Is Computerized Point of Sale (POS) for you?
Most large retail stores have migrated from the old trusty cash
register to more modern computerized point of sale (POS)
systems. This post is an excerpt from POS for Beginners which
explores computerized POS technology and provides a roadmap for
anyone contemplating acquiring POS systems for their own
business.
IS POS for you?
Do you own a retail store? Do you currently use a cash register
to ring up sales? If so, you may want to explore the feasibility
of converting to a computerized point of sale system. POS
systems are finding their way into all sorts of businesses large
and small. It may be just the right ingredient to jumpstart your
salon or childcare business. A POS system can help your business
grow to the next level.
If the thought has crossed your mind while waiting in the
checkout line at your local food chain "Can one of those POS
systems help my business?", then you owe it to yourself and your
business to find out.
What is POS?
Point of Sale (POS) -- The physical location of a transaction,
but usually refers to any device or system that is used to
record the transaction for the retailer. Sometimes used to
classify all of these together. (I.e. the POS industry); e.g.
the grocery store checkout register or the retail checkout
counter.
For the sake of this article, POS systems will refer - not to
the traditional mechanical cash register, but to the newer class
of computer-based POS systems. The term "cash register" will
refer to the traditional mechanical or electronic cash register
that is not based on a computer.
Evolution of POS
Most people type on computers these days. For a long time, the
typewriter manufacturer's tried to resist the tide by touting
the new features of their products. Some added memory and LCD
displays to make their typewriters more "computer like". In the
end, they lost the battle. While typewriters can still be found,
by and large computer word processing has won the battle. Why?
Because word processing provided much more: Spell checking,
different fonts, graphics, pagination, etc. Typewriters couldn't
compete.
We're seeing the same battle now between mechanical cash
registers and computer-based POS systems.
Benefits of POS
A Cash Register is dumb. It tells you only how much money your
business has taken in during the day. It can tell you that you
took in $350, but it can't tell you how much of that money is
profit. It can't tell you how much inventory you have on the
shelf or what it's currently worth. It can't tell you how many
bottles of soda your business sold today or which favors are
more popular. A computerized POS can instantly tell you that you
have $350 in your cash drawer. It will tell you that $225 of
that $350 is profit. It can tell you that you sold 123 bottles
of soda today and that you still have 246 bottles on the shelf.
It can tell you that your customers favor Coke over Pepsi. It
can also tell you what items you should order today because your
stock is low.
While cash registers are improving, they're still being out
paced by the rapid development of POS.
According to Gartner Inc., a research and advisory firm, in a
study released in 2002, of 300 retailers surveyed, 81 percent
expected to see POS upgrades pay for themselves within two
years.
Here are just a few benefits of POS over mechanical cash
registers.
Register........POS
No..............Yes.............Inventory Control
No..............Yes.............Invoicing and Receiving
No..............Yes.............Interfacing with Accounting
Z-out..........Yes.............Reports
No..............Yes.............Inforced Accuracy
Limited.......Yes.............Integrated cc handling
No..............Yes.............General Ledger
No..............Yes.............Accounts Payable
No..............Yes.............Accounts Receivable
No..............Yes.............Preferred by tax accounts
This post is an excerpt from an ebook entitled POS for
beginners. This eBook is available online and can be downloaded
from http://www.barsnstripes.com.