The Importance of Point-of-Sale or POS System

Technology is moving business forward. If you’re a retailer who refuses to upgrade your point of sale methodology, it’s quite possible you’ll be left behind in a world of calculators, printed receipts and late night inventory checks. POS systems provide retailers with a user-friendly means of bringing their company into the 21st century.

One of the focal points of any retail business is the cash register. The ability to process transactions and tender cash are essential to the efficient operation of the enterprise. If you have a lot of cash transactions, replacing the cash registers with a POS system save you money.

A Point-of-Sale or POS system is computer software and hardware networked together to track sales and inventory as they occur. POS systems will solve a multitude of problems in your business. Since implementation of a POS system requires a large investment in time and money, the selection of software and hardware requires careful research into the features available and associated costs.

There are three primary aspects to inventory management:

  1. Knowing how much you have..
  2. Knowing how much you moved and..
  3. Knowing how much you need.

In the past, that kind of inventory tracking required a lot of counting, balancing paperwork and guesswork. POS systems streamline the process and do most of the work for you.

You simply scan the item’s barcode using a barcode scanner and the POS does the rest. It tracks the bestsellers, lets you know what you need to order, gives you the ability to create a purchase order and keeps count of the inventory you have on hand.

Why use a POS system to manage my store?

Many owners and manages find that the reports generated from the POS system invaluable in the day-to-day and long term management of the business. From revenue and profit reports, ordering reports and product sales reports, the POS system offers a perspective of the total business that is difficult to grasp in other ways.

Advantage of using the POS system

  • Reduce Wastage – since inventory quantities are tracked in real time, it helps pinpoint the causes of inventory loss, reduces “out of stock” conditions.
  • Manage Special Price – automate the process of tracking current and marked down pricing, discounts, coupons and promotions.
  • Maintain Control – give you the ability to track volume and performance when you’re not in the store.
  • Improve Efficiency – dramatically reduce the effort required to do inventory and other repetitive paperwork.
  • Real-Time and Accurate Reports – you can easily calculate daily gross revenue, cost and profit. Historical data analysis helps to forecast your future needs.
  • Improve Customer Satisfaction – using a barcode scanner will significantly speed up the check-out process.

Cost of POS System Implementation

With the above mentioned benefits of using the POS system, what keeps the medium, small, and micro-retail business owners to get one? One simple reason is the cost.

The cost of the POS system varies from vendor to vendor and their package inclusions. The software alone cost at least P20,000 upwards depending on the features. A complete package of PC or terminal, barcode scanner, and printer, the costs starts at around P50,000 and up. The amount excludes regular maintenance, technical support, and software upgrades.

Fortunately, a fully functioning POS system software that cost less than P5,000 is available for 6 months free trial provided by MixPH.com. It comes with free software upgrades and online tech support for 1 year. Click image for details.

sources: bindopos.com, carolinabarcode.com

 

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