7 Obvious Drawbacks Retailers Can Avoid With Help from the POS System
Most businesses try out different technologies but fail to meet their expectation. What results is a long list of disappointments, and that is why some business owners find it hard to switch their operations in the digital era. However, they miss out on numerous benefits that come with adopting technology such as the POS system. Why invest in this technology? What do you get out of it regarding business efficiency? Since most managers are risk averse, they have to take their time before plunging their business into a technology they have no clue about. Well, it is a wise decision as you need to take care of the shareholders or owners of the business.
The POS software works in a way that it makes your work easier. Inventory management is one key role it plays. If you have an online shop, your customers can know the amount of inventory you have in real time. According to a 2014 survey by Accenture, about 40% of potential customers said that they would not buy from an e-commerce site that is not indicating the amount of inventory in real-time. Your goal is to attract all customers and thus a great way to deploy such a system for your business. Some of the drawbacks that can be avoided with the POS system include:
Time is a variable that has to be keenly considered if you want to lure more customers into your store. Having to wait for long will drive them away. For example, if a customer comes to your store and meets a long queue of other customers, 50% chance is that he or she will go and come later or buy from another store. It is frustrating having to wait in the line for long. With a point of sale system, you can reduce such a queue as the speed of processing transactions is high and thus little time spent on the counter.
Loss or theft of cash and inventory
Employee theft is not new in the business world. Proper cash and inventory management techniques will be made easier with the point of sale software. If you can track your inventory of cash in real time, then you have control of your business. It is possible to generate cash and inventory reports on a daily basis and detect errors or fraud early. This will reduce theft and errors in your business.
Customer relationship management
Your customers are your assets. When they make a purchase or your items, they contribute to your profit. The Point of Sales software will have a customer management program which gives you a better way to keep in touch with your existing customers. Since you have their personal details, you can keep them updated on the latest stock and price list.
You owe suppliers through the credit purchases you made. If you want to manage debt without having to go to the books, you can set the due date for the repayment of the credit purchases, and the point of sale software will remind of the due date. It acts as your dairy where information can be accessed from anywhere as information is stored in the same database.
Untimely report generation
The problem of untimely generation of audit and financial reports is common among those who have not discovered the point of sale system. It gives reports on-demand. If you want a report on the employee performance or contribution to the profit, you can get that on-demand. It minimizes the paperwork load and thus a great way to keep your business running smoothly.
Different seasons will attract a different number of clients. During peak seasons, the POS system will be able to serve multiple customers through your store outlets. It can process hundreds of transactions depending on the size of your business and customer base. You, therefore, do not have to hire more staff to cater for the huge number. When you experience off-peak seasons, you can still manage with the few transactions and direct the unutilized resources to other productive areas such as marketing.
Filing tax returns
It is vital that you know when the tax is due. The value added tax will attract different rates for different products and services. When you set the tax rate for the group of products and services you deal with, the POS system will do the rest. You will be able to know when the tax is due and the amount you need to pay. It thus gives you a better competitive edge over your competitors.