Choosing the Right POS System

Many factors should be taken into account by a small business owner considering a POS (point of sale) system. If you select the wrong system, it can result in frustrated employees and even lost sales. However, the correct system for your business can increase sales and the productivity of your staff.

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POS Systems: Specific or Generic?

First of all, you need to decide if you are going to purchase a specific POS system (designed for a specific type of business) or a generic retail setup (a system that can be used by any business).

Most POS systems on the market are made for retail or hospitality businesses, but there are also systems designed for particular sectors of the market, including:

  • food delivery businesses
  • grocery stores
  • hotels
  • restaurants
  • retail stores
  • salons.
Buying a system designed specifically for your type of business has some distinct advantages. For example, if you own a clothing store and you purchase a retail clothing POS system, the software included will have options for you to track specific things that benefit clothing stores, such as particular styles and sizes.

Of course, purchasing a specific POS will be more expensive than a generic retail system. But, if you can boost sales using the special reports that POS systems can run, you may find the added features worth the cost.

New vs. Used POS Systems

One way to save money on your POS system is to buy a used POS system. You will likely have to hire someone to help reboot the software and configure it to the specifications of your business, but it may be worth the trouble.

Sometimes when a company goes out of business, they liquidate their assets. Keep an eye on the business section of your local paper for postings about sales of cheap POS systems.

Online auctions are also a good source for used POS systems and components. This is good to know if one part of your POS system malfunctions: You may be able to find a replacement online.

Hardware/Software Cost

Complete POS systems can cost anywhere from $2,000 to $3,000 for a new single-station configuration. Prices increase from there for additional stations, software and peripherals.
 
Software and hardware that track inventory, credit card sales and more can be worthwhile for business owners: They can save time and effort that would be wasted tracking those elements of business by hand or using other programs.

POS System Warranties

If you are concerned about the lifespan of your POS system, you may want to investigate the warranty available on the system you buy. Warranties are commonly offered by the manufacturer of the system but can vary widely.
 
Warranties usually include some form of technical support, whether phone support or online support. Some programs also include loaner components if you need to send in a piece of your system for repair. The extra cost of warranties can be worthwhile for businesses that depend on POS systems to operate.

Special Features of POS Systems

POS systems increase in price when you add special features. The best way to consider if a special feature is worthwhile is to consider how it will affect:
  • customer experience.
  • employee productivity
  • overall sales
  • owner convenience.

The most common special feature small business owners opt for when shopping for a POS system is wireless capability. Wireless components on the market include:

  • barcode scanners
  • magnetic strip readers
  • order takers
  • receipt printers.

Wireless POS systems can allow communication between different parts of the business, such as the front desk and the kitchen of a restaurant.

Point of sale systems do more than just facilitate transactions: They can also give you insight into sales patterns. If you own a retail outlet or service business, it is worth the time to investigate if a POS system is right for you.

Resources

Buyer Zone (2007). Choosing a POS Dealer. Retrieved September 11, 2007, from the Buyer Zone Web site: http://www.buyerzone.com/computers/pos/
buyers_guide10.html.
No Author (2006). Point of Sale (POS) System Buying Guide. Retrieved September 10, 2007, from the eBay Web site: http://pages.ebay.com/buy/guides/
point-of-sale-pos-system-buying-guide/.