TORO POS vs CigarPOS
Independent Tobacco Retailer vs. Private Equity Roll-Up Strategy
The honest comparison: tobacco-focused since 2013 vs. multi-vertical acquisition platform since 2021
The Fundamental Difference
TORO POS
- Built and owned by tobacco retailers.
- We make money from software fees.
- We want you to succeed so you stay with us long-term.
- Zero investors. No board pressuring us to increase credit card margins.
- We're retailers helping retailers.
CigarPOS
- Part of Quilt Software – a private equity-backed acquisition platform.
- Buys and consolidates POS companies across multiple retail verticals.
- CigarPOS is one of 23+ brands under the Quilt umbrella.
- Includes BottlePOS (liquor), POSNation, Rain Retail, and others.
- Founded in 2021 with a rapid acquisition strategy.
Understanding Quilt's Acquisition Strategy
Quilt Software was established by PSG Equity (private equity firm) in 2021 to consolidate specialty software and payments solutions. Backed by $51.1M in funding, Quilt now operates 23+ brands serving 18,000+ customers.
Their Roadmap
- 1Acquire vertical-specific POS companies (23+ brands already, more coming)
- 2Consolidate operations into proprietary QuiltOS platform
- 3Standardize across verticals – the platform "learns" new industries automatically
- 4Currently serving 18,000+ customers across liquor, tobacco, pet supply, musical instruments, jewelry, and more
- 5Exit strategy: Scale to sell to larger private equity or strategic buyer
What This Means for Tobacco Retailers
The roll-up playbook: Acquire companies, consolidate operations, cut costs, increase prices, maximize profits for investors, then sell to the next buyer.
Key questions to ask CigarPOS: Will your tobacco-specific features survive when you're integrated into QuiltOS? What happens to pricing when the next private equity firm buys you?
Who's Really Calling the Shots?
What Is Private Equity?
- PE/VC firms invest large sums with one goal: maximize returns for their investors
- Not building businesses to last generations — building to sell
- Typical timeline: Invest → Grow aggressively → Sell within 3–7 years → Move to next deal
- How they make money: Not just from software fees — primarily from credit card processing margins
The Critical Question
When a VC-backed company controls your payment processing, whose interests come first?
- Will rates stay low or gradually increase to hit growth targets?
- When the next PE firm buys them, will your contract be honored?
- Are tobacco-specific features a priority, or just one vertical among dozens?
- What happens when they need to "optimize" (cut costs) before the sale?
The Mom and Pop Store
TORO is the mom and pop store. We're tobacco retailers who built software for ourselves and other tobacco retailers.
The Corporation
Quilt/CigarPOS is the corporation. They're a PE-backed acquisition platform that happens to serve tobacco (along with liquor, pet supplies, etc.). Their mission: grow fast, scale across verticals, deliver returns to investors, exit.
Pricing Transparency
TORO's Transparent Pricing
| Software (one-time) | $5,000 |
| Software (monthly) | $119/month |
| Credit Card Processing | 2% average (1.8–2.2%) |
Card Not Present Rates: Same 2% rate for phone orders and online orders. No markup for CNP transactions. This is nearly unheard of in the industry.
CigarPOS Pricing: Contact for Quote
CigarPOS does not publish pricing on their website.
| Software (upfront) | $2,500–$4,000 (estimated) |
| Software (monthly) | $99–$149/month (estimated) |
| Credit Card Processing | Unknown |
Card Not Present Rates:Unknown — likely 3–4% (industry standard markup)
Note to CigarPOS: If these estimates are incorrect, please contact us at email us and we'll update this page immediately. We're not trying to disparage you — we're retailers who believe in transparency.
Business Model Comparison
| Category | TORO | CigarPOS |
|---|---|---|
| Ownership | Independent tobacco retailers | Quilt Software (PE-backed roll-up) |
| Founded | 2013 – Tobacco only | 2021 – Multi-vertical platform |
| Business Model | Software fees only | Software + processing margins |
| Focus | 100% tobacco retail | Part of 18,000+ customer portfolio (liquor, pet, jewelry, tobacco, etc.) |
| Pricing Transparency | ||
| Price Stability | No increase since 2013 | Unknown – new to market |
| Acquisition Strategy | None – not for sale | Active (23+ brands acquired) |
| Exit Strategy | Long-term tobacco retail | PE playbook: scale and exit |
Both are valid business models. But when choosing your POS system, ask yourself: do you want a partner focused on tobacco retail, or one focused on scaling a multi-vertical platform for an eventual exit?
TORO's Card-Not-Present Advantage
Scenario: $10,000/month in phone and online orders
| Provider | Monthly Fee | Annual Savings |
|---|---|---|
| TORO (2% CNP rate) | $200 | Baseline |
| Industry Average (3.5% CNP) | $350 | +$150/month |
Save $1,800/year on CNP alone
This alone can pay for your TORO software in less than 3 years.
Why TORO Costs More Upfront
Yes, TORO costs $5,000 upfront. That's more than most competitors. Here's why:
White Glove Onboarding (2 Months)
- Almost daily check-in calls with CEO and Lead Developer for first 2 months
- One-on-one training on your specific products and workflows
- Inventory setup assistance – we help you build your catalog correctly
- Direct access to decision makers – no tier-1 support gatekeepers
- Custom configuration for your shop's unique needs
Quality Over Growth
We only onboard 2 stores per month. Not because we can't handle more — we choose this limit to ensure every customer gets white-glove service. CigarPOS is backed by venture capital. Their investors want growth. We're retailers. We want customers who succeed and stick with us for decades.
No Price Increase Since 2013
TORO launched in 2013 at $5,000 + $119/month. That's still our price today. Zero increases in over a decade.
Feature Comparison
| Feature | TORO | CigarPOS |
|---|---|---|
| Multi-Pack Inventory | ||
| Age Verification | ||
| E-Commerce Integration | ||
| Card-Not-Present Same Rate as In-Store | ||
| Published Transparent Pricing | ||
| WhatsApp with Processor Executives | ||
| Retailer-Owned (Not VC-backed) | ||
| 2-Month Daily Onboarding with CEO | Unknown | |
| Limited Onboarding (2 stores/month) |
The Bottom Line
CigarPOS is a solid system. They understand tobacco retail and have features that work. But ask yourself:
- Why don't they publish their pricing?
- What are their card-not-present rates?
- When a VC-backed company controls your payment processing, whose interests come first?
- Do you want to be customer #487 this month, or one of 2 stores getting white-glove service?
TORO costs more upfront because we invest in your success. Daily check-ins with the CEO. Direct WhatsApp with processor executives. Same 2% rate for phone orders. Zero investor pressure to squeeze margins. We're retailers helping retailers. Not a tech company chasing investor returns.
Compare TORO to Other POS Systems
Ready for Transparent Pricing?
See the difference between retailer-owned and investor-backed systems.