A question that merchants often ask themselves is whether it is better to rent or buy a POS system. After all, in order to enable your business to thrive in this complicated digital world, you need to do everything in your power to make life easier for your customers.
However, the choice between buying or renting a POS solution depends on your needs, the type of business that you run, and the nature of the payments you offer customers. In this article, we explore POS systems and their benefits, and compare the advantages of buying and leasing one.
What is a point-of-sale (POS) system?
Point-of-sale (POS) systems are electronic devices that allow merchants to accept cash, credit cards, debit cards, cheques, gift certificates, coupons, loyalty points, rewards points, tickets, and mobile payments.
They can be used for both online and offline transactions. Modern POS terminals offer comprehensive functions, such as inventory control, price tracking, and employee scheduling.
9 benefits of updating your POS system
Benefits of buying a POS system
The benefits of buying a POS system are diverse, especially for retailers. These devices allow businesses to control inventory and implement more effective marketing strategies. By owning, rather than leasing them, you can maximize their usefulness in a number of ways.
Unparalleled control
Owning a POS system allows you to have absolute control over your payment infrastructure. By opting to purchase rather than lease a POS system, you give yourself the right to set it up in a manner that is best suited to your business. You can choose the add-ons and apps that you believe will help you best manage your payments. Conversely, contracts always come with restrictions, which may not be ideal for you if you wish to be able to make upgrades to the system on your terms.
Cost savings over time
Purchasing a POS system can save your business an enormous amount of money in the long run. In fact, the longer you run the system with constant upgrades, the greater your overall long-term savings. After all, small payments over a long period of time can add up and end up amounting to much more than a seemingly-large initial investment. Therefore, if you’re drawing up a business plan with the big picture in mind, you should seriously consider buying a POS system rather than renting one.
Benefits of leasing a POS System
Some small businesses prefer to rent a POS system, instead of buying one, for the following reasons:
Lower initial set-up costs
Among the benefits of renting a POS system is the fact that renting reduces upfront costs, thereby enabling you to devote more of your initial capital towards business growth and development. This is the ideal arrangement for small businesses.
Your POS can be replaced when it becomes obsolete
Some businesses prefer to opt for renting a POS because buying one is a long-term investment and these software, like all technology, could become obsolete in the future. By deciding to rent, you can easily replace your POS system with a more up-to-date model when required.
Leased POS systems come with technical support and carry less risk
Vendors of leased POS systems offer technical support, which always comes handy when something goes wrong. Also, when you lease a POS system, you have the option of being able to return it should it fail to meet your needs.
Vendors offer security mechanisms and considerations
POS providers often offer security considerations designed to protect business data, as well as customer data. This can protect you from electronic financial fraud.
Is it better to buy or lease a POS system?
Usually, this decision is made on the basis of the amount of resources that a business has at its disposal. If you decide on a rental contract, it will probably be because you’re concerned about the cost of such a platform. However, while renting can lower the upfront costs, it subjects you to a subscription payment, which can be made monthly. The other advantages of leasing a POS system include greater flexibility in terms of obtaining replacements and more security.
Owning a POS system, on the other hand, gives you permanence. It is also cheaper in the long run as you don’t have to pay subscription fees to keep it running. Also, if, at some point, you wish to replace it, you can sell it, thereby recuperating a portion of your original cost. Ultimately, even if you have a small business, buying a POS system is a better solution.
Best POS systems on the market
When choosing a POS system that suits your needs, it’s important to take into consideration several factors such as your financing capacity. You should also take into account the services you offer, the capital you have, and your inventory before making a choice. There is no better place to begin gauging the options at your disposal than SIR solutions.
We have equipment that will allow you to carry out various actions such as accessing data in real time, processing orders, and receiving stock. In addition, our equipment will enable you to always have your customers’ favorite products on hand, which in turn will contribute to the performance of your business and its growth.