5 Reasons Why Small Businesses Purchase Retail POS
If you are looking for an intuitive, easy-to-use, and powerful software to manage your store – a Retail POS system is a great fit for your business.
Today’s POS system goes beyond just recording sales and processing customer purchases. The software can help you manage and complete a lot of tasks to make processes more productive and save you money, time, and resources which can drive the growth of your brand.
If you are still thinking about whether or not to purchase a POS system for your small business here are five reasons why most businesses decide to get one.
1.Generate Purchase Orders (Stop the Monthly Inventory Counts)
Every seller must order products from the suppliers. This is just another function that can be automated with your POS system. The retailers understand the importance of restocking stock, however, only a few understand the necessity of optimizing stock levels to help their store generate more money.
If multiple suppliers sell the same product, the system can track the sources your products come from.
To maximize efficiency and avoid unnecessary paperwork, you can automatically email the purchase orders. When the order is received, the products on the purchase order automatically restock back to the inventory. Purchase orders can be manually created whenever you think a product is running low, however this is not recommendable. Instead, you can automate reordering by setting maximum and minimum stock levels.
2. Inventory Management (Unparalleled Inventory Control Features)
Inventory control is one of the main reasons small business owners choose to buy a Retail Point of Sale system. As you know, too much inventory ties up money while too little inventory automatically leads to missed sales. So, how can your Point of Sale system help with inventory management and control?
The Point of Sale system maintains a base of all of your items. You can add individual product or upload a list of products. You can track vendor number, UPC code, department, item description, category, cost, and the price of each product you sell.
Inventory reporting saves a lot of time and provides valuable information to help you make better decisions. Physical inventory for one month counts can be completed with just a few clicks, saving hours and hours of work. Know what products are driving your orders and sales up. Track inventory by category and department and set alerts for when items run low.
Assign promotional pricing to various products based on category, department, time period, bundled products or individual product. Automatic sales pricing avoids cashier errors and makes sure buyers are paying the right price.
When your Point of Sale system is set up, you can import stock details of your products. As products as sold, they deduct from inventory and when orders are received, products in your inventory are increased. When items are damaged or stock levels require adjusting, you can use your POS system to make the necessary changes.
3. Reporting & Analytics (Get the Details You Need to Run Your Business)
Reporting is another reason business owners decide to purchase a Point of Sale system.
Start making decisions based on researched data. The Reporting & Analytics feature available in the POS system won’t necessarily give you insight on your store, however, it will definitely save you a lot of time.
You will be able to prepare both sales and tax reports in a second. Also, you can manage employee hours, complete your physical inventory, and run payroll reports.
Track sales to the minute so you know exactly how many sales representatives and employees you need throughout the day. You can gain insight into each employee’s efficiency and profitability. Exception and discrepancy reports help you identify any suspicious activity and avoid stealing and other employee-related issues. Theft declines significantly when Point of Sale systems are installed because cashiers know that every move can be controlled and tracked.
Analyze what items are driving profitability and sales. Determine which products bring in the buyers and then run promotions on popular products. For instance, if you determine a certain brand is driving traffic, offer a high margin product at a special promotion. This is how successful retailers increase their profitability.
4. Employee Management (Track Employees Through the POS System)
One of the most useful features of a Retail Point of Sale system is acquiring the ability to combine multiple functions into one system. With built-in security features, have trust in your system knowing it will prevent your employees from using your business.
Employees sign up when they arrive at work and sign out when they leave. Both paid and unpaid breaks are tracked to ensure all hours are accurate. When the paid break is complete, analyze and see how many hours each employee logged.
It is super easy and takes a few seconds.
Schedule your team in the system days or weeks in advance so each employee knows when they are working. Add your payroll processing to the Point of Sale system to have all hours transferred to the payroll company.
Each employee can be assigned to a specific job, for example, manager, cashier, owner, and etc. thanks to job-based permissions which gives them access to the parts and functions of the POS system that are important for their position.
5. Customer Loyalty (Build Your Repeat Business)
Customer loyalty programs are quite popular in the retail industry. From reward cards to Groupon, retailers are familiar with the value of returning customers.
Repeat business drives more sales. The true benefit of repeat customers, however, is when they start promoting the business for you. With a customer loyalty plan, you can start getting customers excited about your business.
Create your plan to meet your business’s needs. Offer percentage discounts, special prices, and anything that will attract customers’ attention.
Keep a database of all of your shoppers and see previous purchases. Help customers recall the brands or the products from the latest purchase. The more you know about your buyers, the better you will be able to meet their desires and needs.
If you are planning on purchasing a Retail Point of Sale system, it should be able to do everything we just mentioned.
Before committing, make sure to try out any system first and see if it is a good fit for your small business and retail store.