The cost of a point of sale system is one of the most important factors to consider before purchasing one. It will help you clearly be aware of how much you need to invest. What are the different components of a POS system and how much does each cost?

POS Hardware

At the initial stage, the hardware is indeed a big deal, although with time it doesn’t add a lot to the cost. The cost of the device depends on the type of POS you are looking for. Are you looking for hardware for enabling people to check out by themselves? Are you looking for tablets for processing digital orders? Are you looking for receipt printers and credit card readers? The most cost-effective solution is a cloud-based POS system. When compared to traditional POS systems, these cost incredibly low.

POS systems do not need to be bulky anymore as you have lots of options. Moreover, you are not required to get licenses that are quite expensive. You can get a sleek and straightforward touchscreen device like an iPad. You can get the complete setup for around $1500. This is when you use cloud POS services. Earlier, you had to invest about $7000 for traditional POS systems. You do require a stand for the iPad, a credit card reader and cash drawer, but this depends on your business type.

Many POS providers provide you with bundles for hardware. For example, Shopify’s iPad/Mini/Pro bundle costs you $749 if you already have an iPad. The cost of the device will depend on your business and the industry it operates in. Just remember this- the more registers you need, the higher the hardware cost is going to be.

Cost Of Software For POS System

POS system software contains many incredible features such as inventory management, CRM, and sales reports. The cost of such POS system software depends on the particular features you are looking for. If you choose the necessary featured software, then you might have to spend under $50 per month. However, if you are looking for advanced features, then you might have to pay double that amount.

Do you want excellent customer support? 

Then SaaS systems such as the ones offered by Shopify are the best for you. These charge you on a monthly basis. The benefits of these include getting regular updates and the ability to use the POS service. When you pay for the software, it consists of the fees for storing data remotely. As there is no requirement for server maintenance, you will be saving a lot of money and effort.

The common cost of cloud point of sale system would be anywhere between $45 per month to $120 per month. This is for a single location business. If you own a larger company, then you can expect the rates to be higher. This depends on how many locations you need the service for. However, there is a possibility that the costs may come down a little depending on the business’ size.

How Payment Processing Fees Adds To POS Cost

Payment processing is an important aspect to consider. With some POS providers, they are the merchant account providers too. In such a case, you will pay the payment processing as per the charge you pay on a monthly basis. Shopify, for example, charges 2.2% when you get the Unlimited Plan and for Pro Plan, you are charged 2.4% for processing. Square POS charges a flat rate of 2.75% for payment processing as it does not charge you monthly. 

There are times when the payment processing by the POS system provider is the only option you have. However, at other times, you do get a choice of payment processing. You can choose the POS provider’s payment processing option or you can use the merchant account you already have. This depends on the POS provider.

Payment processing sometimes depends on your sales.

Total Cost Of POS

How much can you expect the cost of the POS to be? If you are a small business, then the minimum amount you would have to invest would be approximately $1250. In addition to this, you will be required to pay up to $1000 for the POS software. This POS software will come with customer support and maintenance updates. However, this number can vary depending on the POS that you choose according to your business needs.

With all these cost factors in mind, you can now think about how much a point of sale system can cost you. You must remember that a great POS system is an investment. When you choose the right one, even if it is an expensive one, your business can reach greater heights by functioning smoothly.