Convert a PC into a Low-Cost Cash Register

By George Jones

July 3, 2006

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Many small retailers spend too little, or even nothing at all, on their point-of-sale (POS) systems. Sophisticated software and hardware packages aimed at retailers are simply too expensive for small businesses: We're talking $10,000 to $50,000, plus monthly costs. While $10,000 may not be a lot for super-retailers like Wal-Mart and Target, for a small business, it's a major investment. As a result, 80% of all retailers still use old-school cash registers--or even pen and paper--to handle their transactions, estimates Steven Aldrich, Intuit's QuickBooks Point of Sale general manager.

But these old-school retailers are leaving money on the table. Without automation, they can't track inventory in real-time, can't track customers, and can't automatically integrate their sales with financial software. Indeed, for every dollar the keep-it-simple merchant saves by using a cash register, they lose countless dollars in time and financial disorganization.

For system builders, however, this problem represents a business opportunity. Namely, a chance to build (and sell) low-cost retail systems that cost a lot less than $10,000 a terminal while still providing modern, automated functionality. The solution: build the system around a common, nothing-fancy PC.

Get on Yer Bike

For the purposes of this project, I conjured the scenario of opening a small, independent, and single-store bicycle shop. The needs of this new bike shop would be relatively straightforward. The owner and employees would need to be able to scan and ring up cash and credit purchases, track inventory, and be able to call up pertinent data when away from the store.

I began by researching the hardware and software offerings that would be appropriate and/or available for a small business. I spoke with both independent and chain bike shops in the San Francisco Bay Area to learn what retail management systems and equipment they were currently using. Not surprisingly, I ended up with a massive list of products.

Winnowing this list down to something actionable took some time--and a little bit of outside thinking.

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