5 Steps to Choosing the Right POS System for Your Business

Choosing the right point of sale solution (POS) for your business is a big decision. There are so many options and companies to choose from that it’s easy to become overwhelmed. Talking to individual POS companies can add to the confusion as each provider will want to pitch their product as the best solution. Here are the things you want to consider for your business before making a decision: 

Step 1: Begin by writing down all the ways you need to accept payments. Here are several common payment methods to consider: 

  • Will you need to only accept cards in person? 

  • Will you need to accept payments on the go? 

  • Will orders be accepted over the phone? 

  • Do you need an online store or purchase option?

Step 2: What software features do you need?

Pro tip: we recommend categorizing them by ‘must-haves’ and ‘nice-to-haves’. This will help in narrowing your selection process. For instance, you may have to choose a system that foregoes your ‘nice-to-haves’ in order to get all your ‘must-haves’, or choose a system that better fits within your price range but still has the features you need:

Here are a few of the most common features your business may need:

  • Inventory management

    • Broad categories or very detailed?

  • Customer management

    • Storing your customers information for future visits

    • Appointment scheduling

  • Customer incentives

    • Loyalty or rewards programs

    • Gift cards

    • Discounting

  • Employee management 

    • Hours and shift scheduling

  • Sales reporting 

    • Analytics from transactions

  • Payment acceptance methods 

    • Online ordering or online store

    • Electronic Invoicing 

    • Recurring payments or subscriptions

Step 3: What, if any, hardware do you think you’ll need? 

Heads up: Some POS companies will require you to use their hardware. So even if you have equipment you’ve used before, or that you purchased from the prior owner of your business, you may still be required to purchase new equipment. 

Here are some typical hardware needs:

  • Touch screen register

  • Cash drawer

  • Receipt printer

  • Credit card reader (If not built in)

  • Barcode scanner 

  • Kitchen printer

  • Weighted scale

Pro Tip: If you are a new business think through how many stations or locations you will need to accept payments at. Even if you are taking over a pre-existing business, the prior owner’s process may not be the ideal solution for your company. Sometimes walking through a sale as if you were a customer will help identify the places a station may be needed. Also, consider the possibility of using mobile devices throughout your location. Even if you don’t do deliveries, these can speed up the process and give you a professional image. Keep in mind that each additional unit or station you add will increase the price of your POS substantially. So if it is likely only to get used that one Wednesday in May, you might be safe to do without one as well.

Step 4: What type of training and support do you expect or need? 

There are many factors to consider when evaluating what kind of support you will need. Beginning with your and your staff’s personal preferences. If you are a great ‘do-it-yourself’ person and fairly tech savvy you may not need much training when setting up your new system. However, if you just upgraded from a flip phone to an iPhone 4 and aren’t sure how to use an app, you may want to consider a company with heavy support and training. Things to consider with support:

  • What hours are you open and is their support available during those hours?

  • 24/7 phone support a necessity?

  • How complex is your setup? If fairly straightforward, you may also need limited support. 

  • How much are you willing to learn yourself and train your staff vs. needing the POS company to be the primary trainers?

Pro Tip: Customer service is worth its weight in gold, but like gold, it does come at a price. Before you purchase your new system  

Step 5: The last step will be to review pricing. 

Remember cost is an important factor but it’s not the only factor. At the end of the day, if you pay $3,000 for your new system instead of $5,000, you’ll feel good when you sign that purchase order. However, if it doesn't work well for your company, you’ll feel bad everyday you use it wishing you had made a different decision if it doesn’t do what you need it to do. Conversely, the opposite is also true. A more expensive POS system or system setup may make you cringe while purchasing it, but you’ll feel proud of the smart investment you made everyday you use it. 

What costs will likely be a factor?

  • Software cost - this may come in the form of a monthly subscription per terminal

  • Hardware cost - there are generally options to purchase or lease the equipment. Determine if you’re required to purchase hardware through the POS vendor or if you’re able to shop around for the best price.

  • Credit card processing integration costs - if you need to integrate the system to the processor, there may be a small monthly fee and/or transaction fee associated

  • Installation fees - many POS systems offer installation and training though there may be a fee for this. If they don’t offer in-person installations or require a professional to install or setup your system, you still may want an IT company and/or installer to set up your system for you. 

  • Other costs? Be realistic about any of your current or future needs. If you know you or your staff are not very technically inclined you may want to pay that additional charge to have premium support. Remember, you are making an investment in your business that hopefully will allow you to run your company with efficiency and scale for years to come. 

Pro Tip: Beware if you are evaluating a POS system that requires to use their credit card processor, you could be signing up for a lot more than you thought. Many times POS and software companies use this as a method to charge significantly more for their service than what meets the eye. For example, let’s say your business is doing $20,000 a month in card processing. The POS you’re choosing is charging 0.30% more for card processing than another provider that allows you to pick the processor and negotiate the rates. It may seem like a small difference on paper when you compare paying 1.69% or 1.99% while looking at all the features your new system will offer you.  It's the difference of paying an additional $720 a year which is not that bad, right? However, once your business grows to $60,000 a month you’ll be paying an additional $2,160 per year for a system that may not be any more beneficial. Even if you think you’ll be ‘rolling in the dough’ once your company is at that level, that additional $2,160 can pay for a pretty nice employee dinner out, vacation or pretty much anything else. 

What should you expect?

What does the sales process look like?

  • Normally we recommend you look at the features list of the POS system. Follow the link here to review eight POS systems we recommend: 

  • If the features list has your ‘must-haves’ then either let your Blueswipe contact know and they can help facilitate an introduction. If you contact them directly, just let them know you are working with Blueswipe as this may qualify you for additional discounts with the company you choose. 

  • Expect to be walked through a demo of how the potential POS could work for your business. There are two components that you want to be evaluating. 1) How will this work for my customers 2) How will the reporting and backend of the POS work for our employees and staff.

    • Likely this will require you to have an understanding of the hardware used as well as the software interface. 

Pro Tip: It's important to remember to be objective in your review of each POS. There may be many ‘nice-to-haves’ with the POS you are reviewing, but if all those bells and whistles are unlikely to be used you may end up paying for more than you really need. At the end of the day, the ‘must-haves’ will be what you use the most. Therefore, picking a POS that has those key features may allow you to have a great solution without breaking the bank. 

Two Parting Thoughts:

  • Just like people, there are no perfect POS systems. You will have to choose between your ‘must-haves’ and ‘nice-to-haves’ many times through the process and you may decide to change certain features from one category to another as you make trade-offs between all five factors. 

  • Once you make a decision, see it all the way through. Regardless of the system you choose, there will be an adjustment period. What seems to drive you nuts about your new system today will become second nature in a few months. Give it time and you’ll know better what your business will need in several years should a change need to be made. 

Norah Hazelgrove