Benefits of Using a POS System
The benefits of using POS systems depend on the system involved, but generally, businesses choose to employ a POS system for the following reasons:
Efficient transaction processing
Most POS systems are just very sophisticated cash registers. A good POS system will cut down on or even eliminate any human errors that occur in merchant processing of transactions. For example, most restaurants that do not use POS systems are susceptible to the risk of order errors due to poor communication between waiters and kitchen staff. Some retail stores have separate terminals for sales computation and credit card processing. A good POS system can fix these problems, cutting down on employee error and making communication between different parts of the business much easier.
Better record keeping
POS systems standardize the format and recording of transactions, keeping a record of daily sales that is organized and easy to understand. This can be valuable to service businesses, like restaurants, which rely on precise records like calculating tips for employee tax information. A POS system records every relevant piece of information about a transaction: the employee who performed it, the amount, and the items or services purchased.
Effective use of information
POS systems allow a business to use information more effectively. For example, most POS systems have reporting functions, where a business owner can generate a list of sales by category, by date, or by employee for any given time period. If your business is deciding whether or not to place an order for a certain product, you can obtain a detailed outline of all past sales information. Does the product sell better at a certain time of year, or even a certain day of the week? Ordering decisions will thus be more strategic and effective.
POS software also allows you to track promotions and special offers. For example, restaurants offering a Happy Hour can generate reports to find out how many drinks were sold at a discounted price, and if those same guests purchased drinks at full price once the promotional time was over. A business can determine which promotions are worthwhile, and plan better for the future.
The system also gives you the ability to track your customers so you can see which customers are spending money and target promotions to those people to increase sales.
The chief reason most businesses choose to purchase a POS system is cost savings. If you are keeping track of your inventory, saving time with computer generated reports and targeting those key customers that spend the most, you’ll increase your business profits. A good POS system makes it difficult for employees to give unwarranted discounts or free merchandise away because inventory is better controlled. Problems with security or inventory control can be addressed sooner and more specifically and you’ll also be able to make day-to-day business decisions based on real data.
There are, of course, many other benefits to using a POS system, but these depend on the individual business needs. A reputable vendor should be able to discuss various features and help you decide if a POS system would provide solutions for your business.