Part 3: Cost, Contracts, and Long-Term Value
1. Consider the Total Cost, Not Just the Price Tag
When evaluating a POS system, don’t just focus on the upfront cost. While a basic system may seem affordable, hidden fees can add up quickly. Consider these factors:
Subscription Fees: Many POS providers offer monthly or yearly plans. Be sure to choose a plan that fits your business size and avoid overpaying for features you don’t need.
Hardware Costs: Printers, card readers, and cash drawers are typically sold separately. Look for providers who offer package deals or discounted hardware.
Transaction Fees: Some POS systems charge a percentage fee per transaction. Ensure the fee structure won’t eat into your profits.
The average cost of a POS system for small businesses is between $1,000 to $2,500, according to Merchant Maverick. While this is a significant investment, remember that the right system can quickly pay for itself by increasing efficiency and reducing errors.
2. Avoid Long-Term Contracts Without Flexibility
Before signing on the dotted line, check the contract terms. Long-term contracts may seem like a good deal, but they often come with restrictions that can be difficult to escape. Ensure the contract includes fair terms for early termination or flexibility to change plans as your business grows.
Also, take advantage of any free trial periods. This allows you to test the system before fully committing. Avoid hardware leases unless you're confident about your needs and make sure you're not paying for features you won’t use.
The best approach is to use the free trial period and opt for monthly payments at the beginning. This way, you have the freedom to change or stop if the system doesn’t meet your needs.
3- Don’t Forget to Read Reviews and Get Recommendations
Before deciding on a POS system, read reviews from business owners in your industry and seek recommendations from trusted sources. According to G2 Crowd, 92% of buyers are more likely to purchase after reading a trusted review.
Online reviews can give you insight into both the strengths and weaknesses of a POS system. Additionally, speak with peers in your industry to see what systems they recommend.
