Choosing a Point of Sales (POS) System is one of the most important technology investments to be considered when opening a small business. So what is a POS system anyways? Basically it’s a computerized network all leading back to where the customer makes their buying transaction. POS systems are not a one size fits all type of deal, and the hardest part is finding the right set up to fit your businesses’ needs. The Trezoro team is here to give you a general overview of your options with insights on the pros and cons of each.
Electronic Cash Registers: Lets start with the most basic. These stationary, traditional solutions are proven familiar. They are simple to use, easy to acquire, and cheap to sustain. There are limited technical issues and if you are simply using them to complete transactions then you may argue that this system gets the job done. However, as we explore the advanced POS solutions available in the market, you will see how not adopting a sophisticated system can place your business at a disadvantage.
POS Systems in general will give you an advantage over using traditional electronic cash registers. Using POS systems give your business the opportunity to: analyze sales to see how well items are selling and adjust price levels accordingly, maintain sales history to assist in purchasing quantities, and improve price accuracy by integrating bar-code scanners and credit card authorization abilities with the system. There are two levels of POS Solutions companies can choose from:
Traditional Legacy POS Software: These POS Systems store data on local servers and run on a closed internal network. Businesses can use the software to track sales, inventory, and customer information but use a standard phone line or mobile connection to process credit cards.
Pros:
- Does not require high-speed Internet connections.
- One time purchase.
- Control over security and data back up.
Cons:
- Many software updates that you may need to pay for.
- Bulky hardware: Stationary tills take up lots of space.
- May be charged a fee every time you run a credit card.
- Set up of costly back office servers may be required.
Cloud Based POS Systems: These POS Systems are Wed-Hosted solutions that store data on remote servers and make information accessible online.
Pros:
- Integrate CRM systems to store customer’s data.
- Can access data from anywhere, not just on site.
- Automatic updates.
- Fewer upfront costs.
- Innovative hardware can support mobile payment options.
- Simplified fees and expenses. Ex: Flat rates instead of paying each time a card is swiped.
Cons:
- You’ll need a strong, reliable Internet connection at all times.
- Mobile providers sometimes hold onto money longer
- Monthly subscription fees are often required.
- Reliance on server for data security.
For more information on specific POS systems to fit your businesses needs see http://www.businessnewsdaily.com/2955-best-pos-systems.html.