If you run a business, whether online or offline, then a point of sale (POS) is one investment you must consider making. It’s become a must-have for any venture looking to streamline the payment process and improve customer experience. This guide explains what to expect from a POS.
What is a POS system and How Does it Work?
A point of sale is the place where buyers complete their purchases by paying for goods. The setup consists of hardware and software working together to facilitate transactions. POS software contains a frontend, which provides an interface where the staff inputs purchase information. It can be a desktop monitor or handheld device. The backend of POS software is where all the management tasks happen. A POS system can have different hardware components depending on its scope of use and the payment service providers. Barcode reader, card reader, and cash drawer are examples.
A system’s features vary with the type. Over the years, points of sale have become highly sophisticated and do more than just facilitate payments. They calculate tax, analyze data and integrate with other solutions to carry out various functions. By automating transactions, POSes boost efficiency because customers don’t have to wait long to pay for products. Additionally, they make it easy to collect and evaluate crucial aspects like inventory, sales patterns, and pricing accuracy. Any business that sells goods can benefit from a POS terminal.
What to Consider When Choosing a POS System for Your Business
Knowing your enterprise requires a point of sale is one thing, finding the right one is another. POS solutions are not all the same, as you will realize when shopping for one. You should know what to search for to get a POS system that satisfies your business needs. A suitable POS should not only accept payments but also contribute towards the bottom line. Therefore, take the time to assess your business goals. Also, keep customers in mind. Every buyer, regardless of buying power, ends up at the POS terminal. So, ensure the experience is a good one. Below are critical factors to guide your choice of a POS system.
Consider Industry-Specific Options
A POS system should address the unique requirements of your business, which vary across industries. The solution suitable for a quick-service restaurant will not work as well for a retail store. Modern POS software is built with sector-specific needs in mind. For example, for a restaurant, you might need a setup with tip splitting, delivery tracking, and online ordering. Even businesses in the same industry can have distinct needs. A food truck, for instance, works best with a mobile POS system, although it might require some of the same features as a cafe. Therefore, understand not only your company but also the sector needs.
Must-Have POS System Capabilities
Modern POS’s come laden with features. If you are not careful, you could end up with a bulky system that doesn’t do much for the business. For this reason, prioritize POS system functionalities. At the very least, a point of sale should accept payments, monitor inventory, and issue receipts. Any other features depend on needs and the budget. The ability of a POS to integrate with other apps has become a standard requirement. You want a solution that works seamlessly with your accounting software, CRM, and shopping cart if it’s an eCommerce site. A decent POS system should also offer strong reporting features.
Customer Engagement
Slow payment processing can contribute to low sales. Customer patience keeps dwindling, especially with the numerous options they have online. Some buyers will easily abandon carts if the checkout on an eCommerce website takes too long. The same goes for long queues in physical locations. So, when picking a POS, make certain it enhances the customer experience. It should streamline the checkout stage as much as possible. For example, a POS system that allows a customer to tip directly on a delivery app increases convenience. You must also consider the customer management capabilities available, like the ability to send deals to loyal buyers.
POS System Fees and Costs
Your budget is a key determinant in the type of POS terminal you get. Hence, know all the expenses of buying and operating a POS before you start comparing different solutions. The costs of points of sale vary widely because they depend on a host of factors. They range from the price of an iPad to $50,000. Free POS software with a small transaction fee is available as well. When acquiring a POS, you will have to buy the software, and hardware of it’s for a physical location. POS hardware and software installation can range between $1,000 and $1,500.
Most solutions are available on a subscription basis, with single registers requiring $50-$100. A large enterprise can pay up to $300 a month. Some vendors have monthly fees, while others charge annually. Note that these costs increase with the number of cash registers. POS suppliers also charge you for processing payments. Depending on the point of sale, you might have to pay for every transaction or a percentage of all your sales. You must also factor in the cost of maintaining different components.
Conclusion
A POS system should be a top acquisition for any business that wants to grow. The right POS takes the stress out of payment processing, which benefits the company and customer. A POS solution can increase sales because it boosts the efficiency of transactions, allowing you to accommodate high sale volumes. It also facilitates different management duties, including customer and employee management. With the numerous solutions present, your business can find a POS that aligns with its goals. A point of sale can transform your business dramatically, regardless of whether it’s offline or online.