A friend opening a shop recently told us they were choosing Shopify POS because “it’s so easy.”
Knowing their plans for growth, we looked at the actual numbers. They expect to turn over $500,000 in their first year. Using that as a base, the costs start to add up quickly.
Shopify costs $149 a month. They will also need Shopify POS Pro for advanced inventory tools, which adds $129 a month. Then there is the mandatory payments cost of $9,250. For this small business, the total cost of ownership is $12,586.
In comparison, software rental with Tower Systems Pty Ltd Systems is $2,820 for the year. This includes advanced inventory management and other specialty features. Because you can use more competitive EFTPOS rates, merchant fees for that volume average around $5,000. This brings the total cost to $7,820.
The software they assumed was more expensive was actually set to save them $4,766 a year.
Shopify is easy to sign up for. Their $1 a month trial is a clever hook. I suspect plenty of retailers stay because they assume switching is too difficult. It is not hard to switch, especially when you see the impact on your profit and loss statement.
That is nearly five thousand dollars in profit staying in the business. This is before considering the benefits of specialty retail features or the ability to call a local person for support.
Too many retailers end up paying what we’d call a ‘laziness tax.’ We get busy, the $1 trial feels like a win, and by the time the business scales, we’re too entrenched to look at the mounting costs. But that $4,766 isn’t just a number on a spreadsheet—it’s the cost of a new part-time staffer for the holidays, a significant marketing push, or a much-needed shop floor upgrade. Staying with a system because it was ‘easy to start’ is a decision to leave your own hard-earned profit on the table for someone else to collect.
Beyond the savings, there is a functional gap that ‘all-in-one’ platforms rarely bridge. Specialty retail isn’t generic. Generic platforms often send you to extra-cost apps for important functionality, or they charge more. lWhen you choose software designed for your specific niche, you aren’t just saving on merchant fees; you’re gaining tools that actually help you sell more, rather than just tools that help you check out.
The ‘hidden’ value of local support shouldn’t be overlooked. When your POS goes down on a busy Saturday morning, the difference between an overseas chat queue and a local expert who understands the Australian retail landscape is immeasurable. A partnership with a software provider should be about more than just a transaction; it should be about having a support structure that values your business’s survival as much as you do.
Total cost of ownership matters. Ease of entry should not come at the expense of your bottom line.
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