After understanding what POS (Point of Sale) does and its benefits for business, what is the next step?
Here comes the tricky part: knowing the types of POS, their cost, and when to apply them to your business.
The technical jargon of POS makes this part a little tricky, yet this blog will discuss everything related to POS clearly and be a better guide for your business venture.
Here are the 101 differences between on-premise & cloud-based POS systems.
First Type: On-Premise POS
It's a type of POS that stores all data on a local database on the computer's hard drive. From here, it's accessible by using the computer and opening the drive to get digital and printed receipts.
The installation & deployment method for On-Premise POS is a bit complex because you'll need to install the software on each device you have.
So what other info do business owners like yourself need to know?
Let's discuss the pros and cons of on-premise POS.
On-Premise POS Pros
1- Complete Independence: despite everything in our lives requiring internet access, On-Premise POS doesn't need it.
You have access to all data through the installed device without the internet.
2- One-time payment: A custom-fitted POS for your business will cost you once. When you make the payment, it becomes yours.
3- Customized features: On-premise POS allows business owners to customize and add specific features and functions better suited to their line of work.
On-Premise POS Cons
- Expensive to install and apply: Since it's a one-time payment for the system, the price to implement will be costly.
- Non-existence of mobile optimization: Sure, one of the pros is that on-premise doesn't depend on the internet. However, that might be a problem if you have to access the data anywhere you want, and retailers can not bring POS anywhere else.
- Contact Support for Updates: The on-premise POS is installed based on your demand, and since it doesn’t get internet to update its software, you need to contact support if you have any problems in the future.
Moving to the other type of POS 👇
Second Type: Cloud-Based POS
This POS software stores all data and information online on a server and allows remote access from anywhere. Just like the On-premise POS, it also provides digital and printed receipts.
After that introduction, let’s dissect each pro and con of cloud-based POS.
Cloud-Based POS Pros
- Easy Remote Access: There is no need to be in one place to access your data. You can access your system and data whenever and wherever you want to.
- Cost efficiency: Cloud-based Software has a good point because it usually has a low monthly subscription. Also, you won’t have to buy a hard drive to store the data since all info will be held on the cloud, with the addition to the removal of the need to purchase extra software to use multiple tools to benefit your business.
- High-level security: All your data concerning your business are uploaded, backed up, and secured on the cloud. So if the worst-case scenario happens, like losing or breaking the device, your data is unfazed and still safely stored.
- Constant updates: Since Cloud POS demands a monthly subscription, it comes with a perk informing you of all updates you will need, any new features, and all of the support you need.
- Accuracy: What makes businesses rise is the ability to know each detail about how work is going. Companies must acquire accurate data to make vital decisions, identify errors and fix issues, track sales and inventory, etc. Cloud POS helps save time and provides the most precise data to support the increase in sales and business growth.
- Inventory Management: Cloud-based POS solutions include inventory management as an essential component. With cloud-based POS systems, businesses can track and sort their inventories according to item descriptions, product types, or other criteria. Additionally, product information can be tracked, significantly improving customer service.
- Scalability: All retail business owners strive for growth and expansion. Cloud POS is designed with scalability in mind to allow retailers to scale up their POS without spending much time, effort, or money. POS systems can also be scaled up according to a company's size.
- Business insights: POS cloud solutions can track all transactions, provide users with the capability to record purchases, and provide purchase histories online, both for personal and business use.
“OMG, Cloud-based POS has tons of pros, so what are the cons I will be facing?“ you might be wondering. Don’t worry. We are getting to it.
Cloud-Based POS Cons:
- Inability to customize: Cloud POS systems are configured in fixed features according to the supplier and are difficult to customize.
- Dependence on the internet: Cloud POS requires a reliable internet connection. Your POS system cannot be accessed without the internet. Additionally, an unstable Internet connection can disrupt service.
Feeling a bit lost, here’s a little recap
To sum it all up, when choosing a POS System, make sure it aligns with your business goals and is suited for your line of work.
So, from explaining what is POS to its types with all its pros and cons, now what?
Here are some questions you might need the answers to them.
1- Which hardware or device is required to have a POS System?
You can get the hardware based on your business needs, so the hardware requirements overall are:
- The monitor, a mouse, a keyboard, or a tablet, for example, to replace the desktop setup.
- The POS Software or Cloud-based
- Receipt printer
- Cash drawer
- Bar code scanner *
The options with Asterisk ( * ) are optional or based on your needs.
2- Should Online Businesses get a POS system also?
If you have an online store, you don't need a POS system or any point of sale to accept payment other than your payment gateway on your website to accept payment by credit card. Otherwise, if you already operate your website on a third-party platform like Shopify for global and Expandcart in Egypt.
3- Why should I use POS if I own a food truck or restaurant?
Suppose you have any offline business like food trucks, restaurants, coffee shops, or other offline-based transactions in your industry.
The answer is yes. It would be best if you had the POS (Point of Sale) to achieve your business goals and do your operation like:
- Making the Sales Transactions,
- Save the Data of the Sales
- Linking your branch's sales data
- Reporting the Data
- Making insights
- Integrate with marketing tools and so on.
Where does Zeal fit in helping you after choosing your POS (Point of Sale)?
Zeal can help your business by accepting In-Store Payments with Loyalty, Remote Payments, and Data Analytics at Your fingertips by connecting your POS with the Zeal platform.
First, while choosing the POS Software, you need to make sure it has the option to integrate and sync the data with other Software and tools.
Second, You can contact us to learn about Zeal Payments, Loyalty, and Data Analytics integration and benefits.
Over To You
To determine which POS your business exactly needs. You should know what software features are in the market and how they will solve your business problems and help it grow.