SquareUp

I can think of no other piece of equipment or software more important to a new and growing business than the cash management system.  The traditional options for new businesses range from a used or reconditoned cash register (+-$200) or cheap alternative (+-$100) found at your local office supply store to a fully supported touchscreen system run from a cpu with supported software (+-$5000).  When attending a Specialty Coffee event you are sure to run into one of several companies that offer products tailored to the coffee industry.

It was when attending a Specialty Coffee event in Anaheim in 2010 that I became aware of a new company called SquareUp which advertised discount credit card rates when using their tiny unique reader, turning your iphone or android device into a credit card processor.  In addition, SquareUp offers FREE software which runs and stores all of you transactions "in the cloud" from an Apple ipad with Square Reader plugged into the earphone jack.  This program is unbelievably easy to set up and customize with your own product photos, unlimited taxation rates, unbelievable back office real time programming and reporting...ALL FREE!  I registered for SquareUp immediatley, but since I live in Canada, needed to wait until they launched in Canada (launched Oct 24) to use the system in a practical way.  Note:  There are other similar systems including Shopkeep, which is very easy to use and very attractive to look at, but is limited in its taxation rates and has a monthly fee associated with it.

The SquareUp system simply requires an ipad, a Star TSP143LAN receipt printer, and a cash drawer which engages off the impulse sent wirelessly to the printer.  SquareUp recommends a Vasario 1416 or 1616 drawer.  It is wise to also include an ipad stand capable of rotating to face the customer for signatures (done on screen).  All included the complete cash management system should cost less than $900 with NO MONTHLY FEES.  While Square requires a wireless internet connection, the ability to go mobile and run the transactions from your iphone or android device is a useful option should internet become unavailable for short periods.http://www.squareup.com

The SquareUp system generates revenues by charging an industry best $2.75% per credit card transaction, which in many cases, can save the business owner thousands of dollars per year.  The processed funds are normally deposited into the business owners account within 48 hours, confirmed by an email from SquareUp.  The only downside to the SquareUp transaction model is it's lack of a debit card capability, which in Canada represents approximately 40% of all transactions.  Even so, for the new business owner the benefits derived from the free software and backup, inexpensive hardware, traceability by remote, and back office real time programming, makes the choice of SquareUp Register cost effective and sensible.

SquareUp also provides the retailer the ability to go paperless by emailing or texting receipts, and also using the retained addresses to offer loyalty benefits without customers needing to carry punch cards.  The ability to delight customers by managing their rewards and receiving immediate text receipts cannot be underestimated.  Further, the act of signing their names on screen using their finger is also a novel and special experience for customers who unintentionally participate in the future of financial transactions and are sure to share this experience with their coworkers and family.

Finally, by registering with SquareUp, each business is listed online in the Square Directory where businesses can post their menus, hours of operation, photos and a store locator.  Square has also launched a new Mobile Phone Cashless Payment System named Square Wallet.  At checkout, Square Wallet recognizes your mobile device and your name and photo appear on the register screen.  The cashier simply confirms the photo is of the purchaser and the transaction is completed.

I know I appear to be a little biased here, and I even believe my company was the first to perform a Square transaction in Canada, but this blog is dedicated to helping businesses to save and make money in the coffee business and I am truly impressed with the product and service.  That said, I feel the need to declare that I have not been paid or compensated for such a glowing review, but after running SquareUp in our own cafes for the past month, I highly recommend SquareUp for new and established businesses for its ease of set up and use, cost effectiveness, relatively cheap hardware, free software, industry leading processing rates, quick deposits, remote tracking of sales, robust reporting options, and  marketing potential through the directory, loyalty program management and ability to delight customers.  For now, SquareUp is only available in the United States and Canada, but the company indicates that they plan to launch in many new countries in 2013.  *Note: All of the photos included in this post were taken directly from the SquareUp site http://www.squareup.com