Owners love them or hate them. Either way a POS system is vital in the hospitality industry. The pros of using a point of sale system far outweigh the cons. Almost every restaurant needs a POS and everyone would benefit from having one. There are so many POS systems to choose from with every price point imaginable. So what should you consider when purchasing a Point of Sale system?
#1. The most vital piece of the puzzle when looking at possible POS systems is the service you will receive from your provider. A local company will usually give you the best service and support. Ask for references. Who do you support in my area? Go around to different restaurants and bars and see who is using what and ask them how satisfied they are with their system and their support. A POS system is only as good as the service and support you receive.
#2. You need to be able to program your own POS system. This is huge. If you cannot make changes on your own system and have to call for support every time an item needs to be changed, then you will be throwing away money and will not be a happy Point of Sale owner. When you are in a demo for a system, ask to program an item from start to finish by yourself. If you cannot grasp the programming, find a system that you can. Do not rely on the provider to take care of everything for you, even though they say they will. The cost of ownership goes way up if you cannot maintain the system on your own.
#3. As with any purchase, price is a main concern. A lot of times the price quoted is far less than the final price once you add on modules that you need. Cheapest is usually not the best. It is just like buying a car. You need to find a reliable system that will do all the tasks that you need for a good price. You should always compare prices from at least three different competitors. Take your quotes and make sure you are getting similar hardware for a similar price. Some vendors will try and slip some used equipment in or off brand hardware to lower the overall price. You also need to evaluate service contracts and off hour support. Sometimes the support ends up costing you more than another system over time.
#4. Make sure that you are purchasing a tried and proven system. Make sure that if the company you are buying from goes out of business, you will be able to get support from another company. If the system is from a small company that is a single operation, you might want to look other places. A system could be great, but if you lose support, your system becomes worthless.
#5. Make sure that you are not locked into using a certain credit card processor. Some systems may be a lot cheaper than others but require you to use a specific credit processor from which they will make up for the low cost of the system. Freedom to choose your own processor is a big deal when it comes to controlling your credit card rates.
#6. Stay away from yearly contracts. You should not have to renew contracts in order to keep your POS system operating. Yearly service contracts are an industry standard and you might prefer to keep one. Yearly software contracts in order to keep your system operational are a rip off. There might be costs associated with keeping your system PCI compliant (credit card standards), but over all once you buy a system it should run on its own without software contracts.
#7. A Point of Sale System has to be PABP compliant. Meaning that your system’s credit card security should be up to date on the rules set forth by Visa/MasterCard. Ask for documentation on this. Different versions of the same system might not be compliant. You can check the system to make sure it is compliant at http://usa.visa.com/download/merchants/validated_payment_applications.pdf. You need to cross reference this document to make sure that it passes. The cost associated with a breach in credit card information is enough to close many small independent restaurants. Also check to see if your credit card processor is PCI compliant.
If you are considering purchasing a Point of Sale system, I congratulate you. It is one of the best investments a restaurant/bar will ever purchase. Please do yourself a favor and research thoroughly the options that are available to you. Do not take the word of the salesman on their product or service and support. Talk to the owners that are actually using the system. They will be the ones who tell you what you will get, not the POS provider.
