A point of sale system does many things for business. Not only does it keep track of your inventory, but it also processes transactions with additional security for your customers.
If you’re on the fence about purchasing one of these systems, here are some pros and cons to help determine if it’s right for you.
Pros of POS Systems
1. Inventory Tracking
Most POS systems are designed to keep track of your inventory. The items in stock are tracked, and as the item sells, the number will decrease automatically. Many point of sale systems even alert you when the inventory is low.
2. Automatic
Adding tax, discounts, or even using loyalty programs becomes a breeze with point of sale systems. These systems are designed to handle these processes automatically, which can save time.
3. Search Functions
If you’re wondering whether or not you have an item in the store, POS systems allow you to search your inventory for a product. If you don’t have any in stock, you can investigate without searching the store for the item. You don’t even have to leave the register.
4. Safer Transactions
POS systems are required to have minimum safety requirements set by the Payment Card Industry Security Standards Council. Overall, transactions become much safer when there is encryption during processing.
5. Fewer Errors
Because everything is done automatically, there are fewer opportunities for an error. Whether it’s just calculating tax on an item or adding a discount, POS systems decrease the number of errors you encounter.
Cons of POS Systems
1. Internet Necessary
Most POS systems require you to have an internet connection for proper use. Many POS systems nowadays are cloud-based, meaning to access your information, you’ll need high-speed Internet access.
2. Expensive
If you plan on purchasing a classic POS system with a cash register, barcode scanner, receipt printer, and all the other components can easily cost $550 or more. The price is highly dependent on what type of system you want as well as your business model.
3. Training Necessary
POS systems are designed to work similar to a cash register, but the computer component can be confusing for some. For some, it can seem overly complicated, and it may require extra training. Many programs even come with training for employees that will be using the device.
4. Updates
POS systems are computers that keep track of your inventory, keep customer transactions safe, and many other things. These machines need updates from time-to-time to stay updated with current security measures.
5. Maintenance
Should your system go down most stores are unable to process transactions either by cash or card. Processing payments while the system is down can cause discrepancies in inventory and sales for the day.
