Why the POS market is different

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When I started this site, I wrote that the POS market is interesting because it is different from the regular IT market. So what are those differences then? Isn’t a Point Of Sale simply a PC with a database and some software on it?

Seen from that point of view, the POS market is indeed just like any other market. But if you look more closely, there are differences.

Geographically spread support

Except for hypermarkets, you generally do not find many POS terminals together. Small companies typically have 1-3 terminals, while big companies simple consist of many small outlets, which also have 1-3 tills. Where other big companies usually have a big office where many people work and where also their IT support resides, big retail companies have to deal with many locations, which makes support a complex matter. To reduce support costs, usually high quality hardware is selected.

ROI

Related to the problems described above, the typical ROI period for POS systems is usually five or more years, which is significantly longer than normal computer systems. It is very difficult to implement/change a POS system, so retailers think twice before deciding on what system to purchase. They have to live with their decision for many years!

Training

Some branches as the hospitality have a big employee rotation. In summer, waiters might change every week. Therefore it is extremely important that POS systems are easy to learn and very intuitive. Within five minutes an employee should be able to start making sales!

Exotic hardware

Retailers and restaurants have some very specific needs. Usually size matters, since counter space is scarce, which leads to tiny black/white monitors or the quick adaptation of LCD screens. In some occasions like jewelries, silence is important, so fan-less systems are used. In bars systems need to be water—resistant and easy to clean. Restaurants pass orders to the kitchen and bar using small receipts, so it is common to connect five or six printers to a single till. And of course there are specific peripherals for POS systems: touch screens, receipt printers, payment terminals, magnetic card readers, EFT terminals for credit card payments, costumer displays, cash drawers, bar-code readers, scales, … Most of this hardware is not that different from normal hardware, but it requires some extra knowledge.

POS hardware

Some ‘normal’ IT shops once in a while sell a POS system, but in general it is better to get your system from a specialized dealer. Normal IT shops generally do not have enough knowledge of the system to analyze the needs and roll out a system that will work for many years. Instead, they will spend too much time doing after-sales support, with all related problems. The benefit of specialized POS dealers is that they know the language of the retailer and ‘speak the same language’.

One Response to Why the POS market is different
  1. The Wizard of POS

    Find the right POS solution

    You want to buy a POS system and don’t know where to start? Or you have tried out and even purchased 10 different EPOS solutions and don’t know where to look for the right software and hardware? You’re facing a difficult task, as there are thousands of…

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