The benefits of an efficient POS system
The retail industry has witnessed countless number of technological advancements in the past decade. Among these advancements is the development of the new age POS systems. Even the smallest retailers are switching from the old cash register system and retail software to the high tech POS systems available in the market.
POS systems are utilized across all retail platforms and can be customized to suit every retailer’s business needs. You can have a small cash register or opt for one with different customization options like bar code scanners, touch screen display, electronic cash register, receipt printers and poles and scale display options.
Benefits of a Top POS system
Many retailers who have switched to the latest POS systems have highlighted the benefits of the same. The best advantage of a POS system is the fact that you can record all the sales made at the store, boutique, supermart, restaurant, or any other kind of retail set up. The fact that all sales are recorded also helps keep track of the inventory. POS systems make sales and inventory tracking a simple task as opposed to having your employees’ waste hours on tracking sales and inventory. Most of the new POS systems even indicate when it is time to re-order inventory.
The use of POS systems helps in recording price reductions and discounts and tracking them too. In an old cash register, a lot of time is wasted in recording such changes in price. The system keeps a record of old pricing and improved pricing and helps strike good deals from vendors too.
With the help of an efficient POS system, business owners can keep track of their customers and can help identify their likes and dislikes. You can track every customer’s buying habits and plan promotions and deals accordingly. You can also split the customer base in those who are the highest spenders and those who make purchases during festive offers and annual sales. After the promotions have finished, business owners can do a comparative study of past and current promotions and judge the success or failure of the same.
A very large part of a retail business is inventory planning for the future. With the old cash register system, it was not possible to track inventory; however, the new POS systems make it easier for business owners to see what are the products that are the hottest selling or least popular and plan their inventory for the future months with ease. This avoids the process of dealing with excessive inventory or shortage of the same.
Retail business owners traditionally found it difficult to keep track of their employees at the cash register too. Without a proper record of inventory and sales, it got difficult to justify any shortfalls in inventory or sales revenue, hence making it a major constraint to judge the loyalty and efficiency of employees. The new POS systems can be uploaded on personal business owners’ laptops and smartphones so they can check on inventory and sales when they are not physically present at the point of sale, thus making it possible to be in control of their business in their absence.
For businesses which have multiple locations, ensuring price consistency is a challenge. This is not a problem anymore with the new age POS system as it helps record pricing of products consistently at all business locations. Customers can ask several questions due to inconsistent pricing and create unnecessary problems with the authorities for the same reasons. By installing a POS system customized for your business model, you can avoid such uncomfortable situations altogether. Moreover, this prompts an increase in the number of satisfied customers who in turn suggest your products or services to their friends and family which further results in increased sales and business growth.
Purchasing business equipment piecemeal can be quite an expensive proposition. System upgrades and add ons increase the amount of money spent on the software and equipment. Investing in an efficient POS system can get you the choicest of add ons and equipment as part of one package at a one time cost. Almost all POS systems have add on modules like customer preference database, payroll time clocks and many more. You may feel that the cost of installing a new POS system is high; however, you start to notice the monetary advantages over time.Mistakes in calculation, ordering and re-ordering are eradicated and a lot of money is saved on repeated errors or losses in the long.
The most irritating part of being a retail business owner is to see that your employees are wasting time on numerous activities because of the inefficient POS systems installed. In the traditional retail set ups, a lot of man hours are wasted in checking on inventory and sales on a daily basis. Tallying and re-ordering on a daily or weekly basis takes a toll on employees and mistakes in such calculations happen more often than not. By switching for an efficient POS system business owners can have their employees focus on more pressing matters like improving the customer experience.
Speaking of customer experience, another advantage of POS systems is no longer checkout lines. Because of the fast and efficient point of sale systems, customers do not have to wait in long lines for the billing processes to be complete. Many a times customers get irritated because of long checkout lines and decide to buy later, or switch to a retail set up which doesn’t make them wait. Either way you are losing good customers, which is bad for business. With a POS system in line, you can keep all your customers happy.
What should you look for in a POS system?
Periodic reports can be printed out conveniently and time does not need to be wasted on such tasks. Now that we have narrowed down on the advantages of a POS system, the question arises as to what you should be looking for when purchasing in a new POS system.
While all POS systems allow business owners to track sales and inventory, you should opt for one that allows you to assess the same with equal amount of ease. Choose a POS system in which you can set alerts for re-ordering, re-stocking, show an account of back orders and also help generate purchase orders to be sent to your vendors.
Choose a POS system which provides a good balance of ease of use and functionality. Some of the POS systems are so complicated that you will need to spend time to train your employees to make proper use of them. Also, if your orders are complex then your POS system has to have several features attached to it. It is best to have only a certain few trained employees who operate the POS system to avoid repeated training processes.
If you have a start up business or are low on budget, choose a basic POS system with the option of add ons. This way, you can continue upgrading your POS system as and when you have the monetary resources to afford the same. The best way to choose the right POS system is to consider the type of retail set up you run; based on that the decision will be easy.
Make sure to check out our other articles and related posts regarding:
- restaurant pos system reviews
- pos software
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- best pos software
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- pos software systems
- point of sale systems for retail
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