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 know 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 a big deal, although it doesn’t add a lot to the cost with time. The cost of the device depends on the type of POS you are looking for. Are you looking for hardware to enable 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 no longer need to be bulky, as you have many options. Moreover, you are not required to get pretty expensive licenses. 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 require a stand for the iPad, a credit card reader, and a 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 will be.

Cost Of Software For POS System

POS system software contains incredible features like 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, you might have to spend under $50 monthly. However, if you are looking for advanced features, you might have to pay double that amount.

Do you want excellent customer support? 

Then SaaS systems such as Shopify offers are the best for you. These charge you every month. These benefits include 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 server maintenance requirement, you will save a lot of money and effort.

The typical cost of a cloud point-of-sale system is between $45 and $120 per month. This is for a single-location business. This depends on how many locations you need the service for. This depends on how many areas you need assistance for. If you own a larger company, then you can expect the rates to be higher. 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. Some POS providers, they are merchant account providers too. In such a case, you will pay the payment processing as per the charge you pay every month. 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. 

Sometimes, the POS system provider's payment processing is your only option. However, at other times, you get a choice of payment processing. This depends on the POS provider. This depends on the POS provider. You can choose the POS provider’s payment processing option or use your already-used merchant account.

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. However, this number can vary depending on the POS you choose according to your business needs. However, this number can vary depending on the POS you choose according to your business needs. 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.

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