The Point of Sale (POS) system is an essential part of almost every retail business nowadays. It is widely used by retailers of all sizes and industries with a variety of options available on the market. If you are planning to have one but are unsure about the price, we understand your wonders about how much is a POS system. Therefore, this article will discuss the financial matters relating to POS and its product variants.
Overview
Hardware
Hardware is an important part of a POS system. They are the physical devices that help retailers to handle their selling activities. POS hardware often includes POS terminals, stands, credit card readers, barcode scanners, cash drawers, and display screens.
The POS hardware costs depend on the type of system you are looking for. Firstly, you need to understand these 2 POS systems:
- Cloud-based systems: The data is stored on remote servers. Users can access the data anywhere, anytime with an Internet connection.
- Legacy systems: This is a traditional type of POS, in which data is stored on local servers. It runs on a closed internal network and cannot be accessed everywhere.
Before deciding on a POS, it is important to ask yourself about which type of POS you are looking for. A legacy POS often costs higher than cloud-based systems, starting from a few thousand to 10 thousand dollars. Meanwhile, the POS hardware for cloud-based systems often comes with the subscription package at a discounted price.
Software
POS software is the application that runs on your hardware. Normally, cloud-based POS software offers monthly or annual subscriptions, so that you can install them on your devices and pay the fees. The price greatly varies depending on the functionalities that your POS provides. Some POS providers offer a pricing plan starting from $20-30/terminal/month, while other advanced ones can charge hundreds of dollars monthly subscriptions. Above all, the average price is around $75/device/month.
No matter which budget you choose, remember to clearly check the processing rate (if there is any) and the type of support you will receive from the developer team. The processing cost is often around 1-3%. In addition, when asking how much is a POS system, it is also crucial to check the features you will get in each pricing plan and their suitability for your business needs.
Add-ons
The add-ons services are the additional features not covered in the subscription plan and come with extra costs. These features are often more advanced, such as gift card support, in-house loyalty programs, or online ordering functions. These add-ons normally start from $10/month and may be more expensive for the top-notch features.
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Third-party integration
Third-party integration also influences the answer to the question of how much is a POS system. It is the software developed by third-party companies that is compatible with the POS system.
Businesses often choose third-party integrations, because the built-in POS functions are not suitable for their operations. For example, some businesses integrate third-party inventory management software. This is because the inventory add-ons in the POS are too expensive for their budget or not advanced enough for the complex inventory system.
All in all
The answer to the question “How much is a POS system” is that: it depends on your requirements. Acknowledging the diversity in prices, we hope that the cost breakdowns mentioned above can help you estimate the price of your future POS system.
ConnectPOS is a leading POS provider that starts from $39/device/month. If you are looking for a powerful yet affordable POS, you can consider ConnectPOS. We’re more than happy to help – contact us if you have any questions.