How A POS System Can Cut Costs
Although many businesses still use traditional cash registers, POS systems have quickly gained in popularity. This is because small business owners become aware of the advantages of a POS system. A POS system does much more than improve upon the functions of a cash register, as it also improves the organization and efficiency of their business operations overall.
Simple and Accessible Inventory Management
If a store closely scrutinizes what has been added and removed from the inventory, it can be a costly hassle to do so manually. Without a means of automatically tracking inventory, employees are forced to manually log the count of each item as it is sold, returned or received from a vendor. This turns into an abundance of incorrect calculations and serious discrepancies in your inventory.
This is also an issue when the business has multiple locations. If employees have the ability to sell inventory coming from another location, it can create serious customer service headaches if a product was sold that was not in stock to begin with. This is a sure fire way to lose a customer revenue and possible clientele all together.
A cloud-based POS system remedies this issue by allowing employees and managers to edit and track inventory counts in real time, placing this information all in one place. Any employee in any location can access this information with the confidence that it is accurate.
Eliminating Multiple Data Entry
When storing data such as customer information, businesses frequently follow the process of punching in a customer’s contact details before the sale. Many customers often scoff at the idea of giving out personal information, especially when they are asked for it more than once because it was not saved the first time.
This can also lead to longer lines at the register, long wait periods on the phone, and dissatisfied customers leaving the store due to impatience. Not only has the sale been lost, they may share their experience with others, costing clientele and revenue.
A POS system enables employees to access information from any terminal or mobile device within your stores network, or even in other locations, as it is stored in a central cloud server that all of your POS terminals can access. Allowing your employees and managers to access vital store and customer data on-demand brings more efficiency and productivity to your store.
Cutting Down on Wasted Time
When a large amount of time is spent on analyzing sales patterns and measuring the popularity of merchandise or services offered, this is time taken away from attending to customers inside of your store and boosting your revenue through sales. Time is better spent on producing sales during a business day, not creating spreadsheets to calculate and project revenue and losses.
A huge benefit to using a POS is how it provides a detailed analysis of a business’s revenue and sales data. It can tell a store owner how much inventory they currently have stocked, which items had been sold and how often, and gauge the popularity of certain items that are carried by the store. This eliminates the time needed to sift through countless records and do tedious math in order to determine sales volume.
Businesses often find themselves dealing with a huge amount of forms and work orders. All of these must be kept on file until the customer’s order is fulfilled. Paperwork piles up, leading to disorganization. This results in a slower pace of work and a lack of customer fulfillment, which costs a business revenue and clientele.
For businesses that operate primarily on work orders and invoices, a POS system is a necessary tool. A POS system allows the business owner to manage work orders and other vital documentation without the concern of disorganization or lost documentation. Given that lost documentation contains personal information that businesses can be fined for losing track of, having a POS system in place eliminates this issue.
When managing a store that stocks several items, loss prevention is important. A location that stocks several small items are very susceptible to this, as items can go missing and the loss won’t be noticed until a thorough stock check is performed. Taking an inventory of a store’s stock is tedious, with miscounts being a strong possibility. Issues with stolen stock can also go unresolved.
A POS system is an important tool for loss prevention in retail outlets. POS systems can generate reports that chart all authorized changes in stock throughout the business day. If there is an issue with missing stock, the manager has instant access to all the necessary data needed to check into it. If the business makes use of mobile POS systems, this makes the process even more seamless as they count merchandise.
Reduce Marketing Costs and Time
Marketing is a vital part of growing a business, leaving many owners spending a lot of time and money on reaching as many clients as possible. When dealing with competition and a large customer base, it can become very expensive, time consuming and overwhelming to try and do it manually. Marketing services are typically expensive to hire, and the money spent on them is much better focused on store operations, improving the customer experience and additional stock.
Another useful feature of POS systems is the ability to maintain constant contact with your customers, cutting down on the time taken to reach back out to clients with either printed materials or paying for the services of a marketer. POS systems allow users to gather customer contact information with ease, allowing you to notify them of sales and other promotions. As opposed to reaching out individually, the POS user can simply send out mass emails.
Reducing the Cost of Your Receipts
An often overlooked business expense is the upkeep of receipt printers, which can often run into the thousands. This expense eventually outprices the cost of the printer itself. Ink cartridges are typically expensive, and the average receipt has many images and blocks of text that exhaust them rapidly. The printers are also unable to be repaired by the end user, leaving them to pay for specialists to repair the device.
POS systems give customers the choice of receiving a receipt in their email, which is far more convenient and attractive to shoppers. Your receipt printer gets more longevity and you do not have to rely on business machine repair services who charge high rates.
In conclusion, a POS system helps small businesses by cutting costs and saving time. POS systems definitely replace the more costly and time consuming operations so employees can focus on customer interaction and driving up revenue.