The Official Guide to Tobacco POS Systems

Without the right tools, managing a profitable tobacco shop can feel like trying to light a cigar in a windstorm: impossible. 

Fortunately, the right point of sale (POS) system can help you navigate the challenges of tobacco inventory management, stay compliant with tight tobacco regulations, cultivate a thriving customer base, and boost profits. 

In this blog, we’ll explain everything you need to know about tobacco POS systems — including an overview of POS software and hardware, a list of tobacco industry-specific features to look for, a breakdown of POS system costs, and a curated list of our favorite tobacco POS providers. 

Let’s get started.

What Is a Tobacco POS System and Why Do You Need One?

You might think of a POS system as a simple cash register, but modern POS solutions go above and beyond simply processing transactions. 

They track inventory levels, manage promotions, monitor customers’ shopping habits, and more — saving time, eliminating tedious manual tasks, and allowing you to focus on providing the highest-quality tobacco and best customer service in town. 

Whether you’re opening a new tobacco shop or looking to upgrade your decades-old cash register, our number-one tip is to invest in a POS system specifically designed for tobacco sales. This industry-specific tool will help you manage your vast tobacco and vape inventory, prevent underage tobacco sales, and take advantage of tobacco scan data incentive programs. 

Tobacco POS Software 101

POS software is the brain behind your tobacco shop’s operations. Along with handling the checkout process, tobacco POS software monitors everything happening in your store — from daily fluctuations in inventory levels to gradual shifts in sales trends. 

Let’s explore some must-have software features to look for in a tobacco POS system:

• Real-time inventory tracking gives you an accurate overview of your stock levels from anywhere, at any time.
• Carton-pack inventory management lets you track and sell tobacco products like cigarettes by the carton or pack. 
• Custom barcode label printing ensures smoother checkouts and more accurate inventory counts for unique items like individual cigars. 
• Automated purchase order creation and receiving simplifies the reordering process and helps you keep your customers’ favorite products in stock. 
• Age verification prevents underage sales and protects your tobacco license. Invest in an ID scanner for extra security. 
• Tobacco scan data reporting makes it easy to take advantage of manufacturer rebate programs and stay compliant with state tobacco reporting laws. 
• Promotions like kit building and mix and match pricing allow customers to save while encouraging them to spend. 
• A built-in customer loyalty program helps you reward repeat shoppers and entice them to spend more during each visit. 
• In-depth sales reports help you understand your bestselling products, customers’ shopping behaviors, sales trends, and profit margins. 

With these features at your fingertips, you can improve your tobacco shop’s inventory management, provide stellar customer service, and increase profits. 

How Much Does Tobacco POS Software Cost?

Most tobacco POS providers use a tier-based software pricing model, which means you pay a lower fee for limited features or upgrade to access advanced tools. 

Depending on your store’s size and unique needs, you can expect to pay anywhere from $30 to $150/month for POS software. Some providers may charge more for multilocation management and integrated e-commerce, and others may charge less for bare-bones functionality. 

Certain providers also charge fees for cancellation, onboarding, and support. Before signing any contracts, make sure to ask about these costs and get a comprehensive quote for your monthly software expenses. 

Tobacco POS Hardware 101

Hardware is the second component of a tobacco POS system. These devices allow you and your staff to interact with your POS hardware to carry out the checkout process, perform inventory counts, and access critical reports. 

Here are some essential tobacco POS hardware components. 

• An all-in-one computer is the central hub of your POS system, putting your software’s features right at your fingertips. 
• Barcode and ID scanners ensure speed and accuracy during the checkout process, whether you’re ringing up items or verifying a customer’s age. 
• Receipt printers build customers’ trust in your business by providing a record of their purchase. 
• A cash drawer protects your cash, connects to your POS software, and only opens when prompted during the checkout process. 
• A pinpad allows you to accept card payments quickly, accurately, and securely. For even faster checkouts, look for one compatible with mobile and contactless payments. 
• Customer displays let customers see their items and prices as they're being rung up. Touchscreen displays allow them to join or access your loyalty program. 
• A back office computer is an optional tool that lets you dig into your sales and inventory reports away from your shop’s checkout counter. 

Investing in the right POS hardware ensures a seamless checkout experience for your customers and cashiers. 

How Much Does Tobacco POS Hardware Cost?

So, how much can you expect to pay for this technology?

If you already own POS hardware, you might be able to save money by only upgrading your software. Simply look for a provider that offers a “bring your own” hardware policy and check their list of compatible configurations. 

If you’re starting from scratch, you have a few options. Some providers require you to purchase a hardware setup upfront, while others allow you to pay as you go, adding a small fee on top of your monthly software subscription. 

A standard tobacco POS system hardware setup could cost between $2,000 and $5,000, but you can usually get a better deal by working with your provider. 

Tobacco POS Provider Shortlist

Congratulations! You’re now an expert in tobacco POS systems — which means you’re ready to find the right one for your store. Here are the top options to check out:

• National Retail Solutions (NRS) is a budget-friendly pick if you’re looking for the basics and want to avoid bells and whistles. With NRS, you can process sales transactions, perform simple inventory counts, and review sales reports. Their most popular pricing option starts at $34.95/month, and you can add age verification for $4.95/month. 
• KORONA POS is an all-in-one POS system designed to help you manage and grow your store. KORONA POS’ strongest feature is its customer relationship management (CRM) database, which lets you track individual customers’ purchases and offer targeted promotions. Their pricing options start at $59/month. 
• Lightspeed is a powerful POS solution designed for growing retailers. We’ve included them because they’re a great option if you own multiple smoke shops or want to prioritize e-commerce. Lightspeed’s prices start at $109/month. 
• Cigars POS is our overall favorite tobacco POS system. Our software is designed specifically for tobacco shops, giving you access to all the features you need to manage inventory, attract customers, and increase profits. We offer custom pricing options to meet every tobacco shop’s needs and budget. 

We hope this list serves as a solid starting point on your journey toward the perfect tobacco POS system. 

Get Started With the Best Tobacco POS System

Investing in a tobacco POS system can be daunting — but with Cigars POS, you can’t go wrong. 

Our software is uniquely designed to help tobacco shop owners like you manage inventory, attract and retain customers, and boost profits. Plus, our team of experts is available 24/7 to help you achieve your small business goals.

Get started with Cigars POS by scheduling your personalized demo today.