Is online POS or SaaS a real viable option for my Frozen Yogurt Store?

I just got a call from a customer asking about online Point of Sale POS system (aka SaaS) for his upcoming frozen yogurt shop after he came across our Frozen Yogurt POS Video. With all the buzz around online, it was a very good question and a great conversation.
It is wise to start this conversation with some nomenclature and disclaimers. When a service such as point of sale is provided online it is referred to being on the Cloud or online POS.  This technology, also known as “Software as a Service” (SaaS) or “on-demand software” stores all your data and software on the Internet. We are certain that your are already starting to imagine the benefits and issues with placing your entire point of sale system on the Internet.
Now a little disclaimer before we continue. Sintel Systems provides point of sale systems which can be accessed via the Internet and are connected for multiple locations. With our extensive technology expertise, Sintel Systems is fully capable of deploying a POS on the Cloud; however, the practical and security challenges associated with placing your POS on the Cloud, we explain the issues to each customer and allowing you to make the final decision with all the information at hand. Here are the challenges faced with online POS:
1. The first and most practical issue is that while your software can be online, your POS hardware cannot be virtual. You still need at least a cash drawer, printer, bar code scanner, credit/gift card reader, a touch screen, and maybe a scale.  And then you need a reliable and good computer. So, you have to purchase these items anyways. What are you really saving on by putting together a “mickey mouse” POS together instead of just obtaining an all-in-one POS system? This is very similar to just buying point of sale software a installing on a computer and calling it a POS system. Please read the following article and learn more on why you should not just install a POS software on a computer: Should I install point of sale software on my computer to make a POS systems? So, why pay a monthly online fee for SaaS if you can get an entire system and own the software.
2. The second issue is cost between an online POS and one that you own. Let’s assume that the cost of SaaS ranges from $50 to $100 per month, but you still have to purchase the hardware. Over a four year period, the cost of just SaaS will be between $2,200 and $4,800. If you go really cheap your hardware will cost at least $1,500 not to include the losses you will surely face with a cheap systems. If you decided to get the right hardware, you are looking at a minimum $2,500. So over a 48 month period, the supposed system will cost you somewhere between $3,700 and $7,300. And you still don’t own the software. Just compare with the average cost of a professional POS system from Sintel System which includes ownership of the software. As a example, the packaged Frozen Yogurt POS systems starts at $2,500.
3. The third concern is security which comes in two categories. The first is that your entire database in online. So how about when your Frozen Yogurt POS information is available to you remotely with a conventional POS system. In that instance, the information itself is sitting at your POS station and your are just remotely communicating with the database. You may also have a remote backup system which stores the information. In case of SaaS, the database itself is online and continuously sends/receives transaction information. The second is security and unless you are willing to spend a lot on security, your data will never be 100 percent secure.  This does not mean that you should fear intrusion, but you must understand that the possibility exists that your data can be hacked just as a function of the constant communication between your system at your Frozen Yogurt Store POS and SaaS.
4. No Internet = No Access to Data
5. The speed of your transaction is based on the Internet connection. In almost all cases, having your POS on your all-in-one will allow the program to runs much faster than a software that needs Internet connection.
6. Lastly, what happens if your POS provider ceases to exist and goes out of business? You have little recourse and now have to go look for a POS system.
In today’s world it seems that everything is moving online. Well not really. If that was really true then retailers would have to pack up and go home. Some things are just not meant (at least for now) to be on online. You go to a Frozen Yogurt Shop to get your Frozen Yogurt. You may use the Internet to find a shop, but you don’t want a virtual Frozen Yogurt.
For now, one more thing that makes little sense to be online is your point of sale POS. That is applicable to most businesses. With our extensive technology expertise, Sintel Systems is fully capable of deploying a POS on the Cloud.
You may have heard the famous Spanish [watch our Spanish video (coming soon)] saying, “Lo barato sale caro” it is translated to mean “Cheap things turn out to be expensive.” Weigh all the factors into the long term expense of a system.
If you are looking for a Frozen Yogurt Shop POS or any other type of POS system get in touch with us. After all, we are
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