POS systems allow businesses to take transactions and simplify day to day business operations. There are on premise hardware like a scanner, cash register or a card reader and cloud based systems that allow for analytics to streamline businesses. POS systems can analyze sales, manage customers through marketing tools, manage inventory as well employees through payroll and clock in/out services.
POS systems can be customized to industry, with some, like F&B requiring more specific needs like a loyalty system, table management and sometimes, automated ordering
Services and Specialisation
- Onsite systems: Cash registers, Receipt Printers, etc.
- Cloud based systems: Employee Management, Payroll Management, Booking and Services management, etc.
What makes a good POS system?
- Rapid transaction time
- User friendly interface, for your clients and yourself
- Offers good security
- Uptime, offers a solid support plan for any issues
Main price factors
- Type of equipment needed – Hardware prices change with industry requirements
- Amount of features – POS systems can offer a lot and having more advanced features like analytics will add to the total cost
- Mode of pricing: subscription & support costs vs. lump sum purchase for the software
Hardware per outlet can range from $10000 to $30000 depending on your needs (ie, automated kiosks) Furthermore, cloud based POS systems also have a subscription fee of $500 to $3000 per month.
Tips, tricks and challenges
- The most important performance indicator for POS systems is uptime. If your POS system is down at any point in time, you will lose significant amounts of revenue.
- Ask the provider what their SLA (service-level agreement) service promise is. Ask them about contingencies when your POS system is down and how they will deal with it and within how long. Are there any redundancies? Are there any penalties and what are the costs involved for this maintenance service?
- Trustworthy cashiers are one of the most difficult manpower types to recruit and can take months for positions to fill. They also constitute a pilferage and embezzlement risk. Consider using an automated cashier machine or e-menu (investment of $30,000-$50,000) to increase scalability of your business and reduce disruption to your business.
Some advice from other buyers
- “Watch for reputation, ask people about it. History, for example if vendors produce bad quality, watch out for corrections. Speed, service, value.”