Most large retail stores have migrated from the old trusty cash register to more modern computerized point of sale (POS) systems. This post is an excerpt from POS for Beginners which explores computerized POS technology and provides a roadmap for anyone contemplating acquiring POS systems for their own business.

IS POS for you?

Do you own a retail store? Do you currently use a cash register to ring up sales? If so, you may want to explore the feasibility of converting to a computerized point of sale system. POS systems are finding their way into all sorts of businesses large and small. It may be just the right ingredient to jumpstart your salon or childcare business. A POS system can help your business grow to the next level.

If the thought has crossed your mind while waiting in the checkout line at your local food chain "Can one of those POS systems help my business?", then you owe it to yourself and your business to find out.

What is POS?

Point of Sale (POS) -- The physical location of a transaction, but usually refers to any device or system that is used to record the transaction for the retailer. Sometimes used to classify all of these together. (I.e. the POS industry); e.g. the grocery store checkout register or the retail checkout counter.

For the sake of this article, POS systems will refer - not to the traditional mechanical cash register, but to the newer class of computer-based POS systems. The term "cash register" will refer to the traditional mechanical or electronic cash register that is not based on a computer.

Evolution of POS

Most people type on computers these days. For a long time, the typewriter manufacturer's tried to resist the tide by touting the new features of their products. Some added memory and LCD displays to make their typewriters more "computer like". In the end, they lost the battle. While typewriters can still be found, by and large computer word processing has won the battle. Why? Because word processing provided much more: Spell checking, different fonts, graphics, pagination, etc. Typewriters couldn't compete.

We're seeing the same battle now between mechanical cash registers and computer-based POS systems.

Benefits of POS

A Cash Register is dumb. It tells you only how much money your business has taken in during the day. It can tell you that you took in $350, but it can't tell you how much of that money is profit. It can't tell you how much inventory you have on the shelf or what it's currently worth. It can't tell you how many bottles of soda your business sold today or which favors are more popular. A computerized POS can instantly tell you that you have $350 in your cash drawer. It will tell you that $225 of that $350 is profit. It can tell you that you sold 123 bottles of soda today and that you still have 246 bottles on the shelf. It can tell you that your customers favor Coke over Pepsi. It can also tell you what items you should order today because your stock is low.

While cash registers are improving, they're still being out paced by the rapid development of POS.

According to Gartner Inc., a research and advisory firm, in a study released in 2002, of 300 retailers surveyed, 81 percent expected to see POS upgrades pay for themselves within two years.

Here are just a few benefits of POS over mechanical cash registers.

Register........POS

No..............Yes.............Inventory Control
No..............Yes.............Invoicing and Receiving
No..............Yes.............Interfacing with Accounting
Z-out..........Yes.............Reports
No..............Yes.............Inforced Accuracy
Limited.......Yes.............Integrated cc handling
No..............Yes.............General Ledger
No..............Yes.............Accounts Payable
No..............Yes.............Accounts Receivable
No..............Yes.............Preferred by tax accounts

This post is an excerpt from an ebook entitled POS for beginners. This eBook is available online and can be downloaded from http://www.barsnstripes.com.

 

 

 

As a business owner, the goal of any business is to increase its net income. There are two methods to address this: 1) Reduce operating costs, and/or 2) Increase sales. Traditionally, point of sale systems have concentrated on the first method by reducing operating costs. By automating mundane tasks, pos systems have helped retailers reduce their overhead. Today, the next generation of point of sale software can further help retailers increase their net income by helping them increase sales too.

Next generation point of sale software offers additional features to aid retailers in increasing their sales volume and geographical reach. While retailers can still enjoy lower overhead costs, they can now take advantage of these new features to increase their sales through better customer service and new channels offered by the Internet. Increasing sales offers a dramatically higher return on investment to the retailer as the potential is virtually limitless.

Next generation pos systems offer some or all of the following features to help retailers increase their sales:

1. Integrated eCommerce - a new storefront not limited by geography or time
2. Auctions - new sales channel and marketing channel
3. Sales Order & Telephone Order modules
4. CRM (Customer Relationship Management) - improved customer service
5. Integrated mass email - low cost promotions
6. Club pricing - improves customer loyalty
7. Revolving A/R (Accounts Receivable) - improves customer loyalty through credit
8. Customer loyalty points reward programs
9. Gift card sales and redemptions built into the software
10. Suggestive selling prompts for cashiers
11. Receipt printers produce marketing messages
12. New Signature Capture devices display marketing messages at the checkout line

At the end of the day, next generation point of sale systems allow retailers to increase their geographical reach and become more fficient marketers. A well implemented POS system results in reduced marketing expenditures and increased sales volume.