7 Questions to Ask When Investing in a POS System
For small business owners, finding the right point-of-sale (POS) system is imperative.
- The owners of Alchemy Wine & Beer rely on their POS system to not only facilitate their payments, but help with planning and enable real-time decisions.
- But not all POS systems are the same, and identifying the right one for your business and industry is important.
- The Alchemy owners share key questions that can help small businesses understand what they need from POS and find the one that works for them.
When Anne McIntosh and Nicole Casell decided to open Alchemy Wine & Beer in the Village of Hamburg, NY, they knew the right point-of-sale (POS) system would be critical to their success. Fortunately, Northwest Bank’s partnership with Clover Merchant Services offered the entrepreneurs a turn-key solution that enabled them to not only launch — but successfully expand — their boutique bar.
“A point-of-sale system should help you run your business more efficiently, servicing your customers and maximizing sales,” says Christian Hansen, Corporate Vice President, Director of Merchant Services at Northwest Bank. “Even better, the right solution can also enhance your inventory planning and ultimately optimize your cash flow.”
McIntosh and Casell agree. Over the past six years, they’ve leveraged the Clover POS system for Alchemy, along with their fleet of mobile wine bars that travel all over Western New York. The scalability and usability of the POS system, as well as the true partnership from Northwest, has enabled Alchemy to grow.
“We’ve been approached by many other vendors, but the technology and the relationship with Northwest Bank has made such a difference,” McIntosh says.
The key questions for a point-of-sale system
While there are several options for POS systems, not every solution is the best fit for your business. It’s important to find the POS that aligns with your business goals and needs and addresses the specifics of your industry.
Hansen and the Alchemy co-founders recommend considering the following questions:
- What are the costs?
Understanding the pricing structure of any system is imperative. As you delve into the costs, consider the setup charges, the per transaction fee, the software fee and any charges for the hardware.
The Alchemy co-founders review their Clover charges and credit card processing charges with Northwest Bank every six months. “It’s nice to have everything headquartered in one place,” Casell says.
- Does the POS solution integrate with other important systems?
A POS system that integrates with your accounting or ERP solution, as well as your banking applications, is essential — for several reasons. First, the integration enables data analysis across your business processes that empowers you to make smarter decisions. For instance, integrating your POS with your banking and accounting platforms means you can see your revenue within the context of your overall financials.
Hansen adds that an integration with your banking platform provides quicker access to your funds. “It also gives your banking partner a better view of your business,” he says. “That way, they can provide recommendations for loans or lines of credit that can help your company continue to grow.”
- What type of reporting is available?
McIntosh relies on Clover’s backend reporting to make real-time decisions about staffing, inventory and more. "The backend reporting is super important; I have it on my phone, and I check it regularly to review the previous night, week and year,” she says. For example, if the bar is busier than normal, McIntosh may opt to bring more employees in.
McIntosh and Casell can also review historical sales figures to determine how much wine, beer and spirits to order for the holidays or a big event. The accuracy prevents over- and under-ordering and allows Alchemy to align its operations with its revenue.
- What are the mobile and offline options?
“Lots of companies use mobile payment solutions to maximize their sales,” Hansen says. For example, employees can use mobile units to take payment from any location in a store, eliminating the need for customers to wait in line.
Some businesses also set up mobile payment kiosks to accelerate payments and reduce customer wait times. For Alchemy, mobile payments helped the owners create mobile sparkling wine and flower bars — Buffalo Bubble Bars — and take offline payments at festivals and events.
- Is the POS easy to use?
Be sure to look for a POS that requires little training and is quick and easy for employees to learn how to use. That’s especially true for businesses that operate in industries with naturally high employee turnover or seasonal staff.
“For us, Clover has been intuitive and not complicated,” Casell says. That means that new employees can get up to speed quickly, making sales and processing payments without hours dedicated to learning a system.
- What additional applications are available?
Payments are an important component of your business. But once you have your POS operating, you may consider what other apps could help your business thrive.
For instance, your POS may provide access to an employee time-tracking app, loyalty or gift card programs, customer promotion or email marketing, bill pay or more. The Clover App Marketplace provides a selection of apps designed specifically for small businesses of all kinds.
- What type of support does the vendor provide?
Lastly, consider how much support your POS system vendor provides. As a business owner, you’re juggling multiple responsibilities — and payments is just one. The ability to quickly connect with support when you have questions or if something goes wrong ensures that a small hiccup doesn’t become a large problem.
The Alchemy co-founders leaned on Northwest Bank for questions about uploading their inventory, connecting other devices and more.
Northwest Bank is your payment solutions partner
The Northwest Bank partnership with Clover Merchant Services gives entrepreneurs access to a true banking partner and an effective POS system. It’s a winning combination that can help small businesses go from idea to expansion, just like Alchemy Wine & Beer.
For more information about POS systems, connect with a Northwest Bank representative today.
