If you’ve come this far, you’ve already chosen your POS software. If you haven’t, stop right there and read this (link to Part I) first.
Use this checklist that outlines how to choose a retail POS system to help you evaluate your POS hardware choices.
1. Compatibility.
Not all POS software works on all POS hardware, so compatibility is an important issue when selecting a new POS system. Look at POS software options first (see Part I). When you have narrowed your POS software choices, evaluate the hardware choices — terminals, touchscreens, peripherals — that are compatible with it.
2. Number of Terminals.
For this item on our “how to choose a retail POS system” checklist, you need to determine the number of POS terminals you require. A single terminal may be sufficient for one small retail location. However, if you operate multiple locations or a single store with heavy customer traffic, a larger quantity of POS terminals is necessary. Once you’ve calculated the quantity of POS terminals your business requires, the next step is figuring out the type of terminal that best fits your retail environment. If space at the POS is tight, an all-in-one terminal with a small footprint may be your best bet. A tablet POS that can be used as a stationary POS system and as mobile POS is another space-saving option to consider.
3. Peripherals and Add-Ons.
Once you’ve selected the number and type of POS terminals your business needs, select POS peripherals like PIN pads, bar code scanners, cash drawers, and equipment for data backup. If you are using all-in-one terminals, it won’t be necessary to purchase some peripherals because they are already included with the terminal. Also consider rugged tablets for line busting during your busiest seasons or biometric readers to control employee access to the system. Speak with your retail POS solutions provider about all options available to you. Some functionality, such as near field communication (NFC) that enables mobile wallet payments such as Apple Pay and Android Pay, for example, is available in EMV card readers for about the same cost as those that do not include it.
4. Budget.
Another integral piece of the “how to choose a retail POS system” puzzle is formulating your POS hardware budget. For retailers, the average industry investment in POS systems is usually 2% to 3% of annual sales. Remember to factor into your budget ongoing costs such as hardware maintenance, software maintenance, and training. Don’t fall into the trap of selecting a system, and then looking for “cheaper” alternatives. Consider the total cost of ownership (TCO) of a system, rather than only the upfront investment. Consumer tablets, for example, are cheaper than tablets designed for retail use, but are more easily damaged and are supported by the manufacturer for a shorter period of time, and in the end, could cost you more.
5. Vendor type.
An important consideration in how to choose a retail POS system is the vendor you will work with. There are different types of businesses that sell POS systems or parts of a system. A value-added reseller (VAR), for example, offers POS hardware and software from multiple vendors and typically provides service. An independent software vendor (ISV), however, develops and sells POS software. Work with a vendor that supports the system you want, understands your business, and has a proven track record of successfully installing POS systems. Some VARs offer software/hardware bundles available and can customize them to suit your specific needs.
After careful evaluation of the POS software and hardware choices available to you and how they can meet your business’s needs, you will find the right retail POS system to support your operations and business goals.
For more information about selecting a POS system, download our free “POS Systems Buyer’s Guide.”
