As with any significant business purchase, buying a POS system should involve careful research into what the market has to offer - as well what your own needs are.
A computerized POS system can probably pay for itself within a year or two if you have annual revenues of around $700,000 to $900,000. Smaller business, with revenues around $400,000 and above, can also get considerable benefits from a POS system, although they may be less direct. Below that, electronic cash register can probably meet your needs for considerable less money.
In many cases, new businesses chose to invest in a POS system before reaching those revenue levels - or before having any appreciable revenue at all.
They may want a POS system simply for the reporting features, or they may see it as an investment that can boost efficiency starting on opening day. A POS system is rarely totally unnecessary - most often, the only question is how soon it can pay for itself.
A computerized Point of Sale (POS) can drastically cut down on shrinkage - the inventory that disappear from your store or restaurant due to the theft, wastage, and employee misuse. Because employees will know that inventory is being carefully tracked, internal shrinkage will dwindle.
Whether you use barcode scanning or not, POS systems ensure that every item in your store or in your menu is sold for the correct price. Your staff will never miss-enter or guess price again, and you can change prices with just one tweak in the computer.
Detail sales report can help you focus on higher-margin items. By moving item within a retail location or promoting under-performing dishes in a restaurant setting, you can help boost sales of high-profit items.
At any point of the day, a POS system can tell you how many of a particular product has sold that day, week or month. Find out how much money you have in your cash drawer or pull up a report of the days earnings right at your fingertips!
Detailed sales reports make it easier for you to keep track of inventory. Track your remaining inventory, sales trends, and use historical data to better forecast your future purchases. The software can alert you to reorder when stocks run low.
Collect the names and addresses of your customers. Use the list for targeted advertising and incentive programs.
POS systems can dramatically reduce the time you spend doing inventory, sales figures, and other repetitive but important paperwork.
In retail settings, barcode scanners and other POS features increase the efficiency during checkout. Restaurants will find their ordering process greatly streamlined as orders are relayed automatically to the kitchen from the dining area. Increase efficiency and lessen human error.
Keep in mind that realizing these benefits requires a commitment to utilizing the POS systems capabilities to its fullest. Without appropriate training and ongoing analysis, even the most sophisticated POS system will be no more useful than a basic cash register.
For more information on how to fulfill all of your business goals with a new POS system, feel free to contact us at anytime.