A Beginner’s Guide to POS Hardware
Point-of-Sale system is a smart combination of both POS hardware and software that helps businesses in managing many business activities at the same time like accepting cash and card transactions, managing staff, inventory and customer relations, etc.
In case you’re a small business enterprise wondering how exactly POS hardware equipment can help your business, this guide will help. Here, we will understand the types of POS equipment present in the market, factors to consider while selecting POS hardware, and the credible benefits of installing or investing in a POS system.
Definition of POS hardware
It is a combination of hardware and software utilized by enterprises to manage sales transactions. POS software is usually used to take care of inventories, payment, and customer management, on the other hand, POS hardware is equipment or set of equipment that is used to run the software.
Businesses who own a brick-and-mortar store, and who don’t have a permanent storefront but leverage events like market stalls and craft fairs will require a POS system to process in-person payments.
Each business is different and it needs different systems. POS hardware requirements can only be a single iPad installed at a store (as a cash register), with a single card reader, 2 or there multiple checkout registers including barcode scanners.
How does a POS hardware setup look?
How the POS hardware setup will look depends on the type of business you are, the sector you serve, and the business size. Below are a few types of POS equipment:
POS terminal
It is typically a tablet, computer, smartphone, or laptop having a touchscreen user interface, and it is the device on which the POS itself runs. Many times, the POS terminal is deployed in a stand so that both merchants and customers can use it easily.
Barcode scanner
Barcode scanners let you scan products so that they are updated in the system. Barcode scanners are often connected to the POS, just like cash drawers and receipt printers.
Credit card terminal
POS hardware lets users accept debit and credit card payments. There are multiple credit card terminal varieties in the market to choose from, based on the business needs. Many of us avoid visiting or entering a restaurant if we read the “Cards Not Accepted” signboard. We do not wish to carry hard cash in big quantities for many reasons, safety being one.
Cash drawer
Having multiple payment options is important for a thriving business. The cash drawer lets you collect cash and return change, and many cash drawers can be integrated with the POS terminal wirelessly or via USB.
Receipt printer
Though online receipts are trending, some customers prefer printed receipts. Receipt printers hence can be connected to the POS terminal. There are some credit card terminals that print their own physical or online receipts, while some POS need a separate receipt printer.
Things to consider when choosing POS hardware
If you are a small business, a less complex POS hardware setup will be sufficient for you.
While niche and larger-scale industries will need more functionality to support daily business activities.
1. Sector and business size
If you wish to zero in your search for the best POS hardware, you should think of the type of business you are, the industry you serve, the size of your business, and the way you operate. If you’re a small shop, your needs will be different from medium or large-scale enterprises.
2. Price
Pricing plays an important role when it comes to selecting a perfect POS system for your business. Just as we said above, the size and type of the business will determine the price of your POS. A small restaurant or a food joint will require one POS terminal, a receipt printer, 2 or so credit card terminals, and a cash drawer.
On the other hand, a large retailer operating from multiple locations will need multiple quantities of the basic POS systems, and accordingly, the pricing will vary.
3. Ease
How much ease of use the POS system will offer to your business depends mainly on the sector you serve and the business size. The ease varies from system to system and vendor to vendor. while installing or borrowing a POS system considered factors like staff size, training period, POS features you look for, etc.
How a reliable POS hardware is good for your business?
A software/hardware compatibility is important for the successful running of any POS system. If a POS software is offering a certain functionality, the vendor has to offer compatible hardware that is robust enough to handle that functionality.
1. Improves automation
This is a fast-paced world and a business cannot rely on manual efforts to survive in the market. Right from inventory management to purchase orders to HR activities, everything can be managed automatically/semi-automatically, in a streamlined manner with a POS system.
Installing POS systems means your staff no longer have to waste time on admin and paperwork, letting them focus on other crucial business areas.
2. Mitigates human errors
Human errors are inevitable even when your staff is highly educated with positive productivity percentages. If you are doing stock management manually, it’s likely to cost you more than your assumption.
The POS inventory management features like bulk importing SKUs, updating products in bulk, etc. combined with tools like barcode scanners will help businesses mitigate human errors.
3. Boosts strategies
In case you are not ready with a formal sales and marketing strategy yet, POS hardware can be used to decide whether your current sales techniques are compatible with your business goals. You can also develop a data-based sales process using data collected and processed by the POS system.
Let us take an example of analytics. POS systems can showcase the best-selling items of your business, best performing staff members, the best time for sales of specific items, etc with a POS terminal dashboard.
All of this data offers you an insight that can be used to build an effective marketing and sales strategy, modify the pricing strategy, with accuracy.
Eventually, the best POS system will offer you flexibility, scalability, efficiency, to make smarter business decisions.
