POS system pricing: what you need to know
Choosing a Point of Sale (POS) system for your business isn’t just about features—it’s also about finding a solution that fits your budget. The price of a POS system can range from affordable, basic setups to more advanced systems designed for larger operations. The key to determining the right price for your business is understanding the factors that drive costs, including hardware, software, and extra features that can improve efficiency. In this guide, we’ll break down the main factors influencing POS system pricing and help you identify what’s most important for your budget.
Factors affecting POS system pricing
When you start comparing POS systems, you’ll notice that pricing isn’t always straightforward. Many factors influence the total cost, and businesses need to account for both upfront and ongoing expenses. Here’s what typically affects the price of a POS system:
Customizable software solutions
The software behind POS systems is one of the biggest variables in price. Most POS software is designed to handle the basics, such as sales tracking and payment processing, but more advanced versions come with a suite of features tailored for specific industries.
Basic software vs. advanced solutions
– Basic software: The most affordable POS software typically offers essential tools for processing transactions, tracking sales, and generating basic reports. Prices for entry-level software usually range between $30 and $80 per month.
– Advanced software: Industry-specific or more robust POS systems can offer features like inventory management, customer loyalty programs, or employee scheduling, driving prices higher.
Industry-specific software pricing
Some systems are designed for particular types of businesses, such as hospitality, retail, or service-based operations. These may come with advanced tools for things like customer management, inventory tracking, and employee scheduling, which often increase the price. Monthly costs for these systems range between $100 and $200 or more.
Custom POS software
Larger businesses may need a highly customized system that integrates seamlessly with their existing tools. Custom software solutions are usually priced on a case-by-case basis and can include setup fees, premium support, and custom development costs.
Hardware requirements
The hardware you choose for your POS system can also have a significant impact on pricing. Whether you’re using a tablet, a traditional terminal, or a mobile setup, hardware costs should be factored into your budget.
All-in-one terminals
For many businesses, purchasing an all-in-one terminal is a convenient solution. These terminals typically include a touchscreen, cash drawer, receipt printer, and card reader in one compact unit. Prices for all-in-one terminals can range from $800 to $1,500, depending on the brand and features.
Tablet-based POS systems
Many businesses are opting for tablet-based POS systems due to their flexibility and lower hardware costs. For example, an iPad-based system can range from $300 to $600 per tablet. However, you may need additional accessories like stands, card readers, and receipt printers, which can add to the total price.
Mobile POS setups
If your business requires mobility (such as a food truck or pop-up shop), mobile POS systems that use smartphones or lightweight card readers are an affordable option. Prices for mobile card readers usually range from $50 to $300.
Subscription models vs. one-time fees
Many POS systems operate on a subscription-based pricing model, where businesses pay a monthly fee to access the software and features. However, some companies offer a one-time payment option for software, which can be a better fit for businesses that want to avoid ongoing costs.
Subscription-based systems
Most cloud-based POS systems charge a monthly or yearly subscription fee, which typically includes access to the software, updates, and customer support. These subscriptions range from $30 to $200 per month, depending on the features and number of users. Subscriptions also often include built-in support for cloud backups and remote access to sales data.
One-time purchase options
Some POS providers allow businesses to buy the software outright. While this may seem like a high upfront cost, it can save money in the long term, especially for businesses that prefer not to pay monthly fees. Prices for one-time purchases can range from $1,000 to $2,500 or more.
Payment processing fees
When you use a POS system to process payments, there are always payment processing fees involved. These fees vary depending on the provider, the type of card used, and whether the transaction was processed in-person or online.
Flat-rate fees
Many POS systems offer flat-rate fees for transactions, which means you pay the same percentage regardless of the card type. These flat fees typically range between 2.5% and 3% per transaction.
Tiered pricing options
Some providers offer tiered pricing, where different fees apply depending on the type of transaction (e.g., debit cards may have lower fees than rewards credit cards). This can sometimes be a more cost-effective option for businesses with a high volume of certain transaction types.
Integration and customization costs
Another factor that can influence POS pricing is the ability to integrate with other tools your business may be using, such as accounting software, inventory management systems, or e-commerce platforms.
Third-party integrations
Many POS systems come with built-in integrations to streamline workflows. If your business relies heavily on third-party software, make sure to choose a POS system that integrates seamlessly with your existing tools. Some integrations are included in the subscription, but others may come at an extra cost.
Customization fees
If your POS system requires special features, add-ons, or development work to meet your needs, customization fees may apply. These fees can vary widely, depending on the complexity of the customization and the provider.
Training and support
While some POS systems are easy to set up and require minimal training, others may require more hands-on support. Costs for training and ongoing support should be factored into your budget.
Self-service support options
Some POS providers offer basic online guides and help articles for free, making it easy for businesses to set up the system themselves. However, if you need more personalized training, there may be additional costs.
Premium support plans
If your business requires 24/7 support or regular training for new staff, consider investing in a premium support plan. These plans typically cost extra and can include benefits such as dedicated account management, faster response times, and custom onboarding.
How to find the right POS system for your budget
Evaluate your business needs
Start by listing the essential features your business needs from a POS system. Are you looking for a simple setup with basic sales tracking, or do you need more advanced features like customer loyalty programs and employee management?
Start small and scale
If you’re a small business, consider starting with a lower-cost system that meets your immediate needs. As your business grows, you can upgrade to more advanced systems with additional features.
Ask about hidden fees
Before committing to a POS system, make sure to ask about any hidden fees, such as setup costs, customization charges, or additional fees for integrations. Understanding the total cost upfront will prevent surprises later.
Frequently asked questions
What is the average cost of a POS system?
POS system prices can range from $300 to over $1,500 for hardware, while software subscriptions typically cost between $30 to $200 per month. Payment processing fees also apply, usually around 2.5% to 3% per transaction.
Is there a difference between cloud-based and locally installed POS systems in terms of price?
Yes, cloud-based POS systems typically have lower upfront costs but come with ongoing subscription fees. Locally installed systems may require a larger initial investment but often have lower long-term costs.
Can I use my own hardware with a POS system?
Some POS systems allow you to use your own hardware, such as tablets or card readers, which can help reduce costs. However, certain providers may only work with proprietary hardware, so it’s important to check compatibility before purchasing.
