Subject

Proprietary POS System

PC-POS

Quality/Software/ Service/Parts/Responsibility

Clearly defined as one manufacturer assumes full responsibility for the entire product, including software.

Largely undefined.  Several parties are involved as providers of different components and software.

Product Structure

Attractive "all-in-one" compact unit with small foot print for easy placement in shops.

"Cluttered" appearance as product consists of various components such as PC, monitor, keyboard, printer, and jumbles of cable - not to mention the expensive networking hardware!

Operation Terminals

Very easy and convenient - no special skills required

Troublesome and complex to handle for average users without PC skills.  Often requires familiarity with MS-Windows® platforms.

Hardware Life/ Maintenance

Great longevity, easy to maintain and to service as manufacturer designs hardware for specific tasks and purposes

Short-lived and difficult to maintain.  PC based POS systems are subject to rapid and constant changes in the PC industry.  A PC becomes obsolete every 16 months.

Moreover, repairs require skilled technicians.  As the PC becomes obsolete, spare parts become increasingly difficult to find.

Data Protection

Very secure as all input data is stored in battery-backed static RAM memory, not D-RAM.

Not so secure and very susceptible to power and operating system failures.  Memory is kept in unsecured floppy or hard drives or similar PC based media.  

The operation of PC based POS systems is also susceptible to viruses that can enter via floppies or the network.

Software Modifications

Generally not required, because the producer creates the cash register software based on extensive experience and proven technology of the well established cash register industry.  The cash register is a final and mature product and serves a distinct role.

Frequently required, because users expect and request free software changes for PC based systems. 

Product Exclusivity

Well protected as the manufacturer can grant exclusivity for proprietary products to a distributor in a specific region.

Not quite as protected as anybody can buy the identical hardware items in the open PC market.

Pricing/Profitability

Reasonable sales price for business owners and high profit margins for distributors, because they sell a unique, customized product, which a single manufacturer supports.

Still expensive compared with proprietary all-in-one EPOS.  In addition to purchasing the hardware and operating system, the customer has to invest substantially in peripheral devices such as printers and networking equipment.  Due to limited differentiation, pricing is the competitive strategy, which decreases margins significantly.