If you’re a convenience store or gas station owner, you know that upgrading your POS system is both a significant and necessary investment.
Technologies change. Regulations change. Customer likes and dislikes change. And eventually, your locations will have to follow suit if you want to stay competitive.
As with any large investment, however, you need to look before you leap. That begins with shopping around for the right vendor and POS system, as well as a dive into how much you can expect to spend. That’s what this post is about.
While costs for a new POS system vary depending on factors like number of locations, types of stores, and types of services, for owners with 50-100 locations overall costs can be anywhere between $2 million to $10 million.
Here’s how it all roughly breaks down in detail:
The four main costs of an in-store POS upgrade are hardware, software, installation, and training.
Hardware typically includes terminals, cash registers, barcode scanners, receipt printers, and customer-facing displays. For each location, the basic hardware setup may cost between $3,000 and $5,000 per terminal. Assuming each location requires an average of three terminals, the hardware cost per store would range from $10,000 to $17,000. For 50-100 locations, the total hardware expenditure would be between $450,000 and $1,500,000.
Software can be obtained through a one-time purchase or a subscription model. A one-time purchase might cost around $1,000 to $2,500 per terminal, while a subscription model could range from $50 to $150 per terminal per month.
Installation involves configuring hardware, installing software, and integrating the POS system with existing infrastructure. Professional services for installation typically cost between $1,000 and $2,000 per store. For 50-100 locations, that translates to a total installation cost of $50,000 to $200,000.
Training costs can range from $500 to $1,500 per store, depending on the depth and duration of the training. For all locations, training costs would amount to $25,000 to $150,000.
Upgrading fuel pumps to integrate with a new POS system can require a more substantial investment, even if the system is fully integrated “out of the box.”
Each pump will likely need new card readers, displays, and connectivity modules. The cost per pump ranges from $3,000 to $5,000. With an average of five pumps per location, the hardware cost per store would be $15,000 to $25,000.
Professional installation and calibration can cost $2,000 to $5,000 per location. This brings the total installation and calibration cost to an additional $100,000 to $500,000 for all locations.
Ensuring that the new POS system complies with Payment Card Industry Data Security Standard (PCI DSS) and other regulations (both in-store and at the pumps) may add $500 to $1,500 per station in upfront costs. For 50-100 locations, this additional expense would range from $250,000 to $1,500,000.
If a location is upgrading to an all-in-one POS system, additional investments will be needed for things like software and networking.
Back-office software to manage inventory, pricing, employee scheduling, and financial reporting can range from $1,000 to $3,000 per location annually. For 50-100 locations, the annual cost would be $50,000 to $300,000.
Advanced inventory management systems that integrate directly with the POS can cost between $2,000 and $5,000 per location.
And if the new POS requires upgrading network infrastructure, each location might require an investment of $1,000 to $2,000 in network upgrades, leading to a total cost of $50,000 to $200,000 for all locations.
Finally, there is maintenance and support of both hardware and software, with annual maintenance contracts typically costing around 10-15% of the initial hardware and software costs.
Again, all the numbers above are on average. Upgrading with a POS system provider you're already partnered with will usually reduce overall costs. Similarly, the more locations you have, the more likely you are to receive a lower rate for hardware and software.
But while the investment numbers may seem high, it’s worth remembering that a new POS provides a number of benefits, including improved efficiency, a better customer experience, and more operational controls.
And those three benefits alone can make the investment more than worthwhile during the lifetime of the new POS system.