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Today, the POS system is more than just a cash register. Yes, they can process customer orders, but some have developed to become multifunctional centers for companies in various industries.
Today’s rapidly evolving POS platform can provide a wide range of features and functions-everything from employee management and CRM to menu creation and inventory management.
This is why the POS market reached 15.64 billion U.S. dollars in 2019 and is expected to reach 29.09 billion U.S. dollars by 2025.
To ensure that your quotation is as accurate as possible, please choose the industry that is closest to your requirements.
Choosing the right POS system for your business is a huge decision, and one factor that affects this decision is price. However, there is no “one size fits all” answer as to how much you will pay for POS, because every business has different needs.
When deciding which system to buy, consider making a list of features that are divided into categories such as “necessary”, “good to have”, and “unnecessary”.
This is why the POS market reached 15.64 billion U.S. dollars in 2019 and is expected to reach 29.09 billion U.S. dollars by 2025.
To help you get started, we will discuss the types of POS systems, factors you need to consider, and estimated costs that will help you make more informed decisions.
A good starting point is to look at the two types of POS systems, their components, and how these components affect prices.
As the name implies, a local POS system is a terminal or computer network located and connected to your actual business location. It runs on your company’s internal network and stores data such as inventory levels and sales performance in a local database—usually your computer’s hard drive.
For visual effects, the picture resembles a desktop computer with a monitor and keyboard, and is usually located on top of the cash drawer. Although it is an excellent solution for retail operations, there are other smaller hardware compatible and necessary to run the system
Need to be purchased for each POS terminal. Because of this, its implementation costs are usually higher, about $3,000 to $50,000 per year—if updates are available, you usually have to repurchase the software.
Unlike internal POS systems, cloud-based POS runs in the “cloud” or remote online servers that only require an Internet connection. Internal deployment requires proprietary hardware or desktop computers as terminals, while cloud-based POS software usually runs on tablets, such as iPads or Android devices. This allows you to complete transactions more flexibly throughout the store.
And because it requires fewer settings, the cost of implementing hardware and software is usually lower, ranging from $50 to $100 per month, and a one-time setup fee ranging from $1,000 to $1,500.
This is the choice of many small businesses because in addition to lower cost, it also allows you to access information from any remote location, which is ideal if you have multiple stores. In addition, all your data will be automatically backed up online safely and reliably. Unlike internal point-of-sale systems, cloud-based POS solutions are automatically updated and maintained for you.
Are you a small retail store or a large business with multiple locations? This will greatly affect the price of your point-of-sale solution, because under most POS agreements, each additional cash register or location will incur additional costs.
Of course, the quantity and quality of the functions you choose will directly affect your system cost. Do you need mobile payment options and registration? Inventory management? Detailed data processing options? The more comprehensive your needs, the more you will pay.
Consider your future plans and how this might affect your POS system. For example, if you are expanding to multiple locations, you want to make sure that you have a system that can move and expand with you without having to completely migrate to a new POS.
Although your basic POS should have multiple functions, many people choose to pay extra for additional services and third-party integration (such as accounting software, loyalty programs, e-commerce shopping carts, etc.). These additional applications usually have separate subscriptions, so these costs must be taken into consideration.
Even if you do not technically own the software, this is the most popular option. However, you have full access to free automatic updates, high-quality customer service, and other benefits such as managed PCI compliance.
For most single sign-up locations, you expect to pay US$50-150 per month, while large enterprises with additional features and terminals expect to pay US$150-300 per month.
In some cases, your supplier will allow you to prepay for a year or more instead of paying monthly, which usually reduces overall costs. However, small businesses may not have the cash required for this arrangement and can run at least $1,000 a year.
Some POS system vendors charge transaction fees every time you sell through their software, and the fees vary depending on your vendor. A good consideration range is between 0.5%-3% per transaction, depending on your sales volume, which can add thousands of dollars each year.
If you go this route, be sure to compare suppliers carefully to understand how they arrange fees and how it affects your business’ profitability.
There are many types of software that you can afford and the software you need, and the following data points should be considered:
Depending on your provider, you may need to charge you based on the number of users or “seats” in the POS system.
Although most POS software will be compatible with most point-of-sale hardware, in some cases, the POS vendor’s software includes proprietary hardware.
Some providers may charge higher fees for “premium support.” If you are using an on-premises system, you must purchase things like customer support separately, and the cost can be as high as hundreds of dollars per month, depending on your plan.
Whether you are using on-premises or cloud-based, you need to purchase hardware. The cost difference between the two systems is huge. For a local POS system, when you think that each terminal needs additional things (such as keyboards and displays), things will increase rapidly.
And because some hardware may be proprietary-which means it is licensed from the same software company-you have to buy from them, which is more expensive, if you also consider the annual maintenance costs, your The cost may be between US$3,000 and US$5,000.
If you are using a cloud-based system, it is relatively cheap because you are using commodity hardware such as tablets and stands, which can be purchased on Amazon or Best Buy for a few hundred dollars.
In order for your business to run smoothly in the cloud, you may need to purchase other items as well as tablets and stands:
No matter which POS system you choose, you need a credit card reader, which can accept traditional payment methods, preferably mobile payments such as Apple Pay and Android Pay.
Depending on the additional features and whether it is a wireless or mobile device, the price varies greatly. Therefore, although it can be as low as $25, it can also exceed $1,000.
No need to manually enter barcodes or manually search for products, getting a barcode scanner can make your store’s checkout more efficient — there is even a wireless option available, which means you can scan anywhere throughout the store. Depending on your needs, these can cost you US$200 to US$2,500.
Although many customers prefer electronic receipts, you may need to provide a physical receipt option by adding a receipt printer. The cost of these printers is as low as around US$20 to as high as hundreds of US dollars.
In addition to paying for software, hardware, customer support, and the system itself, you may also need to pay for installation, depending on your supplier. However, one thing you can count on is payment processing fees, which are usually third-party services.
Every time a customer makes a purchase with a credit card, you must make a payment in order to process the payment. This is usually a fixed fee and/or percentage of each sale, usually in the range of 2%-3%.
As you can see, the cost of a POS system depends on many factors that make it impossible to arrive at a single answer.
Some companies will pay US$3,000 per year, while others have to pay more than US$10,000, depending on the size of the company, industry, source of income, hardware requirements, etc.
However, there are many flexibility and options that allow you to find a solution that suits you, your business, and your bottom line.
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Post time: Jul-14-2021
