As a restaurateur, one of the crucial decisions you have to make is choosing the right point of sale (POS) system for your establishment. But with so many options available in the market, one of the first questions that comes to mind is, “How much does a POS cost?” The truth is, the cost of a POS system can vary greatly depending on several factors, including the type of business you operate, the features you need, and the pricing model offered by the POS provider. Let’s explore the concept of POS pricing, and how it can differ based on the type of business and the software as a service (SaaS) model.
Choosing the right point of sale (POS) system for your establishment is a crucial decision, and one that requires you to consider several factors. The cost of a POS system can vary significantly based on these factors, including the type of business you operate, the features you need, and the pricing model offered by the POS provider. Some of the most commonly used POS systems can range from $2,500 to $10,000, depending on the type of hardware, software, and level of customization.
Hardware: getting all the right gear
One of the factors that can affect the cost of a POS system is the hardware. The cost of POS hardware can vary widely depending on the type of hardware you need and the supplier you choose. Some basic hardware, such as a tablet or smartphone that runs a POS app, may cost a few hundred dollars upfront, while more advanced hardware, such as a traditional POS terminal with a cash drawer and receipt printer, can cost several thousand dollars upfront.
In general, most POS hardware has a lifespan of several years, so the cost can be spread out over that period. However, there may be additional costs associated with maintenance, upgrades, and repairs during that time. The cost of these services can also vary depending on the supplier and the level of support you require.
It’s important to research the different hardware options and their associated costs to choose the best solution for your business needs and budget.
Some POS software may only run on specific devices, while others can run on a wider range of devices. The cost of credit card processing can also be a factor, particularly for small retailers. It is important to consider all these factors when choosing a POS system.
Annual vs. monthly fees
Another important factor is the pricing model. Some POS providers offer subscription licenses, where you pay recurring fees to continue using the software. Others offer perpetual licenses, which allow you to use the software indefinitely, with the option to purchase upgrades or support as needed. When researching the cost of POS systems, it’s essential to consider the various types of licenses available.
Be aware that some providers may offer a $0 monthly subscription fee, but there are often hidden costs behind this offer. For example, you may be required to take payment processing with the POS supplier, such as Square. If you compare the processing fees from other suppliers, you may find that they are much higher. It’s crucial to take into account all the fees associated with a POS system before making a decision.
On the other hand, some POS providers offer perpetual licenses, which allow you to use the software indefinitely, with the option to purchase upgrades or support as needed. These providers may not require payment processing with their platform, but you will need to pay for upgrades and support separately.
When researching the cost of POS systems, it’s essential to consider the various types of licenses available and the associated costs. It’s also important to factor in any additional fees that may be required, such as payment processing fees, to get a full picture of the costs involved, as promotions for “$0” is often just a marketing hook.
What’s your business type?
One of the main factors that influence the cost of a POS system is the type of business you run. Different businesses have different needs when it comes to POS features. For example, a fine dining restaurant may require advanced features like table management, reservation management, and course-by-course ordering, whereas a fast-casual restaurant may need features like quick order taking and order customization. As a result, POS systems tailored for fine dining establishments may be more expensive compared to those designed for fast-casual or quick-service restaurants.
MYR POS offers different pricing tiers based on the type of business. For example, a single-location fast-casual restaurant can choose a complete, “everything-you-need” plan for $150 a month. This is a truly affordable rate as it includes order taking, payment processing, and reporting. For fine dining establishments, operators might want to explore plans with additional features like reservation management, course-by-course ordering, and customized menus. The pricing for MYR’s plans is transparent and provides businesses with flexibility to choose a plan that meets their specific requirements and budget.
Other costs to consider
When considering a POS system for your restaurant, it’s important to keep in mind the various additional costs that may arise beyond just the software and hardware prices. These additional fees may include:
Payment transaction fee: This fee is charged for each debit or credit card transaction and is typically a percentage of the customer’s purchase, plus a few cents.
User accounts: Some POS software may restrict certain employee accounts to individual plans. If you require different logins for more employees, you may need to pay extra.
Number of terminals: Additional hardware may be necessary for multiple terminals or devices, which can increase costs.
Additional features: While modern POS systems offer more than just payment processing, extra features like table management, menu customization, and order tracking may come with an added cost.
Online ordering integration: If you offer online ordering through a third-party platform, you may need to pay for integration with your POS system to ensure seamless order processing and inventory management.
A few different licensing options
In the restaurant POS world, it’s essential to understand the types of licenses available to you and how they affect your costs. The specific types of POS licenses may vary depending on your software and vendor. Here are some examples of common restaurant POS licenses:
Single-location license: This type of license allows you to use the POS software at one physical restaurant location. If you plan to expand your business to additional locations, you’ll need to purchase additional licenses, which can increase your overall costs.
Multi-location license: A multi-location license enables you to use the POS software across multiple restaurant locations without incurring additional licensing fees.
Subscription license: With a subscription license, you pay a recurring fee to use the software. While this may seem convenient at first, as your business grows, the cumulative cost of maintaining your POS system can become a headache.
Perpetual license: A perpetual license is a one-time fee that grants you access to the software indefinitely, with the option to purchase upgrades or support as needed. While there are fewer options for perpetual licenses in the restaurant POS market, some providers still offer this type of license.
Another factor that affects the cost of a POS system is the pricing model offered by the POS provider. Many POS companies, including MYR, offer a SaaS model, where businesses pay a monthly subscription fee for using the software, rather than making a large upfront investment in hardware and software licenses. This allows businesses to have more flexibility in their budgeting and can be particularly beneficial for small and medium-sized enterprises (SMEs) with limited capital. MYR’s monthly rates are super competitive, starting at $150 per month for the Basic plan, providing an affordable option for businesses looking for a reliable and cost-effective POS solution.
MYR’s pricing does not include hardware. Businesses will need to purchase hardware separately, either through MYR or another provider. However, MYR offers hardware bundles that can be added to plans, making it easier for businesses to get everything they need in one place.
In addition to the type of business and the pricing model, there are other factors that can impact the cost of a POS system, such as integrations with other software and additional services like training and support. MYR offers integrations with popular accounting and inventory management software, providing businesses with a comprehensive solution that can streamline their operations. MYR also offers optional services like training and support, which can be customized based on the specific needs of each business.
In conclusion, the cost of a POS system can vary depending on various factors, including the type of business, the features required, and the pricing model offered by the POS provider. MYR offers flexible pricing tiers tailored for different types of businesses, starting at $150 per month for the Basic plan, along with transparent and affordable monthly rates. By understanding your business requirements and budget, you can choose a POS system that provides the right features at the right price to streamline your operations and enhance your customer experience.
As you consider different options for your POS system, it’s essential to evaluate not only the cost, but your type of business and what functionality you need.
