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PURCHASING a POS SYSTEM for a RESTAURANT
By ByerZone
Change is Everywhere
Nowhere is change more apparent than in your restaurant, day after day. Good employees are hard to find, train, and keep. Food costs and rent goes up, and competition gets tougher. And customers have expectations that get higher. You need to address these facts. But if you’re tied up with paperwork, reconciliations, endless training and speculation about what’s happening to your inventory, you won’t have time to focus on what matters most - providing the quality products and services that keep your customers happy.
A POS system Can Help
A point of sale (POS) system is one of the most
important business decisions you will make. Choose the
right system and you will simplify your life, help reduce
your paperwork, give better control of your operations, and
increase the profitability of your operation. Choose the
wrong system and you will live with that frustration.
The right POS system provides a platform for a
complete hospitality management system. It gives you a
solid foundation for all of your information requirements
and application needs, today and tomorrow. This simple guide
will help you get started on choosing a POS solution that’s
right for you.
Formerly known as cash registers, a POS system’s
hardware may be as basic as a computer, operator display,
receipt printer and cash drawer. Input devices include a
touchscreen and magnetic stripe reader for cards.
However, it is the software that will drive the
operation and provide the detailed reports that you need to
you make informed business decisions.
A POS system will save you money by helping improve
your productivity and reduce the time you spend away from
other key areas of your business. This guide is intended to
help educate you on the process, to make a more informed
decision.
Why buy a POS system?
Buying a POS system can provide a significant
return on investment, even if your restaurant has annual
revenues of as little as $350,000. If you are below this
level, an electronic cash register may meet your needs until
your revenue increases.
However, sometimes others choose to invest in POS
before reaching that revenue level. Why? Some want the
reporting features, and some see it as an investment that
boosts efficiency on day one. It is rarely totally
unnecessary. The only question is how soon POS can pay for
itself.
Increase your profits, increase your control, and
be more productive - all the things you want. It’s as
simple as eliminating errors between servers and the
kitchen. It’s as basic as making sure you charge for
everything that’s served. It’s as liberating as knowing your
end-of-day reports are just a few keystrokes away. It’s as
bottom-line as making sure your customers are satisfied. The
right POS can help you manage and control all aspects of
your business. Here’s how:
How POS Increases Profit
Reduce shrink. POS can drastically cut down on
shrink, the inventory that disappears due to theft, waste,
and misuse by employees. The difference between honesty and
dishonesty is two steps: Need & Opportunity. You
cannot control the need to steal, but you can control the
opportunity to steal, by keeping your eye on what was sold
as reported by a POS system.
Improve accuracy. POS will insure every
item is sold for the correct price when ringing items using
a touchscreen with preset price keys. Your staff will stop
charging the wrong price (and/or stop guessing), and you can
change those prices easily.
Increase margins. You can focus on selling
higher-margin items by reviewing detailed sales reports.
Then boost the sales of those high-profit items by
promoting both those and any under-performing dishes in your
restaurant setting.
Cut expenses, Improve service - Integrate Credit
Card Processing. Eliminate separate credit
authorization terminals (and reduce the extra phone lines).
Integrated credit makes every terminal a credit card
authorization center, for faster, easier server access.
This eliminates manual fund reconciliation because
“register” and credit card totals are automatically
balanced. And it will consolidate daily transactions for
single batch transmission to the bank, and yield cost
savings through reduced credit card fees
How POS Increases Control
Know where you stand. At any point of the day, POS
can instantly tell you how many of a particular product have
sold today (or last week, or last month), and how much money
receipts you have in your cash drawer.
Better manage Inventory. Detailed sales reports
make it much easier for you to keep the right stock on hand.
Use historical data to better forecast your needs. Detailed
sales data by menu item allows you to quickly validate
actual stock against expected
inventory levels. You can pinpoint potential areas
of waste and/or theft. Clear inventory information helps
make purchasing requirements more accurate – not just based
on past experience or estimates.
Better manage Labor. Time and attendance
functionality will result in increased productivity and
gives you easy access to all labor-related information. And
Labor Management software will typically include all
labor-tracking functions. Training mode reduces your time
with employee training, making new employees productive
quickly.
Control Guest Checks. Guest check tracking
ensures full accountability by server and allows for almost
all “exceptional” situations – split checks, discounts,
tax-exemption coupons, promotions, etc. The pre-check
process ensures that you charge for every item served; and
nothing comes out of the kitchen without getting posted
first to a guest check.
How POS Improves Efficiency & Productivity
Reduce paperwork. Compared to using an electronic cash register or manual system, POS dramatically reduces the time you have to spend gathering sales figures or other repetitive but important paperwork, whether management, tax reporting, payroll, inventory control and more. With a few keystrokes, you are able to get detailed information such as:
- • Revenue and menu item sales information by server, shift and outlet
- • Totals for end of shift, end of day, end of week and more
- • Credit card transaction totals by server and by revenue center
- • User-defined reports that can be easily integrated with back office operations
This saves you time and gives you peace of mind.
You can take advantage of the information collected in the
POS system for accounting, time and attendance, labor
scheduling, food and beverage management, and frequent diner
programs.
Increase transaction efficiency – Remote
Requisition device. A remote printer in the kitchen
(or kitchen video system) provides instantaneous
server-kitchen communication, eliminates mistakes, speeds up
service and lets servers spend more time with customers.
Table/server/wait list management capabilities combine
maximum efficiency with improved customer service.
Build a customer list. Collect the names and
addresses of your best customers as part of a standard
transaction. Then use the list for targeted advertising or
incentive programs.
This all sound good on paper, but you must be
committed to using a POS to the fullest. If you do not take
advantage of the appropriate training and on-going support,
you will not realize the same benefits that others do. It
is a tool that you will get out of it what you put into it.
Comparisons Without & With a POS system
Without POS | With POS |
Guest’s order detail governed by server asking the right questions and writing Order is down the answers. Order mistakes occur. | Guest’s order detail governed by built-in forced modifiers or prompts. Order is entered completely |
Handwritten checks may not be legible. Kitchen can misread. Mistakes occur. | Remote Printer delivers clearly printed order to kitchen immediately on entry |
Uses post-check process where server totals check when requested. Some items served may be “forgotten” and not charged to check. Handwritten check may not be legible to the customer | Uses pre-check process so that check is begun by the system with first ordered item and every item served is charged for. Printed check provides clean customer presentation. |
At end-of-day, manager manually counts items sold to compare with existing inventory. | POS automatically tallies items as they are sold providing complete inventory movement status. |
Tips are tallied and reported by servers to management. | POS automatically calculates tips per server in complete compliance with tax regulation. Tip reports are available by server and in total. |
All checks must be manually closed or transferred at end of shift. Checks “fall through the cracks.” Manual reconciliation performed by manager or bookkeeper daily, weekly, quarterly, etc. | In order to sign out, the system requires a server to account for every check. This captures revenue that would otherwise be lost. |
Manager or bookkeeper manually compiles time and payroll information | POS automatically captures time and attendance information that can be downloaded to the back office or a third party payroll service easily. This improves accuracy and saves labor. |
Credit card authorization involves “swiping” a card through a freestanding terminal. Server waits for reply, manually records approval code and writes up a credit card voucher in addition to the check. Server must sometimes wait if terminal is being used by another server. | Integrated credit authorization allows server to get approval and initiate printing of credit voucher with single “swipe”. Capability enables servers to use any terminal for credit authorization, reduces wait time, eliminates need for multiple phone lines, and often earns discounts from credit card processing companies. |
Manager must manually reconcile total sales with credit card receipts. | System reconciles POS and credit totals automatically, updating report with every transaction, and consolidates daily credit transactions for a single batch transmission to bank. |
Manager (or bookkeeper) prepares all accounting reports daily, weekly or quarterly, as needed. | POS automatically captures information in reports customized for the operation. You improve accuracy and save time. |
What Do You Really Need?
You should carefully research what your own needs are and the market has to offer, as you would with any significant business purchase. Before you talk to a vendor, make a realistic examination of the strengths and weaknesses of your operations, your headaches, and your own expectations of what a system can do. Here are some questions to help you begin a self-audit.
Do you have a problem?
-How many customers leave each week because the
wait is too long?
-How many orders go back to the kitchen because
they are “wrong?”
-What is the average table turn? Is that high
enough?
-How do you control guest checks? How do you know
if one is missing?
-How do you know that you’re charging for
everything that is served?
-Do you manually audit employee time cards?
• How much time do you spend on the following?
-managing inventory
-compiling reports
-training and managing staff
-identifying theft and waste
-reconciling credit card receipts
• How would you like to be spending your time?
-marketing to your customers
-developing new promotions
-experimenting with new menu items
• Do you plan to add new locations, tables or services in the next three years?
• Do you know what your staff members think about current operations? Do they have any ideas about using a new system?
Then make a prioritized list of the areas that you need help. At the same time, establish a realistic budget for your POS purchase. Basically plan for 1-POS terminal per 30-40 seats and budget approximately $5,000+ per terminal, including hardware, software and implementation (which may be the most important portion). Be sure to share your list and proposed budget with any POS supplier you talk to. It will help the supplier help you.
Types of POS systems
The POS market is divided into two segments with
very different needs: retail operations and hospitality
businesses, like restaurants, bars, and hotels.
POS for Restaurant operations
Restaurants and hospitality businesses have much
different requirements than retailers.
Fast casual restaurants want efficiency.
Retail-type restaurants, like coffee and sub shops, want a
POS system that relays inputted orders, to cut down on
time-per- transaction and reduce the errors that happen when
hastily-scrawled orders are passed back to the kitchen.
Quick-service restaurants are where a POS system is
practically required. To live up to their name, orders must
be taken on POS terminals in the front, then automatically
displayed on monitors in the food preparation area to be
quickly assembled and delivered to the customer.
Table-service and Fine Dining restaurants must
create and store open checks, as parties order more over
time, as well as track which server is responsible for which
table. The efficiency gains from better management can be
impressive. If a restaurant with 20 tables and an average
check of $45 can increase table turns by one party per
table, that’s an extra $900 on a busy night.
Integrated hotel POS systems allow you to transfer
meal charges from the dining room to guests' rooms with just
a button or two. Hotel managers need to be aware that
not all POS systems integrate with all property management
software For information about Specialty Retail POS systems,
see “PURCHASING a POS SYSTEM for SPECIALTY RETAIL STORES.”
Basics of a POS system
The Central Computer (Server) & the POS Terminals
(Clients)
POS terminals (the clients) are typically networked
to a central computer (the Server computer). The Server
runs the application. Most resellers require you purchase
the Server computer with the POS system, rather than you
providing your own – and may charge an extra fee to setup
your provided computer. That’s because setup and ongoing
support is much easier when the reseller is familiar with
the hardware. Getting all the hardware from one source lets
the reseller take responsibility for the entire system.
When you supply it, you become responsible for it.
Most POS software requires newer operating systems
(Windows XP), faster processors, and more memory. Don’t
ever consider using something you have lying around. And
POS software today is not necessarily compatible with the
newest operating system, such as Windows Vista.
Electrical Power
Restaurateurs often underestimate the need for
"clean" electrical power for a POS system. When a network of
multiple POS terminals are installed, fluctuations in the
electrical supply due to copy or fax machines, blenders,
microwaves, and other devices plugged into the same
electrical circuit will easily cause enough noise in the
power
supply to wreak havoc on a POS system.
You solve the problem two ways. The best solution
is to install a dedicated circuit with an isolated ground,
used only for your POS systems. Power filtering can
sometimes be an acceptable alternative, to eliminate
troublesome spikes and noise.
Electrical power is the single biggest cause of
problems in POS systems. Insist your POS vendor properly
analyzes your power situation and insure the proper
safeguards are implemented.
POS Terminal hardware
Touchscreen built-in to a Computer
Many POS terminals are made specifically to include
the computer with a built-in touchscreen and magnetic stripe
reader, and almost all restaurants choose them. “All-
in-one” units are built for the abuse and rigors
associated with restaurant use, especially spills and grime.
And touchscreen is more intuitive to use than a keyboard,
with more programming and user-interface flexibility in a
touchscreen, which guides an operator through a transaction.
Touchscreens minimize staff errors when entering orders,
and reduces training time and costs. Some touchscreen
terminals are built by well known manufacturers with strict
manufacturing guidelines, and some do not.
Wireless Handheld POS terminals
Wireless handheld terminals transmit orders back to
a base station (or access point, with an antenna, that is
cabled to the server). If used properly, they can
increase the amount of time servers spend on the floor
taking orders and interacting with customers,
based on not going back to a terminal to enter
orders.
Wireless handheld POS terminals are more expensive
than wired touchscreen POS. However, in the right
application, they can deliver a return on this higher
investment, when servers increase their orders, or spending
more time up selling desserts and drinks and improving
customer service. Using wireless POS in a stadium or arena
that
has club seating provides the highest return. Your
results may vary, so consult the POS vendor for assistance.
Select the rugged and more expensive units if using over
tile of concrete floors. Only use the non-rugged units over
carpeted floors
POS Peripheral hardware
Printers
Printers are needed at POS to create receipts and
credit card slips for customers. Restaurants also send
orders to kitchen and bar staff using remote printers.
There are
two main types of receipt printers: thermal and dot
matrix.
Thermal printers use heat-sensitive paper and heat
to generate receipts. They are faster, quieter, and
generally more reliable because they have fewer moving
parts. Although thermal paper costs more, the overall supply
costs are somewhat lower when adding the cost of both paper
and ribbons for dot matrix printers.
Dot matrix printers, also known as impact printers,
use pins and an ink ribbon to print on regular paper. They
are suited for kitchens where the temperature prevents a
thermal printer from working effectively.
Cash drawers
Cash drawers are where cash, credit card slips,
gift certificates, exchange receipts, and any other
important paperwork is store. Sturdiness of construction is
the key, as a cash drawer takes abuse from constant opening
and closing, and get leaned-on by operators
while open, often causing damage.
The signal to open many cash drawers comes from the
receipt printer. If you purchase your entire system from one
vendor, you will not have to worry about compatibility, but
this should be a concern if you are purchasing components
separately or are reusing existing printers (or existing
cash drawers).
Some cash drawers are more serviceable than others.
Although the life expectancy of a cash drawer is measured in
the millions of cycles, you can replace the rollers,
bearings, and other parts if they do wear out. Cash drawer
prices typically average $250, and less for manually opened
standalone cash drawers.
Magnetic card readers
When you purchase POS software that includes
integrated Credit Authorization software, you do not need a
standalone credit card terminal. However, you do need a
magnetic card reader to read the magnetic stripe. Many POS
touchscreens, and some
keyboards, have a reader built-in; if not, an
add-on reader will cost $100 - $125.
Access ID
To limit employee access to POS terminals for
security purposes, the two most common methods are simple
PIN codes and magnetic swipe cards. These are the most
reliable. Some POS systems offer is a tiny fingerprint ID
box. Although secure, it is the least reliable option, from
a read rate perspective. So if it’s not working, it’s not
being used.
And the most important issue is to utilize the
method you have chosen.
Customer displays
Customer displays are optional accessories that
show item and price information to the customer, while some
can display advertising. Rear displays are attached to the
POS (when customers face the rear of the terminal), and Pole
displays are typically used when it’s necessary to view in a
different direction. Vacuum fluorescent displays (VFD)
typically cost more because they are brighter and can be
viewed not only further away but also better in well-lit
areas near windows. Liquid Crystal displays (LCD) cost
less, last longer, but cannot be viewed as well from a
distance or in bright areas near windows. Software must
compatible with the display's emulation, but again, if you
buy an entire system from one vendor, this will not be a
problem. Pricing ranges from $230
to $330.
Supplying your own POS peripheral components
Installing POS hardware is not like installing your
own PC hardware. Think twice before you considering
supplying any components separately from the system, on your
own.
Beware of compatibility issues, as many POS
peripherals only work with other specific POS peripherals,
and the POS software may be compatible only with certain POS
hardware. For this reason, most POS resellers tend to avoid
disrupting the harmony associated with installing POS
software on any customer-supplied POS hardware.
POS Software
Basic POS software tends to function similarly. As
features are added, software packages vary, become more
complicated, and more costly.
List what you need the software to do before
comparing. That list should include needs that make your
business unique. Favor doing business with POS resellers
that ask these types of questions to determine what is best
for you, and are more familiar with your type of business.
But do yourself a favor and ask yourself these questions
prior to meeting with a representative.
Basic functions
Basic POS software provides lots of common
functions: Item display and price, calculating taxes,
handling returns, voids, discounts and payment options, and
reporting. Some include credit card processing. Restaurant
POS software will create checks by diner or table, tracking
orders per server, moving diners from the bar to a table,
and more. By programming “ordering” details, automatic
“prompts” provide step- by-step guidance to a server. This
feature eliminates wrong orders by ensuring that all
critical information (i.e. “how the meat is cooked”
is captured and relayed to the kitchen.
Additional prompts can be included to encourage
“up-selling” by servers
Frequent Buyer/Diner programs
Frequent-buyer/diner programs are now available,
even to small restaurants. These programs can reward
return customers with incentives or discounts, and have
become popular. Much like frequent flyer miles, restaurants
can track total purchases, and accumulate points to be
exchanged for discounts, or even a free desert, half price
special, or dollars off their meal in a restaurant. You can
also market to customers
based on their typical purchase or time of visit.
Other considerations
Think about what other POS software functionality
you need or may want in the future, and determine if they
are included or available later.
•Integrated Credit
Authorization
• Time and Attendance
•Labor Management
• Gift Card program
• Detailed Transaction or Check analyzing
• Exporting data to a
third-party payroll service
Multiple locations
Some restaurant POS software companies offer
“headquarters”, “host” or "internet" software. This is
basically software for consolidation of multiple locations,
whether daily totals are “polled” from a centrally hosted
server (at headquarters), or can be a
snapshot of the day's business that is accessed
from anywhere with a web connection (internet-based). This
software can sometimes provide “management” of items and
pricing, to better control different stores from a central
office. Also, for businesses with branches in different
regions, "multi-management" can be particularly useful,
allowing you to share the same settings among stores, but
also vary settings – for example,
offering the same item, but with different prices
in different locations.
Questions to ask about POS software
How easy is it to make
changes to the item and employee files? You will need to be
able to change prices, items, and employees regularly, so
make sure you can comfortably work with the setup interface.
• What type of reports does
it produce? Every piece of software will give you basic
reports - ask for samples so you can compare.
;• Think about your specific
business and needs, and add your questions that you gathered
from the “What Do You Really Need?” section starting on page
5.
Where to Buy POS & POS Pricing
Virtually all POS systems are sold through
resellers, not manufacturers. These resellers have the
expertise to install, program, and support your POS system.
Some vendors sell systems over the Internet or by phone.
Those vendors are focusing on the less- expensive,
one-size-fits-all, do-it-yourself solution. Ask
yourself the question: Am I in the POS business or in
the restaurant business? Think about what you may be
getting yourself into before purchasing a business system
from someone remotely. Do you want to become the installer,
programmer, and support person, in addition to running your
restaurant?
POS system costs vary significantly. A
full-featured POS system, with hardware and software,
including the labor to setup, customize to your business,
deliver, install, train, and provide initial support, will
begin at about $5000 (or more) for the initial terminal,
then range from less than $3,000 to more than $6,000 per
terminal beyond the first
from a reputable reseller. The hardware
peripherals, both type and quantity, makes this range vary
so widely.
If you purchasing an off-the-shelf system from a
discount vendor for less, it will require lots of work by
you, whether it’s the installation or programming, and you
will not have any of the support you need. Or you may be
dealing with a POS reseller that has a less than stellar
When considering and comparing POS vendors, price
should never be your most important consideration. Why?
Because the POS system will pay for itself in time through
reduced expenses and increased sales. Make sure you get a
system that truly meets all your needs. Have confidence in the
vendor you choose. (See “How to
Choose Your POS Vendor”)
Most POS systems are purchased, but can be leased.
POS vendors typically can make arrangements with
third-party leasing agencies to spread the costs out over
time.
get a small bank loan to purchase the complete
system.
Expect to upgrade your POS system as your business
grows. New software updates let you get access to the
latest features. New software versions may be included in
your support agreement or service contract, or may involve a
fee. Adding new hardware,
new POS terminals, or new peripherals to existing
terminals can be relatively easy, providing your software
remains up-to-date.
How to Choose Your POS Vendor
Identify the right providers
Choosing a POS vendor is a big decision, because of
the critical nature of POS in a restaurant. In many ways,
the vendor choice is more important that the software and
hardware choice. Price is always an issue, but in many
cases you get what you pay for, so it’s worth doing your
research before committing to a vendor.
With you and your POS vendor embarking on a relationship, if
your vendor is good, your partnership will make your life
simpler and your operations more efficient and profitable
than currently. Have discussions with the major providers
and limit those to no more than 3 vendors. If you need
on-site support, you want a vendor with a local support
operation. If you need service during the peak of your rush
and quick reaction, 9-5 service may not be enough, so make
sure the vendor can provide capable support 24x7 if you need
it.
To insure that your vendor is dedicated to and
capable of supporting your business through any problems you
might have, get strong positive answers to these questions:
Specialty & Experience
Is the vendor a restaurant specialist? A vendor’s
experience in an industry is important for any major
business purchase. But with POS, go one step further and
investigate how much experience the vendor has in supplying
systems to other companies in your line of business. A
white table cloth restaurant varies considerably from a
cafeteria. Better POS vendors will ask you about your
business, find out what your particular needs are, and then
provide a solution that is appropriate. It means the vendor
can function as a consultant right from the start. An
experienced vendor will be able to make recommendations on
how to design and implement your system to make operations
more efficient and increase customer satisfaction. He or she
will know how to get a system and staff up and running
quickly.
Length in Business
How long has the vendor been in business? Is the
vendor committed to a long term relationship? Remember,
your POS system has a long life ahead – up to seven years on
average. Your best guarantee for long-term maintenance,
technological updates and support for system expansion is the existing
track record of your vendor’s sales and service
organization.
Certifications
What certifications do the vendor’s employees have?
When a vendor’s technician has the credentials, your
expectations will more likely be met. Earning computer
technician certifications mean that the tech invested the
time and possesses the knowledge and skills essential for
success, as defined by experts from companies across the
industry.
Perform a Survey
Did the vendor ask you a lot of questions? A
good vendor must understand the details of your operation
before making any recommendations.
Installation & Planning
How does the vendor plan your installation?
The quality of a POS installation will have lasting effects
on your business. Qualified installers will not take a
standardized approach to installation - they will analyze
your needs, test your existing infrastructure, including
power lines, and make sure you get a system that is
customized to your location and business needs. The first
week or two of using a POS system will determine whether it
flies or flops, so a well-tested installation is essential.
Ask how often the vendor will be on-site during and after
your launch - only until the system is running, or will they
come back to check in and answer the inevitable questions
that arise?
Support, Support, Support
Nothing is more important to the success of a POS
installation than Customer Support. Meet the people that
will be responsible for delivering this support. Make sure
you
know exactly what your vendor provides in terms of
response times, repair policies, and telephone support.
This is the single most important aspect of a POS
purchasing decision. At a minimum, the vendor should have the
following services available to you:
• Planning and Preparation
(preparation also includes lot’s of your time providing
information)
• Site survey and
consultation (for wiring, cabling, placement, etc.)
• Custom development of
your POS database
• Installation of the
hardware and software
• Total system integration
services
• Manager and Staff
Training
• On-site support as the
system goes “live”
• Ongoing help desk with
remote dial-in software support
• Software maintenance and
updates
• Parts, supplies and
repair services
• Ongoing consultation on
Security and Data Protection, including Anti-Virus, Anti-
Spyware, and Internet use at the store level
Review the support programs of a POS vendor. Get
an in-depth explanation, in writing, of how your potential
vendors handle support. The more detailed it is, the more
likely that the quality of support will be high. This alone
can easily determine whether you should do business with
them or not.
Solving More Support Problems
Why? Well, think about what will happen if your
POS system goes down? Chaos? Most reputable POS systems
have good overall reliability. However, shutdowns can
and will happen. Those can lead to unhappy
customers, lost revenue, and considerable
headaches.
Most will diagnose problems over the phone first,
and many basic problems are solved this way. Vendors can
also diagnose and solve problems with remote connection
software, by dialing into your site, taking control of the
software, and fixing it from their office. For problems
that can not be solved over the phone or via remote
connection, there are different options for escalation.
Local vendors usually have field service technicians who
can come to your location and make repairs. If they can not
fix a hardware problem on-site, they should be able to
provide loaner equipment that can keep your business
running.
Some vendors do not have field technicians, and
they may not even have an office in your area. These
vendors may send you a replacement component when you call
in with a problem. You then have to send the broken
component to them for repair. For this plan to work, you
should either have spare terminals or spare parts, if losing
the use of a terminal for a period of time is not an option.
POS vendors provide widely varying warranties. Ask
about parts repair (depot versus on-site), length, type,
pricing, and features.
Parts repair may be on a depot (ship-in) basis, not
on-site. You must determine the problem, call for a return
materials authorization, disconnect the component from the
system, put it in a box, ship the unit back to the source,
wait for it to be repaired, then re-install the component on
the return. Are you prepared for that?
Length of the Hardware Warranty Repair period can
vary from 90 days to one year, and length of Software
Support and Help Desk can vary from 30 days to one year.
The type, features (what’s included, what’s not),
and quality of support can be even more varied!
Most charge per-incident for calls outside of certain
business hours. In short, there is not much consistency in
how vendors structure their support plans.
This can make it hard to compare one to the next,
but make sure you do: POS systems are too critical to
day-to-day business to risk under-buying support. So get
that information in writing!
Facility
What kind of operation does the vendor run? Get a
sense of a vendor’s operation by visiting their facility.
See their repair shop. Ask for an organizational chart.
Tour their
help desk. Meet the people that you will depend
on.
Demonstrations
Did you try it yourself? Nothing will give you a
better sense of how easy a system is to use.
Some vendors do on-site demos, but always consider trying
the system in their office, so you can take the facilities tour
discussed above. Either way, an in-person demo cannot be
overlooked.
References
Can the vendor refer you to satisfied customers who
have operations similar to yours? Call them. Ask how the POS
system solved their problems, and be sure to ask about
service response and quality. Of course, you will be
referred to the vendor's most satisfied customers, but you
can still learn quite a bit from them. Here are some sample
questions to ask the references:
• How has the POS system
influenced your business?
• What do you wish you had
done differently?
• How did the vendor
respond when you needed support or repairs?
• Do you know of any one
else who uses this system? This can get you additional
references to speak to, some of whom might be more candid.
• If you had to say one
negative thing about the dealer, what would it be?
Do not be afraid to ask for a reference that
dislikes the dealer, as well. Every business has
dissatisfied customers from time to time, and you can
certainly learn from them.
Options
One size does not fit all, so a good vendor will be
able to show you a variety of ways to accomplish your
objectives. He or she will offer a choice of systems with
varying features, functions and price points.
Proposals
Any serious proposal should include:
- Total cost, through implementation, initial training, live support and follow-up
- Line item description of items, all tasks, all responsibilities and all costs
- Support plan agreement costs and detailed parameters
- Detailed implementation information and timeline. You should allow 4-6 weeks from time of order to time of installation for a proper implementation.
Future
A good vendor knows what’s hot on the horizon –
customer database marketing, integrated electronic payment
options (debit, smart card, etc.), frequent diner programs
and more. They can talk about how these capabilities might
apply to your organization, and can help you integrate them
when the time is right.
Questions Welcomed
A good vendor welcomes questions and should be able
to give you answers you can understand. You are embarking on
a partnership with your vendor, so you should feel
comfortable together.
Your Final Checklist
If you have received positive responses to your
research in “How to Choose Your POS Vendor”, here is your
final checklist.
- 1. Is the system easy to use and easy to learn?
- 2. Can the software be customized to meet your operation’s specific needs now and in the future?
- 3. Is the hardware rugged, unobtrusive and designed for the harsh restaurant environment?
- 4. Does it offer the flexibility of including multiple remote requisition devices (printers or display systems) for automatic routing to proper stations (kitchen/bar) as well as to a master station (for an expediter)?
- 5. Does it reduce paperwork and save time by generating the reports you need in the format you want?
- 6. Does it offer you the flexibility for custom design reports?
- 7. Does it consolidate all transactions at the end of the shift, end of day, end of quarter, etc.?
- 8. Does it provide a detailed tip and transaction report for each server as well as your establishment?
- 9. Is it designed to help you comply with IRS standards?
- 10. Can it simply and properly track all transactions by server including negative ones?
- 11. Does it provide integrated credit card authorization and electronic draft capture?
- 12. Does it provide maximum security by allowing you to limit access by employee and function?
- 13. Are you protected from system-wide failure? Does the system have built in redundancy so there’s no single point of failure?
- 14. Does it fit your budget? (That doesn’t mean buy the cheapest system you can find!
- If you are tempted by the lowest price, make sure the local sales and service providers meet all the criteria laid out on pages 11 through 15 of this guide.)
- 15. Does the total cost include on-site start-up support for a smooth transition as your system goes “live?” How long?
- 16. Will the system grow with you? Does your vendor have a future focus, especially toward the use of technology in the hospitality industry?
- 17. Can the system handle reporting and database requirements as you expand? Will it accommodate new applications and technological innovations as they are introduced?
- 18. Does the system satisfy every requirement on your prioritized list?
- 19. Find out what your responsibilities are and what will be required to prepare your store for a POS system. Does the vendor have documents prepared to guide you on those responsibilities?
- 20. What about care? Preventative maintenance can be important. Simply vacuuming out the cases and cleaning printers can extend their lives considerably. However, can the vendor provide you with added information?
- 21. What will the installation be like? Does the vendor provide a guide for implementation?
- 22. As with any computer systems, backups are important. Talk to your vendor about how this will be accomplished.
- 23. Do not use your POS computer for anything other than POS. Especially resist the temptation to connect them to the Internet and use them for web browsing or email. Can the vendor do anything for you to insure this does not happen in your absence?
- 24. Ask about Security and the effects of the internet and viruses on your POS system.
- Remember, it’s a business system, not a home computer or entertainment system. What steps can the vendor perform to insure your security needs will be met?
- 25. If you have a little bit of computer ability and think you might be able to put a POS system together yourself… that is probably a very bad idea. POS systems have to be much more robust than regular computer system, and the issues that can crop up are very specific to POS.
The Common Law of Business
"It's unwise to pay too much, but it's worse to pay too
little. When you pay too much, you lose a little money--that is
all. When you pay too little, you sometimes lose everything,
because the thing you bought was incapable of doing the thing it
was bought to do. The common law of business balance prohibits
paying a little and getting a lot--it can't be done. If you deal
with the lowest bidder, it is well to add something for the risk
you run, and if you do that you will have enough to pay for
something better."--John Ruskin (1819-1900).
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Do you need a POS system
As with any significant business purchase, buying a POS system should involve careful research into what the market has to offer - as well as what your own needs are.
Purchasing POS for a Restaurant
A point of sale (POS) system is one of the most important
business decisions you will make. Choose the right system and
you will simplify your life, help reduce your paperwork, give
better control of your operations, and increase the
profitability of your operation.
6 Tips to Speed Up Check Outs at the
Point of Sale
Here are 6 tips that will help you speed up check outs and keep your customers happy!