You should be aware that not every POS system will fit every industry. A retail business cannot work correctly with a system designed for the foodservice industry. You are going to miss out on the essentials of the retail business POS, which could lead to the downfall of your business.
Selecting the right POS system to work with makes work easier for you and your business. The system will save you a lot of cash and time and also boost your retail strategy. Imagine accessing your store’s office from anywhere and being able to track how your inventory is moving on a digital platform rather than a clipboard.
Factors Determining the Cost of a POS
Here are the factors that will dictate how the POS is going to be priced.
- The type of business you are running. It will determine the equipment required and the functions it should perform.
- Whether it is purpose-built equipment or consumer-grade.
- The card payment solution.
- Whether you need it to have offline functionality.
- Quality of features is another vital factor. It is clear that most of these POS systems have analytic functions that are used for displaying data, but some have more advanced features. A POS with more detailed features will be pricey, but it will assist a lot in terms of streamlining the business.
- Room for expansion. Selecting a POS that suits a growing company is best even though it may be a bit pricey. There is no point in switching POS systems now and then when you make some changes to your business. It disrupts your business operations.
POS System Software Costs
The POS software is cloud-based. It means that it can be accessed via the internet. Organizations have to pay either annually or monthly to continue using the services of the software. Most of the POS software sellers will price them according to five crucial factors:
- Location. Is your business situated in just one place or you run a regional franchise?
- Size. The volume of your sales and the size of your business layout matters.
- Terminals. The number of checkout terminals that your business requires.
- Hardware compatibility. Some sellers will include proprietary hardware, but most software will be compatible with almost all the hardware.
- Industry. Some industries require more than just basic POS features. A firm in such an industry will have to add some more money to acquire their ideal software.
For a business with one register and situated at one location, the average cost of POS software could be from $50 to $100 per month. A company with many operations and has multiple locations will get the software for somewhere between $100 and $300 for every site per month.
POS System Hard Ware Costs
The hardware part of the POS system is less complex. You will make the purchase just once, and the machine is yours for life. There are no subscription fees that you will be paying after the purchase. However, you need to be sure that it is compatible with your software before buying it.
- Receipt scanners. These devices produce printed receipts of transactions.
- Monitors. In case your register does not require portability, then you can consider purchasing a touchscreen monitor. They go for around $160 on Amazon.
- Barcode scanners. This scanner makes work more comfortable rather than going to the screen to look for the price of an item. Checkout becomes more efficient, notably for larger stores and malls. They cost between $50 to $200.
- Tablets. Many people will usually prefer tablets because they are portable. You can get refurbished tablets for only between $170 and $300.
- Card readers. These gadgets vary in that the portable ones are cheaper than the stand-alone ones. A square POS card reader cannot be used with another POS service in as much as it costs only $4.99.
Payment Processing Fee for POS Systems
So after considering the hardware and software costs, you still have to put into consideration the payment processing fees. At any given time, the customer uses a credit card to make payments, there is a cost incurred, and the price normally is on your side.
Some of the POS software will act as their own processors. This technically means that they will add an extra percentage on top of what they charge per month. Processing fees should, however, not exceed 2.4% for every transaction.
Example of Prices of Best POS
The best POS systems will entirely depend on the nature of your business. The ultimate POS for a small startup will not work for a large scale organization with many branches in other locations. Knowing the nature and type of industry your business falls in will help you a lot in selecting the best POS.
However, there is an example here of two businesses; a small organization and a big firm both looking to purchase a POS system. So because the small firm is only in one location and does not require so many things, you could get the best POS at about $1100.
For the large store, it could cost you a total of around $6500, because of the many registers, monitors and card readers.