As a merchant, point of sale is crucial for your business. If POS is good, sales will increase; customers won’t prefer to come to your shop if it’s not that good. However, a good POS system means high-performing machinery. You might be thinking, what would the cost of the best POS system that can increase your sales? The cost of the POS system depends on the system you want to have.
You cannot afford the most expensive system, nor do you need to buy a cheap pos system. You need to buy a system that is good yet inexpensive. For this, you must have an in-depth knowledge of the hardware, software, processing fees and installation cost of the POS system.
Suppose you need to learn how to break down all these costs. Then you must read this blog to understand the costs of buying a POS system.
Cost Of The Hardware
The first part of the Point Of Sale system hardware is terminal or register. The terminal is the machine that accepts payments and scans and reads the cards. The cost of a terminal varies from terminal to terminal. Some terminals can cost you only a few dollars, while others can cost hundreds.
However, a good-performance terminal comes for anything between $500 to $1000. The terminal is one of the parts of the hardware of the system. Other hardware parts include a barcode scanner, cash drawer, receipt printer and card reader.
A barcode scanner can vary from $50 to $500. The cash drawer can be from $50 to $300, and the receipt printer varies between $150 and $500. At the same time, the price of a card reader can vary from $50 to $200.
Cost Of The Software
The cost of the software depends on the type of software you take. However, the POS software system includes open source, basic, advanced, subscription bases, and custom software.
Open Source Software
The open-source software is free to use, and you can just download and use it. However, if the software is free, it must lack many features and provide only a few features. This software is never a good option, even if your business is new or emerging.
Basic Software
The next option is to use the basic software. As the name suggests, it only offers basic features, and its costs are nominal. The basic features that basic software includes are inventory management, sales tracking and reporting.
However, basic software can vary from a few hundred to a few thousand dollars, depending on your business needs and pricing model. The systems with basic software work as the best pos for small businesses.
Advanced Software
Then comes the advanced software. As the name suggests, the software includes many advanced features to an upgraded basic software level with a few POS integrations. The additional features include an employee management system, CRM and customer loyalty programs. This type of software normally costs thousands of Dollars, but it depends on the merchant’s needs.
Subscription Based Software
The next software you can have in your system is subscription-based. A subscription-based model is the least expensive of other software. But in the long run, it is way more expensive. When you buy software, you pay for it once and for all, i.e. a few thousand dollars. However, in a subscription-based point of sales pos system, you must pay for every month and year and keep paying.
Moreover, the prices of the subscription model depend on your business needs and the features you take.
Custom Designed Software
The last option in the software is custom software. Custom software means having your software designed according to your business needs. In this software, you ask the developer to design the software according to your will. Whether you want to use that software as a fixed or mobile pos system, you can do it with custom-designed software.
Thus a custom designed software can cost way more than any other type of software. Mostly the price of this software starts from thousands of dollars. Still, the prices may vary with your business needs.
Processing Fees
The processing fees vary from service provider to service provider. The process fees are divided into the interchange, markup, and card scheme fees. However, the processing fees are low, but it is per transaction fee. For each transaction at the point of sale, the merchant has to pay an upfront fee.
Higher the number of transactions at your POS, the more fees you will be paying. The processing fees include three types of fees, out of which 2 are non-negotiable, and the rest markup fees are negotiable.
Generally, the processing fees are 1.5% to 3% of the transaction amount; sometimes, they are 2% to 3%.
Other Charges
There are several other charges for the POS system. The breakdown of these charges is installation charges, hardware and software installation. And the training cost of the POS system.
When you acquire a POS system from any service provider, the technicians who come to install the system, whether software or hardware, may charge a fee for their services.
Besides this, you need to take the training to use the system without any inconvenience. The training can be online or in person. The training prices vary from a hundred dollars to thousands of dollars depending on the complexity of your system.
Which Service Provider To Acquire The Services?
Now you know the costs of a POS system but still need clarification about which service provider to contact. Then you don’t need to worry anymore because we mention a service provider that provides the best services in the town.
We are talking about the MBE POS. MBE POS is the service provider of POS systems and aims to help businesses boost their sales. If you run a business and want a high-performing POS system, then MBE POS is the provider you would love to acquire services.
Turn your business into money making, boost your sales with you and call us to get your hands on the best of the best system.
The Bottom Line
POS system plays an important role in the success of the business. If you want to take your business to new heights, invest in your POS system and make it a full-fledged process to facilitate your customers.
