3-minute read ---
Running a restaurant comes with its fair share of challenges, and choosing the right point of sale (POS) system is undoubtedly one of the most critical decisions a restaurant owner can make. In recent years, there has been a surge in POS companies offering seemingly irresistible low onboarding costs to attract merchants.
However, these seemingly appealing deals can often lead to a trap that's difficult to escape from when it comes time to change POS systems…
However, these seemingly appealing deals can often lead to a trap that's difficult to escape from when it comes time to change POS systems…
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The Allure: Low Onboarding Costs
It's understandable that restaurant owners are drawn to POS companies that promise low onboarding costs. In the competitive food industry, every dollar saved matters. These offers often include discounted or waived setup fees and attractive monthly rates. However, as the saying goes, "If it sounds too good to be true, it probably is.” Here are 3 hidden traps commonly found in available point of sale solutions today.
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Hidden Trap #1: Increased Monthly POS Fees
The true cost of these seemingly affordable POS systems becomes apparent in a matter of just a few months into using the system. While POS systems may promise low rates up front, upon further inspection, many POS contracts limit their low onboarding costs to a 90 day window. After 90 days, many merchants find their costs have drastically increased, sometimes by hundreds of dollars a month.
The true cost of these seemingly affordable POS systems becomes apparent in a matter of just a few months into using the system. While POS systems may promise low rates up front, upon further inspection, many POS contracts limit their low onboarding costs to a 90 day window. After 90 days, many merchants find their costs have drastically increased, sometimes by hundreds of dollars a month.
Hidden Trap #2: High Early Termination Fees (ETFs)
Many restaurant owners have found themselves trapped in contracts with high Early Termination Fees (ETFs) that can range from hundreds to tens of thousands of dollars. These fees are designed to discourage merchants from leaving the service before the contract term expires. As a result, restaurant owners are left with limited options: either continue using an inadequate POS system or pay a hefty and even disaster-level fee to switch.
Many restaurant owners have found themselves trapped in contracts with high Early Termination Fees (ETFs) that can range from hundreds to tens of thousands of dollars. These fees are designed to discourage merchants from leaving the service before the contract term expires. As a result, restaurant owners are left with limited options: either continue using an inadequate POS system or pay a hefty and even disaster-level fee to switch.
Hidden Trap #3: Proprietary POS Hardware
In addition, many point of sale providers discourage restaurant owners from changing POS systems by limiting the system to exclusively proprietary POS hardware. This means that merchants will no longer be able to use proprietary POS hardware once departing from the POS contract. Because the POS hardware can only be used with a particular restaurant POS system, the merchant is left with, essentially, very expensive door stops because they will no longer be able to use payment devices or POS terminals after moving to a new restaurant POS system.
In addition, many point of sale providers discourage restaurant owners from changing POS systems by limiting the system to exclusively proprietary POS hardware. This means that merchants will no longer be able to use proprietary POS hardware once departing from the POS contract. Because the POS hardware can only be used with a particular restaurant POS system, the merchant is left with, essentially, very expensive door stops because they will no longer be able to use payment devices or POS terminals after moving to a new restaurant POS system.
Tips for Avoiding Binding POS Contracts that Increase Monthly POS Fees
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Thoroughly Review Contracts:
Before signing any contract, carefully review all terms and conditions, paying particular attention to termination clauses and associated fees. Whenever possible, seek professional legal advice to ensure you fully understand your obligations. Research Providers: Take your time to research and compare different POS providers. Look for companies with transparent pricing and a track record of ethical business practices. Negotiate: If you're considering a POS provider that initially offers low onboarding costs, consider negotiating a contract that includes reasonable ETFs or, ideally, none at all. Consider Cloud-Based Solutions: Cloud-based POS systems often have more flexible contracts and fewer hidden fees. They can provide the scalability and customization your restaurant needs without the risk of high ETFs. |
The Consequences of ETF Traps for Restaurant Owners
Financial Strain:
The combination of high ETFs, delayed increases in rates, and proprietary POS hardware can place significant monthly financial burdens on restaurant owners. The unexpected costs can disrupt a restaurant owner’s budget and hinder their ability to invest in other areas of the business.
The combination of high ETFs, delayed increases in rates, and proprietary POS hardware can place significant monthly financial burdens on restaurant owners. The unexpected costs can disrupt a restaurant owner’s budget and hinder their ability to invest in other areas of the business.
Stifled Growth:
Being locked into a contract with a subpar and/or expensive POS system can stifle a restaurant's growth and innovation. The high ETFs and proprietary hardware prevents many merchants from moving to more beneficial alternatives, even if they are dissatisfied with their current system and wish to upgrade to a more advanced solution.
Being locked into a contract with a subpar and/or expensive POS system can stifle a restaurant's growth and innovation. The high ETFs and proprietary hardware prevents many merchants from moving to more beneficial alternatives, even if they are dissatisfied with their current system and wish to upgrade to a more advanced solution.
Limited Flexibility:
Restaurants' needs evolve over time, and a reliable POS system should be able to adapt accordingly. High ETFs and limited POS hardware restrict merchants’ ability to switch to a better-suited system that aligns with their changing requirements.
Restaurants' needs evolve over time, and a reliable POS system should be able to adapt accordingly. High ETFs and limited POS hardware restrict merchants’ ability to switch to a better-suited system that aligns with their changing requirements.
Aldelo Express POS and Aldelo Pay Merchant Services: Cost-Effective Alternative
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Choosing a point of sale system is a critical decision that can significantly impact a restaurant's success. While low onboarding costs might seem appealing at first, the hidden dangers of high ETFs can leave merchants trapped in an unfavorable agreement. When considering a POS provider, it's important to prioritize transparency, flexibility, and reliability.
Aldelo Express POS and Aldelo Pay Merchant Services offer a refreshing alternative by providing a cost-effective solution that empowers restaurant owners to take control of their operations without the fear of hidden fees. Remember, it's not just about the initial cost – it's about the long-term partnership that will support the restaurant's growth and success. |
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In the midst of the POS market's confusing landscape, Aldelo Express POS and Aldelo Pay Merchant Services stand out as a beacon of transparency and affordability. Unlike some other POS providers, Aldelo is committed to providing restaurant owners with a fair and flexible pricing structure that doesn't rely on hidden fees to generate revenue.
Learn more by contacting an Aldelo representative today at [email protected] or 925-621-2410
Benefits of Aldelo Express Cloud POS:
Transparent Pricing:
Aldelo Express POS offers a clear and straightforward pricing model, ensuring merchants aren't blindsided by unexpected costs down the line. No Hidden Fees:
Aldelo Express merchants don't worry about unreasonably high ETFs or other hidden charges that can lock them into an unfavorable agreement. Flexibility:
Aldelo Express POS understands that business needs can change. Their flexible plans and non-proprietary POS hardware allow merchants to adapt and grow without fear of punitive fees or becoming trapped by proprietary POS hardware solutions. |
Benefits of Aldelo Pay Merchant Services:
Integrated Solution:
Aldelo Pay Merchant Services seamlessly integrates with Aldelo Express POS, streamlining payment processing in any environment. Competitive Rates:
Enjoy competitive processing rates that help merchants maximize their revenue without sacrificing quality. Exceptional Support:
Aldelo's customer support team is dedicated to assisting restaurant owners, ensuring a smooth experience from setup to ongoing operations. |
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Restaurants that use ultra-competitive Aldelo Pay or Aldelo Partner Merchant Services obtain access to a Centralized Multi-Store Restaurant Technology Platform that includes Masa+ Online Ordering, Unlimited Software Releases, Unlimited Software Upgrades, and 24/7 Technical Support! *** Please contact an Aldelo representative today for more details, including a free Aldelo Express POS demo trial [email protected] | 877-639-8767 | [email protected] |
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Unlike many point-of-sale developers, Aldelo Express POS software is supported by multiple non-proprietary hardware devices, including iPads, Android Terminals, Android Tablets, and Android Mobile devices. With full-featured POS solutions available across inter-operable iOS and Android-based POS devices, Aldelo Express provides resellers and merchants “freedom of choice” POS hardware options. |