POS: Point of Sale Systems on an iPad – Power at your fingertips

As the saying goes…"knowledge is power". That's how the big box stores got so big by analyzing reams of customer purchase data. Think your shop is too small to have access to that kind of knowledge, think again. The IPad which forever changed the way we consume context at home, is now transforming the small business environment. POS system on an Ipad

Three Disrupting Technologies are benefitting the Small Business Owner

It used to be that the big box retail stores had a major advantage over the smaller "mom & pop" stores. The advantage was far more than deep pockets and buying power, it was the power of knowledge. With their sophisticated Point-of-Sale systems (POS), the large retailers had sales analytics that gave them a decided competitive advantage.

Don't despair. All that has changed recently due to a confluence of readily available, and extremely affordable technologies.

Previously retailers and restaurants were beholden to Point-of-Sale providers with expensive hardware that had to be installed by an expensive technicians, software purchase, upgrade fees, support fees…the list goes on, there has been a disruption to this whole ecosystem by 3 technologies:

The iPad
Cloud Storage
Wi-Fi & Bluetooth

The iPad Emerges as a Powerful Business Computer

The first and foremost disruptor is the iPad. It has transitioned from being a big screen version of an iPod Touch to a powerful computer that can easily run large businesses.

Although at this writing Apple's high end processor is the A10X Fusion fourth-generation chip with 64-bit desktop-class architecture. For a $500 investment, the iPad's sheer power eclipses the processing power of legacy POS system that are networked together.

POS system assembled

The breakthrough for a POS system using the iPad lies with the touch screen. No clumsy cash register keys. IPads were designed from the ground up to be highly intuitive. Most employees either own an iPad or at least an iPhone, so they find it easy to navigate the screens.

This reduces the time it takes to train new hires.

Cloud Computing Allows for Real Time Software Updates and Data Protection

The other disrupting technology that make iPad POS systems so appealing is that they're offered as "Software as a Service" or SaaS in the trade. That means you don't lay out thousands of dollars up front for legacy software that you will own and continually pay support and upgrade fees for the rest of its life.

SaaS basically means you're leasing the software for a modest monthly fee, anywhere from $90 to $250 per month depending upon the feature set you need to run your business.

As opposed to legacy POS systems that need to be updated manually upon occasion, with cloud-based POS systems, you're always using the latest and greatest version of the software because the software and bug fixes are loaded real time.

The real benefit to cloud computing is that the data, such as item listings, inventory levels, customers, sales, and so on, are secure in the cloud The cloud consists of those secure servers at remote sites with redundant backups. The benefit is, should your iPad be broken or stolen, you can quickly install another iPad and be back in business in minutes with a quick connection to your data.

Worried about the Internet going down? As for data, cloud-based systems are somewhat of a hybrid. That is, some data is redundantly stored on the iPad as well as up in the cloud. The reason for this is that you can keep running your business should the Internet go down. Then when the Internet is back up again, the data will be synched up.

Can you process credit cards should the Internet go down? Although most POS systems will process credit cards in offline mode, there is no guaranty of payment should the customer exceed their credit line. But this is a problem that has always existed even with the old countertop credit card terminals.

Cloud-based Also Means Mobile

The sheer fact that iPad POS systems are cloud-based means they're not tethered to a physical store or restaurant. With a cell tower service, you can sell your products at flea markets, farmers markets, food festivals, and the like.

It also means that multiple devices can access the same data. If the owner, or manager is working remotely and updating the product listing or menu items, the devices at the store or restaurant will have immediate access to such.

The real plus is that the owner or manager doesn't have to be physically on site to know what the hour to hour sales are, she can view it from her home, her car, or wherever she may be.

Wi-Fi Throws Away the Wires

In the past, it used to be that if you were "wired in" you were a savvy Internet user and super "cool". Today it means the opposite.

In addition to iPads powerful capabilities, the other technology that makes iPad POS systems so affordable and effective is Wi-Fi. By now the speed, reliability and affordability of Wi-Fi makes interconnected devices a cinch.

Most businesses already own Wi-Fi so it's not an extra investment to installing a POS system. We no longer have to run cables all over the place. Devices such as remote printers and the like communicate via Wi-Fi. In some instances devices like bar code readers may communicate via Bluetooth, but in any case everything is wireless.

Affordable Bar Code Readers for Retailers

An offshoot of Wi-Fi is Bluetooth technology. Again, in a beautiful world of wireless connectivity, if you're a reseller of items that have bar codes, you can easily receive them into inventory and decrement your inventory as you sell them one at a time.

Using a bar code scanner really speeds up the customer checkout experience and gives them the detailed sales receipt they desire.

Even if you make your own products for sale in your store, you can devise your own alphanumeric inventory organizing system and print off your own barcodes using 3rd party software.

Don't want barcodes, not a problem

You are not required use barcodes and can still offer a speedy checkout for your customers. IPad POS systems allow you to quickly organize your products by category, then by specific items. You can visually scan a category for an item you’re looking for, or pop out to a search bar to find it. There are modifiers to select size, color, and the like, smooth.

Integrated Credit Card Processing

With so many customers paying by credit cards these days, it critical to have a secure credit card processing system. Just about all IPad POS systems do. You will want to make sure they're fully PCI compliant and EMV (chip card) compliant.

With iPad POS systems, you merely touch the payment method on the screen, if it's a cash payment the cash drawer will automatically open, if it's by credit card, you merely swipe or dip the card.

With most iPad POS systems, you can set a limit as to when you require a signature for credit card purchases. The allowable limit is $25 and this will really go far to speed up your checkout operation.

When signature is required, the customer merely has to sign the screen. You can give them the option of a printed customer payment receipt or have it emailed to them. Most likely savvy shoppers will decline because they’ll already have a copy of the payment receipt on the phone from their credit card company.

Highly Customizable

As a retailer or restauranteur you have a competitive advantage. You're providing unique products. Therefore one size does not fit all, you need a POS system that's highly flexible and customizable. Adds, changes, and item deletions can be done quickly and easily on the fly.

Need to mark down some product, no problem, with permission in the system, you or your staff can do it real time.

Have the Power to Compete with the Big Boys

Wal-Mart arguably has the most sophisticated retail inventory and sales analysis system ever conceived. But, you know what, you can have the exact same analytics in your small shop as those big box stores with deep pockets.

Determine what items are driving your business.
Set your reorder points in advance and get alerted when inventory is getting low so you can reorder in time before running out of a hot seller.
What were your sales on this Saturday, one year ago? What seasonal products were customers buying and what was your traffic count? Do you need more staff?
Seasonality: When do you customers start shopping for the next season? Could you enhance business in a poor performing month by pushing up the availability of next season's product?
Monitor Floor Changes: Was moving that product up front helpful? How did that move drive additional sales? Master your store"s floorplan for optimal selling.
Measure returns. Certain items may be hot sellers, but not if they're being returned at an exorbitant rate.
Staff performance. Measure sales by sales or wait staff. Are there some superstars that are high performers, if so, can their methods be replicated?

Initial Investment

Retail Shop

Assuming you already have Wi-Fi service, a 2 lane retail shop will run you about $3,000 for the hardware:

iPads
IPad Swivel Stands
Connected Cash Draws
EMV chip card credit card reader and stand
Receipt printer
Bar Code Scanners

The monthly rental for the POS software will run approximately $115 per month for two lanes.

Restaurant

A restaurant setup without the bar code scanner but a kitchen printer will run about $3,200 for two POS stations.

The monthly POS software rental will run $300 per moth.

Hardware Installation

Most small business owners are fantastic at what they do, but are not necessarily wizards at installing systems. Although most POS firms will walk you through step by step over the phone, here’s where you're best served by a local consultant that been through the entire setup process and knows where all the booby traps are.

Getting Set Up

The most worrisome concern by most owners thinking about replacing their cash register or paper based system with an iPad POS system is properly loading their items.

Well, there's good news, Most POS providers will build your initial inventory for you at no extra fee. You can email a spreadsheet with your items and they'll build it.

Or, if you're a restaurant, they’ll build all your menu items from a scanned copy of your menu.

Support

No system in the world is worth anything if it fails and you can no longer run your business. Luckily most POS vendors offer 24/7 hotline support. Also make sure your credit card processing company also offers 24/7 high level support for the occasional failed batch issues.

For a slight premium, some POS firms can offer a smart router where they can peer into your internal network and diagnose problems and fix them remotely. A Meriaki router will run about $700 one time purchase plus about $150 per year for service.

About the Author

Al Valente is a business consultant servicing New England and helps customers to make smart investment decisions in selecting their business processing systems. He is an independent agent for NCR, Upserve, and JetPay. For a free consultation contact him at al.valente@jetpay.com or call (860) 961-4987.