5 Advantages to Using Point of Sale Systems
What makes a point of sale system (POS) different from a traditional cash register? A cash register is used to store the details of each sale. In addition, it can tell you what items have been sold, and the amount of cash you’ve gotten at the end of the day. This data is then used to update account files or stock lists.
An electronic POS system, on the other hand, is much more advanced. These utilise a software that is linked to multiple networks of the business. These POS systems can store a virtually endless amount of data in great detail about your clients and sales instantly and reliably.
The utility of a POS can be enhanced by attaching a scanner to it. The scanner can then be used to read the barcodes of items and the POS will automatically generate a sale based on that.
A point of sale system holds many advantages over the traditional cash register. Some key advantages are listed below:
1. Point of sales systems are much more efficient
A POS system offers a variety of benefits to a business manager or director, but let’s take a look at how it benefits a company from the ground up. The employees, who are usually using cash registers to record sales, experience a massive boost in productivity when they transition to a POS system.
For one, they don’t have to memorise the price of each and every item on the stock list. Secondly, they don’t have to spend time manually recording the details of each sale as they would on a traditional cash register. With a POS system, all of this is automated.
This in turn frees up the employee’s time to offer better customer service by giving time to other important queries the customer might have. This ultimately leaves a better impression on the customer and they’re more likely to return to your business because they feel taken care of.
Additionally, cash registers make the rectification of user mistakes quite difficult, whereas on a POS system the same can be accomplished by just a few mouse clicks.
Not only does a POS improve staff confidence, it also boosts productivity and the easy rectification of mistakes means customers are not under-charged if a mistake does occur.
To put the productivity boost into perspective, a traditional cash register can take up to 6 seconds to record the data of a single item. A POS, on the other hand, does the same in under half a second.
2. Improved accuracy of reporting
Most modern POS systems also include some sort of reporting module which can provide useful information. This can include daily stock levels, sales reports, and an overall view of how their business is performing.
More advanced POS systems can include reporting software that can identify sales trends such as seasonal products that perform better in certain times of the year. This allows merchants to better plan their inventory, so they never have an abundance or shortage of items. This contributes to an overall more efficient business which means better profitability.
3. Easy management of stocks
Traditional techniques of stock management require the merchants to manually review sales records and updating stock lists based on the number of items sold every day. This has to be done on a regular basis and can be extremely taxing in terms of time. The problem gets only worse if the business is shifting a large quantity of items every day.
A modern POS does stock management automatically every time an item is sold. The POS is connected to a stock inventory database where stock levels are constantly updated so merchants can make purchase decisions any time they want.
4. Improved tracking of employee activity
A POS system also allows business managers to track their employees’ activity. Even if multiple employees use the POS system, they can be assigned unique clerk codes which are then linked to the sales that they make.
By tracking staff behaviour, merchants can identify employees with strong or weak sales figures. This leads to better management of employees which is surely beneficial to the company since it allows merchants to take appropriate measures for the weaker employees.
Tracking also discourages employee theft, since they know that each of their transactions is being recorded.
5. Consistent prices across many locations
For merchants operating a large scale business across multiple locations, keeping the price consistent across all outlets can be a challenge. With a POS system though, this becomes a problem of the past.
A POS can be linked to a central database where records are maintained for the price of each product. This way, each of the outlets gets the same price regardless of where they are located. The POS can also be programmed to offer unique discounts to specific outlets, giving businesses the flexibility they need to better serve customers.