How much does a POS system cost? Key considerations

Key areas to consider when researching the cost of a POS system; software, hardware and payments.

Shopping around for a new point of sale system but unsure where to start? Perhaps you’re looking to upgrade from a cash register to a modern POS system or wanting to switch from your existing POS provider. We’ve put together a list of key considerations to bear in mind when choosing a new POS solution, everything from budgeting for POS software, hardware, payment providers to POS and ecommerce features to consider that will help you improve business efficiency.

What is a POS system and how does it work?

A POS system enables you to process sales and take payments but it’s not just an intelligent cash register, it’s also a complete business management tool that allows you to understand your business better and enable business grow. Here’s some features and benefits Saledock offers:

• Point of sale application – Process sales faster and more efficiently than ever before
• Product inventory – Manage multi-channel and multi-store inventory and stock levels in one place
• Customer list – Discover customer profiles, sales history and preferences so you can effectively tailor your marketing efforts
• Sales history – Keep track of all sales
• Analytics – Discover real-time sales, performance and financial reports enabling to you understand your business better
• Xero integration – Simplifies end-of day reconciliation, you can even provide your accountant access to the back office
• Payment integration – Connecting a card reader to your POS to increase checkout speed and reduce costly mis-keying mistakes
• Ecommerce – Seamlessly sell in-store and online using one unified system

How much does an ePOS system cost?

Many POS businesses offer different price plans so there’s usually a plan to suit every budget. Price plans advertised are commonly per store and register. We’ve listed our Saledock plans and a breakdown of prices to help give you a better understanding. 1 register licence is included per price plan, a register licence is per till/cash register/POS device. Additional licences cost only £29 each so if you have 2 tills you pay the price plan plus £29 for the additional register. Subscriptions can be paid monthly or annually. You’ll receive around 2 months free if you pay annually.

Pro Plan

Ideal for multi-store retailers and SMB’s requiring a more feature rich POS system. The pro plan gives you access to additional features such as advanced analytics, loyalty scheme, integrations and tiered pricing. There's no limit on the number of products and users you can add. This plan is £99 per month billed monthly. This price is per store plus £29 per additional register. For example 2 stores with 3 tills per store would cost £314 per month billed monthly. £99 x 2 (2 stores) + £29 x 4 (additional 4 registers) = £314.

Unified plan

The advanced plan includes all the pro plan features plus a template ecommerce site design, starting £199 per month on a 3 year contract.

Scale plan

The unified plan plus software modifications, a bespoke eCommerce design and build, warehousing and priority support. Starting from £459 per month on a 3 year contract.

POS hardware considerations

There are many hardware options that are compatible with POS software. Most businesses offering POS systems will have a hardware compatibility section on their website where you can purchase hardware directly, usually at a great price as they have an agreement in place with their hardware provider. Unsure about how much you should spend on POS hardware? Think about how you like to process a sale, do you prefer a fixed terminal or prefer to sell on the shop floor? Are you a cashless business or require a barcode scanner?

We’ve listed the hardware you may require and put together a range of bundles including prices to help you get a better idea of what hardware you really need. Prices may vary and exclude VAT.

Mobile ePOS

Saledock is available on the Android platform and is compatible with most modern Android tablet or phones. We recommend these tablets for their quality, reliability and reasonable price point:

• Samsung Galaxy Tab A8 10.5” (2021)
• Samsung Galaxy Tab A7 10.4” (2020)
• Samsung Galaxy Tab A 10.1” (2019)
• Samsung Galaxy Tab S6 Lite 10.4”
• Samsung Galaxy Tab S7 11”

If your tablet is not enclosed in a tablet stand we recommend purchasing a protective case. Sunmi also offer handheld devices which are robust, scratch-resistant and splash-proof:

• Sunmi M2 max – Robust 10.1” tablet
• Sunmi M2 – Robust handheld device (phone size)
• Sunmi L2s – Robust handheld device with built in scanner (phone size)

POS receipt printers, barcode scanners and cash drawers

Most cash drawers have a RJ11 interface, insert this directly into a receipt printer that is connected to your tablet or POS terminal and the drawer will open when a cash payment is taken on your POS. There are a variety of receipt printers, each with different models. USB and/or ethernet models are cheaper than the Bluetooth models but this enables you to be wire free and more mobile. If mobility and a cable free setup are important to you then you may prefer the Bluetooth option. The same applies to barcode scanners, wired scanners are cheaper but wireless/Bluetooth provide you with more mobility.

Scanning products at checkout will considerably increase checkout speed as you scan the barcode and the product is added straight to your order. Your POS system should allow you to associate existing product barcodes with a product in your inventory or allow you to generate your own and print a product label that includes your logo, product information and barcode. Not only is a barcode scanner useful at the checkout you may wish to use it when performing a stock take. Imagine your tablet in one hand and barcode in the other scanning products on the shelves. Perhaps you’d prefer a fixed terminal to process sales plus a separate mobile device such as the L2s to perform a stock take or sell on the shop floor. No need for a scanner for your mobile device as you can use the built in camera to scan barcodes.

Payment provider fees

In addition to POS software and hardware integration you should also consider your payment provider fees. Here’s a few examples to consider:

• Card reader fee: For payment providers that do not charge a monthly fee you may need to buy the card reader itself. As an example, SumUp do not charge monthly fees but you’ll need to purchase the card reader and pay a transaction fee. Prices range from £29-£119 depending on the card machine you require. As a SumUp partner we can offer card readers at a discounted rate saving you between £10-40 per reader.
• Setup fee: This is a one-time fee when setting up your account, not all providers charge this fee but it’s worth checking so you don’t have an unexpected surprise on your bill. Some providers are willing to waive the fee so don’t be afraid to ask.
• Transaction fees: Providers that do not charge a monthly fee often charge a higher transaction fee. For example, SumUp charges up to 1.69% and is a flat fee across all card types. If you transact more than £5000 per month Saledock can help negotiate a lower fee. Some providers charge a percentage fee plus a fixed amount per transaction too. For providers who charge a monthly fee your transaction fees will be much lower and is based on your monthly turnover, average sales value and card types accepted. If this is your preferred option, Paymentsense and Dojo offer great rates and durable card machines.
• Monthly fee: Many providers charge a monthly fee for their service. Often if a provider charges very low transaction fee rates they’ll charge a monthly service fee which includes covering the cost of the card reader itself and also mobile data if your card reader has 3G capabilities.
• Cancellation fee: If you sign up for a fixed term contract and wish to leave early you’ll be charged an early cancellation fee which can be quite expensive. Paymentsense and Dojo (by Paymentsense) could pay up to £3000 in cancellation fees if you switch which is a great way to exit your contract without paying the cancellation fee. They also offer monthly rolling contracts so you’ll never need to worry about a cancellation fee. If you’re looking to switch get in touch and we’ll refer you to our partner contact.

What are integrated payments?

You’ve heard the words “integrated payments” when researching POS systems so many times but not quite sure what it actually means? At its core it means the POS system sends the transaction total to your card reader so you don’t have to type the amount manually into the card reader. This helps increase checkout speed and avoids mis-keying mistakes which contribute to profit loss. Key features also include:

• Order history – View the card type and last four digits of the card used to purchase the items
• Refund/exchange – Some integrated payment providers will allow you to process a refund to the original card used straight from your POS without the need to insert the card into the card reader
• Automatic end-of-day reports – All transaction data is automatically sync to your POS so everything adds up
• Accounting reconciliation – Take it one step further and connect your POS software to Xero. End-of-day totals and transaction fees are automatically sync making end-of-day reconciliation a breeze.

POS systems will list their integrated payment providers on their website. If your current payment provider is not listed and you wish to switch they can refer you to their dedicated partner contact.

eCommerce for brick and mortar retailers

We’ve seen a surge in online sales during the pandemic and customer behaviour has changed. Whilst many can’t wait to return to in-store shopping the demand for online shopping will only continue to grow. When considering POS systems bear in mind its ecommerce capabilities. Some POS systems integrate with third party ecommerce solutions whilst others offer the full POS and ecommerce package. Saledock opted for the latter because our vision is to provide a true all-in-one solution where owners can manage their inventory in one unified back office and updates are made in real-time across all POS devices and their online store. This eliminates the need to manage multiple systems which in turn increases productivity and avoids data duplication.

We also opted for the bespoke ecommerce route. “Bespoke” doesn’t have to mean expensive. We offer bespoke ecommerce sites from £495 and could have you ready to launch in as little as 7 days! Take the stress out of building your own ecommerce site and let your brand shine with an ecommerce site that’s bespoke to you! You still have complete control over content and imagery from the homepage content to product text and images, all managed from your unified back office.

We recommend an all-in-one system or at the very least an ecommerce site that has the capabilities to connect to your POS system as it will really help to simplify day-to-day business management. The following features enable to you to seamlessly manage you in-store and online business so features worth considering when comparing systems:

• Ability to automatically sync product information updates and stock level changes in real-time across all POS devices and online store
• Ability to process a click and collect online order from your POS
• Ability to view and refund an online order from your POS
• Ability to purchase and redeem gift cards in-store and online
• Ecommerce capabilities
  • Print shipping labels
  • Process orders with order updates automatically emailed to customers using brand templates
  • Add courier and tracking number details to an online order
  • Add free, flat fee and variable shipping rates per country, weight or price range

Next steps

This guide has hopefully helped you get a better idea of the possibilities available to you and help you on your journey to modernising your POS system. Once you have a budget in mind start comparing POS systems, request demos or take advantage of free trials. Prepare a list of questions and problems you need your POS to solve so you can get the most out of your demo.

Start, modernise or grow your business with Saledock POS

Don’t get left behind with the changing times, adapt and stay ahead of the game! A modern Point of Sale system will give you the tools to boost productivity and streamline operations. Are you ready to modernise and expand your business online? Our team are dedicated to empowering UK independent retailers, get in touch today or start your free trial and explore all the tools Saledock can offer you!