How Much Does a POS System Cost?

A point of sale system, or POS for short, is designed to help businesses manage the process of checkout and collecting payment. This can be done with terminals in-store that read cards or using a computer connected to a credit card reader. A typical retail price may be around $500-$1000 depending on which features are included.

A POS system is a type of computerized cash register that allows businesses to track transactions and manage inventory. The cost of a POS system varies depending on the size of the business but can range from $500 to $10,000 or more.

The typical cost of a small company point-of-sale (POS) system varies based on numerous variables. The hardware for a single register in a brick-and-mortar store will likely cost between $600 and $1,500. The POS software costs $60 to $200 each month on average.

Multichannel sales firms, as well as industries and the kind of register you require with the software you select, have different POS system prices. Most POS software uses a SaaS (software-as-a-service) paradigm, which means your program and data are stored on the cloud rather than on a local hard disk. As a result, you will be charged a monthly price to use the program.

Keep in mind that even if you select the cheapest POS for your small company, there will be other charges to consider. Because many POS systems have built-in payment processing, you’ll be charged a fee for each non-cash transaction.

Which Is Better: On-Premise POS or Cloud-Based POS?

Although most POS software is delivered as a service (SaaS), some historical POS systems are kept locally or on-premise, and others (usually restaurant systems) provide a hybrid solution. On-premise solutions offer cheaper software expenses but higher hardware and installation costs.

Most small companies now use a cloud-based POS system, which eliminates the need for heavy POS hardware and several disks to store data, as on-premise (or legacy) POS does. A Scanner for barcodes, Drawer for money, and Printer for receipts may be purchased depending on your company requirements. It’s a lot less expensive than on-premise POS solutions.

One advantage of on-premise POS is that you may personalize your system with the help of an account executive, which is great for a big company with several locations. In addition, the hardware and software are more powerful and reliable. The most important advantage of on-premise or hybrid installations, however, is consistent offline functioning.

Most of the time, cloud-based POS wins out for small firms, particularly retailers, since the software is updated often and is less expensive (ideal for startups and small businesses). Restaurants and other organizations that depend on point-of-sale systems for business operations (such as delivering orders to the kitchen or monitoring seating) are more likely to use a legacy or hybrid system, while cloud solutions are becoming more popular.

Factors Affecting the Cost of a POS System

In comparison to a major brick-and-mortar retail store or restaurant, a mobile company, such as selling at a vendor’s fair, will have fewer hardware requirements. That’s just one example of how the size of a company affects the cost of a POS system.

The following are the reasons why POS systems are priced differently:

• Business size: Because they need varying quantities and kinds of hardware and software licenses, solo ventures, startups, small and medium-sized companies, huge corporations, and corporate behemoths will all pay different charges for their POS systems. Even the sort of software used varies depending on the size of the company.
  • Square, for example, is a free point-of-sale system that may work well for solopreneurs and small to medium-sized enterprises, but it isn’t robust enough for a company with dozens or hundreds of sites.
  • Small company POS systems are reasonably priced, costing roughly $50 per month. Larger companies may have to pay more than $200 each month. And, based on a tailored quotation, enterprise-level organizations could expect to spend far more every month.
• Industry: It’s important to know what you’re selling. Retail apparel stores have distinct demands than restaurants, and their point-of-sale systems reflect this. The point-of-sale system you use should be specific to the sort of company you operate. Complex inventory tracking or analytics software will be more costly than simple payment tracking software.
  • For example, most POS software does not support inventory management at the ingredient level, while POS systems like Toast do. The addition of this tool, as well as restaurant-specific information, justifies the additional fee.
  • Pricing: A POS system like Square may be used for free, whereas a more powerful solution like Shopify can cost roughly $39 per month. Depending on the features required, retail establishments may expect to spend anything from Pricing: An online store could pay nothing for a POS system like Square, or around $39 per month for a more robust solution such as Shopify. Retail stores should expect to pay anywhere between $0 to $200 per month, depending on the features they need. Restaurateurs should expect to pay around $100 per month. Grocers, gas stations, and chain stores pay much more because their needs are greater—most will require a custom quote and should expect to pay around $300 per month, at least. to $200 each month. Restaurant owners should budget roughly $100 every month. Grocers, petrol stations, and chain businesses spend a lot more since their demands are so different—most will need an unique quotation and should budget at least $300 each month.
• Tablet-based point-of-sale systems are very popular among pubs, restaurants, retail outlets, and mobile enterprises. Retailers usually need a combination of permanent countertop POS systems and mobile POS systems. Typically, stationary hardware is more expensive.
  • Gas stations, for example, will need monitors, heavy-duty credit card Terminals, and a separate fuel system. Table management equipment and specialized equipment for hostesses, waiters, and kitchen personnel are often included in restaurant POS systems.
  • On the low end, a single card reader may cost as little as Pricing: On the low end, hardware can cost as little as $0-$50 for a single card reader; on the higher end, you can expect to pay $300 to $1,000 per terminal, plus hundreds to thousands more on monitors, kitchen display system, and kiosks.-$50; on the high end, expect to spend $300 to $1,000 per terminal, plus hundreds to thousands more for monitors, kitchen display systems, and kiosks.
• Software: To manage inventory, payments, reporting, and even time-tracking and personnel management, a small retail store needs software. Larger companies may need more extensive reporting, complex integrations, and inventory management at the macro level.
  • A chain retail organization, for example, may utilize a third-party inventory management software and want a tailored solution to integrate with their POS (and it may be a legacy POS system).
  • Pricing: For brick-and-mortar companies, POS software will typically cost between $50 and $300 per month per register. Mobile sellers in need of a POS system may generally find one for free or for a low monthly price.
• Payment processing: While some POS systems need companies to utilize a third-party payment processor to collect sales, many POS systems have built-in POS processing with pre-determined rates. Credit card processing costs vary depending on the provider—some charge fixed percentages, while others charge interchange-plus pricing. Your sales volume, credit score, and whether or not you wish to register for a separate merchant account will all influence which option you pick.
  • For instance, most well-established firms already have a merchant account that they’ll want to keep in order to keep their reduced variable processing rates. A flat-fee approach, such as Square’s, may be preferable to small firms.
  • Pricing: Processing rates can be as low as <2% + 5 cents per transaction, or as high as 3.5% + 15 cents per transaction (the average is about 2.6% + 10 cents). A lot of it depends on the merchant services provider’s pricing model, your sales volume, and average sale order.

Costs of POS Systems by Industry

Due to the particular demands of your company and franchise requirements, your setup, hardware, and software expenses will almost certainly be more if you’re part of a franchise.

Costs of a Retail Point-of-Sale System

• Retail POS setup costs: Smaller businesses may typically get a free retail POS system. Restaurants, multi-location enterprises, and franchise shops, on the other hand, could have more complicated installations that need a professional installation cost. Some POS systems charge a fixed fee for remote inventory product list setup.
• Price of a retail POS software subscription: Most POS software subscriptions are priced monthly or annually. In general, this is the most consistent expense of any POS system. Square for Retail, for example, costs $60 per month per location, whereas Lightspeed Retail’s Pro package costs $229 per month.
• Retail POS payment processing: For each sale, you will be charged a set fee and/or a percentage. Your POS system and credit card processor will determine the actual amount. However, your effective credit card processing rate will most likely be in the range of 2% to 3%.
• Retail point-of-sale hardware may include, but is not limited to, the following items:
  • Terminals
  • Tablets
  • Scanners for barcodes
  • Machines that accept credit cards
  • Printers for receipts
  • Drawers for money
  • Devices for inventory management

You may use a proprietary POS system if you own a multi-location retail chain or a retail franchise. Rather than using services like Square or ShopKeep, your organization creates and maintains its own system. If you’re the company owner, the price of this might be staggering. If you’re merely a franchise, though, it eliminates all of the difficulty in selecting a POS system and is included in the cost of doing business.

Costs of a POS System for a Restaurant

• Restaurant POS system setup: Due to the complexity of restaurant POS systems, restaurateurs are practically unable to set them up themselves. Table layouts, menu management, and ingredient management all add to the complexity of restaurant software. Furthermore, if you want kitchen display solutions as well as ordering or payment alternatives at the table, the hardware configuration is quite difficult. Toast POS, for example, requires a $499 minimum installation fee.
• Subscription to restaurant POS software: The price of your restaurant POS subscription will vary based on the kind of restaurant you operate. Until you obtain an estimate from a company like Toast, Revel Systems, or Lavu, you won’t know for sure how much you’ll spend monthly or annually.
• Payment processing for restaurant POS systems: Similar to retail POS systems, some restaurant POS services charge a fixed amount for all transactions processed via their own processing service, while others enable you to use an existing merchant account. If you hit a particular sales level (typically $20,000 per month), most systems will enable you to negotiate a cheaper payment processing fee.
• Restaurant POS hardware: For various sorts of operations, restaurants have a number of hardware alternatives. A credit card machine and a full-sized register terminal are required at the absolute least for every restaurant. A full-featured restaurant POS system, on the other hand, may incorporate any or all of the following:
  • Terminals
  • Tablets
  • Stations for hostesses
  • Machines that accept credit cards
  • Drawers for money
  • Printers for receipts
  • Displays in the kitchen
  • Routers that are wireless
  • Devices for placing orders at the table

Costs of a POS System for a Café

Café point-of-sale systems are a cross of restaurant and retail systems. Cafes are less difficult and costly since they often have a tiny kitchen (if they have one at all). They’re more like retail systems since they offer smaller, inventory-based food products.

• Café POS system setup: Café POS system settings are significantly more similar to retail systems than restaurants. In reality, most cafés can get by with only a Square or ShopKeep tablet system. Setup expenses are kept to a bare minimum, and an outside installation is seldom required.
• Café POS software subscription: These, too, are fairly comparable to retail prices. Again, the costs of these are very similar to retail. Subscriptions for café POS systems like Square start at $0 and Lightspeed Restaurant starts at $59. per month, while Lightspeed Restaurant begins at $59.
• Café POS payment processing: Similar to retail enterprises, you may anticipate to pay roughly a 3% effective payment processing charge.
• Café POS hardware: Because cafés combine restaurant and retail functions, your company may need elements of both systems, such as:
  • Terminals
  • Tablets
  • Machines that accept credit cards
  • Drawers for money
  • Printers for receipts
  • Devices for placing orders at the table
  • Inventory gadgets that may be carried around
  • Displays in the kitchen

Health & Wellness POS System Costs

Businesses in the health and wellness industry have special POS requirements. Appointment scheduling, invoicing, and retail capabilities are often included in systems that cater to this particular company type. Square Appointments, Fresha, Vagaro, and Acuity Scheduling are other examples.

• Fresha, for example, has no setup costs for their health and wellness POS system. If you choose a franchise-specific solution, professional setup expenses will almost certainly be required.
• While Fresha software is free to use, other choices such as Vagaro start at $25 per month for a single user and increase in price based on how many users you have. Others, such as Square Appointments, charge anything from Health and Wellness POS software subscription: While Fresha software is free to use, other options like Vagaro start at $25 per month for a single user and go up in price depending on how many users you have. Others, like Square Appointments, range from $0–$90 per month for up to 10 employees. and $90 per month for up to ten workers.
• Wellness and Health Payment processing at the point of sale: While you may anticipate broad payment processing charges with health and wellness POS systems, it’s crucial to know that payment processing fees for online billing and invoicing are often higher than those for card-present retail transactions.
• Because most health and wellness companies are appointment-based, they don’t need nearly as much POS gear as a restaurant or retail establishment. However, spas and wellness firms often invest in customer-facing tablets for intake forms, as well as tablets for each treatment provider to write chart notes, which may quickly add up. You may also be interested in:
  • For checkout, use a tablet or computer on the counter.
  • Smartphone
  • Reader for credit cards
  • Scanner for barcodes
  • Drawer for money

Costs of a POS System for a Food Truck

Food trucks are another unique business with their own POS system requirements. A mobile food truck POS must be wirelessly linked to the internet and kept as little as feasible.

• Food truck POS setup: While there are other possibilities for food truck POS systems, a tablet-based system, such as those offered by Square and ShopKeep, is the most practical. Both of these services offer low or no startup fees.
• Food truck POS software subscription: Because food trucks need a mobile POS, these programs are frequently simpler and less costly than those developed for brick-and-mortar enterprises. Square POS, for example, is a popular food truck alternative that is absolutely free to use.
• Food truck POS payment processing: Food truck payment processing costs will be comparable to those charged by retail establishments; effective rates will likely be about 3%. Accepting online or mobile orders, on the other hand, will result in increased online payment rates.
• While you’ll generally want to make your POS hardware configuration as simple as possible, you’ll need to invest in at least some of the following:
  • Tablet
  • Reader for credit cards
  • Drawer for money
  • Printer for receipts
  • Displays in the kitchen
  • Routers that are wireless

How to Set a Budget for a Point-of-Sale System

If you operate a sales-driven firm, investing in a POS system should be one of your top priorities. You should think about whether you want to pay monthly or annually, whether you want to purchase or rent your equipment, and if the system you pick can grow with your company.

Annual vs. Monthly Billing

Most POS systems let you select whether to pay month by month or for the whole year in advance. Monthly billing may be better for cash flow for organizations that don’t have a lot of cash on hand, however, yearly billing may be more appealing to more established enterprises due to the savings given by annual plans. Monthly contracts also make it easy to switch POS software if you’re unhappy, which might be advantageous for new firms that haven’t decided on a system yet.

Purchasing vs. Leasing Point-of-Sale (POS) Equipment

POS systems, like everything else in technology, are continuously evolving, introducing new features and becoming quicker and more durable. If you buy your equipment altogether, it’ll be a one-time fee with no monthly or annual payments to worry about. You may update your equipment every few years if you lease it.

Leasing, on the other hand, entails additional monthly or annual fees. Even if you change POS equipment every few years, acquiring POS equipment outright is still the most cost-effective solution for most small companies like stores and other brick-and-mortar locations with a few terminals. Leasing POS hardware is often accompanied by a long-term POS software agreement.

Financing for POS Systems

Many POS providers enable you to make payments on their systems if you don’t have the cash on hand to pay for it all at once. Square, for example, enables you to pay for your POS system in monthly payments with no interest.

Choose a system that will expand with your company.

If you’re a small firm or a startup, it’s tempting to go with the cheapest solution that meets your requirements. Some POS systems, on the other hand, do not scale well. If your company expands to a medium or big scale and you require more powerful inventory or analytics capabilities, or you want to start selling online, switching systems afterward might be quite disruptive.

Conclusion

You should anticipate spending $3,000 to $10,000 per year on your business’s POS system after everything is calculated, paid for, and processed. That’s a big range, and it depends on your industry, company size, income stream, hardware requirements, and other factors. Mobile companies and infrequent sellers will incur modest expenditures, but brick-and-mortar enterprises would incur significant costs for more complex hardware and software configurations.

Frequently Asked Questions

Which POS system is the cheapest?

The price of a POS system depends on the size, complexity, and location it is installed. A good place to start looking for your answer would be online through technology sites such as Gartner or Computer Weekly.

How much does POS system cost in South Africa?

The price of a POS system in South Africa depends on the size and complexity. It is typically around $4,000-$5,000 for a basic model to about $7,000-80000 for an advanced version that includes barcode scanning capabilities.