What is a Point of Sale system?
A Retail Point of Sale (POS) system is combination of software and hardware components that allows your retail business to accept payments and track transactions. Back in the days POS used to refer to a simple cash register, but now the latest POS systems are digital and go beyond just credit card processing to help retailers incorporate mobile POS features, contactless payment options, ecommerce integration capabilities, and so much more. The customer has so many options to pay now so make sure you have the right POS system to cater to them anytime anywhere; whilst keeping an eye on all your sales transactions.
POS vs Cash Registers
The primary difference between a cash register and a POS system is that cash registers are built to manage sales alone; POS systems on the other hand can be the command centre of your business, allowing more functionalities and integrations than just billing the customers at the till.
A cash register can only report on how much revenue you are generating through sales; whereas a POS system has the ability to show you how you can make more money by cutting back on products that don’t sell well, managing inventory better, rewarding most loyal customers, training staff who need the support, identifying and cutting unnecessary costs. POS system also allows you to accept payments, anytime anywhere even on your smart device.
How to find the best POS fit for your business?
It is very important to do some research within your business and understand your needs. Some key factors to consider are:
What are the issues with your existing system?
If you already have a POS system that you’re looking to replace, start by identifying its shortcomings as well as features that would help make your operation more efficient.
What does the future hold?
Are you a growing business? Then you need a POS system that can easily upgrade to your expanding business needs without a need to switch systems.
What Hardware do you currently use?
If you are happy with the existing hardware in use, then you need a POS that is compatible with them.
What Software or applications do you use?
Similarly, If you’re happy with your CRM, ecommerce, accounting applications, etc., then you need a POS that can easily integrate with these applications.
Most importantly, what is your budget?
Budget is a big factor as it determines what POS system you can afford. You have to weigh the benefits and costs to find the best POS solution for your business
POS Hardware vs Software
Every POS system uses POS software, but not all businesses need POS hardware. If you are only an online presence then just the POS software would work for you. On the other hand if you are a small venture, then hardware with limited software features would suffice.
Common components of POS hardware are:
- Touchscreen display and computer
- Barcode scanner
- Card reader
- Cash Drawer
- Receipt printer
Software features include
- Payment processing
- Inventory management
- Analytical tools and POS reports
- Employee management including rostering
- Receipts and refund support
Now that you have a better understanding of POS system, let us help you find the right one for your retail business needs!