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The Advantages of a POS Solution

Point of Sale Systems Buyers' Guide

There are three main advantages to a POS solution that are applicable to all industries from retail to hospitality and beyond. And all three make sound business sense.

Saving Money with a POS Solution
  • Theft and misuse. A POS solution is the perfect tool for monitoring stock. Once employees realise that every item that comes into the business is electronically recorded and available for you to check on a report, theft and misuse reduce dramatically.
  • Greater pricing accuracy. A POS system always charges the price you have entered, so staff cannot create a bill with the wrong price on it. And if you've put a price in the system that's incorrect, you can change it immediately.
  • Improving margins. The reports you get from your POS solution allow you to establish what products in your shop, or menu items in your restaurant, are selling well and what are not. You can then decide if you want to promote certain goods or dishes that have a higher profit margin, and remove others.
  • Recovering the initial investment. Of course it's all very well to save money with a new POS system, but you may well wonder how soon these savings will pay for your investment. If you have an annual turnover of £350,000 or above, it's probable that you'll recover the cost of the POS system within two years. If your annual turnover is below £350,000, you may wait longer before your POS system pays for itself. Nonetheless, many new business owners who expect a relatively small turnover, opt for a POS system because it can maximise efficiency from the moment they open their doors to customers.
Gaining More Control Through POS Solutions
  • Stock management. Monitoring POS systems by using software can produce sales reports that let you know how much stock you have left; exactly what items your customers are buying or not buying; and when you need to place additional stock orders. With these details, you can assess sales trends and plan future needs.
  • Customer database. At each transaction, the POS system can acquire the names and addresses of your customers. The result is a valuable customer database that's ideal for postal promotions.
  • Instant information. You can ask your POS system to give you information at any time. You can discover what you've sold and when in a given time frame; how much money you've taken; and the amount of your profit.
Improving Productivity with a POS System
  • Trouble-free transactions. POS system bar code scanners in shops speed up transactions and help prevent customers waiting too long at checkouts. In restaurants, waiting staff can use hand-held POS system terminals that transmit customer orders straight to the kitchen.
  • Less paperwork. A POS solution can take care of a great deal of routine paperwork related to sales and stocktaking.

Please note that these three advantages of a POS solution don't fall into your lap. You need to:

  • establish what you want from the system
  • research what's available
  • ensure staff are fully trained in the system
  • regularly analyse the system's effectiveness

You have to put in some work but the benefits are considerable.

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