Making a point-of-sale (PoS) purchase decision can be challenging. There are many solutions and options in the market - each claiming to be the `panacea` to demanding PoS environments.
One main consideration is whether to opt for a PC or terminal-based system for the front-end of the operation. Although the investment for a terminal-based PoS solution is initially slightly higher, the ongoing costs are significantly lower than most PC-based solutions, making this a more viable proposition. This applies to both hardware as well as software licence costs - usually priced per till point.
The issue of price is particularly pertinent to smaller businesses that are Cost-conscious, yet the decision to go the PC route can be a costly investment further down the line. Although cheaper than a PoS terminal, a PC is not designed to be a front-end terminal for hospitality or food services environments. PoS terminals are manufactured from the onset as robust pieces of equipment required to cope with harsh environments including heat and humidity; spillage of drinks; grease and other elements in the front-end environment.
The conundrum posed with the choice between a PC vs terminal is: which option will provide me with more for less? The PC option might have the allure of being able to handle many applications - after all a PC can also cater for business applications, Internet connectivity and a mix of other functions in addition to doubling up as a PoS unit. In practise, this is not as simple as it sounds. A PC is designed with a hard drive, processor, operating system and random access memory (RAM), which is the basis to run various applications. After booting, the operating system needs to be loaded, before any PC-based PoS application can be loaded and executed. Thereafter, the PoS application is loaded into memory from the hard drive, and opens many data files in the process.
The same applies when closing files and if the PC is shut down in an unconventional manner - such as a power failure or switching off the PC when it `hangs` or `freezes` - it can cause data corruption. Another obvious problem is the threat posed by viruses. These issues heighten the probability of failure in an environment that demands little or no downtime, resulting in escalating maintenance costs and the added inconvenience factor of not having all PoS terminals active during busy periods.
Alternatively, a "dedicated" PoS terminal is not reliant on PC technology, and is dedicated to performing the PoS task at hand - recording sales. This ensures other applications do not interfere with the reliance or performance of the terminal. In addition to featuring a robust exterior, it stores data internally on Erasable Programmable Read-Only Memory (EPROM) - a memory chip that is programmable and reusable - creating redundancy. This technology is not reliant on power or volatile and will continue to store data if no electricity is powered to the unit. Once power has resumed, the system simply reverts back to the very last transaction prior to the power cut. Thereafter, the terminal uploads the saved information to the back-office system, ensuring no data is lost. Speed is another consideration. A PoS terminal refers to and collects data from Read Only Memory (ROM), providing substantially higher speeds than a PC, and contributes to reducing the risk of data corruption.
These benefits make a compelling argument for the use of PoS terminals rather than PCs. However, in the local market, the SME segment still tends to favour PCs over terminals due to price issues. Larger corporations have acknowledged the advantages of spending a bit more with the upfront investment, yet realising a cost saving with the total cost of ownership (TCO). The lifespan of a PC - approximately 21/2 years - contributes to a higher TCO opposed to terminals that last much longer. Take Steers for example. The company switched over to PoS terminals when it was launched in 1999 with all of the original terminals still running today. Steers` terminal count now stands at well over 1 000 terminals distributed over more than 300 branches worldwide. Smaller business tend to opt for the cheaper PC alternative, having to pay the additional costs associated with support, maintenance, replacements and training making it a far costlier choice.
Upgrades form a substantial part of any information and communications technology (ICT) investment as technology is constantly changing rendering hardware and software outdated within the span of a few months. PoS terminals feature a significantly lowered TCO due to the constant nature of the technology and the use of `firmware` - software embedded into the system - making an upgrade a simple exercise and usually free of charge. Typically, terminal-based solutions are not subject to annual licence fees or forced hardware upgrades resulting in a considerable saving. Therefore, terminal-based solutions are more common with some of the larger PoS sites that may deploy in excess of 600 terminals on a single site.
A large portion of post-implementation spend is used for training. Staff turnover is an issue that all businesses have to deal with making ongoing training a necessity. Training on a PoS terminal is quick and can literally take a few minutes to explain the procedures. PC-based training on the other hand is a more complex exercise, especially if staff are unskilled in PC technology.
PoS decisions are not easy and are often based on cost along with making the most out of the investment. However, short-sightedness can be the drain on finances when ongoing costs far outweigh the initial purchase price of a solution. As the old axiom goes, don`t be penny-wise and pound-foolish.
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