What is the $1000 cost of the new POS register bas...

Basil_S · ‎03-19-2018

Hello everyone!

We have a hair salon in SoCal. Our salon is a rental salon. Our Independent contractors all use the square platform. Because they are IC's their charges are not considered in any evaluations regarding our credit charging volume and discounts. Our store last year charged approx $222,000. If we were able to include all the other square accounts being used at this location we would be about $600,000 (I am guessing. I do not have access to their #'s. Square has them.). Using our store volume it would take us 2 years to break even on the $1,000 cost for the new system (taking our transaction #'s x $.05 and the .25% savings, subtracting that from our current charges).

My question is - What is the cost of the system based on?

Square processing is a partner of ours. The more services/products that are charged, the more money square makes. I understand that square takes a smaller % then most processors, but we are still paying 3rd+ parties for the luxury of getting paid on our costs. I would love to offer our guests the best square has to offer. But, why would Square put their existing clients, who are in good standing, in the same position as new unproven clients? More importantly why would I put my business in the position of paying for hardware that would take 2 years to break even?

So, again, to be clear. What is the cost based on?

VanKalkerFarms · ‎03-20-2018

are you asking why it is $1,000 for their newest hardware or why the change of pricing structure? I guess I'll give my take on both.

as for the hardware, It is designed and sourced in-house. With an all-new customer-facing display and a custom built Android main screen it costs money to Research, develop, design, test, re-design, source, manufacture, and support a custom built device. there is a lot going on in the new hardware and it isn't much more if any more than buying a square stand, iPad, and iPad mini for the customer display, and the square stand combo will be limited as the customer cannot interact and sign on the iPad mini.

as for the pricing structure, it comes down to average sale. Square loses money on a lot of transactions that take place below a certain threshold, say $7 though it could be higher, due to the fees square has to pay for interchange fees, assessment fees, reward card interchange fees, and other charges that are standard for the credit card industry.

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page

Basil_S · ‎03-20-2018

Hi VVF, thanks for getting back to me!

My question was specifically about the cost of the new system for existing subscribers. I think it's a nobrainer that it costs money to research, develop, design, test, re design, source, manufacture, and support a custom built device. Isn't that what being an innovative leader in business is? I also appreciate the fees Square pays. However, are those fees any more then any other processor out there? Square's fees are not the lowest, by far. Our goal is to feel that the organizations we partner with value the partnership in something more then words. Thus, my question on cost.

katieand · ‎03-20-2018

Hi @Basil_S - Jumping in here to offer some perspective from our Register Product Team. As we build out our offer of different hardware products, we are doing our best to give our sellers options, and to ensure that we offer payments and point of sale devices that meet everyone’s needs. The Square Stand is a lower cost hardware option that allows sellers to get up and running with the iPad they already have. It is also still the best option for many sellers (e.g. if you need a web browser, or you want to use other apps on the same device). We encourage sellers for whom Stand is a great option to continue using it - we will continue to support and build for this product as we have in the past. For sellers that need a customer display, ethernet connectivity, or prefer an all-in-one device, Square Register is a better option. It is more expensive for us to make because it’s an all-in-one device, but it also provides more value for sellers who need the additional features and we think it’s a great value at $1,000. Both devices offer a strong point of sale and payments solution to run your business and each is designed for a specific set of needs we’ve heard about from our merchants.

We recognize that hardware can be a big investment for many of our sellers, and we don’t take that lightly. That’s a key reason we now offer hardware financing to help sellers spread out the investment over the course of up to 24 months. With Square Register we did our best to set the price at a level that would be manageable for the sellers who need the additional hardware features while still covering our additional costs to produce it. For those who don’t need the additional features enough to warrant the extra expenditure, Square Stand and/or our Square Readers will continue to be a great option for running your business.

What is the $1000 cost of the new POS register based on?