Running a retail business? Well, then you must be well aware of the need for a good Retail Point of Sale (POS) system. Without any doubt, it is the heart of every transaction and when it comes to defining a good Retail POS system, it is not much more than just processing customer purchases, handling payments, and recording sales quickly. In fact, a good POS software developer provides a solution that allows you to do much more than that by best utilizing new and available technologies, like managing inventory & customers, empowering staff, tracking sales, identifying & awarding regular customers, and getting the pricing right. These are a few things that a good Retail POS system can do for you. If you are also looking to know how to create pos software? then this blog is surely for you. In this blog, we are going to discuss custom POS software development costs and features with a complete process.

Meanwhile, to get a scalable POS system, it is vital to find the right POS Development Company that is not only adept in the arena but also has the support of a skilled and experienced team. Having said that, as you choose the right POS software development company, do keep in mind that it suits your needs. No matter if you are choosing a POS system for the first time, or just getting your old POS upgraded to a new system, there are a number of factors to be considered, with one being, whether to go for a traditional POS or mobile POS.

Traditional POS or mPOS: Making the Right Choice

how to build a pos system

When you decide to adopt any new emerging technology for your business, it is important that you adapt to the ones that are most suited. Before you make the decision, it is important that you are well aware of what functions and how.

Before deciding which developing point of sale system you want for your business, let’s understand the difference here.

  • Traditional POS System: This usually comprises a stationary touch-screen computer display, credit card reader, and cash drawer. It may also include printers and scanners.
  • Mobile POS System: It is mainly a tablet configuration used both in stationary and mobile apps, and it can be utilized as an adjunct to, or in lieu of, stationary point-of-sale systems.

While you choose between traditional POS or mPOS consider what is best for your point of sale application development and look at the other factors affecting your business as well, such as:

  • Is any hardware proprietary
  • Does the system functionality suit your business requirements?
  • How much does the software really cost
  • Are there any hidden fees
  • Is your only option to sign a contract
  • Size, Scale & Space

When you have a small store with limited space and you need a small footprint, a tablet POS will work best for you, with the configurations as well as smaller as compared to traditional POS systems. Besides, the mPOS system is certainly more appealing and desirable for a boutique environment. As they offer a flexible solution, mPOS systems can be used in mobile as well as stationary setups.

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However, if you are operating a larger retail business with multiple checkouts, it would be better to go with a traditional point-of-sale development. It offers bundled solutions coming along with all important peripherals typically used at a checkout point and the most efficient and simplest approach to adopt or update systems.

Software & Hardware Components of POS Systems

So, as we consider the point-of-sale system components, you must first understand the available software options and their requirements. The right software with required operations would make it easier for you to manage the details easily.

Software Components

pos software development

The software components of the solution are to be shared in a way that the user and the service provider are always updated. Other than regular updates the other major issue is security. Our experts build solutions that are reliable, safe, and secure. We understand when it comes to talking about money not only the users but the admin gets a little worried.

Here there are two of the common software deployment methods:


It is also known as Software-as-a-Service development (SaaS) for point-of-sale solutions. Here the system is accessed and supported via the internet. In case, the internet goes down most POS software designs track sales & sync them once the connectivity is strong again.


Now, this is a traditional software model, where you require purchasing one or more licenses directly for the software and then installing them on the servers or computer system. You need to update & maintain the software, for which you might need a dedicated IT professional, in the case of larger organizations.

Hardware Components

No matter which software deployment method you go with, the hardware components of the POS system stay the same. However, here is the list of hardware component which is a must to support the POS system:

custom pos software development

Crucial POS Hardware

Register Screen: It is the standard monitor displaying the product database. It allows for functions such as employee clock-in & view sales reports. Nowadays, bulky monitors are being replaced by tablets, especially iPads. Pos application development includes the right hardware components with the right software components for reliable systems.

Cash Drawer: Going by the limited cash transactions nowadays, these components will certainly fade away in the coming times. However, until then you do require a secure place for storing cash for transactions. Besides, no credit card fee is tied to cash acceptance. POS system development may take some time, but it is important that the product delivered is pitch-perfect and safe.

Barcode Scanner: This automates the checkout procedure. Barcodes are scanned to get product information and then it is added to the checkout total. As the barcodes are scanned, it may also integrate with inventory management systems to automatically adjust the stock levels. POS developers make sure that the barcode works well with you.

Receipt Printer: Even though text and email receipts are getting popular, still paper receipts are important to provide customers with a quick glance at their purchases. Besides, employee sales totals, hours & other crucial information can also be printed with solutions that your custom POS software development team provides.

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Credit Card: It is important for retailers to have secure and EMV-compliant credit card readers as the EMV payment standard went live in 2015, and retailers not complying with the standard POS software development guide will end up suffering huge losses on account of fraud liability. Needless to mention, the retailers get to enjoy great benefits from automation and organization offered by POS software and hardware.

how to create pos software -cta

Now that you know POS software development is not just a few operations and your developer needs to put in efforts on hardware and software components you can surely move ahead with better results.

Need to Create Point of Sale Software [Benefits]

Having a computer in your business provides you with a huge amount of data that can only be retrieved with a conventional cash register. Customer purchase history, item sales details, stock status reports, and monthly/yearly/seasonal sales data happen to be a few of the crucial and detailed information that can be retrieved.

Some of the most noted advantages of POS devices are:

Speed Up Purchase Time 

Since there would be less exchange of cash and human intervention it becomes easier to pay for payments. The synchronization between POS devices such as barcode readers, card swipers, printers, etc. that are integrated helps people avoid queues.

Efficient Experience 

Due to less human intervention, it becomes easier for people to get involved with the working patterns. Since everything is automated, all you can worry about is how much you are spending as everything would be acute and hassle-free.

Accurate Reports 

When it comes to POS machines, they also help organizations generate a final report of the business interaction with the audience. With such reports, businesses can focus on the departments that are performing a little slow.
With the POS machine in action, these reports are generated with to-the-point perfection and contain all the details in the most organized manner. They are easier to read and understand.

A few of the other additional & obvious benefits are:

  • Reduced costly inventory overheads.
  • Reduces time spent on back-office & inventory functions
  • Saves the time of salesforce
  • Speeds up checkout lines
  • Easy and automated accounting tasks & report generation
  • Betters relationship with your vendors providing timely inventory information
  • Uses system-generated customer info to process direct marketing campaigns
  • Increases traffic in your store
  • Higher customer service level

POS development companies have been in great demand in recent years, owing to the rise in digital trends. If you are looking forward to walking with the trends, make sure your POS device has some interesting features to keep the users engaged.

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Features to Be Included When You Create Point of Sale Software

When you reach the software development company with how to develop POS software questions, the first thing they would ask you would be the features that are to be included. If you want a highly efficient and user-friendly POS system, make sure it has these features integrated.


It is always good for your business to have a POS system with a configuration that can be integrated with several modules, such as accounting, time & attendance, inventory management, loyalty & gift cards. As your POS system developer builds an integrated system it leaves a lesser scope for errors and discrepancies as data is being manually transferred from one system.

Employee Management:

This feature provides clock-in and clock-out tools and also manages employee scheduling and payroll. When your developers ask you how to create POS software for your business, do not miss to add this feature to your work.

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Inventory Management:

Management of the on-site inventory quantity is integral to your store’s success. Inventory management capabilities offer an on-demand window into your stock. This way it is possible to eliminate inefficiencies, like when you manually count inventory and dig through the back for a particular item. Having this functionality is crucial for retailers and 82% of POS buyers request it when they ask for POS system costs in India.

Customer Management:

This functionality allows us to proactively increase the number of high-quality consumers. Does it do a good job of collecting data on your customers? Purchase history, so you can identify your most valuable customers on the basis of their spending. Does this offer an additional layer of transparency that can’t be obtained by the retailers without POS systems? It’s vital to identify regular customers and this is why as per research 37% of POS buyers request customer management capabilities to be billed with their POS system price.

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Sales Reporting & Analytics:

The Sales Reporting & Analytics function allows captures and analysis of your store’s sales data. It not only automatically keeps track of what is selling well but it also reflects how much revenue you make on each product. This enables you to recognize and focus on driving sales to your most lucrative items. Research shows that 49% of single-store retailers request for sales reporting and data analytics capabilities.

create point of sale software

Mobile/Tablet Access:

It is possible to remotely access your POS system through these devices in order to stay connected to your business from any location, be it office, home, or on the road. The various would surely reflect how much POS software costs.

Streamlined Purchasing:

Automated purchasing processes allow you to easily connect with your suppliers, thus it ensures you are never running low on stocks.

Customer Relation Management:

The system maintains the profiles of regular customers, thus enhancing the customer experience by serving individual needs and building loyalty in the long term. How much POS software costs depends on the additional integrations that your web developer would include in your final product.

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Stock Management:

Critical Information is monitored about the store, like purchases and transactions. It reduces the time wasted on ordering and calculation of re-order levels.

Additional Features of the POS System

When talking about POS software India’s price, the additional features play a major role. If you want to enhance your POS system then do consider these additional features with your work too.

Fast & Accurate Billing:

It lessens the number of manual efforts taken to complete a transaction, thus it enhances employee productivity and performance.

how to make a pos system


It must be ensured that your POS system is in compliance with the Payment Card Industry Data Security Standard (PCI DSS), as this way it protects the integrity of sensitive and crucial customer data, like phone numbers and credit card numbers.

Robust Reporting:

The best way to maintain a handle on what’s happening to your business in all aspects is by reviewing the reports. Strong reporting allows you to collect your company data and also go through it for an SKU-level view of sales.

Facilitate Multi-Unit Management:

So, even when you own only a single franchise unit, still go for a franchise point-of-sale system that allows you to manage multiple units from a single dashboard. So, in case you decide to open more units in the future, a franchise point-of-sale system with multi-unit management capabilities will allow you to manage numerous stores efficiently.

When talking about the pricing models of the POS system, it becomes quite difficult for your developer to find what they want. We share here various POS system pricing models that would help you take the results further.

Monetization Models Our POS Developers Suggest

As we look into the cost of POS development, let’s first start by understanding the pricing models:

Pricing Models for POS System

There are a couple of pricing models and they are explained below:

Pay-Per-Month option:

It is the most prominent and preferred pricing model, however, this model may also turn slightly pricier. So, the model breaks down in different ways. Mainly, the base pricing is decided as per user or per register which is approximately $35 per month/register. Followed by the actual layering which is usually determined by the combination of features and stores of your POS software. In the case of small retail stores, it comes to $35-$40 where you get one store, inventory management, and CRM functions, whereas for large businesses the cost starts at $50.

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Pay All At Once:

Now this is not a much-used model and even companies don’t entertain it much. It consists of massive costs upfront, but if you choose to look the other way around, it may be more profitable as compared to the complete charges involved in the pay-per-month model.

These are a few pricing models that need to be worked on. These models are dependent on the given factors.

A Quick Check on the Prices of the Development of POS Software

We have shared all the major factors that explain how to create a point-of-sale system. It is important to know that working on the prices of the POS development software is not that easy. There are a few aspects that influence the working of the POS software which are:

Hidden Costs:

There are also some hidden costs involved in the making of a POS system, which may not be included in the initial cost estimation statements.

Hardware Cost:

It is vital that the hardware costs are included in the estimate as if you plan to get one PC or tablet for a register then it is mandatory to buy the entire kit to cater to it. Software companies often come up with kits whose pricing may vary depending on the companies.

Customer Service Charges:

Now customer service varies with different vendors hence it is crucial to consider this as well. Often some companies come up with free services that include free training and live chat, whereas the case may differ with other companies. Hence, you must keep a note of this point as well, as it may end up adding to the total estimate.

Credit Card Charges:

It is crucial that you pay attention to the percentage of each solution charge as they are different and this may result in an additional fee than expected. Even though it is difficult to make a detailed estimate initially, you must be prepared and be clear about basic estimates.

Additional Features:

A number of companies also charge for any kind of additional features in the POS systems. For instance, some may charge for additional reporting features, hence keep a note of it once the cost is estimated.

As you plan on developing a POS system, take note of these above-mentioned points and ensure that you choose the right POS Development company, that is able to understand your requirements from the system well.

What should you pay?

Now, for the initial purchase, you must be ready to spend between two to three percent of your annual revenue and between twelve to eighteen percent of that cost for yearly maintenance and upgrades. In case, you are a small store retailer, then you are lucky to enjoy a lot of free options that you can avail of. For medium-sized retailers as well, there are benefits of one or two open-source options.

Ultimately, the estimation for the POS system is a nutshell and requires more clarifications and comprehensive study before anyone finalizes it, regardless if you are a business giant or a small-scale retailer. As technology is advancing, having a POS system installed in a store is crucial, thus do invest your revenue in the same once you have gone through a comprehensive study on the estimated cost of the POS system. Get a team of efficient POS System developers and once you have a helpful POS System, be ready to venture on to new business possibilities.

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How to Build a POS System with Effective Low Cost

However, the Point of Sale System design and development cost depends on the size and type of your business. If you work for a small-scale industry or have a startup then you would need a simpler POS system that can easily deal with the working of the business. But if you have a complicated or large business then you would need your POS development team to deliver solutions that are engaging and interesting. The average cost of building a POS application with basic features along with all the installation and setting up of the system is between $5000 to $7000. Further, if you choose to add advanced features to it then the increased cost might be around $13,000.

how to build a pos system - cta

The costs include all the important features and operations with basic installments and after-delivery support.

Wrapping It Up!

So in this whole blog, we have shared how to build a POS system. When working with a POS app developer it is important to take care of the meet your requirements and value for money. Hire a POS system developer or renowned POS app development company that could help you create your own POS software. When you reach our POS development team, they ensure to provide you with results that are tailored to your business. With technical advancement and high-quality responses, we make sure you do not have to struggle with understanding the subject. We offer highly scalable, flexible, and future-ready solutions that can stand the test of time and deliver solutions that are impressive and engaging. We also ensure to help you with further updates and system support as and when required.

If you are ready to walk the realms of technology, hire the right developer and get a POS system that brings you to the digital domain quickly. If you need any kind of POS software development services then hire a POS software developer


Digital Marketing Manager

Driven by a deep curiosity and a thirst for knowledge, Mann constantly seeks to uncover the latest trends and innovations in the tech industry. His ability to dive into complex concepts and distill them into engaging content sets him apart as a reliable source of information for his readers.

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