Pros and Cons of getting a used POS system

A powerful POS system considered as a key system that centralizes a shopfront’s business and contributes to the growth of a brick and mortar business. 

However, for some businesses, especially newly established ones, getting a modern day POS system will require an initial investment. This can increase their financial burden and discourage them from getting a POS system.

Hence, a used POS system may seem like the better option.

Is it wise to get used rather than new? We share more in this article.

Advantage of used POS systems

Lower cost

When starting up a business, the business owner is faced with multiple challenges such as: operation, financial, marketing and branding, and manpower challenges.

For new business owners, adopting a used POS system seems to be considered as a better option rather than a new one as it is one way to save money.

Who is a used POS system suitable for?

A used POS system is suitable for small scale businesses that do not require much technology integrations. Such brick and mortar business’ day to day operations are often run by the business owners themselves.

Disadvantages of used POS systems

Obsolete software

Once businesses start to scale up, it is where the downsides of a used POS systems start to show. The most common disadvantages of used POS systems is their outdated software. 

With today’s rapidly technological advancement, the rate of which POS system softwares are becoming outdated is faster. 

Hence, technologies such as an online cloud based portal that centralizes multi-outlet POS system setting management and reporting to improve your business connectivity, or the popular contactless order solutions (QR ordering, self-ordering kiosk) integration are often not available for used POS systems with outdated software.

This makes it tough for businesses to scale up and will incur additional costs when upgrading POS systems.

Hardware wear and tear

When you buy a used POS system, it means that you will buy a set of old hardware and software. After heavy usage by the previous POS system owner, the POS hardwares is bound to show signs of wear and tear.

This means slowing processing speeds and a POS system that is prone to breaking down. More often than not, used POS systems are no longer covered by warranty and repairs may be costly.

To remedy the previous challenge of having an outdated POS software, some business owners may choose to simply upgrade the software while using the old POS hardware. 

While possible, modern softwares are often more demanding and will only run smoothly with updates hardware. 

In some cases, the upgraded POS software is no longer compatible with the used POS hardware and will not be able to run on the used POS system.

Hidden costs

Buying a used POS system may be cheap. However, there may be hidden costs such as reformatting the POS system database as the previous POS system user may not have cleared their data. An additional hidden cost would be training on how to use the POS system and menu setup.

These are services that only the POS vendor are able to provide and comes at a cost. If you are getting a used POS system, it is highly advisable to reach out to the POS vendor to check on the prices for such services before committing to a used POS system.

Limited payment process possibilities

Another disadvantage of used POS systems is that they may not be able to be integrate with payment terminals with the latest payment methods.

As Singapore is moving towards becoming a cashless society, contactless payment methods are becoming more and more popular among customers. 

This means that you may not be able to provide a seamless customer experience to your customers as they are unable to make payment through the payment method of their choice.

In the long run

Getting a modern POS system is a better business decision in the long run as you do not have to worry about repairing and upgrading your POS system. Contrary to popular perception, getting a modern POS system in Singapore is not expensive.

If you are looking for a POS system for your business, consider MEGAPOS as our solutions are subsidised by PSG grants. On top of that, we offer a full range of digital solutions that your business may need.

Simply click on this link to speak to our solution consultants today.