CEOCFO Magazine Interview: DCCSupply - Providing New and Refurbished P

Adam Kaplan: CEO, DCCSupply
Interview conducted by: Lynn Fosse, Senior Editor, CEOCFO Magazine

Interview:

CEOCFO: Mr. Kaplan, what is the idea behind DCCSupply and what is the focus today?

Mr. Kaplan: DCCSupply provides new and refurbished equipment to the payment industry, agents, resellers, distributors as well as direct to retail stores and restaurants. We have a variety of stands, terminals, accessories, and anything you would need from the customer swipe to the kitchen printer.

Our focus is on having the product ready to ship and the services around them. We do encryption, programming, SIM cards, device rentals and custom accessories; anything that helps the agent or ISO to get their account up and running as quickly as possible.

CEOCFO: Why are there so many choices in this industry today; why is it not narrowed down to a few good ones?

Mr. Kaplan: The payment processing hardware has fewer choices due to the high barrier of entry created by PCI compliance and certification requirements. Once a company overcomes these initial compliance hurdles, they can begin adding more devices to their offerings. However, the key to success in this industry is having customers ready to use the device you're developing. Building a device without an existing customer base is risky, as you'll then need to wait for PCI approval and certification, which can be a lengthy process.

This is why companies like Apple Pay and Google Pay have been successful - they already have a large customer base. They can develop and drive products directly to their existing users, streamlining the adoption process. In contrast, smaller companies or new entrants to the market face greater challenges in gaining market share and meeting compliance requirements simultaneously.

CEOCFO: Are more people looking for refurbished today and are there particular products you offer that people want more than others? What has changed in this economy?

Mr. Kaplan: In today's economy, the demand for refurbished products remains strong, accounting for 50% of our sales. We initially specialized only in refurbished items, attracting a core customer base who recognized the value, especially when offering them as incentives or at discounted rates to secure merchant accounts. End-users who opt for refurbished products understand that while some devices, like printers, may have a typical lifecycle of three years, they can often last much longer with proper maintenance. For instance, replacing a printer head can significantly extend its lifespan, potentially up to a decade.

However, some customers still prefer new products. With stricter PCI compliance requirements, many modern devices can't be opened or repaired easily without proper software. As a result, the refurbished market primarily focuses on older, more accessible devices.

CEOCFO: Do many of your customers get a variety of items or is it mostly the machines themselves?

Mr. Kaplan: I would say that 50% of our customers buy more than one item from a different category at a time. It might be a terminal and paper; it might be a wireless device and a SIM card and a stand or a carrying case. If it is just a terminal then encryption and programming are added on.

CEOCFO: How do you keep up to make sure the products you offer are the best for customers?

Mr. Kaplan: We try our best. We give a one-year warranty on everything and we provide a quick turnaround with any issues. We have a hot swap program where if a device is down out in the field we will replace it quickly and get it back out to them, because we know that we have to keep the merchant up and running.

“DCCSupply is a solution provider and not just a hardware provider. Let us be your outsourced tech support team, let us be your outsourced programming team, and let us help you troubleshoot your accounts in real-time remotely so we can augment your internal tech resources.” Adam Kaplan.

CEOCFO: According to your website you provide exceptional customer service. Would you give us an example of how you go above and beyond at DCCSupply?

Mr. Kaplan: With a one-year warranty we are saying that even if it is new or refurbished we are covering it. If a new product fails, the vendors will repair it for you, but you have to wait for the repair. How does that help a merchant that has a failed device? To solve this issue, we send it in for you and then give you the replacement out of our stock. You never see the other one again, as we take that back in house once it is repaired.

Secondly, in this business when we are doing programming on the device for the Agent/ISO there might be some missing information to complete the download. We respond quickly to whether it is through WhatsApp iMessage, Teams, or Slack, it is about the communication for the repair or the fix to the problem more than the fact that there is a problem.

CEOCFO: What if anything has changed in your approach and what have you learned since you started DCCSupply?

Mr. Kaplan: We have learned the critical distinction between short-term sales and long-term customer relationships: we focus on the 'buy' versus the 'bye.' Our goal is not just to make an immediate sale, but to provide such exceptional value that customers want to stay with us long-term. We understand that if we consistently deliver good value and competitive pricing, customers will choose to stay. It's about creating a relationship where they want to buy from us repeatedly, not just once.

We've learned that customer dissatisfaction often goes unnoticed until it's too late. Customers rarely announce their departure; they simply stop buying. This realization has made us more proactive in ensuring customer satisfaction.

CEOCFO: I know business is good as the company was recognized in the Inc. 5000 again. What do you see that might be different in the next couple of years and how do you reach out to prospective customers? Mr. Kaplan: Our outreach strategy is multifaceted and designed to connect with prospective customers through various channels. We maintain a strong presence at industry events, participating in six major tradeshows annually, including local exhibitions, the Restaurant Association show, and the Electronic Transactions Show. These events provide valuable opportunities for direct engagement with potential clients. In addition to in-person events, we leverage digital marketing tools to reach a wider audience. Our weekly e-blast newsletter reaches 25,000 agents and customers, keeping them informed about our offerings and industry developments. I personally contribute to our thought leadership efforts through my blog, Adam's Corner, where we share sales techniques and industry updates. We've also implemented a successful Lunch & Learn Webinar series, which has proven to be a valuable resource for educating and engaging with our audience.

We plan to continue enhancing this program by addressing emerging technologies and topics of interest within the payments industry. To complement these external efforts, we maintain robust internal sales teams focused on direct outreach and relationship building with potential customers. Looking ahead, we anticipate adapting our strategies to incorporate new technologies and address evolving industry trends, ensuring we remain at the forefront of customer engagement in the payments sector.

The landscape of payment processing is evolving rapidly, with significant changes on the horizon. In the U.S., we're seeing a surge in the adoption of kiosks, particularly for line-busting in high-traffic environments. Meanwhile, Europe is leading the way in table-side services and wireless payment devices. For instance, in European restaurants, servers bring handheld devices directly to the table for seamless transactions. This trend is gradually making its way to the U.S., though at a slower pace. We anticipate these mobile and self-service payment solutions will continue to gain traction globally, reshaping the customer experience across various industries. We are adapting to these trends by positioning ourselves to meet these emerging demands and help businesses adapt to these changing consumer preferences.

CEOCFO: How do you stand out at a conference?

Mr. Kaplan: We are a multi-vendor solution provider, not just a distributor, while most conference attendees are single-vendor. We lay all the products on the table and present all the different solutions. We are offering a consultative approach to finding a customized solution. If it goes back to being all about price then it might not be the right place for you, but if it is about service and solutions, then we are the right place.

CEOCFO: What might a prospective customer miss about DCCSupply that they need to understand?

Mr. Kaplan: DCCSupply is a solution provider and not just a hardware provider. Let us be your outsourced tech support team, let us be your outsourced programming team, and let us help you troubleshoot your accounts in real-time remotely so we can augment your internal tech resources.