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Business Guide to Point of Sale Systems


Point of sale (POS) systems can help your business increase efficiency and reduce theft and fraud. Not to mention, customers paying with a credit card spend more. As reported by Psychology Today, "In a sense, the combination of credit (which itself is an abstract concept) and payment that comes at a much later point in time may act as a numbing balm for the pain that is normally associated with spending money."

POS systems allow you to automate the sales process, to take advantage of this psychology purchasing.  Consider how your business can best use POS systems.

Benefits

POS systems are no longer an option for retail stores. If you’re not accepting credit cards you risk losing a large percentage of your customer base. While fees can be exhorbitant, there are a variety of other benefits.

  • You can track all transactions in a computer database to decide which products are selling and when.
  • POS systems decrease your record of inventory as products are sold. This enables you to keep a more accurate accounting of your inventory and identify discrepancies between the computer record and the inventory on the shelves.
  • The reporting feature included in POS systems also allows you to generate cumulative and comparative reports that can help you identify problems before they impact your bottom line.
  • Your bookkeeping is much easier – keep track of sales tax, payroll data and loss statements.

See: "Business.com Guide to POS Systems" and learn the various features of POS systems. .

Prevent Fraud and Theft

Because a POS system logs all transactions, you can work toward strategically improving employee theft. A point of sale system may also help you identify return fraud by showing you when store returns increase rapidly. In addition, the existence of digital receipts created by your POS system lets you verify that an item being returned was actually purchased on the day the customer claims.

Mobile POS advantages

One of the newest advances in POS technology is mobile POS. This software, which can be used with mobile devices, tablet computers or consumer style hand-held devices, allow you to carry out sales without bringing the customer back to a centralized register or checkout lane.

They are gradually replacing fixed terminals as the transaction system of choice. Between 2010 and 2015, the market for hand-held POS systems is expected to rise by nearly 30 percent and sales of non-rugged POS devices are expected to rise about 400 percent, according to the IHL Group.

Consider Expenses

POS systems are integrated packages of software and hardware. Although they are designed to provide years of service, it can be expensive to purchase and install a point of sale system. Additionally, upgrading the system may require purchasing new software or hardware depending on how the system was designed. When planning for your POS system, consider your options, and whether a mobile POS would better suit your business and budget.

Pricing

Retail starter kits range from $1,500 to $2,500, according to CostHelper.com. Other systems include management systems and software. When you purchase a system, make sure you know how many registers or terminals you will need, as this will affect the cost. Consider purchasing used or leasing to start.

POS systems are value to each and every retail store or restaurant. You can save expensive time by automating the sales process by tracking inventory, creating electronic sales records, processing payments, and generating printed receipts. Consider how the benefits outweigh the costs as you begin to determine your POS needs.

For more information on POS systems, print out our "Point of Sale System Checklist " and find out the "Benefits of using a mobile POS"

Get everything you need to grow your business

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