Most POS systems are sold as a complete package- software, programming, hardware setup, maintenance, and even employee training can be included in the cost. You can purchase POS equipment separately, bit the best way to make sure that your software is compatible with hardware is to buy both together, from the same vendor. It is easy to experience “sticker shock” after learning that a complete POS software package can run upwards of $10,000. POS systems are expensive, but in most cases you will be able to recoup the costs in savings and efficiency later down the road.
Many business owners make the mistake of purchasing a one-size-fits-all or used system, and end up not using the system at all because it is difficult to program, creates errors in records, or is difficult and time consuming for employees to use. A POS system is only worth the investment if it works the way it is supposed to. Poorly designed or poorly implemented systems that can result in record keeping errors, which can be disastrous if you are ever audited or if you file an error-ridden tax return. Sometimes the most important costs to consider are the consequences of buying the wrong system. A few thousand dollars can seem like a big difference when making a purchase like this, but the extra costs associated with a more reputable system usually prove to be well worth it when the system functions well.
POS costs can be divided into a few different categories. Again, your needs will determine which equipment you purchase. Here are the most common costs associated with POS systems:
Equipment- All POS systems require a computer to run the system, which usually costs less than $1,000. If you have a computer you can dedicate to the system, make sure it is compatible with your software first. Other equipment, like keyboards, scanners, and credit card processing mechanisms, vary in cost depending on the model purchased. Be wary of used equipment, unless it is purchased as refurbished and part of a package that includes software.
Maintenance and service- These costs are often included in the initial purchase. If your system does not have a warranty or does not include maintenance, you may want to seek these services from an outside source.
Employee training- Whether you are switching to a new system or buying one for the first time, if you have employees, you will need to teach them how to use it. Many vendors offer credit card merchant services free as part of a POS system purchase, but also consider the cost of training future employees if the system is confusing. You don’t want to build costs into your hiring process in the future.
Compatibility- Make sure that the system you hope to purchase is compatible with your existing merchant account. You may incur costs associated with switching to a different account provider.
Upgrades- Make sure you take future growth into consideration when choosing a system. Adding new products or upgrading the system can create maintenance or service costs.
The cost of a POS system will depend on the components you purchase, your sales volume, and the complexity of your transactions. On the low end, most businesses spend at least $5,000 to implement a system, and costs can rise into the tens of thousands as more hardware is purchased or as software is customized. Make sure you know what you’re looking for, and shop around to make sure you get the best deal on all merchant processing components.
