A point-of-sale (POS) system is crucial for any retail or restaurant business to operate. A POS system price can vary greatly, as there is an abundance of valuable options.
When setting a budget for your payment processor, consider what operations you need. The specific functions you require from your POS system will have a huge impact on its price.
To help you put a dollar amount on your POS price, we’re going to discuss it’s most noteworthy components. Once you get a better idea of what you’re looking for, it’ll be easier to assess your POS system cost.
Your POS operations are only as good as the hardware they run on. This is usually the most expensive element of a POS system price, but it’s highly important.
If you’re in retail, you can probably get by with the basics: credit card scanner, receipt printer, tablet, and cash drawer. However, restaurants usually require more advanced models. Their features could range from scales and scanners to kitchen and expo printers.
Gone are the days we require bulky equipment to run our POS operations. Cloud-based services allow us to run our businesses through touchscreen equipment. (Plus, iPad POS system cost is much lower than outdated hardware.)
Most vendors sell tablets and other cloud-operating hardware directly. However, you can save money by sourcing the product yourself.
The next crucial element of a POS system is its software, which tracks basic sale functions. From inventory management to generating sales reports, your software repertoire should be robust.
Software-as-a-service (SaaS) allows users to access data from cloud-based platforms. Instead of paying one large sum upfront, services are offered on a subscription basis.
These monthly fees cover updates and customer support, as well as data storage. A quality SaaS provider will typically cost around $69-$99 a month.
If you require multiple hardware systems, your software costs will also increase. However, many software companies offer discounts on bundled orders.
Total POS system cost is also affected by the merchant account service that processes its payments. Some POS providers allow you to choose your own merchant account, while others offer a selection to choose from.
Merchant accounts may charge a monthly service fee, as well as one for each credit card transaction. Processing fees typically run between 2.2-3%, while monthly charges vary.
Some companies avoid monthly charges but slam customers with ridiculous processing fees. If you have the option to choose your provider, make sure you carefully consider these two elements.
What’s the Average POS System Price?
If we had to put a figure on it, we’d say the average initial POS system price is around $1250. Plus, you’d have to add in another $1000 per year for operating costs.
However, this is an oversimplified answer. As we stated earlier, the specific functions of your POS system will dictate it’s cost.
The POS provider you choose will have a lasting impact on your company’s operations. If you’re in need of a reliable, cost-effective point-of-sale provider, you’re in the right place. Contact us today to learn about our payment solutions.