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The POS industry is Square

May 5th, 2010 in Doejo Stuff, iPhone/iPad, Marketing

The Point of Sale industry is in for a rude awakening. Similar to the newspaper and magazine industries, it’s too big and too far away from what's really going on to stay relevant. It seems easier for old companies to just modify their current models to try and stay in the game, rather than paving the way by being agile and open to what people are actually doing or what new developments technology is allowing.

As the owner of coffee shops and other retail stores, I have been on the lookout for the perfect POS system over the past 11 years. I want a good-looking terminal, good graphics and online access to my polling and analytics for multiple locations—all while staying affordable.

My ongoing search has left me continually disappointed by all major POS companies, whose similarities include over-priced, clunky terminals, user interface that’s an eyesore and over-complicated software.

So I was determined to build my own. In helming seven coffee shops in Chicago, it seemed most beneficial to help solve our own problem, especially with a bad-ass team like Doejo working with this coffee/office chain.

Our solution?

Cashboxer: “Fighting for the small business."

(It started with Coinboxer, but then Darren suggested Cashboxer. Ding!)

I spent many days and nights researching all the ways we could possibly bring this Doejo-influenced POS system called Cashboxer to life. After weeks of driving my team crazy with questions and links and possibilities, Twitter founder Jack Dorsey announced an easy to use, aesthetically-pleasing iPhone / iPod / iPad Point of Sale application called Square.

Hallelujah!

Right?

Well, almost. Here’s a quick breakdown of the Doejo team’s impressions of Square:

  1. Going paperless—Ditching the receipt printer and paper is smart, especially if you can digitize the entire experience with a touch screen signature into email record.
  2. Cash drawer—But how do I connect to a cash box? People are used to punching in the sale and having the cash box pop open. Not with Square. Instead, cashiers would have to manually open the cash box for each transaction. 
  3. Credit card processing—Terminal Swipe, Square's patented swipe via audio jack is not only free—it's brilliant. If you use the Square swipe jack you are forced to use the Square processing services. But they do have decent fees. However, you can always use your own processor instead of the software and just punch in the transaction as an credit card transaction for polling purposes. 
  4. Wi-Fi Internet connection only—The iPad does not have any ports for wired connectivity. The first edition iPad Wi-Fi connection stinks, so the new Wi-Fi + 3G model is highly recommended, especially with such a time-sensitive exchange and responsibility in running your operation. 

Additionally, Apple does not make it easy to add third party accessories (i.e., credit card terminal, receipt printer and cash box).

Then I found this book by Ken Maskrey (no relation to in house Doejo SEO expert Ken Mazursky)
Building iPhone OS Accessories: Use the iPhone Accessories API to Control and Monitor Devices

Available for Pre-Order.
This item will be available on May 31.

Arg!

Wait, so does this mean that in June we can add a keyboard that has USB ports so we can plug in a cash box that will talk to Square or Cashboxer?

Only time will tell.

For now we will continue planning out the Cashboxer build and work with Jacob Shapiro on a custom wood cash register for the iPad, hoping that eventually we can work with Square and/or Cashboxer.

Philip Founder & CEO

Comments (7)

Sub guy again Phil.

Agreed iPad would be cool, but not just use existing restaurant

by Dan Vidakovich - 05/05/2010 @ 03:14pm

Phil,

Agreed great idea, but why not just use existing POS hardware (cashbox, rugged computer/touch interface) and create better web delivered experience. I know there are already dozens of web POS companies out there and I agree they are all dinosaurs. I am sure it would be possible to create something that uses a merchant credit card account yet would also create profiles that would allow receipts to be emailed.

You definitely have the guys and talent to pull something like this off and offer the POS system for free (even on an iPad and people could type in the cc number and exp date because I'm not sure if square is compatible with other apps). There would definitely be a way to monetize because you would have the most valuable thing on the planet - not just what people say they want to do, but where they actually go and how much they spend.

Just a thought Phil and it was good to see you Monday.

by Dan Vidakovich - 05/05/2010 @ 03:22pm

We are for sure looking into all of that, big time. Also looking into just being a pos polling software. Taking all the old data and pulling it in to be fresh and doejo like.

Good seeing you homie!

by Philip Tadros - 05/09/2010 @ 04:01pm

The lack of a good Point of Sale system is disappointing in and of itself but the lack of a true open source Point of Sale/ERP solution is frightening. It appears almost all the startup solutions are based in other countries with small branch offices in the USA vying for a chance to snap up this market.

We've been reviewing some of them on our blogs http://labs.zigzap.com

by Lane Campbell - 08/09/2010 @ 09:44pm

Thanks for sharing your post and it was superb .I would like to hear more from you in future too.
Regards:
http://www.blackitsoft.com/inventory-pos-software.aspx

by Inventory Management Software - 01/13/2011 @ 11:35pm

From not finding the perfect POS for you...well, what a feat this is. I enjoyed reading about it. This one's my web point of sales, though. http://www.posterita.com/

All the best.

by Adam - 04/08/2011 @ 10:40am

Thanks for putting this together. I'm starting a tiny coffee shop, and this is exactly what I needed to know. I'm off to buy an ipad and cash drawer. Thanks again!
Jennifer :-)

by jennifer - 07/17/2011 @ 03:59pm