Retail Service: Considering the Cost of a POS - Point Of Sale - System

While Point of Sale systems are not new--large chains have been using them for more than 20 years--what is new is the price. POS inventory systems are typically sold as modules and can cost anywhere from $3000 to $6000 per station, for the software, scanners, printers, installation, training, and support, plus costs for integrating into your back-end system. Most retailers have at least 1 station per store for check out as well as another system in the back office for store managers and inventory use. On the flip side, larger retailers average 25 to 100 + stations per store. But these days, without the right POS solution, retailers potentially forfeit thousands of dollars in profit.

The best POS systems link sales, inventory, purchasing, loyalty and bookkeeping and are able to plug-in to the business' high speed internet connection. They can process credit card and check authorizations very quickly, as compared to the usual dial-up connection of an ordinary "black box" credit card terminal.

With every market comes a different need so there are POS systems designed for different types of retailers such as restaurant and hospitality, fashion and hardlines and of course, grocery. Each retail segment in turn has a host of industry standards and best practice business process that both influence and support the technology for a range of store solutions. Needless to say, before embarking on a store systems purchase in these times, a retailer will need to talk with industry colleagues, solution providers and analyst to determine what solutions fit their business, enable them to differentiate in the market and most importantly, meeting their objectives for long term growth and scalability. In addition, store systems strategy for the coming decade will require retailers to be mindful of the digitally savvy consumers.

Be cautious, therefore, about setting up with any proprietary POS software systems. These systems are designed to run only under that merchant processor and you will be locked in to any future processing rate increases they decide to impose. To upgrade or replace them down the road would be a costly effort. As the industry has demonstrated over the last 15 years, spending less up front will cost more down the road.

Tajinder is an Online Marketing Professional from Infogain, writes blog, content and articles. She writes marketing collaterals and advice to Visit her webpage for your concerns regarding Retail solutions