What is a Point of Sale or POS?
A Point of Sale system or POS is the modern equivalent of an Electronic Cash Register (ECR) and a credit card terminal. It can be used by any type of business regardless of size or type. Directly or indirectly, they cover every area of a business. They can make all aspects of day-to-day running more efficient and profitable, from stock ordering to post-sale, targeted marketing. Also, these systems are now truly cost-effective and easy to use.
A POS system is made up of 2 components – hardware and software. While the physical machine is important and works like an ECR, a Point of Sale’s true advantage lies in its ability to capture, store, and analyze sales and purchase data ie the software.
POS solutions positively impact your bottom line as they increase efficiency and productivity, save time, and lower your cost of doing business. They also manage inventory and provide detailed reports to improve on customer and vendor relationships. Upgrading from an ECR to a POS results in a solid return on investment (ROI), both in terms of cost and business intelligence.
Benefits of a POS
- Lower Overhead
With automation in place, you may not need as many employees in your store.
- Increase store profitability
Effective inventory management with accurate buyer behaviour information can facilitate personalised and targeted marketing campaigns.
- Expanded Payment Capabilities
Customers like having payment options. POS also include the ability to diverse payments types such as EMV chip cards, contactless payments (NFC), and mobile wallet payments such as Apple Pay, Android Pay, and Samsung Pay. In one fell swoop, you can boost sales and customer satisfaction.
- Increased Efficiency and Greater Accuracy
Built-in time management features improve productivity while less time is spent correcting errors.
- Inventory Management
Unlike cash registers, POS systems have advanced features letting you manage inventory efficiently. These systems provide essential inventory data which is not available with cash registers.
- Ease of Use
Given the popularity and accessibility of touchscreens, learning a POS system is simple especially ones with intuitive interfaces. The software is easy to learn which means less training time and more time to be productive.
Most POS systems compile different customizable reports including daily sales figures, stock updates, and profit and expenses. Through these reports, you can see sales trends such as which products are in demand, allowing you to organize your stock before or after a particular season. Most importantly, these reports will allow you to identify areas where you won’t need to spend a lot of money.