The most beautiful sound for a business owner is the noise a cash register makes after a transaction. Unfortunately, and fortunately, the cash register has been replaced by store management software even in the smallest of shops.
These Point of Sale systems are crucial for businesses because besides ringing up sales, they also collect accurate data in real-time from both customers and the store inventory.
What Are POS Systems?
In basic terms, a point of sale or management system is a standard computer installed with specialized software. The computer comes with a:
o A cash drawer
o A receipt printer
o A bar code scanner
o A reader for credit and debit cards
Commonly, POS and management systems are sold pre-configured by companies. The option to add or remove a part or feature of the system is also present. It ensures that the software is scalable as per the requirement of the business.
What’s The Return On Investment On Management Software?
The most significant plus of POS software is the accurate data on inventory available instantly and at all times. A retail shop software automatically subtracts an item from the stock after it is sold to a customer. This inventory list is maintained in the hard drive or cloud of the system. The availability of precise and error-free data is crucial because retails stores have surprisingly large stocks.
For instance, a clothing store may have SKUs that run over 10,000. A supermarket that stocks everything from gadgets to cosmetics can have even more extensive inventories. Keeping track of each product and item manually becomes a chore. Moreover, errors creep in when a human employee does the work. Pilfering and theft are also common issues that shops face. A POS system removes the chances of mistakes occurring and aid in pinpointing the exact time a theft may have happened.
The other return on investment in POS systems is alerts. When inventory is done manually, a constant eye has to be kept on the stock. If there is a delay of even one day in re-ordering items, it can lead to substantial loss.
Management systems automate the process. The second an item reaches a preset level; it sends an alert reminding for the need of re-order.
The system does more than remind. It provides previous data, such as the price paid for the items. The information comes in handy when dealing with suppliers and striking a deal.
One more aspect of shop software that benefits businesses is reporting.
They are capable of generating reports on:
- Sales activity of the day, over a week, month, quarter, or year.
- Profit earned over a time period.
- Analytical predictions for the coming season by comparing inventory statistics over the years.
These reports help managers and business owners decide which items are profitable and which are gathering dust on shelves. Essentially, they help anticipate sales.
What More Can A Retail Shop Software Do?
Inventory and quick sales check-out process are the most prominent advantages of POS systems, but they are not all. A robust shop software comes with customer management feature. It keeps the entire purchase history of every patron of the shop. By keeping track of what customers like to buy and when they buy, the business has more chances of sales.
For instance, say the store has just stocked a new type of tea. By checking which customers bought the most tea, a notification can be sent to all of them. If not all, then at least some of them will be interested in purchasing the new brew.
Is Retail Management Software A Must?
In short, yes. For a well-run business, POS systems are essential. They keep not only an accurate track of the finances but also the inventory. Keeping a check on the stock is the most time and labor demanding chore of a retail store. Even a small mistake can become costly in the long run. Too little stock results in customer loss and too much stock leads to money loss.
A shop software is similar to a strategic service center. It ensures that you build a loyal customer base and find new ways to expand the business.
I am Bhagwati Suthar, Founder of Jobiba & TezLife.com. I am a Blogger, Affiliate Marketer and a Digital Marketer from Udaipur, India. At JobibaBlog, We share articles about Blogging, Marketing & Advertising, Business and Tech Tips.