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 at the retail POS 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, according to National Retail Federation.
A successful retail store is one that has developed the capability to sell the right amount of products at the right time and let inventory flow steadily, and hence, boost profits. So, let’s see how a retail POS system is going to do this for you:
Disadvantages of not using a retail POS Software
- With a POS, you will get an 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 thea 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.
Retail POS System – Drastically rolling down error rate
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 what you gain out of a retail 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.
Understand employees too
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
Maintain 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 a POS software and which mistakes should you avoid while buying a POS system? Here’s a guide.
6 mistakes to avoid while buying a POS system
Not realizing what your business really needs
A grocery store needs a POS software that can help them update their stock in terms of Units of Measurement or UOM. Example: 4 Kg of rice, 10 liters of oil, etc. This is a must-have feature for a grocery POS.
An electronics store, on the other hand, needs a POS software which will allow them to serialize their products.
So each different business needs a different type of POS. Not knowing exactly what your business needs can become a huge problem while you choose a POS. It might land you into a huge loss.
The basic needs you need to consider are:
- Type of payment
- How you want your inventory and product information to get added and updated
- How it is that you want to get your orders processed
Some specialty needs could be:
- If you have multiple stores, can you operate them all under the same software platform
- If you have online and offline stores, can you operate them all under the same software platform
- Does your POS software solve other issues like invoice generation, barcode printing, etc?
Not checking whether the POS software is scalable
Your business will keep growing. If you choose a POS software that does not have the capacity to grow along with you, it will result in a loss. So, do some research and choose a POS software that has the ability to scale up.
Not understanding the compatibility of the POS with hardware
Some POS software require hardware. Others might work on your existing hardware. Some POS software just need an Android phone or an iPad.
Have an idea of what components you need for your POS hardware. Usually, the POS hardware system requires the following components:
Usually, a POS hardware system requires the following components:
- POS Terminal (A computer with the software)
- A Card Reader
- Receipt Printer
- Barcode Scanner
It is important to know whether the POS is cloud-based or not. It is preferable to use a cloud-based POS software as you will be able to access it even if you are away from the store.
Primaseller is compatible with any browser-based device like laptops, desktops, tablets, iPads, and mobile. Primaseller is also compatible with most barcode scanners and printers.
Not checking how user-friendly the POS is
Before purchasing a POS software, it is imperative to understand the functionality, the speed, and user-friendliness of the software.
A more important aspect would be to make all your employees who will be handling the POS to take the free trial. It should be easily usable by all.
Not conducting good research on the price of the POS software
You must know exactly how much to invest in your POS. There are hundreds of POS providers in the market. Many might have the same features but will charge you more than the other.
Cloud-based POS systems charge you on the basis of different aspects taken into consideration. These are the number of POS registers, the number of warehouses, the number of users, etc.
For example, Primaseller POS starts at as low as $59, which comes with one free register. One additional POS register will cost you only $19/month.
You must take care to sign up for a plan that is suitable to the number of SKUs that you have.
Not understanding how good the technical support is
Full-time technical support is mandatory when you are using any software for that matter. While using a cloud-based POS software at your store, if your POS provider does not give you 24*7 support, you will be at risk of facing monetary loss. So, confirm this before buying one.
A good POS system incorporates all the features necessary for a retailer to run his business smoothly.
Primaseller provides a cloud-based POS software platform that helps retailers sync inventory across all his/her stores and warehouses. The seller will be enabled to easily keep track of inventory, give discounts to products, have a customer database, generate invoices, print barcodes and much more.
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