How To Choose A Retail POS System

I’m a die-hard In-n-Out Burger fan for two reasons. The first is, of course, the delicious masterpiece of a hamburger they create. The second, but equally important reason, is the simplicity of the menu. There are essentially only three meal options, which makes things easy. And when it comes to eating a burger, making decisions is the last thing I want to do.

If only retail POS could be as simple as In-N-Out.

Choosing a retail POS is more like eating at the Cheesecake Factory. If you’ve ever been there, you know what I mean. The menu is a novel, and narrowing down your options requires a complex and often harrowing decision-making process. Luckily, there are ways to expedite the selection process. You can consider how much money you would like to spend, what will satisfy your palate, and maybe even what will work best for your health and nutrition goals. Likewise, there are several factors that can help you in your quest to find the perfect retail POS system.

Here are some of the top things you should consider when shopping for a retail POS:

Budget

Unless you’re extravagantly wealthy, you probably care about being fiscally responsible when it comes to purchasing your POS. You want the best deal for the money. Understanding what it means to get the best deal, in this case, is first and foremost a matter of separating the essential from the non-essential.

Every POS has different features and designated markets. Typically, the cost of a POS will increase as its features and capabilities increase. Your task, then, is to decide which features you both want and need and which you can live without. If you are a small-business owner with one register, for example, a POS that is designed to handle multiple locations is probably not for you. Why pay for capabilities you don’t need? On the other hand, when it comes to customer service, you may be more willing to pay top dollar.

A locally-installed system will generally run between $1,000 and $2,500. For a cloud-based system, you can expect to pay between $50 and $200 per month. Retail POS provider Bindo, for example, offers plans that start at around $59/month and increase depending on your businesses needs and size. Another retail POS, Quetzal, is similarly priced at $60/month.

Web-Based or Locally-Installed

Web-based (or cloud-based) POS software is the way of the future. We typically recommend cloud-based POS systems for a number of reasons, including better customer support, more frequent updates, and increased access to 3rd-party integrations, but some businesses may prefer the security and customizability of an on-premise solution. Click here for a full discussion on the topic.

Feature Requirements

If you’re new to the retail game, the sheer amount of features to look for in a POS can be daunting. Even the seasoned retail salesmen may find the great diversity of POS systems both confusing and intimidating. With that in mind, I have compiled a list of features you might want to consider in your next POS.

• Does it have offline capability? 
  • Many POS software will have certain “backups” for when the power goes out. Even a POS that is entirely cloud-based can continue to function on a limited basis, queuing up transactions until an internet connection can be restored. Oftentimes, a single terminal with an established connection is sufficient for a multi-terminal POS to work in a given store.
• Inventory size/functionality 
  • Make sure any prospective POS can handle the current or projected size of your inventory. See if there are any search functions that will make navigating through all of your products easy. For ease of use, look for a POS that allows you to assign specific inventory tags to your products and assemble items into bundles.
  • Will your inventory work with customizable products? If a product does not have a UPC code, will your POS’s inventory tool allow you to enter it in anyways?
  • Are there alerts for low inventory?
• Register features
  • Can the POS scan?
  • What payment options are available? What forms of payment will it accept?
  • Does the register allow you to split tender?
  • Will it accept coupons/discounts? If so, can they be applied to multiple orders?
  • Can you hold or suspend a sale? This feature comes in handy when a customer would like to add another product to their purchase. A register equipped with the feature will be able to hold the current customer’s sale and begin a new one. The flow of sales remains uninterrupted and you don’t risk losing a sale.
  • Can you put items on layaway?
  • Can you store customer information for marketing purposes? If so, how detailed is the customization?(Or how detailed would you like it to be?) While a customer’s name and email are basic features, things like brand preference and birthday reminders, included in some POS, can really help you step-up your game.
  • Can you email receipts? Gift receipts too?
  • Can you issue refunds?
  • Does it have credit card batching?
  • Is it compatible with gift cards?
• Security 
  • Does the POS allow for individual employee PINS? The less universal access any one person has, the safer your system will be.
• Can you make use of a loyalty program? 
  • There are many different types of loyalty programs. These generally include merit-based programs, tiered programs, paid memberships, gamification, point systems, cash rewards, and coalition programs.
• Reporting 
  • Reporting is an enormously important feature. It gives you a roadmap and some direction in the otherwise chaotic world of retail sales. With reporting you’ll primarily want to look for three things.
    • Sales Summary. Can the sales summary be broken down by product size, color, customer, cashier, date, or brand? It is helpful to get a break-down of each of these categories.
    • Income statement analysis.
    • Side by side comparisons of product sales.
• Can your POS go mobile? 
  • If it can go mobile, are there any limitations when it does?
• Multiple store management(if applicable)
  • Can you manage or view your sales data from one central place on the POS?
  • Does the POS synchronize your inventory? If, for example, you don’t have an item in-store, synchronization allows you to easily look up the item across multiple locations.

eCommerce

In today’s internet age, eCommerce is an essential part of any business model. When looking at the various eCommerce features offered by each POS company, there are several things you’ll want to keep in mind:

• Are transactions automatically synchronized between your in-store and online sales? This can make a world of difference when it comes to staying organized.
• Does your subscription fee include access to eCommerce features? If not, depending on your particular business needs, access to 3rd-party shopping carts may become costly.
• Which carts can the POS integrate with? For ease of use, you’ll want to see that the POS can integrate with the eCommerce vendor(s) you would like to use.
• Are there eCommerce plug-ins? If the POS is not integrated with the shopping cart you prefer, you may have the option of using a plug-in.

Customer Service

A good customer service plan is like a good insurance plan. You may not need it, but if you do, it’s awfully nice to have. Outside of budgetary considerations, there are two major factors to consider when it comes to a POS company’s customer service:

• First, do they outsource it? When a POS company outsources its customer service, you will most likely be dealing with someone who does not have direct knowledge of the product and who will be of limited help.
• Second, in which form is support offered? Will you be given email support, chat support, or phone support? How many days of the week and during which hours of the day will the service team be available to you?

Our Recommendations

Below is a brief list of retail POS systems we have positively reviewed in the past. Look for the nuances and subtle differences of each when deciding which POS you would like to use. The free trials or demos are also a great way to get a feel for the software, so take advantage of them.

• Bindo
• ShopKeep
• Quetzal
• Lightspeed Retail
• Shopify POS
• Vend
• ERPLY
• Ring It Up
• Retail Pro

Final Thoughts

Choosing the right retail POS is often a real headache. With so many choices out there, you may be tempted to curl up in a ball and cry rather than figure out which one works best for you and your business. While I don’t necessarily recommend doing that, I do understand that the selection process can be overwhelming. Fortunately, there is a way to work through the many choices you will be confronted with.

Decide what you need and filter the essential from the non-essential. If you have specific needs or features in mind, you can narrow down your focus considerably. For additional guidance, use our POS software tool or read through the many retail POS reviews on our website.