Choosing a point-of-sale system (also known as a POS system) for your small business is a crucial step in starting or upgrading your business.
When you‘re deciding on a small business POS system, there are several factors you should consider to ensure you’re making the best choice for your business needs. That‘s because some POS systems have different integrations, and options are available with various functionality levels.
You’ll also want to consider the pricing plans available; as a small business owner, you’ll be very aware of keeping your spending within a strict budget.
To help you make the decision, we’ve compiled a quick and easy guide to POS systems for small businesses. We’ll teach you what they are and why you need one as well as provide a brief introduction to some of the most popular point-of-sale systems on the market.
Many people believe that a POS system and a cash register are the same — but there are some key differences.
A cash register is a straightforward machine designed to calculate and take customer payments. They usually consist of a few basic features:
A barcode scanner
A cash drawer
A receipt printer
Many cash registers also have a card reader to allow a retail store or restaurant to process payments from credit or debit cards.
In contrast, POS software is more intuitive and has several extra features and benefits.
A high-tech POS system can process various payment options and lets customers complete their checkout process quickly and easily. It can have customer management features and even link to third-party apps or programs.
A POS system may even be able to send real-time sales updates to inventory management software or accounting software like QuickBooks. This lets you track your revenue in real time. It also allows for greater fine-tuning when it comes to ordering and tracking products.
POS systems are often customizable to an individual business’s needs. You can use it to keep track of customer data and analytics. You can use this data to specifically target specific customer personas for greater marketing efficiency or to optimize your email marketing strategy.
Some systems even send automatic sales reports to business owners to provide transparent information about sales made. This information lets you streamline your operations. For example, you can save money by adjusting your employee scheduling to customer traffic levels.
In short, a POS system is like a cash register but with far more features. It’s usually a touchscreen device instead of a clunky machine, giving customers and business owners more flexibility. Installing a point-of-sale system is a great way to bring elements of retail automation into your business as well.
Whether you’re opening a new restaurant or retail business or you’re ready to upgrade your payment processing, a POS system will be beneficial to streamline your operations and enhance your customer relationship management (CRM).
If you run a self-service restaurant, for example, you can connect your POS system to a touchscreen tablet with a self-service kiosk app. This will let your customers place orders and pay without the help of a cashier. But that’s just one example, restaurant POS systems can also be helpful to all types of businesses, including food trucks, bars, and cafes.
Retail businesses will also benefit from point-of-sale systems. It doesn’t matter whether you own a single retail store or a small business with multiple locations. From independent boutique stores to large supermarket chains, the inventory management and sales tracking features will be important for keeping your business running well.
When choosing the best point-of-sale systems for small businesses, start by considering what type of business you run and the needs of your business operations. Depending on whether you run a retail, food, or e-commerce business, there may be a specific type of POS hardware or software that’s better suited to your business needs.
You can buy dedicated POS hardware or opt for POS software that you can download to a tablet, such as an iPad. If you follow the software route, you can usually increase functionality later down the line by purchasing add-ons..
If you run a retail store, you’ll likely have a fixed point where customers come to pay. If so, fixed-place POS hardware might be a good choice for in-store purchases.
POS software can be a good choice if you need a more mobile POS system — for example, if you run a food truck or want to take the tablet from table to table in your restaurant.
Next, think about whether you need a simple or more complex point-of-sale system. You might want more POS features or prefer to focus on the overall cost or ease of use. Some features to look out for include:
Credit card processing: If you want to process card payments, you’ll need additional hardware as part of your POS terminal (a credit card reader or a contactless payment processor, for example)
Gift card payments: Similarly, if you want to accept payment via gift cards, you’ll need POS software that can process this.
Customer loyalty programs: Some POS systems allow customers to pay for products with loyalty points and to collect points on purchases.
Customer support: Some software providers offer 24-hour customer support if something goes wrong.
Online ordering: If you have an online store and a brick-and-mortar shop, you can integrate POS software onto your e-commerce site to allow for online orders.
Each feature you require will, in all likelihood, increase the POS software or hardware cost. The system's price may be charged as a monthly fee or as a payment processing fee (i.e., you’ll be charged for each sale).
Now that you know what to look for when choosing a POS solution for your small business, here is a brief introduction to three of the best POS providers on the market.
Square POS is a user-friendly point-of-sale system that can be downloaded onto Apple or Android mobile devices. It’s simple to use and has several features that make it an excellent all-in-one option.
Square can be configured to accept various payment types (including gift cards, credit cards, and contactless payments). It’s also easy to use Square to track inventory in your store or restaurant, and it offers in-app sales reports to let you see exactly what’s been coming in and out of your business.
Square is available as a standard POS, but they also offer dedicated retail and restaurant systems, with different features available for each.
Square is available as POS software — just download the app to your tablet or mobile device and get started — but POS hardware is also available. The Square Kiosk hardware mount for example, works seamlessly with self-ordering kiosk apps like KioskBuddy and allows customers to pay by card or contactless.
The standard plan of Square POS software is free to use, with no download fees or monthly costs. Your business just pays a transaction fee for each purchase. For in-person payments, this costs 2.6% of the transaction amount plus $0.10; rates are slightly higher for online orders.
Square also offers Square Plus, a pro-level membership. This provides more advanced features. Plus for Restaurants starts at $60 per month. You’ll also pay a processing fee for each transaction. This membership tier includes order-ready texts, seat management, the ability to reopen closed checks, and more.
Plus for Retail is $89 per month per location, and you pay a reduced processing fee for each transaction. This membership tier includes purchase order management, barcode label printing, smart stock forecasts, and more.
When it comes to hardware, there are various options. For example, the Square Kiosk mount costs $149, while a full Square Register costs $799.
Another popular POS system is Vend. Vend is a dedicated retail POS system and is not suitable for use in restaurants or other food-service establishments. It was designed specifically for use in physical stores. This means it might not be suitable if you’re an e-commerce platform, but its features are great for retail store owners.
Vend is a flexible point-of-sale system with features including:
Gift card payment
Easy refunds and returns
Simple user switching
24/7 customer service
Online and offline availability
Employee management
Comprehensive reporting, such as inventory management and sales reports
Vend is dedicated POS software, so you can simply download it onto existing hardware (or purchase new from another company).
Vend works on Mac or PC, but it’s also available as an iOS app.
Vend offers three payment plan tiers: Lean, Standard, or Advanced. For a single register in a single location, Lean plans start at $69 per month, while Advanced plans cost up to $199 per month.
Prices increase for more registers and locations, and hardware is not included.
Each plan also charges 2.6% plus $0.10 per card-present transaction.
Shopify is an e-commerce company that’s probably best known for its online store business. However, it also offers point-of-sale systems for managing in-person sales.
Several Shopify plans are available, each with its own range of features. However, as a standard, you can expect:
Inventory tracking
Easy-to-use discount codes
Offline cash transactions
Quick and easy returns
In-depth finance reports
Integrated email marketing
Shopify POS software integrates with Shopify hardware, so you’ll have to purchase your hardware directly from their online store if you want an all-in-one system.
Moreover, you can only use Shopify POS if you have a complete Shopify e-commerce plan. This makes Shopify a good solution if your small business primarily operates online, but it may not be ideal if you primarily work in person.
Prices for a Shopify plan range from $39 per month (Basic) to $399 per month (Advanced). Each plan has its own payment processing fees, which are between 2.4% plus $0.30 and 2.9% plus $0.30. You can get started with a free POS for your first three days, and you don’t need to lock yourself into a long-term contract.
Shopify hardware has a range of costs. Retail terminals start at $299 and go up to $459, while card readers are available from $49 if you want to keep it simple.
Shopify also offers a range of other hardware options, such as tablet stands, barcode scanners, receipt printers, cash drawers, and more.
When choosing a POS solution, there’s a lot to consider. Between transaction fees and upfront costs, you’ll want to get the best deal possible — but it’s also crucial that your payment processor options are varied enough for your customer needs.
If your small business has a self-service option, choose a POS system that integrates with your self-ordering software. KioskBuddy works seamlessly with Square to create an easy-to-use point of sale that both staff and customers will love.
Sign up for KioskBuddy today to implement a simple but effective POS system for your small business.