How Much Does a POS System Cost for Your Business
When it comes to starting or growing a business, one of the most important investments you’ll make is in your point-of-sale (POS) system. A POS system can be a significant expense for any business – but how much does a POS system cost?
Several factors will impact the price of the POS system, including features and functionality, hardware costs, software costs, and installation and support fees. This blog post covers some of those factors so that you will know how much does a POS system cost for your business.
How much does a POS system cost?
The best point of sale system for retailers is Vend. It’s flexible, easy to use, and offers great value, starting from just $69 a month.
When it comes to getting the most bang for your buck, Square is the clear winner. There are no monthly fees associated with using the system, and instead, you’ll only be charged transaction fees on each sale made. For card-based transactions, these fees come out to 1.75%, while keyed-in sales will incur a 2.5% fee.
Meanwhile, if you’re in retail and looking for a more well-rounded point of sales solution, then you might want to check out what’s on offer from Talech.
The subscription plans begin at $29 a month, but this plan only includes basic features like the ability to record calls and schedule follow-ups.
A point of sales (POS) system is the backbone of any retail business. A good one can help you manage your entire business, from fulfilling customer orders and tracking your inventory to offering discounts and knowing when you’re running out of product.
Vend POS is a great choice for businesses that want to use one central product catalog across all their sales channels. Vend POS can sync with in-store, online, and social media sales channels, making it a convenient choice for businesses that want to keep track of their inventory in one place.
If you sell the last of your product in your store, the website will update automatically to reflect the new inventory.
As a store manager, you can quickly and easily add products to your Vend account. That includes any barcodes and any variant information, such as sizes, colors, and materials. Doing so ensures that your inventory is up-to-date and accurate.
You can automatically re-order your top-selling items, so you’ll never run out of stock.
The $69/month plan from Vend is the cheapest one they offer. You won’t pay any fees on transactions made with the platform.
If you want to access sales figures, you’ll need the Standard Plan which will cost you $119 a month.
If you’re looking to start selling online, Square is a great option because it’s easy to use and it helps you expand your business’s online presence.
With the cheapest plan of $10/month, you can list unlimited items in your online store. Whether they are tangible or intangible, your inventory will be automatically updated.
You can keep your customers updated on the status of their online purchases through SMS. This could include information such as confirmation, pick-up location, and delivery time. You can also offer the option to collect their items in-store.
Using contact forms is a great way to collect contact information from users. This data can then be used for marketing, such as building an email list.
With either of Square’s two premium pricing tiers, you’ll be able to send out automated email reminders to customers who abandon their carts, helping to convert them into sales. You’ll also be able to enable customer reviews, which can increase both your sales and your customer service.
Payment options are important in a point of sale system. Vend, Square, and Talech all accept credit cards, debit cards, gift cards, contactless payment, chip scans, and good old-fashioned cash payments.
Payment processing — the act of getting the money from a customer’s transaction into your merchant account — can be complex but, with Square, payment processing is handled in-house.
Both Vend and Talech have the benefit of being able to work with a wide range of payment processing companies, such as Paypal, Stripe, and Authorize.net. This allows them to give their clients more payment options.
When you’re running a small business, it’s essential to offer excellent customer service. One way to do so is by using technology that makes customer service easy. For instance, the Square Reader is a free app that turns any iPhone or Android into a credit card reader.
For $10, you can get an NFC reader for your iPhone or Android device, while for $49 you can pick up a Bluetooth-enabled standalone device. A mobile POS system, on the other hand, will set you back $299.
You can integrate your point-of-sale system with a wide range of compatible hardware and peripherals, such as credit card readers, cash drawers, and barcode scanners. You can purchase these directly from your provider or a third-party vendor.
What Factors Influence POS Price?
The size and type of business can impact the cost and complexity of a point of sale (POS). For example, a mobile vendor or food truck would have fewer hardware and software requirements than a restaurant or retail store.
Here are some of the factors that impact POS system prices.
- Business size: Small, medium and large-sized companies will all have different pricing for their point of sales system because they each require a different amount of software and hardware. The type of software that each company needs will also differ. For example, Square is a point-of-sale (POS) system that’s great for solo entrepreneurs but wouldn’t be effective for corporations with dozens of stores. Many small business point-of-sale systems are around $50 a month, while larger companies can expect to spend $200+. Enterprise-level customers, however, should request a quote for their needs.
- Industry: What you sell, and what you plan to do with it, should be the main factor you consider when shopping for a POS terminal. Restaurants and hotels need much more robust systems than clothing stores, which only need to track sales and process transactions. More expensive software can handle things like inventory management, sales forecasting, and employee management. While other POS solutions don’t include the ability to track ingredients, some do. Other features, such as industry-specific reports, are another benefit of using certain software solutions. A small business can sign up for free services like Square, or for $39 a month they can use the more robust service of Shopify. For retail stores, most services will cost up to $200, while restaurants can usually expect to spend $100. However, grocers, gas station chains, and other types of businesses with more complex needs will usually have to pay more, with costs up to $300.
- Hardware: Tablets are becoming more and more popular in retail, especially in restaurants and bars. Some retailers use both a stationary countertop terminal and a handheld, while others only use tablets. Example: Gas stations typically require big-screen monitors, heavy-duty credit card machines, and a separate system for fuel. Meanwhile, restaurant POS systems integrate table management and separate gear for hostesses, waitresses, and kitchen staff. Hardware for card processing can range from $0 to $50 for a simple reader, to $300 to $1,000 for terminals, to hundreds more for displays, etc.
- Software: Smaller retail stores and shops need simple, straightforward software that can help them handle their basic accounting, sales, and stock. More advanced retailers, on the other hand, require more robust, feature-heavy tools that can handle their complex reporting and integrate with third-party apps. A business that relies on third-party inventory tracking software (and has a legacy point-of-sale system in place) is going to need a custom integration. Most POS software will cost between $50 and $300 a month for physical stores. For mobile business owners, you can opt for a free or low-cost option with fees that typically range from $0 to $50.
- Payment: Some point of sale (POS) system providers require you to use a payment processing service, but many of them offer their own integrated credit card processing. The rate that you pay will vary by vendor, as some charge a flat fee per transaction, and others may charge you a percentage plus a small transaction fee. If you already have a merchant account, you may want to stick with it to keep from paying higher fees. Alternatively, small businesses may like the flat-rate model of services like Square.
How to Budget for a POS System
If you own a business that relies on making sales and closing deals, your point of sale (POS) system is one of your most important investments.
When considering which system to buy, consider how much you’re willing to spend, whether you want to rent or buy the equipment, and if the plan can grow with your company as it becomes larger.
Monthly vs Annual Billing
Most point-of-sale (POS) software allows you to choose between paying monthly or yearly.
Annual billing might be better for businesses that don’t have a lot of cash available, while monthly plans are a better fit for companies that have more capital.
With monthly plans, you can more easily switch to another program if you are not satisfied with the service. This could be beneficial to new businesses that are still testing out different programs.
Buy vs Lease Equipment
While purchasing your point of sale system upfront can be more expensive, it’s a one-time cost. You won’t have to make monthly payments or worry about upgrading your system in the future.
If you rent or lease your equipment, you can upgrade it every so often.
When you lease an item, you’re essentially paying an extra fee on top of the cost.
Purchasing your POS equipment outright is still the most economical option for small businesses, like retailers and other brick-and-mortar storefronts. You may have to replace your equipment every few years, but it will be less expensive in the long run than leasing.
When leasing POS hardware, be aware that you may be required to sign a long-term contract for POS software.
POS System Financing
If you don’t have the cash on hand to pay for a POS system upfront, many POS providers offer financing options that allow you to make payments over time. For example, Square offers interest-free installments so you can pay for your POS system over time.
Choose a System That Can Grow With Your Business
Some small businesses and startups may be tempted to get the cheapest system that will meet their needs. While that may be fine for some, some POS systems are not very scalable.
As your business continues to grow, you may eventually need more sophisticated inventory management or analytic tools. Switching from one system to another can be a huge headache.
How much does a POS system cost? Several factors could impact the price of a POS system. When making your decision on which POS system to choose for your business, be sure to consider all of these factors to get the most bang for your buck. And don’t forget – while a POS system can be a significant investment, it’s also an important one. A quality POS system can help you run your business more efficiently and effectively – and that’s priceless.