Opening a business is hard enough without the additional cost of investing in a retail POS system. For already established businesses, overhauling the cash register system that has functioned satisfactorily for years and incorporating a modern POS system may sound unreasonable. A recent report revealed that more than 64% of store retailers had not adopted a POS system. By so doing, they are leaving a lot of money on the table.
What is a retail POS system?
Simply put, a point of sale solution processes sales. It is essentially a more advanced cash register which cashiers use to make financial transactions. A full-featured POS system can, however, handle more than processing sales. It can track inventory, manage customer data, monitor and report sales, manage employees and so much more.
Modern POS systems come with a range of options to meet requirements of various business types and sizes. The three general classifications are:
- Terminal POS: This is the most common POS system. It is both hardware and software based and carries add-on devices such as cash drawers and barcode scanners. It’s reasonable pricing, and advanced functionality makes it a popular option.
- Mobile POS: Its simple set up and operation make it ideal for small businesses and sole entrepreneurs. It is used to process payments, but it can be used in inventory management and tracking among other functions.
- Cloud-Hosted POS: This web-based system is used in combination with other hardware whether terminal or mobile. Its scalability and convenience make it suitable for businesses of any size.
Why should you incorporate a retail POS system in your business?
A POS system may be an unsung hero; however, it’s the workhorse of your business. If you’re running a business, you need a good point of sale system as your silent partner. The advantages it confers your business can be summarized into three:
- Consistency: Consistency in pricing greatly affects sales in the retail business. A POS system helps you manage your products ensuring that their availability and pricing is consistent. POS software allows you to create a digital product database where you modify product prices, especially when offering special deals.
- Efficiency: The modern shopper is very impatient. A slow transaction process leads to long queues, which contributes significantly to shopping cart abandonment. A point of sale whether it is a terminal POS with a barcode reader or a mobile POS with an iPad POS improves efficiency in customer service.
- Accuracy: Accuracy is largely due to the elimination of error-prone manual inputting by automation of tasks by the POS system. It also facilitates tracking and monitoring of transactions and employee activity greatly improving the accuracy of day-to-day activities and transactions.
Factors to Consider when installing a Point Of Sales System
A point of sales system brings about convenience and efficiency in your business. However, to get the best out of your POS system, there are important factors that you have to consider to avoid spending money on a POS system that does not support your business. In this article, we shall walk you through the must-have components of your POS system.
The number of employees you have will greatly influence the POS system that you will install in your business. If you have many employees let’s say one hundred, you will have to choose which sector of your workforce management you would like to automate through your POS system. Also, you have to choose the kind of your workforce management information or data to include in the system, for example, time management, schedules, employee personal information relating to issues like age and when they began working for your organization, payroll and much more.
The accounting capabilities regarding how you would want to track accounting reports also may greatly affect the kind of system that you adapt to your business. Issues to consider are whether you would want the point of sales system to consolidate all your transaction after every actual shift or after certain duration. If you currently use accounting software’s, it may be wise to ask yourself whether the POS system can or cannot integrate with the accounting software’s.
This is the most integral part of any POS system that you have to take your time to study and come out with sound decision s that will support your business. Ask yourself how many steps will be needed to complete a transaction. Also, take into account the actual process that an employee will go through during each transaction. Then determine how many employees you will need and at the same time, you need to find out whether the checkout station can support multiple users. Remember, the decisions that you make concerning the checkout station can make or break the success of your business.
As for any system, security should be given high priority. You need to research and find reviews on the POS system you want to adopt for your business beforehand. You have to be keen on web security as well as employee theft and the dangers associated with employee‘s use of the POS information such as passwords, and customer information.
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