Will SaaS solution work for POS and Inventory Management in small retail stores in India

How could I measure the effectiveness of a subscription or commission model for POS and inventory system, in a high volume low cost market?

What I would do is, see if you can find a industry partner , they don't have to be actually equity partners but a vendor or group of vendors willing to share industry knowledge with you for whatever type of compensation ,if any. We call these people industry experts and you will use them to test some of your assumptions and questions against.

Once you have found this person see if you can aquire their sales numbers. Use those numbers as a base calculation for how much a potential customer has to pay. Also find out what the low and high end volumes of these companies are like. SaaS could be a good model for entry level people who don't have a lot of up front capital to buy a system outright.

Run the numbers and discuss them with your industry expert or poll people in the industry. See if its a price they would be willing to pay provided you give them X,Y,and Z services as part of the subscription model.

Ideally, if you can get companies to participate in a free or low risk real life test, you could get all sorts of real life data on your model which will help you make decisions.