left of the decimal is the version and the number to right is the revision (for example, 5.3 means the third revision of the fifth version). If your version isn't the current one, you may have to pay additional license fees to upgrade to the latest version—that depends on the vendor, and on how far behind your version is. Be careful about compliance—ensure what you buy adheres to the most current regulations, like PCIDSS, SRM and the other fiscal laws. One other thing: make sure the operating system is the legitimate one, licensed for that computer.
Hardware
If you're buying the hardware as well—the POS stations and back-office terminals and so on—you've got compatibility issues to look at. The hardware may run the existing version of the used POS just fine—but not be able to handle the most current version at all. Think about this also: the clutter you inherit on those computers. Unless the original owner wiped the drive clean and then reinstalled the OS and the POS, you'll live forever with garbage data everywhere—in the registry, in the list of drivers, in abandoned WiFi connections: all of which affects performance. And don't forget the need to ensure that the computers are virus, malware and exploit free.
Training and Support
Training and Support both carry fees; some initial training and a limited period of support might be included in the license fee. It's difficult to pinpoint those fees with used software. Original owners might tell you what they paid, but you may have different configurations, different numbers of people, want different levels of support.
Business Fit
In the end, the biggest risk is that you buy something that just doesn't fit your business. It's a risk because your only source of information is the original owner. It's hard to see a demo of it. You can't ask questions about your operation and your growth plans, or about where the product is heading in the future. Only vendor representatives can give you the right answers there.
Our closing advice? Approach any used solution with eyes, calculator, and very likely checkbook, wide open.
If you enjoyed this article, we recommend downloading the Keeping ROI on Track: Six Mistakes to Avoid when Buying POS whitepaper.
