9 Things to Consider When Choosing a POS System

Choosing a POS system can be a daunting and time-consuming task if you don’t know where to start. This article will guide you through the process and provide tips on what your small business should focus on, depending on the size and industry.

POS systems excel at helping organizations keep track of their sales, inventory, customers, and employees. Depending on your industry, you may want to choose a POS that’s most tailored for your niche. For instance, Toast is among the best POS systems for restaurants, while Lightspeed is highly advisable to retailers. When utilized to their full potential, POS solutions have the power to change the way you conduct business. They improve sales and your bottom line, decrease ineffective processes, increase customer satisfaction and retention, and help your organization grow.

Like in any industry, technological advancements have boosted the development of POS systems. Nowadays, many modern vendors set up POS software on iPads and keep all the data in the cloud, as opposed to their on-premises counterparts. This allows businesses to conveniently access most tools and information from anywhere in the world, and track inventory even when out of the office. Below we have gathered the nine most important things that a small business owner needs to consider when choosing a POS system:

1. The Features

Most market leading POS vendors have perfected their solutions to fit close to all business types and industries. This fact alone simplifies many processes related to choosing a suitable vendor. However, understanding the features that are important for your specific case is still very important due to few reasons:

• Whatever you do, there will be a number of key differences between various brick-and-mortar stores. A coffee shop, for instance, may require specific scales to weight the coffee, while a bar needs a sophisticated cocktails menu design.
• Industry-oriented POS software always beats generic POS software. A system crafted specifically for restaurants will always represent more value compared to a POS that can be used for any business.
• Inventory tracking and automation features are particularly important for bars and restaurants, to make sure that you always have your stock full.
• Look into the experience of a POS vendor with your industry. For example, if a POS software vendor is working specifically with retailers, it generally means that they have a much better understanding of the needs of retail businesses than others.

When evaluating various point of sale systems, take the time to examine the specific features and vendor expertise in the given field. Don’t hesitate to contact the brand to make some inquiries or take a free trial of the tool when choosing a POS system.

2. Cloud-based POS VS on-premises

When choosing a POS system, it’s important to consider its mobility and security. Just like with most other business software, a cloud-based POS is highly flexible and allows a lot of mobility and remote access, with all the data being stored in the cloud. In contrast, on-premises POS systems store all client and sales data on servers located inside the office building. This means that you can’t access any data outside of the office. In exchange, you get much higher data security and integrity. It’s also worth noting that cloud-based systems are a lot cheaper compared to on-premises versions.

3. The Cost

As with any business tool, investing in a POS system should ultimately earn you more than it is costing your business. Cloud-based POS systems generally utilize a monthly/annual subscription method, and while these vary from vendor to vendor, the costs are usually affordable. However, because POS solutions include POS hardware in addition to POS software, the upfront costs may be a bit highert. For instance, if you haven’t used a POS system before, then there are certain POS hardware products that you’ll have to purchase and install. On the other hand, if you already have the hardware, you’ll want to make sure that the POS system you’re considering is compatible with it. Set up a call with a vendor to understand if their system will work with your current tools.

Furthermore, some vendors charge installation fees which can get up to $1500, including training programs for team members. Another variable is the cost for service and support – some vendors charge a separate fee for those while others include it in their pricing plans. Finally, if your small business is doing a lot of transactions, you need to think about credit card processing fees. Make sure to ask all of these questions to your POS vendor.

4. Simplicity and Usability

Your POS software needs to have a clean and simple user interface. Keep in mind that your whole team is going to use this system every day, and you want to make sure that they will get the hang of it quickly. There is nothing worse than having to refer to the owner’s manual every time you need to preform a transaction, and this will be reflected in your staff’s daily routine.

The best way of knowing whether a point of sale system is right for you is to test it. Most marketing leading vendors  offer a free trials or onboard training. Use this period to understand your team’s feedback on the software, take notes, and find the perfect solution.

5. Inventory Tracking

Carefully analyzing inventory tracking and automation features should be a top priority when choosing a POS system, especially for retail businesses. Conventional inventory tracking is a time-consuming and highly inefficient task, especially if you have multiple brick-and-mortar locations and/or warehouses to manage. Modern point of sale systems help businesses keep track of their items easily by providing information on the current and incoming stocks, as well as stocks located in other facilities.

Moreover, inventory automation features allow you to set up automatic restocking of items, without having to place the same order each time. Also, handy features like stock transfers between multiple locations and new order setups allow you to manage all your inventory from your smartphone or tablet.

6. Hardware and Compatibility

If you already have POS hardware, it’s important to take the time and check the compatibility of it with the POS system you’re currently considering. This will help you get a good idea of the upfront costs and help you find a vendor that will suit your needs perfectly. Also, most POS providers have hardware bundles that can be purchased separately.

7. Third-party Integrations

Another essential aspect to consider when choosing a POS system is the availability of integrations. While these don’t have any direct impact on the software, the ability to automatically share sales figures and customer information with your accounting and/or marketing software is crucial. Such integrations help you save time and effort and allow creating personalized email campaigns that will ultimately improve your bottom line.

Make sure to check the “add-ons and integrations” section on the vendor’s website to get a good idea of which programs can be integrated with their software. Also, it’s highly advisable to choose a vendor with an open API. This way, you will ensure that you can incorporate various tools in the future, even if you aren’t using a lot of them right now. Finally, check to understand how easy it is to integrate other tools with the POS system. Some POS solutions are “plug and play” while others may require the help of a programmer to set up.

8. Reporting and Analytics

Let’s just put it straight – the more reporting and analytical capabilities your POS system has, the better. Being able to drill down on data in segments like sales, workforce occupation, and customer feedback and satisfaction is crucial to establishing a solid business strategy. Also, make sure that the reports are easy to generate, read, and understand. The availability of information doesn’t mean much if you can’t put it to use effectively.

9. Customer Support

Last but not least, pay attention to the customer support offered by your vendor when choosing a POS system. Even if the tool is extremely easy to operate and install, there will be times when you’ll need assistance. This is where a professional team that knows all the ins and outs of your industry and POS system will come in extremely handy. Issues and critical situations can cost you immense amounts of time and money, and the faster you deal with those, the better off you’ll be.

Conclusion

Choosing a POS system may seem complicated, but in reality, you just need to find a solution that works for you. Thankfully, there are numerous great vendors to consider, each offering a satisfying and productive experience. Use the above-mentioned list to narrow down your choice to a few, and make your final choice after giving the product a go.