POS System Cost
Don’t pay more than you have to for a dependable POS system.
Although there are a few variables that need to be factored in based on your specific business needs, standard monthly fees for POS software run between $80 and $150. Hardware and installation costs start around $800 depending on the brand of your choice.
In this guide, we'll explore everything you need to know about what the most optimal POS system for you will cost.
Continue reading in order to make a well informed decision before your big purchase.
How Much Does A POS System Cost?
In the sections below, this article will cover all of the criteria that goes into how much a POS system costs includes factors, parts, accessories, business type and installation.
Factors To Consider When Buying A POS System
As we said before, there are multiple costs to consider when looking for the POS system cost. To get a better idea of the cost, we will break it down into three smaller categories, including:
- Hardware: Terminals, routers, kiosks, card readers, handheld devices, cash registers, receipt printers, kitchen display systems, and scales.
- Software: The platform on which your hardware runs, giving you the ability to make transactions, process payments, retain data, and get reporting and analytics.
- Add-Ons: You might choose to take your POS system one step further with additional features, such as loyalty or rewards programs, delivery and take-out, gift cards, payroll management, and more.
When it comes down it, all systems have different pricing structures. The simple fact is, some point of sale systems offer more value than others. Plus, just because you see a system that is a thousand dollars more than another one doesn't mean it is the right one for your business.
Breaking Down POS System Costs
The cost for your POS hardware will depend entirely on what it is you need and what kind of equipment you decide to purchase. There are multiple types of POS systems out there with different types of hardware. The two most common types of systems include cloud-based systems and legacy systems.
Cloud-based POS systems make use of remote servers on which all of your data is stored. The beauty of these systems is that you can access them almost anywhere as long as you have access to the Internet.
Then there are legacy systems, which are a more traditional type of POS system. These traditional POS systems are made to store data on local servers instead. Let's say you're looking at buying a restaurant POS system. In that case, you'd need to have room for a local server in your restaurant.
The main priority should be getting durable POS hardware, especially if you are looking for POS hardware for a restaurant.
You'll have a lot of hardware choices for each of these systems:
You may also need back-of-house POS hardware, such as a kitchen receipt printer or a kitchen display system. For quick service, you'll likely want to have a handheld POS system. These can be great for high-volume restaurants that want to speed up their turnaround process.
The idea behind looking at everything individually is that you can focus on the cost of the line items rather than the cost of everything at once.
In doing so, you might come to the conclusion that it'd be better and more cost-effective in your specific case to get a handheld POS system instead of multiple terminals. You might also go for a single cash register for cash transactions instead of multiple.
Let's check out the average restaurant POS systems cost to get a better idea of what you can expect to pay for each item:
- Terminal & Card Reader - On average, you'll spend about $800.
- Terminal Bundle - Including a terminal, stand, case, card reader, cash drawer, cables, and receipt printer, expect to spend around $1,400.
- Kitchen Ticker Printer/Receipt Printer - On average, you'll spend anywhere from $300 to $400 for kitchen printers and receipt printers.
- Router - For cloud-based POS systems, you'll need a router, which will cost you around $400.
- Handheld POS System - On average, you can expect to spend anywhere from $300 to $800 on handheld POS hardware. The number depends on how many you choose to buy, and the number you choose to buy depends on how large your establishment is. Do note that you will need a stronger network to handle multiple handheld POS systems.
- Kitchen Display System - On average, expect to spend around $1,500 for a kitchen display system.
Software costs, unlike hardware costs, are typically not one-time payments.
You will usually end up paying for software every month or every year depending on the deal that you accept from your chosen POS company. More often than not, however, expect a monthly subscription fee.
Whether you're purchasing retail POS systems, restaurant POS systems, or other types of specialized POS systems, the POS software that you choose can make a world's difference. No matter what, you need to have reliable and durable hardware.
However, if your software can't keep up with the speed of your business or can't handle the types of transactions that you need it to handle, then it might not be worth the cost.
When it comes to the cost of cloud-based point of sale systems, expect to pay either monthly or annually. The actual fee will depend on the vendor that you choose to buy your point of sale software from.
If you're trying to get a better idea as to whether or not the POS software costs will add any more value to your establishment, then you need to not focus so hard on the price. When trying to evaluate the value of POS software, there are a few things that you can consider asking yourself, including,
Does the company I am purchasing from offer some sort of customer support? If so, how often and through what forms of communication?
Does the company provide my POS software with free updates post-purchase?
Are there add-ons I can use to customize the point of sale system for my particular business?
When it comes to the cost for POS software, you can expect a few figures:
If you're looking in the cost of a restaurant POS system, then you're probably looking for restaurant-specific features in your point of sale system. You want the restaurant POS system that you use to be able to accept all forms of customer payments, go through the steps of payment processing, and facilitate orders from the table to the kitchen, and make the checkout process as easy as possible.
However, you might also want some additional features that are specific to your business.
There are plenty of additional features in the realm of POS systems, many of which you can use to optimize the operations at your establishment. Some of these include:
There are many point of sale manufacturers that integrate these additional features standard in their point of sale software. However, there are many that offer these features for extra fees. It's up to you to do your research to compare the various features found on different POS systems.
If you're looking for the average cost of some of these point of sale features, here is what you can expect:
- Gift Cards, Inventory Management, Online Ordering - Because these features are extremely popular in restaurant POS Systems and beyond, you can expect them to cost a bit more at around $50 per month on average.
- Rewards or Loyalty Program - Expect to spend around $25 per month
- Third-Party Software Integration - Expect to spend around $25 per month
Point Of Sale System Installation Costs
If you've chosen the perfect POS provider for your point of sale system, you now need to consider what it will cost to get your system running so that your business can make use of it. Are you going to install it or are you going to leave that to the provider?
Some POS providers will include installation in their costs while some make it an additional fee. Some will also include training too!
When trying to determine POS systems cost, you need to consider training and installation. If you don't get it set up properly, it might not work well with your establishment. Plus, if your staff isn't trained to use it, then it might not end up being effective.
Do note that if you buy a system for your business and the provider doesn't offer any sort of training or installation, then it will totally be on you.
Trying to install and train your staff on a brand new system can take weeks, if not much longer. You might run into hurdles along the way that end up costing you even more over time.
In our opinion, it is best to pay for someone to come in for the installation process and deliver hands-on training to your staff to make sure that the transition is seamless.
When it comes to training and installation, here are the costs that you can consider:
- Remote Installation - On average, you can expect to spend $75 per hour. Remote installation is where a person working with the provider provides you with instructions to set up your system virtually.
- On-Site Installation - On average, you can expect to spend $100 per hour for on-site installation. In this case, someone from the provider will visit your establishment to set your system up.
If you're trying to determine installation costs for your restaurant POS system, you might also want to consider having someone from the provider help you build your menu out. Typically, this will cost around $500 depending on the size and complexity of your menu.
Where Can I Buy a POS System?
Most of the time, business owners end up buying POS systems from POS providers. Most providers will provide some sort of proprietary hardware. However, there are more and more these days that use open-source software, meaning you can use all of your own hardware, including tablets and stands. Open-source companies are nice because you have more control over your hardware costs.
Of course, most providers recommend that you buy your hardware through them, as that is the only way that they can promise complete compatibility. Always make sure to check out the software specs and compatibility prior to buying open-source POS software.
You can also buy POS systems through online resellers. Of course, you need to be a bit more careful when doing this, a POS vendor that is a reseller might have units that vary in terms of quality. Plus, buying through a reseller isn't always cheaper necessarily. In fact, you may end up buying from a reseller that hits you with a ton of hidden fees, which is why you should always compare costs prior to finalizing.
Final Thoughts - Determining the Cost of POS Solutions
So, as you can see, there are many things that go into determining POS pricing. From the software cost (monthly software fees) to hardware bundle options to add-ons like self-serve checkout kiosks, cash drawers, and barcode scanners, you could end up paying quite a bit for your POS solution.
In short, POS prices can be expensive for the average small business owner. Whether you're looking for retail POS solutions, restaurant POS system solutions, or any other kind of system, you need to invest whatever it takes to get an efficient and effective system.
The main goal for you should be to find a vendor and a system that can help you optimize your daily operations and strengthen your customer experience so that you can grow as a business.
So, how much does a POS system cost? While the answer depends on o your needs, you should be able to get one for $1,500 upfront, paying a little bit each month to keep up with the software and other additional fees. Make sure to compare the POS system pricing from different POS vendors and see what kinds of POS features they offer.