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Getting started with business automation

Tips on getting up and going with your new technology.

computer_phoneOur friends at MerchantOS developed this list of Top 10 Point of Sale Blogs, and we wanted to share it with our readers as another helpful resource.

Tracking down the latest news on point of sale software and hardware can be a headache in terms of information overload. To help the harried business owner, here's a list of the top 10 point of sale blogs out there.

What went into picking this list?

That answer's easy: the blog had to have more than just company press releases -- the blog had to offer the reader insight into the technology or industry. The blog also had to have been updated within the last three months. Google "POS blogs" and you will find interesting sounding titles that place high in the search -- too bad most of them are from 2008 or older.

The rundown of the top POS blogs, in no particular order:

  1. Bar Code Blog: Part of The Bar Code News site, this blog posts industry news and tips on how to best use bar code and QR codes in point of sale automation. The site itself is owned by Ebiz Corp., which touts itself as an independent voice with no affiliation or ties to companies in the industry.

  2. Radiant Systems Blog: Even though this blog is run by the Radiant Systems company, it provides posts on a wide range of topics in the point of sale industry and on business issues in general. Users of the site also can post their own items to the blog.

  3. Point of Sale Blog: The Point of Sale News site is the kissing cousin of The Bar Code News and is owned by the same company.

  4. Retail Pro's Community Blog: Run by the point of sale software maker, this blog is more than public relations for the company. It offers industry news, features and information on issues impacting business of all kinds.

  5. Point of Sale and Transaction Supplies Blog: Put together by the company POS Supply Solutions, this blog looks at issues affecting the retail industry, including counterfeit receipts. The blog doesn't push a particular brand over another and takes critical looks at products.

  6. The Source Blogs: This site is a conglomeration of blogs on the different aspects of business, including point of sale. The posts can be submitted by industry insiders, but don't let that deter you from gleaning good information.

  7. Retail. Easy: Yes, this is the exact same blog this post is published on, which is run by MerchantOS. However if the criteria for picking the best POS blogs is used, an objective analysis shows that Retail. Easy. clearly meets the criteria.

  8. OnTrak Software: This company blog does offer tips like how to save money with POS systems. Be ready, though, for the product plugs at the bottom of the posts.

  9. Retail Tech blog: Run by Retail Tech POS Equipment, this blog offers industry analysis and also looks at business as a whole.

  10. J.D. Associates Retail POS Solutions Blog: This blog offers advice for the business owners including how to pick a POS system, how to shop the competition and how to improve retail sales. Since this is a company blog, expect to see plugs for its products.

About Linda Doell

Linda brings to the table more than 20 years experience as a reporter, editor and personal finance blogger in the news industry. Linda blogs via Contently.com.


Also check out these other links:

Sign up for our e-newsletter, to get all the latest point of sale news in your inbox every week.

The Bar Code News YouTube Channel, learn how to make your own bar codes, QR codes and more.

See our collection of Point of Sale (POS) Resources.

Automate Your BusinessToday, independent retailers have access to point of sale systems with features comparable to large competitors. The costs of these systems are often hundreds of times less than the investment made by the large retail chains.
 If a retailer avoids the ten most common mistakes when selecting a point of sale system, they can avoid duplicating their efforts and control these costs. Avoiding these ten mistakes will help insure that the right system is selected the first time.

iStock_000006334514XSmallPoint of Sale (or POS in its abbreviated form) is the phrase used to refer to the point—or location—where a sales transaction takes place, such as a checkout line or retail counter.

A Point of Sale System is the term used for the combination of computer hardware and software that oldcashregisteractually manages the sales transaction.  There are many benefits of using a point of sale system over a traditional cash register, since a computer is able to capture, store, share, and report data (such as sales, payment, or customer information).  A POS system saves time and duplication of work, and increases efficiency and accuracy in inventory, reporting, ordering, and providing excellent customer service.

The main industries where you would find POS systems being used are retail, service and hospitality (restaurants, hotels, hair & beauty).

There are many ways to evaluate a point of sale system.  Speed, cost, functionality, and ease of use are a few.  We consider the key requirement to be reliability, as a single lost transaction is unacceptable.

It is helpful to distinguish the forms that POS has gone through over the decades, from traditional point of sale developed in the 20th century, to the introduction of web-based and mobile point of sale in the 21st century.

Traditional POS

POSterminalTraditional computerized point of sale, which began in the 1970’s and came of age in the 90’s, uses a stationary checkoutcomputer with POS software installed, and peripherals such a bar code scanner and receipt printer.  Networking makes it possible for traditional POS to be used with multiple stations and multiple stores, syncing information across various locations making it easier to keep track of sales and inventory.  Components of a traditional POS system include:

 

Hardware:pin pad with credit card swipe

A computer (the main component of a traditional POS system).

Peripherals. This term refers to hardware devices that you add to the computer system.

Some peripherals help you use the computer itself (such as a mouse or keyboard).bar code scanner

Some peripherals are more specific to POS, they enable you to perform a sales transaction (cash drawers, bar code readers, receipt printers, credit card readers, pin pads, touch screens, etc.)

Software:

POS Prophet Systems General computer software, primarily, an Operating System (OS), such as Windows, Mac, or Linux, which makes it possible for people to use and interact with the computer.

POS software, helps you to manage your business and perform sales transactions.  It automatically collects and stores data about customers, sales, and inventory, and can use that data to create reports for taxes, sales analysis, etc.  The software is the most critical part of the POS system.

(Image provided by POS Prophet Systems)

*It is important to know that when putting together a Point of Sale system, the various hardware and software components must be compatible, or able to communicate with each other.  

 

Web-based POS

computer_phone

 

The first decade of the 21st century saw advancements in web-based POS software.  Web-based POS software can be accessed through the Internet from any computer with a connection and a browser.  You do not need to install it since it is hosted on secure servers that provide real-time backup.  One of the advantages of browser based point of sale is that it is operating system independent.  You can use it on an Apple Mac at one part of the store, and a Windows PC at another.  If you want to access your retail data from home at night, it can be done through your home computer or laptop.  Other advantages usually include automatic backups done by the company who hosts the system, and software updates automatically provided the same way. 

 

Mobile POS

The last few years have brought significant progress in mobile technology, such as smart phones, tablets, and other handheld devices that tabletbasically act as mobile computers.  Mobile technology, along with web-based software, has allowed for an evolution of Mobile POS, and is having a huge impact on the POS industry, even to the point of changing our understanding of what the “Point of Sale” is.

Craig Aberle, President of The Point of Sale News, comments,

“The definition of POS is certainly evolving – new tools are being developed that actually change the ‘point’ of sale.   Apple’s POS system allows a clerk to ring you out wherever you are in the store.  That’s a great feature.  No need to wait in line at the checkout counter.   In restaurants, the point of sale is moving to the table you are served at. With service companies everywhere, (like car rental agencies) the point of sale is right where you drop off the vehicle, and they inspect it and print a receipt from a portable device.  The places that transactions are processed cell phonewill continue to evolve as long as it is easier for the customer, drives revenue, and manageable.  The little credit card readers that get plugged into an Apple or Android phone are taking point of sale way out of the mall, and out of the store.   It’s now in the parking lot, in the field at a country fair, or right on the sidewalk. Merchants are no longer tethered to something that has to remain plugged into a wall.”

He concludes, “Today, I would define the ‘point of sale’ as anywhere that any transaction takes place.”

 

If you came here asking “What is Point of Sale?” or “What is POS?” then hopefully this article has given you a proper introduction.  Please explore our website to find out more.  Be sure to check out the Learn section, as well our POS Software & Hardware sections.  Stay on top of news and case studies regarding POS for various industries.  We also provide an international list of POS resellers.

If you find our resources helpful, be sure to stay in touch through Facebook, Twitter, or RSS.  You can also subscribe to our free weekly e-newsletter.

 

Sources:

 How to Computerize Your Small Business. New Yord: John Wiley & Sons Publishers, Inc.  Aberle. (1995).

Wikipedia http://en.wikipedia.org/wiki/Point_of_sale

eBay: Point of Sale (POS) System Buying Guide  http://pages.ebay.com/buy/guides/point-of-sale-pos-system-buying-guide/

bikesThe National Bicycle Dealers Association lays out a clear argument for why you'd want to manage your bike shop with a POS system: 

"In an ideal situation, a computer system will allow a dealer to control inventory more efficiently, which can lead to better profits and an improved ability to give customers what they want, when they want it. A computer can be a dealer’s number one tool to evaluate business performance on an on-going basis. It will allow development of new marketing programs, and check their effectiveness. The system can help dealers reduce the overall investment in inventory, and yet improve product availability for customers. It can be a wonderful tool for competing better in a very demanding consumer market."

So now that you know you need a point of sale system for your store. How do you go about choosing the right system?

List The Major Features You Need

Make a short list of the features you need in your POS system. Making the list short is key. Don't get bogged down in every little detail of what you think you might want in a system. Most bike shops need these core features:

  • Point Of Sale - The ability to ring up sales quickly.
  • Customer Tracking - Store information on your customers, this includes purchase history, service history and layways/special order tracking.
  • Inventory Control - Should include serial number tracking for bikes, purchase orders, transfers if you have multiple locations, and a way to periodically reconcile your inventory.
  • Service Module - Automate and streamline your service department.
  • Layaways & Special Orders - No more post-it notes for keeping track of layaways and special orders.
  • Reports - You need to be able to quickly find out how your business is doing.
  • QuickBooks Integration - Most bike shops use QuickBooks for accounting. You'll want a system that integrates.
  • Vendor integration and preloaded catalogs. For bike shops this is a must-have-feature these days. This will save you time when you're creating purchase orders and entering inventory because you won't have to type in all the information, just scan a barcode or type a part number.


Cost - What Can You Afford? What Will It Cost?

Unless you own many retail locations or are doing sales in excess of $10 million a year you probably want to stick with an off-the-shelf product. These are the cheapest solutions and do a great job of fitting the needs of an independently owned bike shop. On top of the system/software you'll need specialized POS hardware. Here's a quick run down of what you'll need to buy:

  • The Software - Expect to pay anywhere between $800 and $3,000 for your software license. If you choose a software-as-service system this should be more in the range of $50 to $300 per month.
  • Support Contract - Your software may or may not include support in the licensing fee. You'll probably want phone support for at least the first few months.
  • Hardware: Barcode Scanner, Receipt Printer, Label Printer, Credit Card Reader or Terminal, and of course a computer. Your POS specific peripherals should be in the $800 to $2,000 range per checkout lane.
  • Watch out for hidden fees. You may have to pay an annual upgrade fee to keep your software current. If you're running a desktop POS system you'll need to worry about backups. If you have multiple stores and running a system in-house you'll need to network your stores. You may also need an internet connection if you don't already have one.


Credit Card Processing

Of course you'll need to be able to accept credit cards. This means signing up for a Merchant Account, setting up a gateway, and integrating your gateway with your POS software/system.
 

Important: Choose you're software first. Then choose a credit card processing solution that seamlessly integrates. Ask your software vendor what you'll need.

Put Together A List Of Potential Choices
Search the web, call other shops, visit POS vendors at Interbike. Put together a list of your top 3 picks to demo.

Try Before You Buy
Never buy a point of sale system without physically trying it out for yourself first. If it isn't easy to use you aren't going to use it. So take the time to do demos.

Further Reading
Why POS Computers?
Introduction To POS Systems
7 Common POS Mistakes

About The Author
Justin Laing is Co-Founder of MerchantOS, the leading provider of web based point of sale and inventory control software to bike shops across the United States and Canada. For more information go to www.merchantos.com.

 


 

Other articles you might enjoy:

Point of Sale Software – Top 10 Mistakes to Avoid When Choosing a POS System

What is Point of Sale (What is POS)?

How to choose a POS VAR (Value Added Reseller)

POS Multi-user systems and Multi-site systems

cashboxNot too long ago cash registers were the only game in town, but these days companies have many more choices. Replacing those antiquated cash registers with modern point of sale devices carries a number of important benefits, including: 

1. Point of sale systems simplify the accounting process. Old fashioned cash registers force accountants to sort through hundreds of receipts, but with a point of sale system financial personnel can simply use the built in reports or create their own.

2. Unlike a cash register, a point of sale system often includes an overall inventory management system. Store owners can use a point of sale system to track their biggest sellers and reorder those products when stock gets low.

3.
It is easy to look up past transactions. If you need to know how much you sold last Tuesday a point of sale system can give you that information in a snap. It would take many hours of laborious work to find the same answer using a cash register.

4. You can use a point of sale system to create your own purchase orders, eliminating an extra step in the ordering process. You can even automate the ordering process to make sure you never run out of your hottest selling products.

5. Modern workers are often more comfortable with point of sale devices than old fashioned cash registers.  The generation now entering the workforce never knew a time without computers, and as a result they are very comfortable working with computerized technology like point of sale devices.

6. Point of sale devices provide faster service than old fashioned cash registers. Every part of the process, from authorizing a credit card transaction to printing a customer receipt, is faster on a point of sale device.

7. Customers receive more informative itemized receipts with a point of sale devices. Many cash registers can only print the date and the amount of the sale, but since point of sale devices are tied into the inventory control system they can provide much more detailed information, including a description of the item, the list price and the sale price.

8. Point of sale devices can cut down on user errors. Hitting a wrong key is always a risk when ringing a sale, but point of sale devices have built in checks to ensure that the information is entered accurately.

9. You can see real time inventory with a point of sale device, something that even the best cash registers simply cannot do.  In fact, many companies have found that implementing a point of sale system virtually eliminates the need for a costly hand count.

10. The maintenance and repair costs are often much lower on a point of sale device than a cash register.  The number of companies that repair cash registers is dwindling, and that means that repair costs can be rather high.  There are many vendors who repair point of sale devices, and that can keep repair costs low.

As you can see, there are many reasons why your company should consider ditching the old fashioned cash register in favor of a state of the art point of sale device.  These devices can lower the cost of doing business while increasing productivity, and that can be good for the bottom line.

Ready to make the switch from a cash register to a point of sale system?

 

Tom Greenhaw is the President of CashierLive.   You can visit their site at www.Cashierlive.com

For information on barcodes and how they can be used in point of sale, click on this link


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