Point of Sale System Cost
Last Updated on August 15, 2020 | Written by CPA Alec Pow
First Published on March 5, 2015 | Content Reviewed by 
CFA Alexander Popivker
POS System / Point of Sale system consists of equipment and software used by traders (shops, restaurants, fast-food, hotels, exchange offices, gas stations, etc.) for transactions. It is sometimes called ” POP ” (Point of Purchase) or ” EPOS ” (Electronic Point of Sale). These systems are a new generation of cash registers with more advanced features.
For a low priced POS system expect to pay about $1,500 – $2,500.
For a high priced POS system expect to pay about $15,000 or more.
Are you new to the POS system (Point of Sale) concept?
If the idea of managing the business with a POS system is new to you, you may be overwhelmed by the choices and information from the field. You may find that you will never need certain features, but you should also be able to take advantage of the system’s “scalability”. We recommend choosing a POS system that can “grow ” along with your business, and deal with different issues that might arise, perhaps with small upgrades over 3, 4 or 5 years.
The advantages of using a POS system:
- The sale is fluent and the customers’ waiting time at the cash register minimizes.
- With the help of its management software, you have full control over the inventory and your employees, limiting losses. It complies with all the legal requirements for the good functionality of the business (issuing bills with the complete name of the products and automatic completion of compulsory registers).
- It considerably reduces the time required to administer the business.
- It can be used as a marketing tool to increase the number of clients with loyalty programs, gift cards, vouchers, and advertising messages on all displays and bills.
What won`t a POS system provide?
- These POS systems can’t provide advanced accounting for you, but they can offer you all the basic accounting reports and the possibility to transfer files to your accouter or to your accounting specialized software.
- The successful use of the same POS system in completely different fields of activity. This means that a POS system from a gift shop can not be used in a restaurant.
- Entering invoices electronically from various suppliers, with some exceptions.
Typical costs:
- The price of a „starter kit” for a retail or a restaurant can range from $1,500 to $ 2,500, but if you intend to buy a more complex POS system with a touch screen, sophisticated reporting capabilities and automatic ordering expect to pay somewhere between $1,500 and $ 25,000.
- IBM POS systems are priced anywhere from $1,999 to $2,499, but if you want a more complex one you could pay up to $4,000 and more per station.
- At Microsoft, for a single store with one cashier lane, you will pay at least $1,290.
- At QuickBooks, you can find its own Basic POS system for about $800 and a Pro POS system for about $1,050.
Remember: choosing POS system components from multiple manufacturers might seem like a great way to save on cash, but there are some risks:
- Incompatibility between components;
- In case of fault conditions the vendors can avoid taking responsibility;
- For assistance requests or when ordering supplies you will have to call different firms with different travel policies;
- Looking for many suppliers involves more movements.
- The lack of provider synchronization can create problems in implementation.
Should the average working Joe get a POS system for a startup business?
Getting these types of systems and software will greatly enhance your business, but make sure you have money for everything else before getting them, and only buy them after you paid for anything you consider vital to your startup. Remember that a POS system isn`t a must so only get it if you can afford it.
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