For a growing business, longevity and expansion are always a primary focus. Having a structured system that helps improve sales and customers’ experience is very paramount for business owners. The use of the Point of Sales system is especially recommended for retail and hospitality businesses to achieve this.
It is logical for businesses to make a priority list of the cost needed to purchase tools and resources. When prioritizing costs, viewing everything as an expense can result in some tools being pushed to the bottom of the priority list. This “everything is an expense” mindset can create more expenses for a business rather than cut down costs. The reason is that once every cost is viewed as an expense, decisions made will be based on a survival mode rather than a growth model. The key is to know and understand the difference between what is an expense to the business and what is an investment in the business. Businesses gain more in weighing each cost using a Return On Investment (ROI) model applicable to each.
What is the ROI of a Point of Sales (POS) System?
A Point of Sales (POS) System is an integration of both hardware and software. The POS System provides essential tools to track, measure and manage sales and inventory operations. Thus the ROI of a Point of Sales system is based on its impact on revenue or profit. In determining the ROI of a POS System,
1) look at the features of the particular point of sales system being offered and
2) check how it aids achieving the primary goal of increased revenue and profit
What makes a Point of Sales system an investment?
1. Inventory and Supplier Management
The inventory processes in a Point of Sales Software help track stock in warehouses. This provides statistical information that helps with production, supplier management, inventory control, stock variances, minimum and maximum stock levels, etc.
2. Accurate Reporting for Business Decisions
A POS system is very important to all businesses because it structures processes thus minimizing human errors. Point of Sales (POS) systems provide accurate reporting on inventories, shows you the top-selling/least selling products, gross profit, taxes, sales activity, highest selling location/cashier, trial balance, income statement, etc. By knowing what sells best, what items are most profitable, what seasons, day or time of the week have the most traffic, etc., businesses can make decisions that help improve their product offerings and service delivery.
3. Employee Management
Time and Attendance function,user-defined rights, and privileges, top seller, audit control are features that help streamline processes to limit fraud and excesses.
4. Ability to handle multiple branches
In the past, a business owner with multiple chain stores would find it hard getting accurate reports from various branches. But with a good POS software like the ICG software, businesses can manage multiple locations, and multi-companies remotely. With just a click you know how well each store is doing without having to be there physically. Also, a business looking to expand would be better off investing in a point of sales solution that is scalable and extendable as the business grows. The solution should have the capacity to include add-ons or extra modules as needed.
5. Customer Relationship Management
Improving the customer experience through the quality and speed of service offered is one thing businesses in the retail and hospitality sector do not overlook. If a customer had to wait too long on a queue to pay for their purchase they would most likely leave dissatisfied and be less inclined to come back a second time. This is the reason investing in a Point of Sales System is important. It helps reduce wait time and unnecessary queues. With Point of Sales solutions, reward consistent customers through loyalty benefits and promos. This helps retain current customers and grow sales.
In conclusion, though POS systems come at a cost, it helps control expenses. Using statistical information from the POS system, businesses can plan their inventory and sales strategy for overall growth and profit. By understanding what sells best, what items are most profitable, what seasons, day or time of the week have the most traffic. A POS system is a valuable investment in technology because it takes a certain amount of strain off your shoulder. It may seem a little costly at first… eventually, it helps save so much more. Considering the outweighing benefits, whether a cloud or an on-premise solution, it is definitely worth it.