How much should POS software cost for my small business?

The cost of POS software for a business will depend on its needs. If you are shopping solely based on price you are making a mistake.

We say this based on 30+ years as local small business retailers ourselves. If you choose POS software solely on price you will likely not choose the best POS software for your specific business.

The best POS software for your specific business will likely make you more money and save you more money than the cheapest POS software. This is why our advice is that you don’t shop solely on price.

The other factor to consider is the price itself and by that we mean the total cost of ownership. When it comes to POS software for a retail business, total cost of ownership is the sum of all costs associated with the POS software. This can mean the software itself, the cost of training, the cost of support and the cost of any required EFTPOS or payments platform.

Now, this last bit matters a lot since there are POS software companies out there that require you to use their platform for payments.

I am a bit biased here as I founded the Tower Systems POS software company a few decades ago. I sold that business in 2024 though. Here I leverage my Tower Systems experience and knowledge and compare the cost of Tower to Shopify POS.

The Shopify Model

Shopify is often marketed as a simple, low-cost entry point. For a standard monthly plan in Australia, the base software cost is approximately $56/month, totalling $672 per year.

However, the real expense is in the transaction fees. For a specialty retailer turning over $750,000 annually, Shopify’s processing rates (typically 1.95% to 2%) result in roughly $14,625 in fees. When you combine the subscription and processing, the total annual cost reaches $15,297.

The Tower Systems Alternative

Tower Systems operates on a different financial structure designed for established specialty businesses. For a similar business, the software rental is $2,820 per year.

Crucially, Tower Systems does not charge a per-transaction “tax.” Instead, it allows retailers to choose their own EFTPOS processing partner. On an average market rate, processing $750,000 in sales costs approximately $7,500. Many retailers negotiate even better deals, potentially lowering this cost by an additional 25%.

Under this model, the total annual cost for both software and processing is $10,320.

Beyond the Dollars

A saving of nearly $5,000 is substantial—capital that could be reinvested into stock, marketing, or staff. But the value extends beyond the ledger.

Unlike generic platforms, Tower Systems includes features specifically built for specialty retail and provides direct access to human-led technical support. For a small business owner, the cost of downtime is often higher than the cost of the software itself.

What I have shared here is current as at February 4, 2026.

The right POS system should be an investment that grows with you, not a mounting expense that eats into your hard-earned margins. By choosing a partner that understands the nuances of specialty retail and offers transparent pricing, you gain more than just a software provider—you gain a platform for sustainable growth. Take the next step by requesting a personalised cost analysis to see exactly how much your business could be saving.

Do your research. Take your time. Make an informed decision. Choose software based on how well it serves your business with price the second consideration.

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Mark Fletcher has decades of experience owning and running local specialty retail shops and POS software connected websites. He founded Tower systems in 1981 and sold the business in 2024. What’s shred here is opinion. Do your own research. Make up your own mind. Contact: +61 418 321 338 mark@newsxpress.com.au