A Buyer’s Guide to POS Systems
INTRODUCTION TO POS SYSTEMS
We understand the challenging nature of running your business and know that many big decisions need to be made in order to run it successfully.
Investing in a point of sale (POS) system that is right for your business is an absolute must as you look to capitalise on the latest and greatest in business technology to improve operations.
POS systems are an effective tool to track sales, returns, special orders, customer histories & reward programs, inventories, and staff performance. With the best POS system for your business, you can have better control and insight over operations.
Possibly is here to provide you with a deeper understanding of POS systems including their key features and benefits. We’ll help you evaluate systems that are smart, simple, and perfect for your business.
A POS system can transform the way you do business for the better. From increasing employee performance to measuring investment return, the benefits of a POS system are far-reaching.
Financial savings
- Ensure pricing accuracy – Modern POS systems have the technology to ensure that every item is purchased by customers for the correct price. This means your staff will never mis-calculate, mis-enter or mis-estimate prices again. What’s more, you can also change prices as needed, say, if there’s a promotion running.
- Improve profit margins – extensive and useful sales reports can help you prioritise your business to concentrate on sales that give your business a higher return. With these reports, you can also figure out exactly what’s selling well and what needs a boost, giving you the insights to take back control.
Important intel
- Know how you’re tracking – A POS system can instantly tell you how many of a particular product or item you’ve sold in the timeframe you desire; today, this week, or this month. You can also easily track how much money you have in your till and how much of that is profit cash.
- Manage your inventory – Detailed reports make it simpler than ever for you to maintain the right level of stock for your business. This lets you track your remaining inventory, spot trends in sales, and use data history to better forecast your needs so you’re always ahead of the game. Many modern POS systems have software that can even alert you when stock is running low so you can reorder and be prepared.
- Build a customer database – Many POS systems have the features to collect the names, emails and addresses of customers. This means you can use this database for things like loyalty incentive programs, targeted advertising, or email marketing – all of which can drive more sales.
Increase productivity
- Make management easier – Through automatic tracking of inventory, sales figures, product orders and reorders, and accounting reports, POS systems are a nifty resource to manage your team in a way that is more efficient, saving you time and excessive paperwork in the process.
- Improve transactions – a POS system streamlines your operations so customers get a faster and more accurate service experience. This, of course, will make them more inclined to return and recommend your business to others.
Note:
Like many things, POS systems are not a one-size-fits-all piece of equipment, much like no two business are quite the same. There are a range of POS providers out there all claiming to have the best system in the market, so it’s important to compare your options before purchasing.
Lucky for you, we’ve done most of the legwork so you don’t have to. With our simple tool you can easily compare quotes that are tailored to your business needs.
POS: HOSPITALITY VS RETAIL
Different business types will be better suited to different POS machines. This rundown will help you pair the basic system functions that are right for you so you’re one step closer to ultimate optimisation.
Hospitality
There are many different types of hospitality establishments that would also require different systems to suit them. For example, a deli, grocer, or any other business that sells products by weight will need a POS system that has a digital scale integrated into the interface.
Restaurants would benefit from using POS tech to eliminate the messy, handwritten element when taking orders which will reduce errors too.
Meanwhile, hotels could utilise different functions yet again, like the ability to transfer meal charges from the dining room to the guest’s room.
In all hospitality settings, POS systems improve return of investment (ROI) by charting inventory and costs. Once your POS system is set and configured to your individual business needs, it can yield a sizeable return to your bottom line of up to 2.6%.
Retail
Retailers can encounter common challenges when running their business that can hinder efficiency and their ROI. With the right POS system, retailers can create inventory and price entry for a particular product, track sales according to specifics like ‘size’ or ‘colour’, seamlessly integrate return and exchange functions, incorporate promotional kits like ‘buy 1, get 1 free, and automatically update details with each sale. With the right POS system in your toolkit, it’s easier than ever to elevate your business.
The purpose of a POS system is efficiency; to enable you to minimise the time spent with each customer while still providing a high level of service. With the right POS system, you have the ability to dramatically improve the bottom line of your business while enhancing customer service simultaneously. It’s a win-win!
THE SOFTWARE
The right software will help you address the essential needs of your business by providing the necessary features to thrive and operate more efficiently.
Basic features
Most POS systems in the market support a large range of common functions like displaying items and prices, handling taxes, returns, voids, payment option integration, discounts, accounting reports and inventory tracking.
Much of the restaurant and café tailored POS software can allow operators to incorporate extra features like waiting lists, online orders and special orders, track customer seating and more to make sure customer transactions run as smooth as possible.
Cloud-based system
Some POS software offers an “Internet data board” or mobile “dashboard” which enables you to get a snapshot of your daily business operations from anywhere, anytime. All you need is to be connected to the internet and you can access all the data stored in the cloud. Cloud-based software and apps for smartphones and tablets are becoming more and more popular in streamlining processes and increasing convenience.
Loyalty programs
POS systems can help businesses make use of frequent customer loyalty programs. This incentive has proven valuable for many businesses as it rewards returning visitors which inevitably increases sales.
Extra features
Image viewers – these show actual pictures of the products being sold to help staff and verify price.
Age verification – this automatically prompts for the staff attendant to ask for age verification for purchases such as alcohol and tobacco.
E-commerce options – this allows online ordering which is incredibly useful today with many patrons opting to shop online.
THINGS TO CONSIDER BEFORE BUYING
To help decide between many options and ensure that you’re not paying for extras you don’t need. Here are some things to consider when choosing a POS system:
- The initial set-up cost – how much to integrate a new POS system and if it will be compatible with your current hardware (i.e. cash tills, barcode scanners etc.) or will you need to upgrade this too.
- What features you need – be sure that the system you choose has the right features to make your business a roaring success without too many add-onS that you simply won’t need. It’s a good idea to make a list of what you need most from a new POS system and go from there.
- Decide if you want a cloud-based POS system – a number of businesses are switching over to cloud-cased POS systems because of the ease of using them and accessing the data, anywhere and at any time.
- How user-friendly the system is – no business should invest in a system that is too difficult to use so choosing one that is simple to operate and can be used on a daily basis by all staff is the way to go. You want your system to improve productivity and not hinder it.
- Inventory tracking – most modern POS systems can make managing your stock a much simpler task. This is valuable in ascertaining information about current stock, incoming stock, and stock at other retail locations for your daily operations. Many systems now even offer options such as purchase order creation, re-stock reminders and stock transfers to really drive productivity.
- Reporting – there’s no use in having detailed reports if they aren’t clear and understandable. Having access to clear data will help you make the right business decisions to help you get results. With great reporting features, you can understand what’s doing well for your business and recognise areas for improvement.
- Customer support – as a business owner you know that things don’t always go to plan. That’s why many POS system providers offer customer support so you’re not left feeling stuck. Some offer email and live chat support, up to 24hrs and 7 days a week.
PRICING
As with any business investment, you want to make sure that you’ll be purchasing the right equipment that serves you.
Costs for POS systems can vary greatly depending on individual business needs. A top of the range POS system that’s installed and customised to your business requirements could cost anywhere between $2000-$8000 or more, per terminal. This could include the hardware, software, training, and customer support.
It’s important to weigh up what’s necessary for your business to succeed as a high-end POS system could save you lots of money in the long run and futureproof operations.
You can also purchase POS systems that are much cheaper in price, as low as $1000, but these would typically have fewer functions. For this price point, you would likely need to install and program the systems yourself and you might not have the option of customer support.
Once again, every business is different so it’s important to consider what’s right for yours. Price shouldn’t be your determining factor either, as the system you choose should pay for itself over time through reduced expenses, improved productivity, and increased sales.
THE KEY TAKEAWAYS BEFORE PURCHASING
There are a number of important considerations that factor into this part of your decision. It’s a good idea to tick off the following points when considering your POS system purchase.
- Compare systems – You know your business needs and your POS system should fit them. There are many options out there, so it’s crucial that you compare and make an informed decision that will benefit your business now and in the future.
- Know the support policies – you want peace of mind that if something happens to go wrong with your system, you’ll have the customer support to address it ASAP.
- System backups & upgrades – some providers offer automated backup schedules for your POS system as well as alerts for upgrades. If these features would be beneficial to your business, make sure they are included in the POS system that you purchase.
- Training – Choose the training option that’s appropriate for your business and staff. Committing to the right type and amount of training will ensure you get the most out of your investment and futureproof your business’s success.
The team at Possibly can help you choose the right POS system that’s perfect for your business needs. And it’s free!
