Turning Your Tablet into a Point of Sale System – Is it Time to Make the Switch?
by Caron_Beesley, Community Moderator
- Created: May 13, 2013, 7:43 am
Considering upgrading your business’ point of sale system (POS) to one that runs on a mobile device or tablet?
Mobile payment platforms that turn your tablet into a credit card processing device have become increasingly popular with small businesses, thanks to offerings from companies like Square, Intuit and PayPal. But mobile POS is evolving beyond being a convenient way to swipe credit cards on-the-go. The next generation of POS systems will not only turn your tablet into a cash register, they offer fully-fledged business management tools including CRM services, inventory tracking, loyalty program integration and employee management tools – all made possible thanks to the power of cloud computing.
So what are the advantages of a tablet-based POS system for small business owners and what factors should you consider when making the switch? Here are some benefits and points to consider.
Traditional POS systems typically involve an up-front fee of around $3,000, with some running as high as $50,000 (according to Street Fight magazine). In addition, you can expect to pay an annual software license fee per register and a yearly maintenance fee of 18-20 percent for upgrades. And, since costs are paid up front, chances are you’re stuck with the system you choose even if you don’t like it.
Cloud-based tablet POS systems, however, can be up and running for as little as $1,000 or less, with no upfront fee. Cost-savings also extend across the lifetime of the service – you pay a low monthly fee (which also includes instant software upgrades, support, back-up and upgrades) and can cancel at any time.
Easy Integration of Sales and Marketing Tools
In this age of ubiquitous information, many of us have come to expect instant, anytime, anywhere access to the data that matters most to us. Cloud-enabled tablet POS systems make this a reality with fingertip access to sales and inventory data – whenever you need it. Some also offer advanced integration with loyalty programs, accounting tools, as well as coupon and gift card generation options. You can even take advantage of marketing outreach features, such as auto-generated thank you emails to new customers and “poke” emails that encourage dormant customers to stop by. Other tools let you track sales volume by employees and manage inventory and restaurant seating. Others also offer integration with mobile card reader platforms such as Square and Intuit GoPayment.
Ease of Management
Not only does cloud-based POS cut the costs involved in managing your systems, it also streamlines their management. All the software upgrades are instant; trouble-shooting is taken care of by the system provider, and your applications and data are securely backed-up and stored within the cloud. No need to invest in additional service contracts or IT headcount.
If you think about the cost and time involved in managing your own POS and any downtime or system issues your run into – the appeal of a mobile POS system starts to catch on.
Things to Watch Out For
Benefits aside, there are some things to look out for when considering a tablet POS:
- Migration – Migrating any system can be tricky. Put this on your due diligence list and screen providers to see what migration tools or services they provide. Many will be able to handle a simple inventory and customer data import from a spreadsheet.
- Internet Downtime – You’ll need a good internet connection to process transactions and manage your data. If you are worried about outages, then this type of POS may not be for you. The good news is that some providers are offering off-line services that let you sync transactions when you come back online.
To help you in your research, check out Street Fight’s comparative guide – 7 Cloud-Based POS Systems for SMBs.
- Payments On the Go – Turning Your Mobile Device Into a Cash Register
- Online Payment Services – Are They a Good Fit for Your Small Business?
- Cloud Computing – What Can it Do For Your Small Business?
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