Less purchases can have as dramatic an effect on your retail or hospitality business as a point of sale (POS) system. Let our experts show you how you can take control of your business and increase your profits.
Take Control of Your Business
The right POS system can lift you up to a new level of control over your operations, it helps fine-tune your business model, boost your profits, as well as your efficiency. A wrong system is like wasting valuable time and money for your business, it can even be a source of ongoing frustration.
In other terms, your POS system is a glorified cash register! The most basic POS system which consists of a computer, a cash drawer, receipt printer, a monitor, and an input device such as a keyboard or scanner. In addition to being more efficient than a regular cash register, POS systems are able to create detailed reports which can help you in making decisions.
POS systems saves money, provide productivity gains, and can cut down the amount of time you spend away from the primary focus of your business.
Save money, gain more control over your business, and be more productive; sounds like a great combination, right? Here are some of the ways a modern point of sale system can help your business.
Eliminate shrinkage
A computerized POS system can drastically cut down on shrinkage, can be from a missing inventory to theft, waste and misuse of your employees. And since your employees will know that inventory is carefully tracked, internal shrinkage will dwindle.
Accuracy
Whether you use barcode scanning or not, a POS system will ensure that every item in your store or on your menu is sold for the correct price. Your staff will no longer have to guess the price of an item, and prices can easily be change with a single click of the mouse.
Getting margins
You can get better magins by having a detailed sales report, focusing on higher-margin items would be cinch. By moving items within a retail location, or promoting under-performing dishes in a restaurant, you can help boost sales of high-profit items.
Know where you stand
You can easily know which of your items have been sold today, yesterday, last week last month, and so on, with the help of a POS systems. It can even tell how much money is in the cash drawer and how much of that money is profit.
Better inventory management
Knowing what stocks you need to keep on hand can easily be tracked with the helps of a detailed sales report. Track your remaining inventory, spot sales trends, and use historical data to better forecast your needs. Your POS software can be set to alert you when when stocks run low so you can reorder for them. Because many store owners thinks that they know exactly what trends affects their business, they are mostly caught by a big surprise when they find out these data.
Building a customer list
Collecting names and address of your regular customers may come in handy in the near future. You can use this list for targeted advertising or for announcing incentive programs.
Reduce paperwork
POS systems can dramatically reduce the time you have to spend doing inventory, sales figures, and other repetitive but important paperwork. The savings here: time and peace of mind.
Efficiency in transactions
In a retail settings, you can make checkouts quicker by using a barcode scanner and other POS features. Restaurants will find their order process greatly streamlined as orders are relayed automatically to the kitchen from the dining room. Either with these two, you’ll be delivereing a faster and more accurate service to your customers.
You have to keep in mind that these benefits requires you to commit using your POS systems’ capabilities to their fullest. Without proper training and analysis, any sophisticated POS system will be just another cash register with no special functionality.
Retail needs vs. Hospitality needs
Since there are two segments when it comes to the POS market, they require different needs: retail operations and hospitality businesses like restaurants, bars, and hotels.
Retail
Of the two above, retails are the ones who needs simpler POS. Because they often use less variation in the types of products they sell and process transactions all at once. Some POS features retailers may specifically want include the ability to support kits (3 for deals), returns and exchanges, and support for digital scales. A POS system that supports matrixes would best suit businesses that sells items of variety styles, such as shoes and clothes. As an example, matrixes gives you the ability to create one inventory and price entry for a particular sweater, but can still track sales according to size and color of the sweater.
Hospitality
Depending on the type of establishment, restaurants and other hospitality businesses have different requirements from POS systems.
Efficiency is the main focus for casual restaurants. For sub shops and other retail-style restaurants, POS systems that relay inputted orders cut down on time-per-transaction and reduce the errors that can happen when hastily-scrawled orders are passed back to the kitchen. For quick-service restaurants, a POS system would be required in order to live up to their name: a customers’ order is entered on the terminal at the front which sends the order and displays them on a monitor in the food preparation area where the order is assembled and delivered to the appropriate customer.
For table-service restaurants and fine dining, POS requirements are somewhat different. They need a POS system that gives them the ability to create and store open checks, as parties order more over time, as well as track which server is handling which table. The efficiency gains from better management can be impressive. If a restaurant with 20 tables and an average check of can increase turnover by one party per table, that would be an extra 0 on one busy night.
Return of Investment (ROI)
Switching from a traditional cash register to a computerized POS system can be difficult. There are many factors to consider and some pitfalls to avoid. However the return on investment and benefits to your business can really make it worth your time and effort.
Need more information or an online resource?
Go to POS-For-Restaurants.com
The author of this article is the Vice-President of Customer Relations at POS-For-Restaurants with over 20 years of experience serving restaurants of all types throughout the U.S.