A point-of-sale, or POS, system allows you to take care of customers when they’re at your store. It has both the computer hardware and software that you need. It lets you process transactions, accept different customer payment methods, and finish the sale.
POS systems also combine technology and software to help you with sales, payments, and checkouts. This is beneficial whether you have a regular store, do pop-up shops occasionally, or sell your wares at bazaars.
Furthermore, it ensures payments go through smoothly, and you can complete purchases quickly. Finding the perfect POS system for your business can be tricky, especially if you’re starting to sell things in person instead of just online.
If you’re unsure how to find the right one for your business, read on.
How does it work?
POS systems do way more than just handle cash register transactions. It combines hardware and software to make in-store purchases and payments easy. It tallies up everything the customer buys on a tablet or phone and lets them pay however they want.
After the sale, the point-of-sale software automatically transfers the money to the business’s bank account. But it can do more than that— it can help with inventory tracking, seeing what’s selling well, and keeping employee schedules straight.
While cash registers were how POS systems started, now they’re mostly software-based. This means businesses can handle sales from almost any mobile device, giving them more flexibility.
At its core, a POS does key things like totaling a shopping cart, processing different payment types, and updating what products need to be restocked.
Here’s a quick overview of a typical sale: First, the employee looks up item prices and checks inventory on the POS system when the customer is ready to buy. Then, all the items get added to the cart by scanning barcodes or taking a photo of them.
Next, the POS calculates the total cost, including tax, and adjusts what’s left in stock. Any coupons or deals can be applied here, too. After that, customers pay however they like—cards, cash, a mobile wallet, or loyalty points.
Sometimes, they can even split the payment between multiple options. Once it all goes through, a receipt is printed, and the items are handed over to complete the transaction.
Having a streamlined POS system makes checkout smooth for both customers and employees. It helps businesses run sales efficiently and keep track of inventory levels. It’s astonishing how technology has evolved point-of-sale.
Tips for Choosing the Right POS for Your Business
More and more stores are moving away from those old-fashioned cash registers towards these new point-of-sale systems. Those things can add up someone’s total, print out receipts, and even let customers pay however they want—cash, credit, or mobile wallets.
Most POS systems these days are cloud-based. So, all your sales information and transaction data are stored online instead of just the machine in the store.
That means it’s more secure and can’t get stolen or broken into like the old registers. No wonder the POS market will be worth over 30 billion dollars by 2026.
The only problem is that, with how many different programs are out there now, it can take a lot of work to pick the right one. But don’t worry. This part of the article will give tips on choosing a POS system that works best for your business needs.
Choose a POS fit for your industry
When it comes to POS, one size does not fit all. You need to find a system tailored to your specific industry.
Different types of businesses have very different needs—a hotel operates much differently than a restaurant. Retail stores also have their demands, like keeping track of online and in-store inventory.
It’s important to consider what your industry typically requires. For example, restaurants need features for taking orders, seating customers at tables, and communicating with the kitchen staff. Hotels rely on reservation management to handle bookings and room assignments smoothly.
Rather than settling for a generic POS that may not suit your workflow, investing in a system truly designed for your industry is best. That way, it has all the capabilities to optimize your day-to-day operations. Do you want your technology to work as efficiently as possible?
Ultimately, choosing a POS with your business type in mind is crucial. It’ll be tailored to address your unique needs and maximize performance.
Retail stores don’t need alcohol tracking features like restaurants or bars might. Hotels also don’t apply since retail doesn’t deal with customer check-ins and check-outs.
It’s essential to pick POS software that works best for your business type. Selecting a system that aligns with your specific needs and goals can optimize your business operations and enhance the overall customer experience.
Identify the needs of your business
Make sure that you know exactly what your business needs. First is defining where you’re now. Are you just starting fresh? Are you looking to upgrade an old cash register? Or entirely switch systems? Get clear on your current situation.
Next, think about the problems you’re facing every day. Are long lines slowing things down? Is inventory management a hassle? Or are reports just not accurate enough? Identifying the pain points will show what features can help simplify things.
It’s also important to consider your business model. Do you have multiple locations that need to be connected? Or is it just a single store? A system with multi-store capabilities would be great for businesses with franchises or chains. However, a single-store setup may work better for just one location.
Features like centralized inventory, promotions, and pricing could be helpful if you’ve got various warehouses and stores to manage. And if you’re more of a one-stop shop, cross-selling tools and data mobility between locations may be priorities.
Once you know your daily challenges, you can find a POS system with the right features.
Look for transparent pricing plans
It’s always a good idea to thoroughly research the market because there are many point-of-sale companies to choose from. You want to select an option that best fits your budget. But it’s also essential to find a system that is upfront about the costs associated with implementing it in your store.
There are many options on the market. Be sure you understand the differences between them, like:
- Purchasing a software license
- Requiring significant hardware investments for local installation
- Paying an annual service fee
- Signing a multi-year contract
- Whether software updates and customer support are included
When choosing a POS system, you must be aware of potential extra costs since they’re only sometimes included in the package deal.
Most newer cloud-based POS solutions offer a simple monthly or yearly subscription model. Many provide tiered pricing for businesses of all sizes—affordable basic plans for startups and small businesses, reasonable costs, or custom plans for more extensive operations with complex needs. You may also find discounts for opting to pay annually.
Some POS developers offer volume discounts for chains with multiple locations, allowing access to more features while keeping costs low. You’ll have two payment options: save money long-term with annual payments or enjoy a lower upfront cost and flexibility to change solutions as needed with monthly payments.
Companies communicate pricing differently. Rates are usually posted online, but further research may be needed to complete these details. Save time by speaking directly with the POS providers you’re interested in. This approach gives you insight into their culture and helps you better understand how they work with clients.
Make sure the POS onboarding process aligns with your needs
Before you make any POS purchasing decision, there’s one thing you’ll want to focus on: getting set up correctly from the start. The onboarding process is essential to make sure everything transitions smoothly. Look for software to help migrate your old data and provide good training.
Data migration is a significant factor, so look for a POS provider that can move everything for you. Ensure each store gets its customized plan based on its needs to save money and work more efficiently.
Don’t worry about learning the ropes, either. Most POS providers offer personalized lessons for all employees. Managers and staff can get one-on-one time for a week or two to complete the orientation. That way, everyone feels comfortable using the new system from the beginning.
Choose a provider that’s accessible. Ensure they’re ready to help if you have any other questions post-onboarding.
Work with a provider that offers support seven days a week, quick updates, and around-the-clock online tutorials if anything needs fixing. Their focus should be on providing guidance and tools to help your business keep growing.
Identify the integrations you need
Your POS helps with daily tasks at the store but needs help to do everything. That’s why connectivity to other services is such a big deal.
You’ll want to see if the POS works with outside tools through an open API. You may need links to e-commerce sites, marketplaces, accounting software, warehouse management, ERP systems, or CRM tools. If integrating other apps is critical for optimizing operations, ensure the POS you pick allows those connections.
For example, by choosing a POS, you can tie e-commerce platforms like Ecwid or Shopify together and handle online and in-store orders. You can also sync inventory to Amazon or eBay. Quickbooks integration makes bookkeeping a breeze. Connecting all your tools through the POS helps keep your business organized.
Your POS System Should Address Your Pain Point
Running a small business can be challenging. Business owners have their fair share of struggles—just part of being an entrepreneur. But some tools can lighten your load.
That’s where the ideal POS system comes in. It can help take your business to the next level by solving some problems pulling you down. Tracking inventory, processing payments, and generating reports used to be a hassle. But a POS smooths all that out.
A POS system empowers you to focus on what you do best: growing your business and serving customers.
