How much does a POS Terminal Cost?
The cost of a pos terminal usually depends on the size of your business. Many business owners are looking to invest in a good pos terminal but are confused about the price.
Usually, for small businesses, the cost of pos terminal ranges from $50-$100 per month. Large business owners would have to pay between $100 – $200 for additional features. In this article, you’ll see the various factors that influence the cost of pos systems.
What are the factors to consider before buying a POS system?
Not every pos system is the same. The best pos system in the market may not be appropriate for your type of business. These factors will help you determine the best pos system to buy for your business.
1. Your business’s size: This is a very important factor that will influence your pos system’s price. In many pos software plans, having additional registers or multiple locations will attract extra costs. A small market or a small business that’s not looking to expand may not have to pay any cost due to the free options available.
2. The number of features: Most likely, the least surprising factor influencing the cost of pos systems is the number of features it has. It’s expected that a pos with a lot of features will be more expensive. Research on the most popular POS features and see which ones you need for your business.
3. Quality: Although many pos systems come with an analytics feature that shows data, some systems are far more complex. A more expensive POS system may have more detailed data analytics features than will be very useful for large businesses.
4. Industry: Retail stores and restaurants are the biggest users of POS systems, and they have a particular type of POS. However, many niche industries have specialized POS systems that are customized to suit their needs, such as tracking pizza deliveries to table layouts.
5. Possibility of expansion: What is your business projection for the next five years? If you want to expand and move to a new location, you must consider your pos vendor’s cost. Even though you can always get another pos system, it’s best to pick one to serve you as your company grows. It’s the best way to save money, time, and effort in the long run.
What is the difference between a POS software and POS hardware?
A POS system is designed with software that helps the employees to make sales and track inventory(source). The POS hardware is the part of the system on which the software runs.
The most important hardware for business owners is a card reader and monitor. Some businesses also require a printer and scanner.
What are the costs of POS software?
A POS terminal runs on a cloud-based system, which can be assessed via the internet. In case of a power outage, there is a short-term offline mode that you can use.
You don’t need to hire an IT expert to fix any bugs. Business owners will be required to pay a monthly or annual fee to use the software.
How do POS vendors charge their clients?
Many POS vendors charge their clients based on three factors: the number of features, the size of your business, and your industry. Here are the factors a POS vendor considers before charging a client:
- Your business’s size: how many products do you sell in your business, and how big is your layout?
- The number of terminals: how many checkout terminals do you need for your business?
- Location: is your business based in a single location, or do you run a regional business?
- Type of industry: Does your industry need any additional features apart from the basic ones that come with the POS system? For instance, the Lightspeed POS system has two types: the e-commerce specific system costs $69 per month, while the retail-specific system costs $99 per month.
- Hardware compatibility: This is not a serious concern, as many POS software is compatible with POS hardware. However, some POS vendors’ software comes with proprietary hardware.
- If you run a business in a single location with one register, the POS software’s average cost ranges from $50 – $100 per month. It can be higher if it is not billed annually
- For larger businesses with more than one location and require more features, POS software’s cost is usually between $100 – $300 per month.
What is the cost of POS hardware?
Buying POS hardware is not as complicated as POS software. You purchase it once, and it is yours forever.
If you’re own a small business, you only need a few iPads that will cost about $500 for your employees. A mid-sized or leave business will require at least three monitors, three printers, and three scanners. These devices will cost at least $2500.
An industry-specific business will need a bigger budget. For instance, a diner may want all the waiters to use an iPad with the hosts. But it must be compatible with your POS system.
Here is a list of important POS hardware and their cost:
- iPads: iPads are the most popular choice of business owners looking for suitable hardware to use with their POS systems. Android tablets are used by POS vendors, too, but iPads are usually preferred.
Best Buy has the most affordable iPads that cost between $170 – $300 each, depending on the model.
- Monitors: If you’re looking for a non-portable register, you should invest in a monitor. A touchscreen monitor is the best option. You can use this instead of a tablet.
You can get 12-inch monitors from $160 on Amazon. 15-inch monitors go for $190.
- Card readers: There are so many types of card readers in the market that the options are endless. Portable card readers are cheaper than stand-alone ones. Contactless card readers are more expensive than swipe-only readers. The Square POS reader is $49, but it can only be used with the Square POS system.
- Printers: This is used to print receipts, but if your POS sends emails to your customers, you don’t need a printer.
- Barcode scanner: A store owner can type in a product or search through inventory on the touchscreen, but a scanner makes everything easier. It reduces the lines at the checkout counter and is ideal for big businesses. It costs between $50 – $200.
- Self-service kiosk: This is not common hardware used for POS terminals. It requires a monitor, receipt printer, and non-portable card reader to set up. Although the upfront costs are expensive, it ranges from $300 – $1500. Any business with this hardware can save a lot of money and free employees that would otherwise stand at the checkout counter all day. It makes you more productive and make more sales.
Buying a POS system for your business is a good investment. However, it’s important to consider all the factors involved so that you purchase the best and most affordable POS system that suits your business’ unique needs.