If you are in the market for a retail POS system in Kenya, then you may have noticed how expensive they can get. Some systems still rely on being installed locally and can have upfront costs that could put a company out of business. But this does not mean that if you do not have thousands of shillings at your disposal, you are doomed to using a cheap point of sale that will not be up to par.
Does a new POS system in Kenya have to be so expensive? A new POS system does not have to be expensive. Purchasing legacy software that is locally installed on a server can be very expensive, whereas modern cloud-based software in Kenya incurs monthly fees that include more ongoing benefits and reduce upfront costs.
This article explores the costs and disadvantages of legacy software versus a cloud POS system in Kenya which usually presents lower upfront costs and provides more advantages. We will also define all of these terms so it will be easier for you to understand and shop around for a new system. Let’s dive in with a couple reasons why legacy software is so expensive and outdated.
Reasons Why Traditional POS Software in Kenya is Expensive
What is Traditional POS Software in Kenya? Traditional POS software is a point of sale system that is installed on a local server, therefore incurring higher upfront software and hardware costs. This type of software was common in the early days of POS Systems but is now outdated as it usually does not include regular updates, support, or the ability to connect to modern systems such as eCommerce. Legacy software presents a number of risks which we will explore below.
1. Exorbitant Upfront Costs
Legacy software incurs a number of high upfront costs due to most business models being based on purchasing the software for a lump sum, and then installing it on a costly local server.
You also need to consider setup and installation fees, as well as the cost of necessary compatible hardware (work station, scanner, receipt printer, etc) which can also get quite expensive.
To get your hands on the very best of these systems, you will probably have to pay thousands of shillings, and this usually incurs a large risk as the system you are buying may not even meet your POS needs.
2. Paid Updates & Maintenance
A traditional POS system in Kenya has to be updated on your business premises since it is locally installed. Sometimes you can do this yourself, but oftentimes, you have to hire an expert to get the job done.
Obviously, that is also bound to be a significant expense on your part, especially considering that these updates have to be done on a regular basis.
Sometimes, the system might need to be re-installed, and that can be just as expensive as getting a new system installed. And, unless you are a developer and know how servers work, if your server crashes in the middle of a transaction, you may also lose out on sales.
3. Paid Support
Again, whenever your traditional POS system in Kenya breaks down, you have to call in an expert to have a look at it. Besides the fact that this might not be the most time-efficient way to get support for your POS system, it also costs a lot of money.
For complex systems or systems with too many usability issues, the cost of support services can become pretty high. If on-premise support is required, this may take hours or days to take place, and therefore slow your business down.
4. Expensive Hardware
With a traditional POS system in Kenya, you have to buy hardware such as on-site servers since the system is locally installed.
These additional hardware resources are often quite an investment as well, especially when you consider that you might have to hire an IT expert to ensure that the system runs smoothly by fixing any minor issues that might pop up from time to time.
In some cases, you might need to use proprietary hardware in order to enjoy the full benefits these systems have to offer. As you can imagine, special hardware is never cheap, and the costs can be staggering when you have to get the system installed in many business locations.
5. Higher Data Loss Risks
Traditional POS software in Kenya presents a number of high data loss risks. Since your data is on a local server, installed in your store, you run the risk of losing all of your data if there is a natural catastrophe like a fire or a flood.
Also, with the speed at which technology is changing, new security risks are popping up every day. If your legacy software is not up to date, it will also present a number of security risks.
6. Higher Running Costs
With greater hardware resources necessary to run a traditional POS system in Kenya comes higher running costs. Servers can be real power hogs, and these, in addition to other on-site hardware necessary to keep these POS systems running, can increase your power bills significantly.
If your traditional software cannot connect to other, newer systems, you may also have higher operational costs. For example, if you cannot automate data flow from your POS to your accounting software or eCommerce site, you will have to work overtime to transfer sales information to these systems in order to keep your store information up to date.
After reading these paragraphs, you may feel like there is no hope for finding a less expensive retail point of sale system to run your store smoothly.
The good news is that cloud-based POS software models have completely changed how businesses purchase point of sale systems within the past few years. With the PawaPOS App, you just need your phone and a single month affordable subscription – and you’ll get a fully featured Cloud Mobile POS System to manage your entire business.
