WHY SMALL BUSINESSES SHOULD CONSIDER IMPLEMENTING A POINT OF SALE SYSTEM?
Posted on July 12, 2016 by blog in
If you own a brick and mortar store and are selling more items a day than you can mentally keep a track off, you need a good POS system in place. Our today’s post would surprise you on how a good POS system can help you improve your bottom line.
Take a look at the following reasons to help you consider implementing point of sale system
Eliminate Human Error
Are you manually adding up orders or are calculating your stock takes? Then the probability of you leaving yourself open to human error is high. Slight of an human error might not cost you a lot, but as little as 1% margin of error could lose you thousands of dollars over a year. While a good POS system would cost you a bit every month, but it would help you with your bottom line figures at more likely show you results within months.
According to estimates by the U.S. Chamber of Commerce, theft by employees is likely to cost American employers $20 billion to $40 billion a year. Shocked at reading the above statement right? Theft by trusted employees happens in both big cities as well as small town, as these employees know the company’s processes in depth and are able to exploit the flaws in order to cover up their theft. With a POS system in place you can track and evaluate every step in a product’s life cycle, i.e. from purchase from a supplier till the time product gets sold to a customer.
The data collected by the POS system help you understand i) where your losses are occurring, ii) identifying the flaws in your processes and help take required acts.
Keep Your Prices Accurate and Consistent
Price Consistency across channels as well as store locations has become an important game changer for any retail store. Keeping your business up to date, helps retailers provide a good customer experience which is a key differentiator for any business.
Example: With a POS system, you only need to make a price change in one place and it will get updated automatically across multiple locations as well as sales channels. Also, if you integrate your POS system with your other channels of sales, you can automatically update any changes at the same time.
Know Your ROI (Return on Investment)
Are you aware of your business best-selling product line? Or which of your stores is contributing the maximum to your bottom line and why? POS systems allow you to generate a detailed sales report of any of your initiated campaigns and lets you analyze its effectiveness based on several defined parameters.
For example: It lets you find the products with best sales margins, your best sales person on board, top deals or pricing structures which convince the customers towards purchase. This allows you to then optimize your sales processes, ordering and marketing initiatives to improve the business profit margins.
In case you are still running your business with a pen and a paper, calculator or any simple spreadsheet software, then it is time for you to consider a good point of sale system. While choosing a point of sale system remember to plan according to a long-term sales strategy and opt for a system that will help you scale and grow up business bottom line.