How to Choose Point-of-Sale (POS) System?

Are you in a restaurant or a retail store and trying to decide what point-of-sale (POS) system you should use? Fret no more! For anyone who has been in business for more than a short period of time, you know that it is important to choose the right restaurant POS system.

When you use a single solution for all your retail business needs, it streamlines some of the business tasks you'd have to manage on an individual basis with multiple software programs. And that's where the POS system comes into the limelight.

Without further ado, here are the best ways how to choose a POS system. But first, let's dissect the functionality of a retail POS system.

What Is POS System?

A POS system, or point-of-sale system, is a computerized method of processing sales transactions and tracking inventory.

1. Purpose

The main purpose of a POS system is to automate the process of ringing up customers' purchases and calculating their prices as well as making sure that all items are accounted for at the end of the day.

2. Other names

POS systems go by many names: Point of sale, retail management software or system, frontend systems, checkout software, and back-office solutions.

3. Components

A POS system can include cash registers, credit card readers, barcode scanners, receipt printers, and the main computer.

Things to Consider When Choosing a POS System

Every business owner has a different set of needs and goals, so there's no one-size-fits-all point-of-sale system. That said, there are some things that should be considered when selecting a POS system. Here are six factors you'll want to think about after asking yourself how to choose a POS system:

1. Cost

The cost of the POS system is a major consideration. This can vary greatly depending on the size of your business, as well as how many transactions and employees you have. Some systems are also more expensive than others, so it's worth looking into what kind of retail POS system fits best with your needs before making any decision.

2. Scalability

Scalability is an important factor to consider when choosing a POS system. It's good to think about the number of employees you currently have, and how many employees you expect to have in the future. You should also consider how many transactions you expect to do daily. If you're going to be doing more, then it's probably worth investing in a system that can scale your business.

For example, let's say that at present time, you're selling five different products from your website but you plan on adding another three products soon. This means you need a system that can handle up to twelve different products without slowing down or crashing because of too much traffic coming into it all at once. And since each product has its own SKU code (not including variations), this could potentially mean hundreds of thousands of transactions per day!

3. Cloud-based or not?

If you're looking for a restaurant POS system, there are two main options: Cloud-based or on-premise. Both have their advantages and disadvantages.

If you want to be able to access your POS system from anywhere, choose a cloud-based solution. This means that your information is stored on the internet, which makes it easier for you and your employees to use the software while they're out on the road. It also means that if anything happens to your store's hardware or software (a power outage, perhaps), the data will still be accessible through mobile devices like smartphones and tablets (if they're connected).

Cloud-based systems tend to be more secure as well because they don't contain any sensitive information in an accessible format. Instead of storing credit card numbers on-site at your business location, they use virtual tokens that represent those numbers instead of exposing them directly within an application running locally.

4. Hardware requirements

When it comes to deciding what hardware you need, the best thing to do is consider your business size. The more employees and customer traffic you have, the more you'll need to process on a daily basis.

If you're thinking about using POS and only have one or two employees, then this won't be an issue for you. However, if your company has multiple locations with more than five employees per location and lots of customers coming through each day, then it may be worth looking into something big POS, instead.

5. Data security

Data security is a top priority for any business. The last thing you want to do is put your customers and company at risk by not being careful with the data that’s being processed by your point-of-sale system.

Protect customer privacy – As a company, one of your main goals should be to protect customer privacy. Your POS system should have secure data encryption software that protects sensitive information from hackers.

Prevent data theft – Data theft can happen at any time, so you need to ensure that your point of sale system has strict security measures in place to prevent it from happening at all costs!

Prevent data loss - It’s important that you also have a backup plan in case something happens with the main database or if someone tries hacking into it (which happens more often than we’d like). This way, even if there is an issue with the main database, customers won't lose money because they've already been paid out on their credit card transactions through another method (like manual entry).

6. Accessibility

You also want to make sure your POS system is accessible to everyone in the store. It should be able to be accessed from anywhere, which means you need technology that’s up-to-date and user-friendly. If you haven’t updated your POS systems in a while, it may be time for an upgrade.

One other thing: Your employees should be able to access their POS system on mobile devices as well as laptops or desktop computers. This will increase their efficiency at work, making sure they have everything they need at their fingertips.

Benefits of POS System

The benefits of a POS system are outrageous. So here are the main advantages that you can get in using a POS system.

1. Increases functionality

POS systems can be used at multiple locations and for multiple businesses. This is especially beneficial if you're a large chain of stores, or perhaps a franchisee looking to expand. POS systems are also good for tracking inventory and customer information, which makes them great for maximizing profits and minimizing losses by providing faster service.

They can also be used to track employee data, which helps improve overall efficiency in the workplace. This means that employees are more productive when they know what they have to do and have been trained properly on their job responsibilities.

2. Helps you control inventory costs

The POS system can help you control inventory costs by helping you to track inventory and identify overstock and understock situations. It will also identify which items are selling well so that you can place more materials in those products.

3. Provides data security by controlling access rights

POS system provides data security by controlling access rights and ensuring that the data is accessible only to authorized users. It ensures that sensitive customer information is not shared with unauthorized parties.

4. Provides a platform for business growth

A POS system is a way to increase your business growth by providing a platform for inventory management, controlling costs, and data security. It also increases functionality through customer loyalty programs and customer analytics.

A POS system helps you manage inventory efficiently by tracking items sold, good orders that are yet to be delivered, pending returns, and more. This ensures that you have enough stock of the right products at all times so as not to lose customers due to the unavailability of products or high prices.

Popular POS System Providers

As mentioned, POS systems are an integral part of retail businesses. They can help you keep track of inventory, manage customer orders, and make sure everything is running smoothly in your store.

1. Square

Square is a popular provider of POS systems, used by small businesses and entrepreneurs. It offers a free card reader, which can be plugged into any iPhone or iPad. The app also allows you to accept payments through the use of your phone's camera (no need for bulky hardware).

2. Vend

Vend is a cloud-based POS system that comes with an intuitive interface, easy integration options, and the capacity to handle a variety of business transactions. It’s suitable for small businesses that want to stay on top of their financials in an affordable way. Vend has been around for years, but it continues to be updated with new features that can improve your retail business.

This system offers a free starter plan with limited features so you can test out how it works before deciding if you want to buy more in-depth packages. The company also offers paid plans at varying price points based on what features you need: From basic tools like inventory management and reporting tools all the way up to more specialized features like gift cards or loyalty programs.

3. Shopify

Shopify is a very popular Ecommerce platform and has been around since 2004. They have a POS system, and it's easy to set up and use. Shopify POS is also affordable, which makes it an attractive option for small businesses looking to avoid large costs associated with traditional point-of-sale hardware and software solutions. The only potential downside is that you'll have to pay monthly fees for their POS service (around $29/month).

4. Lightspeed

Lightspeed is a cloud-based point-of-sale system. It's used by small businesses and franchises, and it has a free 30-day trial. It offers mobile apps for both iOS and Android as well as an online interface to manage your restaurant from anywhere you have internet access.

5. Lavu

Lavu is a cloud-based POS system that offers both a free trial and a free mobile app. In addition, the company has its own card reader which makes using its products even easier. Lavu's iPad app is also free, so you can easily run your business from any location.

(You can also click here to know our complete list of the best POS systems in the market.)

Do I need a point-of-sale system for my business?

You will need a POS system if you run any kind of business. A POS system allows you to keep track of your inventory, sales, and employees while also helping with accounting and cash management.

How much does a POS system cost?

The cost of a POS system depends on the type of system you choose and how many features it has. The more complex your business, the more expensive it will be. For example:

A simple point-of-sale system with basic capabilities can cost $200 to $500.

A mid-range point-of-sale system with advanced capabilities (like scanning) can cost $1,000 to $5,000 or more.

An enterprise-level point-of-sale system that includes everything from inventory management to printing Facebook coupons can cost tens of thousands of dollars or even hundreds of thousands depending on the size of your business and its needs!

Are there free POS systems available?

Yes! There are plenty of free POS systems available. However, it's important to note that free POS systems aren't always the best option for your business. Free POS systems can be difficult to use. Sometimes they don't offer all the features you need, or they're hard to manage and maintain in-house.

So before you decide on a free one, ask yourself these questions: Is this POS system easy enough for my employees with little technical knowledge? Does it have all the features I need at an affordable price? Can I afford upgrades if necessary?

Bottom Line

So, what do you think? Are you ready to take the plunge into the world of POS systems? We hope this article has given you a better understanding of what they are and how they can help your business grow. If there’s anything else we can do for you, don’t hesitate to contact us!