Many point-of-sale (POS) systems with varying features are available for brick-and-mortar retail businesses. Choosing a POS system can be daunting, but a little research upfront and understanding which system is best for you can make the task much easier. We just need to point out that POS systems are different from e-commerce systems, which are geared toward facilitating online sales. POS systems are for brick-and-mortar retailers.
Amongst all the features that POS systems may offer, some features of POS systems are necessary for all merchants; whether you are a pet shop store owner or a clothing merchant, we hope to provide you with a starting point for your search for the right POS system. The right POS system is a foundational tool for customer service and generating core data for bookkeeping and financial insight into business performance.
Efficiency & Functionality
Any retail merchant knows that speed is imperative to successful business operations. Your POS system should enhance the checkout experience for your customers and employees. Consumers want a faster checkout experience, and so do employees.
A few seconds of system inefficiency can tarnish customer experience. Any retail merchant must have fast software, dependable hardware, and an intuitive system.
It is recommended that you go through a simulated checkout or visit a merchant using a POS system that you are considering to get a feel for the process from the customer’s point of view.
Inventory Management
Inventory management is a dreaded and often under-emphasized function for most retail merchants. Effective inventory management is crucial for merchants wishing to minimize inventory holding costs. A successfully implemented POS system can greatly enhance your inventory management.
An effective POS system will meticulously track and control each SKU (stock-keeping unit) in your inventory. This will provide visibility on product costs and profit margins. In addition, your POS system should identify when your inventory levels are low and issue a reorder notification along with a recommended order amount based on historical sales. Also, intuitive POS systems can pinpoint your top sellers, inform you what products should be advertised to customers and suggest minimum stock amounts.
The most gruelling inventory management task is inventory reconciliation. When done manually, inventory reconciliation is physically counting and matching inventory to your inventory records. The right POS system will automate this process, eliminating the need for frequent inventory counts. You can then limit manual counts to spot checks. Effective inventory tracking and management capabilities are essential. The system should offer real-time inventory updates, low stock alerts, and support for stock transfers between locations.
Financial Insight
Retailers, like many small business owners, often suffer from a lack of financial insight into their business. Key performance indicators (KPIs), such as sales by item, labour costs and customer retention rates, need to be accessible and available to managers and owners so that they can make operational changes to improve efficiency and profitability in the business.
Detailed reports on sales, profits, customer behaviour, and inventory levels are crucial for making informed business decisions. Analytics should be accessible and customizable. The right POS system will provide these KPIs to ensure managers are equipped with the most timely and pertinent intelligence. Actionable information is critical for informed decision-making, and a good POS system will provide such information.
This is where a POS system tailored for your industry can be a great asset. Often, these systems are designed to provide you with KPI data that is most useful for your industry.
System Support
Insightful support from your POS provider is essential. Retailers know all too well the problems caused by system failures or unintentional errors. No matter how new or expensive your POS is, there will be challenges. That is why having a POS provider with technical support (from real people) is important.
Support is also useful during system setup, software upgrades, and training. Many managers overlook technical support as a feature of their POS systems; however, when you need help, nothing beats dependable and timely support from a real person.
Now What?
First and foremost, take some time and consider your needs. Although selecting a POS system may seem simple, many considerations must be considered. What do you expect from your POS system? How big is your business? How extensive is your inventory? POS systems can require significant capital investment, so make sure you put in the time to pick the right one.
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