Opening a business is hard enough without the additional cost of investing in a retail POS system. For already established businesses, overhauling the cash register system that has functioned satisfactorily for years and incorporating a modern POS system may sound unreasonable. A recent report revealed that more than 64% of store retailers had not adopted a POS system. By so doing, they are leaving a lot of money on the table.
What is a retail POS system?
Simply put, a point of sale solution processes sales. It is essentially a more advanced cash register which cashiers use to make financial transactions. A full-featured POS system can, however, handle more than processing sales. It can track inventory, manage customer data, monitor and report sales, manage employees and so much more.
Modern POS systems come with a range of options to meet requirements of various business types and sizes. The three general classifications are:
- Terminal POS: This is the most common POS system. It is both hardware and software based and carries add-on devices such as cash drawers and barcode scanners. It’s reasonable pricing, and advanced functionality makes it a popular option.
- Mobile POS: Its simple set up and operation make it ideal for small businesses and sole entrepreneurs. It is used to process payments, but it can be used in inventory management and tracking among other functions.
- Cloud-Hosted POS: This web-based system is used in combination with other hardware whether terminal or mobile. Its scalability and convenience make it suitable for businesses of any size.
Why should you incorporate a retail POS system in your business?
A POS system may be an unsung hero; however, it’s the workhorse of your business. If you’re running a business, you need a good point of sale system as your silent partner. The advantages it confers your business can be summarized into three:
- Consistency: Consistency in pricing greatly affects sales in the retail business. A POS system helps you manage your products ensuring that their availability and pricing is consistent. POS software allows you to create a digital product database where you modify product prices, especially when offering special deals.
- Efficiency: The modern shopper is very impatient. A slow transaction process leads to long queues, which contributes significantly to shopping cart abandonment. A point of sale whether it is a terminal POS with a barcode reader or a mobile POS with an iPad POS improves efficiency in customer service.
Accuracy: Accuracy is largely due to the elimination of error-prone manual inputting by automation of tasks by the POS system. It also facilitates tracking and monitoring of transactions and employee activity greatly improving the accuracy of day-to-day activities and transactions.