What is an EPOS System?
An EPOS (Electronic Point of Sale) is a system used by businesses to manage sales, inventory, and customer information, all in one place. It’s like a modern version of a cash register, where you can not only process payments but also keep track of sales, and manage inventory and employees.
Why Does Your Business Need EPOS?
According to UK Finance, in 2021, more than 50% of the payments consisted of debit cards. To keep up with customer trends, your business needs a good system for accepting non-cash payments.
Other than processing transactions, an EPOS system turns a traditional cash register into an efficient tool for managing your business. It offers a comprehensive solution for managing sales, inventory, and customer data in one place. Unlike cash registers, EPOS systems enable businesses to keep track of their inventory in real-time.
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Components of an EPOS System
An EPOS system can be split into two components:
1. EPOS Software
EPOS software is the core of the EPOS system that performs retail functions for businesses. With the right EPOS system, you can keep track of your inventory in real-time, and store & analyse sales and customer data.
Common features of EPOS software
- A user-friendly payment interface for consumers
- Seamless integration between online and physical retail operations
- Synchronisation of orders and inventory levels
- Notifications for items that are out of stock
- Automated order management
2. EPOS Hardware
EPOS hardware comprises the physical devices that work in combination with the software to make a complete point-of-sale system.
Devices for EPOS hardware
The main component of EPOS hardware is an EPOS terminal. To carry out the transactions various other devices are also needed such as:
- Credit/ debit card reader
- Barcode scanners
- Cash drawer
- Receipt printer
How Much Does an EPOS System Cost?
The cost of an EPOS system will vary according to the type of EPOS system your business needs. The number of hardware devices you need is decided by the size, nature, and the number of locations of your business. The costs of software subscription software also add up to the overall cost. Additional costs also included hardware installation, maintenance, and update costs.
EPOS Hardware Costs
Buying EPOS hardware is usually a one-off cost, which is why it’s a big part of your overall EPOS system expenses. The most expensive component of hardware is the EPOS terminal, which might be a tablet, a computer, or a smartphone, so the cost varies. Overall, you can expect to pay an average of anywhere between £400 to £1000+.
| Type | Component | Costs |
|---|---|---|
|
Cash Drawer |
|
£60 Upwards |
|
EPOS Terminal |
|
£155 Upwards |
|
Barcode Scanner |
|
£70 Upwards |
|
Thermal Printer |
|
£145 Upwards |
|
Card Reader |
|
£15 Upwards |
There are various options available, you can choose the hardware that meets your business needs.
EPOS Software Prices
Software for EPOS systems usually requires a monthly subscription, which may require a contract with your EPOS provider. We have compared various software subscription plans from different providers and provided you with a comprehensive list.
Here’s a comparison of different software packages tailored to various business needs:
| Software Plan | Monthly Cost | Suited For | Features |
|---|---|---|---|
|
Free |
Free |
Sole traders who need simplicity |
Basic EPOS functionalities; mobile use |
|
Starter |
Around £25
|
Small businesses focusing on growth |
Essential features for small-scale operations |
|
Standard |
£60 to £80 |
Established SMEs |
Employee monitoring, customer relations management |
|
Advanced |
Over £100 up to £400 |
Large businesses |
Advanced inventory management tools |
|
Enterprise |
Custom pricing |
Businesses seeking highly tailored solutions |
Customised features based on business needs |
Additional Costs
Setting Up
Most POS systems are easy to set up however for more complex systems with multiple terminals linked together, you might need to bring in an expert for installation. You can expect to pay around £200 for installation, plus £40+ for every extra terminal. It’s also common for suppliers to offer training and ongoing support, but keep in mind, this could mean additional fees. However, some suppliers might include these services in their initial installation charge.
Ongoing Supplies
For small businesses, the ongoing cost of supplies like paper for receipts, toner, equipment wear and tear, labels, and printing supplies should not be overlooked. Don’t forget to factor in the need for extra cables if you’re planning on a more spread-out setup and the costs associated with maintaining an internet connection. These costs can quickly add up, so it’s essential to budget for them from the start.
Average Cost of a POS System
Here is an overview of what you can expect to pay:
| System Tier | Overall Expected Sum | Ongoing Software Subscription | Hardware Range Cost |
|---|---|---|---|
|
Basic Setup |
Up to £1,000 |
£0 to £30 per month |
£16 to £300 |
|
Standard Package |
£1,000 to £2,000
|
£30 to £50 per month |
£300 to £1,000 |
|
Premium Solution |
£2,000+ |
£50 to £100 or more per month |
£1,000 and above |
3 Ways to Save on Your EPOS System Costs
Here are three ways to save money on your EPOS system:
1. Rent or Lease
If buying an EPOS system seems too expensive, you can rent or lease one instead. However, keep in mind that renting an EPOS has its pros and cons.
Pros: If anything breaks and it’s not your fault, the company you rented from will fix it for free. You also get free setup, help whenever you need it, and the latest software without extra charge. You can rent for as much time as you like so it’s all up to what you need.
Cons: Renting can end up costing more over time than buying outright. You might also not get to customise your system as much, since rental options usually come with standard software.
2. Buy Used or Secondhand
Another way to save is to buy a system someone else is selling. This could be from a business that’s upgrading or from a company that fixes up and sells used EPOS systems. When you buy used, especially from a business, you often still get a warranty and sometimes even support.
3. Shop Around for Quotes
The EPOS market is competitive, so don’t be shy about comparing prices and asking for a better deal.
ComparedBusiness Compares & Provides You With Top EPOS Solutions
We at ComparedBusiness are experts in saving your time and money. Just submit your requirements in less than 2-mins and ComparedBusiness will get back to you with Quotes from a list of top EPOS systems providers. You can pick and choose the best option for your business.
FAQs
There are free POS systems However, these have limitations and instead we recommend getting quotes from ComparedBusiness so you can choose a suitable EPOS system provider that meets your budget.
Check out some frequently overlooked costs below to avoid being surprised by some extra fees.
- Add-ons: POS add-ons can be a source of extra cost for you.
- SMS service: You can be charged third-party fees by cell providers if you choose to use this option, which allows your system to remind clients by SMS of appointments, reservations for tables, and other things.
- Extra register fees: You can be required to pay for each extra device if your business needs more than one register.
- Additional location fees: If a business uses a point-of-sale system at more than one location, they might have to pay more.
