Why use a POS system to manage my store

Why use a POS system to manage my store?

One of the focal points of any retail or hospitality business is the cash register. The ability to process transactions and tender cash are essential to the efficient operation of the enterprise. If you have a lot of cash transactions, replacing the cash registers with a Point-Of-Sale (POS) system save you money. A POS system is computer software and hardware networked together to track sales and inventory as they occur. POS systems will solve a multitude of problems in your business.

Since implementation of a POS system is requires a large investment in time and money, the selection of software and hardware requires careful research into the features available and associated costs.

Generally, if your business has annual sales of $500k or more, you can achieve considerable savings and benefits from a POS system. From a Return-On-Investment perspective, it should pay for itself in between 1 and 2 years. For the new business, a POS system is a smart investment. The savings in labor hours and increase in efficiency makes balancing staffing easier, and the POS system automates many time-intensive tasks. Most POS software helps you stay aware of how your business is performing.

Many owners and manages find that the reports generated from the POS system invaluable in the day-to-day and long term management of the business. From revenue and profit reports, ordering reports and product sales reports, the POS system offers a perspective of the total business that is difficult to grasp in other ways.

Here are some of the advantages of using a POS system to track and manage your business:

Reduce Shrinkage - since inventory quantities are tracked in real time, understanding shrinkage becomes easier. Every modern POS system includes receiving and inventory functions. Proper use of these functions helps pinpoint the causes of inventory loss, reduces "out of stock" conditions and makes overall business management easier.

Manage Specials - POS systems automate the process of tracking current and marked down pricing. Discounts, coupons and promotions are often critical to attracting and retaining business. POS systems excel at managing and reconciling short-term discounting automatically.

Maintain Control - Many business owners discover that efficiency and customer service suffer when they're not on site. POS systems give you the ability to track volume and performance when you're not on the floor or you're busy with other tasks.

Improve Efficiency - POS systems allows your staff to tend to revenue generating tasks such as helping customers.  It eliminates the need to double-check inventory disparities and cash register reconciliation. POS systems dramatically reduce the effort required to do inventory and other repetitive paperwork. Improved efficiency means higher customer satisfaction, lower costs and higher sales.

Timely and Accurate Reports - POS systems give you the ability to analyze sales data. You can measure the effectiveness of pricing or advertising campaign. You'll know what items need to be ordered and in what quantity. You can identify high margin items and promote them further. You can easily calculate daily gross revenue, cost and profit. Historical data analysis helps to forecast your future needs.

Improve Customer Satisfaction - Using a POS system with barcode scanner will significantly speed up the check-out process. It gives you the ability to recognize your best customers and reward them for their patronage. It can easily collect customer data (from credit card transactions) that you can use for targeted advertising and incentive programs.

Manage Using Remote Access - Many POS system software packages give you the ability to manage the system while mobile. Whether you're traveling between stores or taking a day off, remote access gives you the ability to see what's going on at the location and take action when needed.

Flexible Expansion Options - Most POS system software gives you the ability to add registers and administration computers. If you have an eye to expansion, make sure that you can connect the multiple stores via the web or other connection method. This will allow you to use a single system to manage all your locations.

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Three Tips for Saving Money with Your POS System

In general, POS systems are necessary to the restaurant industry. However, finding the right one can save you a handful of cash as well. Still, many restaurants use their system and software for basic needs without diving deeper into their options. You may be surprised to find that using your POS system, when used to its full capacity, can save time and money. Check out these 3 money saving options.

Inventory Management

      Knowing what you have in stock at the beginning of the day and before you close, as well as staring the week and month, is integral to saving money. Whether food cost is high or ordering is off, you want to keep track of what you have so you can track down the problem and avoid losing money.

• Theft: Employee food theft is not out of the question. Be wary of this if your food losses don’t match up with what is left behind.
• Better ordering: If you’re falling short each month, you’re not making as much money as you could. If you have a surplus, you’re spending more than you need to. Either way, using your POS to keep track of this will allow you to keep a steady cash flow.

Pricing Accuracy

       New or careless employees may not be concerned with charging too little or too much for specials and discounted meals. A POS system will allow you to ensure that the right amount of money is coming in, so you aren’t falling short at the end of the day.

Daily specials: Instead of relying on employees to input the correct price, utilize your system to put it in for them. You can often customize certain buttons for each special and modify it as often as you like. Each daily special can be different and you can modify it right within the POS.

Time and Attendance

      Running a restaurant means you have a lot of employees to watch for. Whether they are coming or going, it’s easy to lose track of someone in early in the morning or during a late night closing. To avoid employee time theft, take advantage of built in time and attendance software.

Accurate employee hours: Don’t give employees a way to take extra money. With time and attendance software you can show them when they clocked in and when they clocked out. This can be integral to avoiding a loss of wages lawsuit.

Labor loss: If sales are low but you’re fully staffed for rush hour, your labor is going to be high, which costs you money. Monitor this with even the most basic POS software. This way you can let people off or call more people in accordingly.

While POS systems seem simple, they can actually make a big difference in your bottom line. From employee time theft to high food costs, it’s important you are able to keep track and adjust as necessary. Find the right POS system for your business, take advantage of each feature, and watch the cost savings start to add up.

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