The world is changing really quickly. Ian Schafer, CEO of Engine USA’s Deep Focus once said, “Innovation needs to be part of your culture. Customers are transforming faster than we are, and if we don’t catch up, we’re in trouble.” And this is very true. The ways businesses used to work has gone a complete transformation and also the consumers’ demands. Now everything is going cashless, especially after this whole COVID-19 pandemic, now more and more business owners prefer taking payments via e-wallet apps, debit and credit cards, and various other UPI modes. The whole economy around the world is going cashless and this is a big change in the business world. So, to keep your business up and running, it is always advisable to move with these changing trends.
Now talking about the change and the changing trends, POS are the must-haves for the retail businesses these days. There is no second thought about how easy they have made the transactions and reduced the time taken while getting your bills clear at the billing counter. Not only they are loved by business owners but even customers are being benefitted from them as they have helped improve the customer experience too. And this is the main reason why there is a huge demand for a proficient and skilled POS System Development Company in the market. However, not all POS systems are the same and one has to be very prudent in choosing the right one for their business.
Today in this article, we are going to talk about everything that you need to know about POS development from the cost of developing POS software to the features it should have. But before we jump onto that section and discuss more that, let us first know what POS solutions actually are and what are the benefits of using point of sales system for your business.
What is a POS?
We all have been into a mall or the departmental store and have seen a machine at the billing counter. The machine which the executive uses to scan your products, enter the amount, generate the invoice, and swipe your debit or credit card, is a POS system. They also have a cash drawer fixed to keep the cash and the change. Going by the definition,” a POS or Point of Sales system is a place where your customer makes the payment and the retail transaction is complete.”
These days almost every retail business is hiring POS System Developers to get their customized solution developed. Most entrepreneurs believe that a POS is only for generating invoices which is not the case. If you get the right type of POS developed for your business it can serve multiple purposes and can be really helpful for all businesses.
What are the benefits of using a Point of Sales Software?
Everything is going digital these days and business owners are looking for new ways to streamline their operations that can not only help them in reducing the manpower but also bring in more efficiency and productivity. Similarly, a POS can be really beneficial to retail business, and here are a few ways to prove this statement:
- Hiring a POS system developer and getting a customized POS system developed based on your business requirements can not only save a lot of time and efforts that are required to do back-office and administrative tasks but can also help business owners n managing their tasks efficiently.
- POS software is known to bring accuracy and transparency in the system as everything is recorded and there is no human intervention while calculating the bills. Since everything is system generated, there are no chances of errors.
- Increased profitability is one of the main reasons why most businesses prefer installing a POS system. It not only helps in better inventory management but also helps in increasing productivity and efficiency.
- Now that we have talked about inventory management and stock management, this is another advantage of using a POS system that you do not have to keep a track of your inventory manually.
- These days, most POS software development companies are integrating the latest technologies in these systems to make them even smarter. Now POS can be used to create your marketing campaign as all the information that you require is in one place.
- It also helps enhance the customers’ shopping experience and helps in managing your customers efficiently. You can have the required details of your customer stored for future references.
Types of POS
Not all solutions work for every business kind. One must go with the POS development solution that fits all their business requirements, both current and future. One must reach out to a proficient POS system development company that can understand your needs and create a customized POS system that is just the perfect fit for your business type. Here are the three most used types of POS:
Not all POS works the same for every kind of business. Based on your business requirements and the purpose for which you are looking for a POS solution, you may choose the one that matches all your requirements. Here are the three types of POS Solutions that you can go for:
As per the requirements of businesses, this solution can be classified into the following categories.
It is also one of the most popular POS systems that business owners these days use. This POS is operated via mobile phones as it facilitates business owners to configure the POS with the app and initiate the payment process quite easily. Not just that, you can also do other tasks like manage inventory, generate sales reports, etc.
This type of POS is mostly used in pharmacies, departmental stores, and grocery stores. A terminal POS uses both the combination of hardware and software to scan every product and then generate the invoice accordingly. They also have card reading chips attached for people who want to pay via their cards.
This is a great way to make use of the technology as using this POS business can manage each and every activity on a real-time basis. A cloud-based POS is highly used by retail eCommerce companies as this type of POS offers both scalability and flexibility.
Software and Hardware components required in a POS
Now before we begin with the whole process of point of sale software development, it is very crucial to understand the components, both software and hardware, required to make the POS.
A traditional model, wherein you need to purchase all the software licenses first and then install them onto your computer servers. Maintaining these on-premise POS can be a daunting task as they require regular updates and maintenance, and if you are a large-scale business, you will need a whole IT team to handle the issues related to this POS.
Cloud-Based or SaaS
This is a much-advanced version of the traditional POS, wherein you need to have an active internet connection in order to access it. However, if in case the internet connection is lost, the POS will be able to function but not all features may be available at that time, once the connection is back it will again sync the data for enhanced performance. In cloud-based POS data storage is never an issue. These days most businesses opt for cloud-based POS development solutions as they are easy to use.
The hardware components of all the point of sale system remain the same irrespective of the software you choose.
Here is a small list of some of the most needed hardware components required to support your POS system:
A touchscreen for Registration
A normal monitor touchscreen is used to enter the values in the system. It also displays various reports like sales, inventory and total bills, etc. Earlier these screens used to be quite bulky and big which are now being replaced by the sleek design and even tablets.
A Cash Drawer
Though now most customers prefer paying via cards, cash transactions are still in use. However, you need a secure place to store that cash, and what better if your POS offers that.
Scanner to Scan Barcodes
Remember how in a big departmental store on every product there is a barcode and at the billing counter, the person scans that code for the price. This is a creative way to automate the billing process and remove any discrepancies. These barcodes not only have the prices but the whole product information can be retrieved from them.
Every customer wants a paper receipt or an invoice to see the details of their purchases. Even though email and text invoices are popular these days, but people still prefer taking a paper receipt as they have every detail from the date and time stamp to the number of articles purchased.
Now contactless cards are in trend but it having a card reader in your POS is a must as most customers prefer paying their bills via debit or credit card. Businesses that do not have a cashless payment facility, may end up bearing huge losses.
Now as the touchscreen monitor is for the business owner or the person at the cash counter to see the billing detail and other reports, the display pole is for the customers to see the price of the product they are paying and the total amount which they need to pay.
Must-Have Features of POS System
Every POS is different and based on your business needs, here are a few must-have features that plan to include while opting for POS development solutions for your business:
1. Module Integration
The POS software which you are planning to get developed for your business must be integrated with different modules so that it can perform various functions like bookkeeping, employee management, inventory management, and much more. If your POS is well integrated it will leave less space for blunders and disparities when you transfer the data from one system to another.
2. Efficient Employee Management
As mentioned earlier, your POS is not only for generating invoices, you must ask your POS System developer to create a solution that can also help you in effectively managing your employees by keeping the track of their shift timings and all the other details related to them.
3. Stock Keeping
Just like bookkeeping and maintaining inventory is a huge task and what better than a POS that can do that on your behalf. For a small-scale business, the stock can be updated and counted manually but it gets really difficult in a large-scale business.
And these days most POS are capable of maintaining and updating the stock for our business.
4. Customer Management
No one has that much time to stand in those long queues and pay the bills and POS helps you in speeding up the whole process of retail shopping. You can store all the related information about their purchases and can even create a personalized deal and discounts for them.
5. Reports and Analytics
Creating reports all by yourself can be a daunting task. You can ask your POS System Development Company to create a POS that is capable of tracking the sales and inventory and prepare the reports for future references.
6. Easy Access
What better than accessing your POS via your mobile apps or tablets. It is a great feature to have so that you can easily access all your data remotely.
It is a great feature t have in your POS so that the moment your stock level goes down or if any of the items go out of stock, it can remind you or even place an order on your behalf.
This is one of the most important features to have as your POS will have a lot of information about your customers, your sales, and products, so if you do not consider this feature a lot of things can be at stake.
9. Fast Billing
Not just the cash customers these days prefer various other modes too like debit card, credit card, e-wallets and having a POS that is capable of accepting all modes of payments and make the whole billing process fast and efficient.
10. Receipt Generation
Most POS have the printer attached to it so that it can easily generate the receipt and customers can have a look at it as the receipt contains all the important information about the purchase.
Cost of Making The POS Software
The cost of developing a POS software depends on the type of model you opt for. Also, every POS development company has its own criteria and based on the experience and expertise of your POS System Developer the prices may vary. So, here is
the POS pricing model which you may opt for:
Monthly Payment Model
This is one of the most preferred models which most business owners prefer as it does not burden their pocket at once. You need not make the entire payment at once all you need to do is pay on the monthly basis. This model works on a “per user” basis. However, the prices do vary based on the number of employees you want to register in this POS. The current price in this market for this model generally ranges from $35-$40 for small-scale stores and can go up to $50 for large businesses.
Pay At Once
This is not so famous model when it comes to POS software development solutions because it involves a huge amount at once. However, if you look at the broader perspective, this model is quite cost-effective as compared to the monthly payment model.
Other Hidden Costs
However, these are not the only costs that they need to pay in order to get their own POS system. There are some other costs too which you all must keep in mind like hardware costs, credit card charges, the cost for additional features and even customer service charges.
What One Should Finally Do?
This is one of the main questions which most business owners have who are planning for POS system development. You have to spend a minimum of 2 to 3 percent of your annual revenue at the beginning of the purchase and approx. 12 to 13 percent on the maintenance of your POS. Also, there are a lot of free options that you can go for, but those options fit best for a small-scale business. You must estimate a budget and set aside the dedicated about for your POS.
However, the choice of the pricing models and the cost depends entirely on your requirements. It is better to reach out to a proficient POS development company and rule out all the possibilities with them as if you do not make the right choice, the whole thing can go wrong. Therefore, you have to be very wise and prudent in your decision of getting a POS developed for your business.