Gone are the days when the POS (point of sale) used to have just a cash register for billing purpose. Now we have an entire encyclopedia of information on the retail POS system in addition to a POS billing software. This source of information is extremely important for today’s retailer.
Do you know what is the cost paid by sellers for not having a POS, or inventory management system within their store? A whopping $224 billion for excess inventory and $45 billion for not having inventory in stock is what US retailers had to pay so far!
Are you a part of this statistic?
Top 6 benefits of POS System for your Retail Business:
Better Inventory tracking
- With a POS, you will get up-to-the-minute status of your inventory. The inventory goes on getting deducted from your list, each time a customer checks out of the counter.
- With the availability of real-time inventory, you will easily get to know the items that are about to go out-of-stock, and also stop ordering items that don’t sell as expected. You can set an alert for the same and be updated.
- Doing your regular stock reconciliation process will be so much faster and simpler now.
Getting Closer To Your Customer
A POS system enables you to grab your customer details as soon as he/she checks out of a counter. After this happens, they can be assigned to specific categories for further analysis.
You may also want to read how to avoid these 6 mistakes while purchasing a POS Software
For example, if your shop houses cameras for sale, then using customer detail history, you can easily tell, or, notify a fashion photographer of the latest model of 35mm format DSLR camera.
This customer information will help you make better marketing campaigns, push the right offers to specific customers at the right time, etc. You can build a lot of trust in your brand.
Fewer Errors In Use
When the user makes a mistake in a cash register, it could create a headache to rectify it. But with the best retail POS system, it can be quickly rectified with a couple of quick clicks.
Statistics say that, with a traditional cash register, where every transaction is manually updated, one mistake occurs for every 300 characters typed. Whereas, in a POS system, there can be only one error for every 15,000 to 36 trillion barcode characters scanned.
More Customers Per Hour
This is one of the greatest benefits of POS system. Scanning barcode of a product takes almost 0.3 of a second, whereas inputting data for one item on a traditional cash register can take up to 6 seconds. The result is more customers per hour and better turnover.
An example of an intelligent retail POS system used is at McDonald’s, that employs a POS system which has succeeded in drastically reducing the time taken for the whole order processing.
They have pictures of meals on their POS touchscreen system which takes much less time to make an order, as opposed to the 7 letter abbreviations they used to use before.
The system automatically calculates the correct amount of change to give to a customer. Another interesting factor is, once the order is made, it goes automatically to the kitchen. The employees need not worry about it anymore.
Understanding Employees Better
Having a POS system can even help you know your employee behavior. How can you do that?
Even if you have many employees using the same machine, you can assign a unique identification code (sometimes called clerk code) and link employees to specific transactions. This way sellers can identify employees’ performance, and build healthy competition.
Employee theft can also be found out using a POS system.
Related: Know how to hire the best retail store representative
Consistency In Pricing
For those who run multiple outlets at different locations, a POS system comes in handy when they have to maintain consistent pricing at all these locations. A POS system can be easily used to update prices across all these locations in one single go.
While choosing a POS system you must take into consideration 4 things:
- Inventory tracking efficiency
- Features specific to your business
- Ease of use, since you will have to use it for everyday transactions
- Chose a scalable software that you can use to keep expanding as your needs grow
You have enough reasons to invest in a good POS for expanding and growing your business. Rather than bearing with the not-so-good consequences of traditional systems, it will be a great decision to make a one-time investment on a system that can provide so many different benefits.
Once you’ve made the decision to open a retail store, a good POS system is on your mind. What do you need to look for in POS software and which mistakes should you avoid while buying a POS system? Here’s a guide.