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General POS System
Buying Guide and Advice
General POS Buyers Guide:
What is POS, what do you need from your POS system and why is it important for your business? We have all the answers so, just read on.
What is a POS system?
POS stands for point of sales, it’s where transactions occur between a customer and merchant providing goods or services. A cash register is technically a point of sale but lacks the helpful functions of modern POS systems which simplify the everyday operations of a business. POS systems can help you make informed business decisions with the ability to capture, store and report on data such as sales and customer information.
A POS system is the combination of hardware and software used to manage a business and process transactions. It’s the place where all operations merge including sales, inventory and customer management. POS systems facilitate efficiency and growth by giving insight into customers and inventory.
Traditional POS systems were; on-premise, locally installed systems that used an on-site server and were fixed to a certain area of your building. They stored information on a closed, internal network and could only be accessed from where the server physically was.
Modern POS systems utilise cloud technology and connect through remote servers. This mobility has transformed the way clients and vendors interact. Business management can then be accessed from anywhere with internet connectivity. Owners can manage their entire business from anywhere. Manage everything using devices such as laptops, desktops, tablets, or even smartphones. This allows you to run your business, serve your customers and process transactions from anywhere. Compared to on-premise POS systems you now have the option to set up your business anywhere, start at new locations, pop-up shops and run stalls at festivals.
Cloud-based (CB) POS systems can be accessed directly from the Internet, the data is stored on a remote server. CB POS systems are made to be compatible with a wide range of POS hardware.
The POS system you choose should allow you to streamline the operations within your business and facilitate growth.
POS Benefits & Needs Analysis:
Your POS system is there to simplify business operations by centralising the multitude of daily management processes. The real time capability of business analytics in sales and stock eliminates the uncertainty of inefficient, manual number crunching. Now you can be aware of which products were sold on a daily basis, know exactly what’s in stock and how much money was made. This serves the demand for customers to be equipped with the details e.g. how much is left in stock, what size and what colour.
Keeping track of inventory doesn’t have to be difficult, you can even use your sales reports to predict future trends by analysing current performance. Let the computers do what they are good at so that you can manage your business hassle-free.
Your business, your needs:
Different businesses need different things from their POS systems. A POS system has to meet the specific needs of your business. For this reason there isn’t really a one size fits all. Hardware will vary based on your particular industry needs and services offered. A restaurant might need a receipt display in the kitchen to handle high volume tickets, whereas a retailer would need a barcode scanner to streamline the check-out process.
Increase your operational efficiency:
The right POS system for your business will increase the efficiency of your operations. Company management takes up less of your time. Now your POS system can worry about the bills, orders, and sales figures. The everyday sales environment can run smoother thanks to hardware like barcode scanners and credit card terminals.
POS systems can also help out with personal client communication. They make it easy to gather the contact details of your returning clients. Valuable information can then be utilised to make personal offers and to enhance your customer relationship management (CRM). With this information, you can make informed business decisions and increase sales.
Your POS system isn’t just there to be your business’ statistic whiz, it can be your sidekick as business manager. As well as core transaction functions POS systems have the ability to handle; inventory management, accounting, scheduling, payroll, warehouse management, order fulfillment, and marketing.
These days customers research products extensively online before actually stepping foot in your store. That makes having an easy to navigate online store critical for a successful business today. Now you have the option to run your physical and eCommerce store from the same platform. This increases exposure to your brand and enhances customer experience by providing them with the information they want. By expanding the suite of experiences for your customers, like offering in-store pickup or direct shipping, you’re allowing customers to get the most out of their experience.
Now to the question “what are the features of POS systems?”. We’ll get into that with the POS system feature breakdowns below.
POS System Features:
Sales reporting enables recording and analysis of sales data to optimise your decision making. Your store’s sales performance is based on all of the small details of a sale. We are talking; product, hour, employee, total cost of items sold, total retail amount, net profit, profit percentage, and gross margin. Reporting gives insight into your store’s hourly, daily, weekly, monthly, and yearly performance. With this gold mine of information you can predict high-volume sales periods and identify your best employees.
Inventory management monitors stock quantity to determine when and how often to reorder. This is really important because it directly impacts cash flow and revenue. You can put away the checklist because your POS system can scan and count products digitally. Allowing you to track your inventory levels across multiple locations. This time-saver enables seamless ordering and automatically sets custom reorders for the hottest selling items. Let your POS system do the tough stuff, like combining purchases and orders in one. Simplify how you purchase, organise and sell inventory. Real-time inventory tracking means you can trust that inventory levels, both online and in the physical store are up to date and accurate.
Customer Management allows you to log purchases and keep in touch with customers through marketing tools. Strengthen your customer relationship management by tracking all customer data. This lets you attach a sale to a particular customer and keep track of your customers’ purchase histories. POS systems will capture vital customer information; name, age, birthday, phone number and email address. In creating a database for your customers, you can apply email marketing and add in loyalty programs. Loyalty programs allow you to show customers that you value their business, they feel appreciated and keep coming back. Reward repeat business with incentives like discounts. Get business insights from details like; payment information, payment history, favourite products, purchase history, and shopping frequency. Extend your customer experience past the doors of your store by using customers’ purchase history to send relevant promotions. Diversifying your communication channels will enhance the customer experience.
Employee Management lets you track employees’ hours and sales while analysing who your best performing staff members are. Generate reports on job performance; how many transactions processed, average items per transaction, and average transaction value. Generate reports detailing overall sales per employee and per shift. Set sales targets and create schedules for employees based on predicted busy shifts and then email schedules to employees. Get full control of staff management by customizing permissions for managers and employees. Control who has access to the back end and front end.
Centralise business financial information with integrated payment processing. In-house payment processing removes complicated third-party payment processors. This is advantageous for owners because it allows you to work with one company to manage both the business and its financials. Now you get one transaction rate for all payment methods, no start up fees, and no monthly fees.
Multistore management helps your business to grow from a single shop front to multiple stores. Consolidate inventory, customer and staff management across all locations. The entire business is managed from one place. Add stores and users to your POS system as you open new locations. Enhance the network between all your stores by creating single purchase order for all locations and transfer items between stores hassle-free. Access your customer data across all locations and compare store performance.
What equipment is needed?
Hardware will vary depending on your business, peripherals like bar code scanners and credit card readers will change based on what you are offering customers. Let’s dive into the hardware components of a POS system:
The POS terminal. This will be the equipment handling the sales transaction and processing payment types. It can be any device with internet capabilities like a desktop computer, laptop, tablet or smartphone. With the wide variety of possibilities, the way you engage with customers is transformed. Sales staff can now assist customers and process transactions anywhere in the store or venue.
The credit card terminal. This is an essential piece of equipment for the modern buying experience. It’s the tool that processes payments from credit and debit cards. Features can include receipt printing and payment flexibility allowing cardholders to swipe, tap or insert.
The receipt printer. While some shoppers are opting to receive receipts via email or text, paper receipts are still necessary. Functionality is key, and every business will have specific needs when it comes to a receipt printer. For example, restaurants may want a kitchen printer to send tickets, or if your ticket volume is large you could go for a Kitchen Display System.
The barcode scanner. Great for environments with high volume inventory, making the checkout process fast and efficient. In automating the checkout process, you provide customers with the simple and seamless service they desire. These can also integrate with inventory management systems to update stock levels in real time.
The cash drawer. Even though we are moving to a cashless future you’ll still need a place to hold the cash in the meantime. Securely store cash to accommodate cash handling customers. Plus, as a bonus, cash transactions hold no associated credit card fees.
The monitor. Used to display your product database, handle employee shifts and to view sales reports. Depending on your preferred operating system you can tailor your hardware preferences. Cloud-based systems will typically use tablets to take orders, check reports, and manage customers. Your POS system can be run on compatible devices like iPads.
Hardware can also include electronics like programmable keyboards, handheld terminals, pin pads, and a mouse. If your business calls for it your POS system could include a scale for food grocers like supermarkets, butchers and bakeries.
Software is up to your preferences and what you believe will facilitate ease of use for your business. POS systems offer the option of integrating with your existing software and hardware. Operating systems like Windows, Mac, and Linux are used to interact with the computer and manage your business and sales performance. The software will collect and store data about customers, sales and inventory. Data can then be used to make reports for things like taxes and sales analysis.
The Wrap Up:
Buying your first POS system or upgrading takes a lot of deep consideration. Our buyers guide is here to help you through that process so feel free to come back and review as you come to road-blocks and questions you may have.
On a positive note, there is definitely the perfect POS system out there for your business, no matter which industry you are in. Remember that if one POS doesn’t seem to meet all your needs, you can check their integrations or keep comparing and reading relevant reviews we have on our site for you.
