SaaS POS vs. Traditional POS Systems
One of the most essential pieces of any retail store is the point of sale (POS) system. It’s the heart of your operation, tracking inventory to payments and practically everything in between. So when deciding what POS system to use, it’s essential to understand what tools and features you need to run your business now and in the future.
There are two main types of POS models: Software as a Service (SaaS) POS, also known as a cloud-based POS. Or the more traditional, on-premise POS, sometimes called a legacy POS. The SaaS POS market is rising, with the global market size expected to reach $9.9 billion from 2021 to 2027, a 22.8% increase. Selecting the right POS system for your retail operation’s unique needs can make or break your success. Discover the benefits of SaaS POS vs. traditional POS systems to choose which is ideal for your business.
What is SaaS Point of Sale Pricing?
SaaS POS systems and traditional systems are similar in that they make retail operations possible by tracking inventory, labor, sales, payments, and more. What makes SaaS point of sale software different? It’s typically centrally hosted and comes with a subscription-based license. With SaaS pricing, you pay as you go with a service provider. In addition, the provider delivers the correct hardware, latest software, updates, and IT assistance as you need it.
What makes SaaS for POS unique? You essentially pay to have your service provider or value added reseller (VAR) ensure you have a software assistant around when you need them. They are ready to help you with bugs and updates to keep your business running smoothly. At The General Store, our SaaS POS model allows retailers to opt into SaaS pricing. Furthermore, you still get a traditional solution, giving you complete control over everything from data to the support you receive.
SaaS POS System Benefits
While the main functions of SaaS and traditional systems are similar, there are differences that will impact your business. For instance, because SaaS POS systems offer a monthly pricing model, they require lower up-front software and maintenance costs. This benefits new companies, start-ups, and those investing in new ventures with limited funds upfront.
With a SaaS POS from The General Store, data is stored locally, so you have immediate access to your data at all times, even if you need to stop your service. Cloud data backup, maintenance, tech support, and software updates are included in the monthly fee, so you are always covered. Also, cloud-based analytics are included monthly for merchants with more than one workstation in a location.
Traditional POS System Benefits
With the traditional POS system, retailers typically own the software and database, giving them complete control over data. While this system typically requires a higher cost upfront, it can be cheaper in the long run.
Additionally, traditional POS systems offer more flexibility, so retailers can pick and choose the specific features they want to pay for on their system. For example, with The General Store, cloud backup is a’ la carte, so you are not forced to buy it if you already have another backup solution. Also, maintenance contracts, including tech support and updates, are optional, so you can keep running the software even if you opt out of buying a maintenance contract. Cloud-based analytics are included for merchants covered under a maintenance contract or with more than one workstation in a location.
Is a SaaS POS or Traditional POS System Right for Your Retail Store?
SaaS and traditional POS systems have their advantages and disadvantages. Despite SaaS POS growing in popularity, traditional POS systems have features better suited to some retail businesses. For example, SaaS may work better for start-ups, while traditional might work better for retailers who are ready to invest and want to save in the long run.
Retailers should carefully consider whether to use a SaaS POS system or a traditional POS system depending on their business demands and scale. The General Store provides flexibility, allowing you to select the best pricing model for your unique retail store. Learn more about our POS system pricing!