| POS systems can vary in prices typically based on | | | | Know who your customers are: In today's competitive |
| the type of the system. It is advisable to price | | | | landscape, knowing your customers and being able to |
| compare between different providers as well as types | | | | communicate to them regularly is a key factor in |
| of POS systems available in the market. However, on | | | | retaining them. A POS System captures the names |
| average below are some pricing guidelines of a | | | | and contact information of your regular customers as |
| complete system installed: | | | | part of the standard transaction. This allows you to |
| Type of System and typical estimated Cost | | | | conduct targeted advertising and promotions to those |
| Programmed, Installed, Customized:- $2,300 - $6,000 | | | | customers. |
| per terminal | | | | Choosing a POS System provider |
| Off-the-shelf systems:- $1,000 - $3,000 per terminal | | | | Due to the nature of a POS System, choosing the |
| Note: Prices per POS System terminal drops | | | | right vendor is a big decision. Since there are many |
| considerably as more terminals are installed | | | | things to consider in a POS System, the right vendor |
| Are these POS Systems worth it? | | | | will guide you through the different options based on |
| Like with many systems, the return on investment | | | | your business needs and budget. |
| (ROI) is only realized over time. However, when buying | | | | The right vendor will provide, explain and recommend |
| a POS System, it is important to research and price | | | | options for: |
| compare different Systems available in the market. | | | | - POS System hardware - printers, cash drawers, |
| Selecting a one that is right for your business needs, | | | | customer displays, magnetic strip readers, check |
| will deliver a quicker ROI. Below are typical POS | | | | readers etc. |
| System ROIs. | | | | - POS System software - credit card processing, |
| Company Size (annual revenue) and when ROI is | | | | discounts, refunds, accounting reports, integration with |
| typically realized | | | | accounting software, inventory tracking, moving diner |
| For a $1,000,000+, company ROI is typically realized in | | | | from bar to a table, waiting list management etc. |
| 6 months - 1.5 years | | | | - Input Device - Keyboards versus touch screens, |
| For a $700,000 - $900,000, ROI is typically realized in 1 | | | | scanners, handheld terminals etc. POS System |
| - 2 years | | | | providers will also vary in providing ongoing support and |
| For a $400,000 - $600,000, ROI is typically realized in 2 | | | | services. Some provide guarantees parts and labor for |
| - 3 years | | | | 1 year, others provide free phone support 24x7, some |
| What do these systems provide? | | | | charge per-incident and some provide annual service |
| POS systems are designed to increase productivity | | | | contracts where prices range from $200-$1,000+ |
| and get more control and intelligence on your business, | | | | annually. |
| thereby saving money. In general they will ultimately | | | | Negotiating on the total price and service support |
| lead to reduced expenses and increased sales. Some | | | | beforehand is the best practice and getting all |
| ways improved efficiencies and control of business | | | | equipment, support and devices from the same vendor |
| help you save money are: | | | | will save you a bundle. |
| Eliminate Loss of Product (Shrinkage): A POS System | | | | While doing a price compare is important, experience, |
| can drastically reduces inventory shrinkage from your | | | | quality of work and references are equally important, |
| store or restaurant due to theft, wastage and | | | | because the POS System provider is a partner in |
| employee misuse. Because the employees know | | | | delivering something that will affect your financial |
| inventory is carefully tracked, inventory loss would | | | | bottom line. |
| reduce. | | | | Finding a good Point of Sale System Provider: |
| Accuracy and connectivity of all locations: Ensuring | | | | With so many different options, the natural question is |
| that every item in your store or menu is sold at the | | | | how best to find a good provider, who understands |
| correct price is one of the attributes of a POS | | | | your business, has the capability of providing all the |
| System. Prices can also be changed in seconds within | | | | options and is experienced. |
| the computer and be reflected on products (and | | | | A simple Google search on POS System providers |
| SKUs), so your employees will never have to guess | | | | may bring up many qualified vendors, but you would |
| the price. These machines allows connectivity with | | | | have to research each one thoroughly and ask the |
| other terminals located in different locations, so if | | | | right questions to each. |
| desired a simple tweak in the system can implement | | | | Yellow page directories may also have listings of |
| the change in all locations. | | | | providers with their contact information. While this |
| Reporting and higher margins: POS Systems allow | | | | option will give you many vendors to choose from, the |
| detailed sales reporting, indicating higher margin or | | | | reliability of some may be questionable unless you |
| popular products. This allows you to focus on more | | | | have done your proper due diligence. |
| profitable items and make sure high turnover items are | | | | You also have an option to go on some websites that |
| always stocked or promoting under-performing items | | | | have a network of pre-screened POS System |
| in a restaurant setting, to generate higher margins. | | | | providers who actually compete for your business. All |
| Know where you stand without a paper trail: The | | | | you have to do is fill out one form stating your |
| detailed sales reporting of a POS System instantly tells | | | | requirements and a number of providers will contact |
| you amount of product sold at a particular time, | | | | you with their price quotes, experience, support options |
| inventory levels by product, amount of cash you have | | | | and other information. This is probably the most |
| in your drawer and how much of it is profit. All this | | | | efficient and effective way to solicit a POS System |
| information is stored within the computerized POS | | | | provider, since these websites create a competitive |
| system, so you are not bogged down by maintaining | | | | environment where vendors have to compete |
| paper work for inventory tracking, sales figures etc. | | | | real-time for your business. |