Are you a startup entrepreneur looking to open your first retail store soon? Are you a small business owner who aims to finally give your trusty cash register the retirement it so deserves? No matter which kind of business you hold, you need a mobile Point of Sale (POS) System that does not only ring up purchases but also gives you other benefits.
Unlike the straightforward cash register, a POS system is composed of hardware such as a computer-based terminal, a magnetic stripe reader, a receipt printer and other related peripherals. This hardware is then loaded with software that allows payment transactions, customer tracking and inventory management.
How it Works
The POS system streamlines sales and inventory management. When you ring a purchase in the POS, the sold item is automatically subtracted from the inventory, so you know exactly how much stock you have left. The POS also tracks the sale to the customer, which makes it possible for the store to give rewards and special promotions to loyal customers.
POS System Uses
POS Systems are widely used in the retail and hospitality industries. Basically, they have the following functions:
- Streamline the sales of goods and services. Because the system is fully computerized, purchases are rung more quickly and more efficiently than with the cash register. The system also stores electronic data about transactions made, eradicating the need for paper records which are subject to human error and loss.
- Automatically manage inventory. The system updates inventory every after sale and gives notification when the inventory runs low. Accurate inventory management helps the merchant decide whether it is time to procure more stocks, or to do an inventory sale from “bad” stocks they have left.
- Track customers. The system enables tracking of customers, which helps merchants design and implement loyalty rewards programs. The tracking also helps with targeted advertising and recommends items that the customer is most likely to buy.
- Generate reports. The POS system create reports pertaining to sales, inventor and other information that are essential for merchants to improve existing business plans.
Choosing the Right POS System for your Business
Though not a strict requirement in business, a POS system would be good investment even for small business, as it helps improve how a retail store or a hotel can improve not only in function but also in revenue. In order to choose the right POS system for your business needs, take note of the following considerations:
- Thorough inventory tracking. Choose a system that allows you to easily assess your inventory in a detailed manner. It should alert you when stocks are running low so you can make purchasing decisions accordingly.
- Function and ease of use. The bigger your business, the more complex your POS system would be. Try to strike a balance between the system’s functionality and your employees’ abilities to operate it.
- Flexibility. If you are just starting with your business, choose a system that can grow with your business needs. Begin with a simple system that you can upgrade later on.