Choosing the Right Point-of-Sale System for Your Business

Choosing the Right Point-of-Sale System for Your Business

Selecting the right POS system configuration for your business can be a daunting task. Numerous variables, such as environmental considerations, ergonomics, budget, and timeframe, come into play when determining which POS system is right for a particular business. In this ebook, we ll take a closer look at the three most common POS system configurations and evaluate the pros and cons of each option. Pieces-and-Parts As the name indicates, pieces-and-parts POS systems are made up of individually purchased hardware peripherals. In most instances, these components are purchased from multiple vendors. Pieces-and-Parts Pros Lower initial investment. When it comes to pieces-and-parts POS systems, merchants are not locked in to using hardware offered by any particular vendor or VAR. Rather, they can shop around for cash drawers, receipt printers, and other necessary additional POS system components to get the best price on each peripheral they require. This may decrease the initial POS hardware investment. Choosing a pieces-and-parts configuration also lowers merchants initial POS hardware outlay by affording them the option to utilize less expensive consumer-grade PCs as terminals, rather than retail-hardened units. Merchants who already own a PC (or multiple PCs) that they can integrate with purchased POS peripherals to create full-blown POS systems will reap an even greater savings at the outset than those that buy one (or more) PCs for their establishment(s). Hassle-free hardware replacement. Any peripheral component that breaks or otherwise ceases to function may be easily removed and replaced with a spare or new unit. In either case, there is no need to ship the entire POS system to another destination for repair nor to incur shipping expenses and sacrifice sales due to a possible POS equipment shortage. 2

Pieces-and-Parts Cons Integration and operational headaches. Integrating POS peripherals from multiple vendors or sources is not always a hassle-free process. Disparate peripherals may require significant and potentially costly modifications before they can function in tandem with each other at capacity and with no hiccups. Vendors may not want to accept responsibility for problems on the integration front and may instead engage in fingerpointing, assigning blame to other manufacturers or sources should an integration challenge occur. Software snafus. Some non-retail-hardened PCs do not have sufficient processing power and memory to properly run merchants POS software applications. Without these capabilities, POS systems can run either inefficiently or more likely, not at all. This can lead to costly upgrade expenditures. Shorter POS terminal lifecycle. Because they are manufactured with non-industrialgrade components, non-retail-hardened PCs that are pressed into service as POS terminals typically cannot adequately withstand the rigors of long-term retail and hospitality use. As a result, they often have a shorter shelf life than their retail-hardened counterparts. This is particularly true of PCs operating under harsh conditions, like extreme temperatures and excessively long hours. High repair costs. Even if malfunctioning consumer-grade PCs can be salvaged rather than replaced, their construction is such that merchants will likely incur higher annualized repair and maintenance bills than they would were they to use retail-hardened units. Consumer-grade units may also be prone to extended downtime and other difficulties that not only place a financial burden on merchants, but also incite customers to the degree that they decide to dine or shop elsewhere due to excessive wait times at the POS. 3

Tablet POS In tablet POS configurations, ipads or other tablet devices are used in lieu of, or as adjuncts to, stationary POS terminals. Tablet POS Pros Lower hardware investment. If merchants already own a tablet or tablets, they can reduce their initial POS hardware expenditures by using these devices instead of adding new ones to their technology toolboxes. Under this bring-your-own-device (BYOD) umbrella, operators may also allow employees to leverage their personal tablets for such purposes as order-taking. High degree of versatility. Tablet POS devices can be used for a wide variety of purposes at fixed checkout stations as well as anywhere in restaurants and stores. Ample hardware and software options. The growing popularity of tablet POS has given rise to a multitude of software solutions designed for deployment on tablet devices, as well as to a wealth of compatible hardware options. Many solutions are designed to meet the specific needs of end-user merchants based on the requirements of their industry. Decreased training time. Employees especially younger ones are very familiar with the tablet. As a result, training staff members to operate tablet POS systems will almost certainly require less time than teaching them to operate traditional POS systems. 4

Tablet POS Pros (continued) Significant wow factor. Tablet POS systems feature a sleek and sexy design. This makes them an ideal choice for image-conscious merchants who want to impress customers with the most aesthetically pleasing cutting-edge technology. Tablet POS Cons Higher long-term cost of operation. Tablet POS software is often offered under a software-as-a-service (SaaS) model, with end-users paying a monthly fee for the solution and associated services. As a rule, the long-term cost of following this model is higher than the cost of purchasing POS software outright. Susceptibility to damage. Not all tablets are retail-hardened and ruggedized i.e., designed specifically for use in retail and hospitality environments and manufactured from industrialgrade components that render them resistant to the effects of being dropped, exposed to extreme temperatures, and coming into contact with liquids. Non-ruggedized tablets easily sustain damage that cannot be rectified, forcing merchants to incur the cost of continual hardware replacements. Easier to misplace. Mobility can be a huge pro, but it can also lead to challenges within a busy organization like a restaurant. Because not all tablet POS systems are mounted to a countertop, there is a risk of losing track of, misplacing, or even losing the tablet to theft. 5

All-In-One (AIO) POS Systems Unlike POS systems that fall into the pieces-and-parts category, All-in-One (AIO) POS systems are comprised entirely of hardware peripherals from the same vendor, packaged together in one smartly designed configuration. Specific components vary, but these systems generally incorporate a touch screen computer, customer display, cash drawer, and credit card reader. Other integrated peripherals may include scanners and printers. All-In-One POS Pros A complete system in one ergonomic footprint. Limited counter space is a problem for many restaurant and retail operations, especially small ones. In addition to the flexibility of wall or pole-mounting, in most cases, AIO systems feature a smaller ergonomic footprint than their non-aio counterparts (excluding tablets). This not only conserves space; it leaves extra room to create attractive displays of small impulse merchandise, in turn increasing sales. An AIO s small, ergonomic footprint also enhances employee comfort at the POS. Operating multiple POS peripherals that have been shoehorned into a small space on the counter can be a very awkward proposition. The higher the degree of employee discomfort, the greater their potential for making errors and, possibly, allowing their frustration to lead to poor customer service. Multiple add-on options. Manufacturers typically offer many add-on options peripherals that allow the capabilities of AIO systems to be expanded as business needs evolve. Rear pole displays, barcode scanners, and scales rank among key examples. 6

All-In-One POS Pros (continued) Guaranteed compatibility of all hardware peripherals. POS peripherals from different manufacturers do not always properly integrate with each other. Such a lack of compatibility can compromise the operation of the POS system or lead to complete hardware failure. Because AIO systems feature only peripherals that are manufactured by a single vendor and are designed to work together, compatibility among system components is never an issue. Easy configuration and/or customization to suit individual business needs. Configuring and/or customizing POS systems made up of disparate peripherals from various vendors can be difficult and costly. This is not the case with AIO systems. The compatibility of peripheral components makes it easy for manufacturers, VARs, and/or systems integrators to tweak configurations to accommodate any growth that may occur after the systems have been deployed. Lower long-term costs. Depending upon the extent of their capabilities and peripheral components, AIO systems may carry a higher up-front price tag than pieces-and-parts and other POS systems. However, the long-term cost of going the AIO route is generally lower than the long-term cost of following the non-aio path. With AIO systems, responsibility for maintenance rests on the shoulders of a single vendor. Obtaining maintenance services from one source rather than from one touchscreen vendor, one barcode scanner vendor saves a considerable amount of money over the lifecycle of the POS equipment. Replacement expenditures, too, are lower with AIO in place. Contrary to what many operators may assume, complete AIO systems command lower prices than do individual peripherals because vendors favor a bundled pricing structure. All-In-One POS Cons Repair glitches. When AIO systems break down, operators may be forced to ship them in their entirety for repair and service. In addition to a hefty freight bill, there is the potential for a negative impact on the business because of the temporary reduction of available POS terminals on-premise. Certification snafus. Not all POS software is certified to work with every AIO. Operators that want to purchase AIO should confirm that it is certified to run their desired POS software. 7

Conclusion As can be seen, every POS system configuration brings both advantages and disadvantages to the table, and not every system is appropriate for every type of operation. Keeping these pros and cons in mind will go a long way toward making the right purchasing decision and maximizing your technology investment. About Bematech For three decades Bematech has been a leader in producing solutions that redefine consumer experience at the Point-of-Sale, enhancing restaurateurs and retailers businesses. The company offers a broad portfolio of integrated solutions equipment, management systems, services and training and specializes in serving small and mid-sized businesses through a wide distribution network that covers over 415,000 points of sale in 37 countries. The company operates four R&D excellence centers, with over 1,500 professionals in Brazil, China, Taiwan, USA and Argentina. For additional information, visit www.bematechus.com. Contact Us Bematech 999 S. Oyster Bay Road Building 104 Bethpage, NY 11714 Phone: 1.516.248.0400 Email: sales@bematechus.com Facebook: /bematechintl Twitter: @bematechintl