When it comes to running a retail business, all merchants need some form of cash management system to process their sales. The two most common methods are good old electronic cash registers and the slightly more-complex, computerized point of sale retail systems, which are typically known as POS.

While some merchants prefer your handy dandy cash register, others swear by POS systems. If you’re new to the business world, this will be something you’ll have to decide upon. Both systems have their benefits and advantages, but it’s a good idea to see which one meets your specific business needs.

Many new business owners simply choose the least-expensive option, but it’s worth doing a bit of research and looking into both systems a bit deeper than just the price. You need an effective system, and while it may cost more at the start, it may actually save you money in the long run.

The average retail POS system can cost anywhere from about $1,500 up to $20,000. The price will often depend on the amount of hardware that’s added to the system. A cash register typically costs between $200 and $800. Again, the more advanced units will cost more. However, you can always upgrade if need be.

Cash Registers

Cash registers are relatively inexpensive at start up, can process customer transactions quickly and keep accurate sales records. They’re also pretty durable with most models lasting about 10 to 15 years. However, they may need upgrades after approximately five to seven years of use. Most of them are also easy to use as they have fewer components

If you’re considering a cash register, you should think about the type of business you run and what features and functions you might need. Some things that should be taken into consideration include: the tax your business collects on a sale, the amount of products you sell and will sell, the acceptance of coupons, and how you process refunds.

You also need to calculate how many registers you’ll need and what forms of payment you accept.

POS Systems

Some retailers prefer POS systems because of the advantages they possess over cash registers. This includes the following: more detailed reports, better track inventory and accuracy, and the ability to grow with business.

You also need to consider the type of warranty and support that cash registers and POS systems come with and how to train your staff on the equipment. It never hurts to ask an experienced merchant for advice on the type of unit to use.

Once you decide on the type of system to employ, you can begin searching for one. If you’d like to save a bit of money you can check the classifieds in local newspapers, magazines, and websites, to find a good deal on a second-hand unit. You may be able to buy one from a company that’s holding a going-out-of-business sale or you could lease a system.  (I’m not an advocate of leasing but it may be the only viable option for some cash-strapped merchants.) 

If you decide on a POS system or a standard cash register, there are a few brands that stand out. The Casio name often draws a lot of positive attention from retailers who use them, and that’s quite a few as Casio sells approximately 85,000 units a year.

The brand is especially popular with merchants as it offers integrated electronic cash registers that are equipped with credit card processing technology. This translates into more room on your countertop as stand-alone credit card terminals are no longer needed and are slowly becoming obsolete in the retail environment.

I will provide more information about the Casio POS systems in my next blog entry.  Stay tuned.