Top 5 Things to Consider Before Buying Your Next POS

I imagine that in the current economy restaurant owners aren't lined up with cash in hand waiting to spend money on a new POS system, but maybe you are opening a new store or your old system isn't quite giving you what you need. If this is you, then I encourage you to consider a few things while you're shopping around.

1) The Hardware Trap
If you're upgrading your existing POS system and your terminals are in decent shape, you should definitely try to find a POS system that will work on the hardware you already own. There are a few companies out there that force you to buy their hardware. Even if you're buying a brand new system, think carefully before using one of these companies, it's always best to give yourself options.

2) Closed Systems
I can speak as one of many businesses offering third party add-ons and back-office products for restaurants. We spend lots of development time integrating our software with our clients' POS systems. Many POS systems (especially the bigger ones) often make it difficult and expensive for you to use another company's solution with their system. They would rather have you buy their inventory system, scheduling program, or gift card solution and so they put up barriers to keep you from using other solutions. Again, don't limit your options, you never know what new shiny gizmo you'll want to incorporate down the road, wouldn't you rather be with a POS provider that is open to all those new ideas.

*** Free business advice for POS companies: First, if you're not on the web, get on the web. Second, if you're on the web, publish an API and build an app store like Apple has for the iPhone. This would be groundbreaking.

3) Recycle
Unfortunately, restaurants go out of business every day, so there are opportunities for you to pick up a barely used system for a great price. You still need to do your homework about the system so that you can avoid #2 above and also some POS companies require a license that is not transferable should you buy used equipment, so research this to make sure you can use the POS software after the purchase.

4) Help Me
The good news is you're great at operating a restaurant, the bad news is that you're not as skilled at operating a computer system. Well lucky for you, there are lots of companies out there that will help you find a great POS system, and companies to help you set it up and help you fix it when things go wrong. Ask for references and see how they've helped other customers at 3am on a Saturday night.

5) Upgrading
Software companies are always fixing bugs and adding new features so find out how often your prospective POS provider releases upgrades, how much the upgrades cost, and how easy or difficult the process is (i.e. can you do it yourself or do you need a consultant to help).

*** Web-based POS systems usually have a big advantage here, since updates are regular, often free, and can happen without you needing to lift a finger.

It's easy to be near-sighted, but make sure you think long-term before making your POS investment. The wrong choice will definitely haunt you and your staff for a long time.

Comments

[Alan]

Great info! Although I would not agree with #3. A friend bought a used pos and caused headaches everyday due to it freezing all the time. In the end a new POS is still a safer investment for a restaurant business.

[Jeff Schacher]

Thanks Alan, you are right, it's definitely buyer beware with a used system.