How to Choose A Point of Sale System
A smart point of sale system is an excellent addition to all businesses. It is capable of boosting business growth through its myriad of automated features. Some of these features include inventory management, time clocking options, and an improved payment process.
There is a lot of point of sales available, and selecting the right one can be challenging. To help you, we have compiled tips and top POS systems on the market.
Why are Point of Sales Important for Businesses
The point of sale systems has a lot of benefits to offer businesses. Their automated system of operation improves functionality and speeds up business growth. Some advantages of having a point of sale for your business are listed below.
- Time Management – by streamlining numerous operations, smart point of sale systems help save time.
- Improved Productivity – with a sound POS system, you can monitor employees remotely and even alter their schedules to maximize productivity.
- Detailed Sales Analysis and Report – with automated data collection and analysis, point of sale systems provide you with access to the exact sales report.
- Improved Efficiency – since most of the processes are automated, the risk of human error dramatically reduces.
- Improved Customer Experience – most POS systems can collect customer transaction histories and also improve the checkout process.
Traditional POS System or Cloud-based POS System, Which Should I Pick?
The first step to deciding the POS system to choose is understanding the software it runs on. There are two software types of point of sale systems that can run on traditional POS software and cloud-based POS software.
Traditional POS Software
The traditional point of sale system is also referred to as legacy POS. They store collated data on a local database. The stored data cannot be accessed remotely. In terms of cost, they are costly. For this type of POS, you are required to pay steep prices for maintenance, installation, and hardware.
Pros
- Reduced internet dependency
Cons.
- High upfront purchase cost
- Limited data accessibility
- Poor data security
- Fewer updates.
- Difficulty integrating new modules.
Cloud-based POS system
Cloud-based POS systems are more advanced than the traditional version and store data in the cloud. This central storage of data makes it easy for you to access your data off-site/remotely. It requires little upfront payment; instead, payments are made monthly for access.
Some advantages of cloud-based POS systems include:
Pros
- Reduced maintenance cost
- Reduced upfront investment
- Improved data access and data security
- Reduced dependence on hardware devices.
- Easy module integration.
Cons
- Heavy dependence on the internet.
How Can I Identify the Needs My Point of Sale Needs to Meet?
It is vital to know that a POS that works for business A maybe not be right for business. With this in mind, it is essential to choose a point of sale that meets your business needs. Let’s see how you can identify the needs of your business.
- Business Type and Industry – you need to identify the industry your business falls. For example, is it a beer, restaurant, e-commerce business?
- Business Size and Risk Capacity – once you’ve identified this, the next thing to do is determine where your business falls under in terms of size and risk factor.
Once you have identified the answers to the points above, it is now easy to pinpoint the needs of your business.
What Should I Consider When Choosing Point of Sale
- Type of Business – as mentioned earlier, your business type should influence your choice of point of sale. Different POS are tailored to specific business types. For example, some POS systems are designed for restaurants, others for hair salons. Using a point of sale designed initially for hair Salon in your restaurant will not offer you any increased productivity.
- Quality – the quality of your chosen point of sale is of great importance. To avoid wasting money on cheap POS with little or no quality, you must do your research. Be wary of POS deals that look too good to be true. Instead, go for well-known brands; these brands may offer their POS software at a higher price.
- Compatibility with Hardware – it is crucial to pick a point of sale that is compatible with your existing hardware. You can ask the manufacturers if the POS system works well with your brand of hardware or check their listing. Some manufacturers provide a list stating hardware their POS software is compatible with.
- Intended Budget – when choosing a point of sale for your business, pay attention to the ones within your price range. Take into consideration the upfront cost (if any), installation cost, maintenance fee, and monthly subscription fee.
- Point of sale manufacturers offers different payment options. While some may require upfront payment, others prefer monthly fees, and some products take out a percentage from your sales. Select a payment option that you’re comfortable with.
- Features Offered – asides the usual payment options, some POS are built with other components. These features could include time-clocking, access level restrictions, online ordering, and even age and ID verification. The features to look out for depends on your type of business.
You should check the company’s website to ascertain that your desired features are supported by the POS software.
What is Some Top Retail Point of Sale System?
Square POS
Square POS is an affordable system that provides you with high-end features and integrated e-commerce features. With square POS, you don’t need to pay a monthly subscription fee. Instead, each transaction is surcharged.
Pros
- Round the clock support
- Free trial
- Well-integrated features for e-commerce.
Cons
- Each cardless transaction is charged $2.75
Lightspeed POS
This POS system is designed to suit the needs of retail businesses. It offers excellent inventory management for companies with large products to manage.
Pros
- Great commerce integration
- Provides support for businesses with an extensive product base
- Optimized checkout
Cons
- A monthly subscription fee of $99
Revel POS
Revel POS is excellent for managing customer relationships. The integrated CRM tools help you identify returning customers and their regular orders. Some of the features of the Revel POS system are improved data analysis, Inventory management, and insightful reports.
Pros
- Great user interface
- Excellent customer relationship management tools
- Inventory management
Cons
- Installation can be complicated.
- A high monthly access fee of $99
Conclusion
A smart Point of sale system is a must for every business owner. There are factors you must consider when selecting your POS. Some of them are installation cost, hardware compatibility, quality, and features offered. We have detailed so many tips to help you choose the POS system that is best suited for your business.
