A Point of Sale or POS system is a software solution that uses hardware and software to centralize and simplify daily business operations. The right Point of Sale software can manage inventory, sales, employees, marketing, and more allowing a store owner to keep track of their tasks.
There are pros and cons to installing a Retail POS software. Here are a few things every small business owner should think about before getting a POS system.
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What a Retail POS Software Does
Point of Sale systems share one common purpose – to collect payments and process sales. But, POS software can do so much more.
One value that a Point of Sale system can bring to your ecommerce business is simplifying daily operations. You will be able to save more time and not deal with day-to-day tasks that can be automated. You can finally focus on running your business, finding ways to increase sales and profits.
Retail POS software can also boost the efficiency and productivity of the back office by improving accuracy. The POS systems are designed to reduce human error, as well as, track inventory and sales. With this data, your Point of Sale system can provide detailed reporting and data analysis with just one click on a button. This gives retailers the control and visibility they need for decision making.
Another growing benefit of POS retail software is the ability to improve customer experience. Loyalty programs, line busting, targeted promotions, and more are just a few ways that your Point of Sale system can factor into improved customer satisfaction.
However, not all small business owners agree POS systems is the right solution for their businesses. What do you think? Is your business operating as smoothly as possible? If not, POS retail technology may help.
5 Pros & Cons of Using a Point of Sale System for Small Business
Here are 5 pros and cons of using a Point of Sale system:
1.Customer Data Protection
The number one responsibility as a small business owner is to protect customers’ personal credit card information. Without POS retail software solution, keeping your customers’ payment information is not possible.
Through a POS system, you will be able to connect with PayPal and keep all information safe and protected.
2. Centralization of Important Business Activities
Point of Sale systems combine all kinds of operations – orders, sales, credit or debit card processing, accounting, inventory management, relationship management, customer data, payroll, staff scheduling, sales reporting, and more into one hub.
One of the biggest benefits of Point of Sale retail technology is to help business simplify their day-to-day operations. Rather than using different solutions for different operations, everything has been combined together. By doing so, you will be able to save dozens of hours of work every week that was previously spent on running the business.
3. Customer Retention
All good POS systems can process all kinds of sales including credit card payments, ACH transfer, check, and more. Allowing on-file accounts is possible as well.
Keeping customers coming back by making it effortless to do business with your store is less work than finding brand new customers.
4. Complicated Setup
Enough about benefits. Let’s see the downsides of using a POS system for small businesses.
One of the biggest disadvantages is the complicated setup. The Point of Sale systems tend to be more complicated than you think and will take a bit of IT work. Sometimes, you may have to do something you don’t actually know how to do it. Your employees have to find a solution or solve a technical issue by themselves. You can always contact the vendor’s customer support, however, there may be a time when you have to deal with something by yourself.
Another thing is the cost. The cloud-based systems can cost from $50-$200 per month while the hardware can cost up to $3000 or more.
There are five basic hardware components and each of them is strongly recommended and almost essential for the POS system to work at any store. The five components are a credit card reader, register screen, barcode scanner, receipt printer, and cash drawer.
A mobile credit card reader might do all five tasks – you can plug directly into your smartphone and send receipts while accepting payments. If you are using a mobile credit reader, a barcode scanner is not required. Products can be recorded manually.
Tablet-based POS systems have helped reduce monthly expenses. Also, custom solutions can be created. You can choose a credit card processor based on your business’ needs and budget.
5. Theft Potential
One potential drawback of a Point of Sale system solution is that the business owner usually does not have time to coordinate the sales with the bank deposits. This leaves the door open for criminals and potential theft.
What to Look For
If you decide that a Point of Sale system is right for your small business, we recommend you to look for a system that is intuitive and comprehensive from a long-term and well-established provider.
And don’t forget – always test before you purchase.
The last thing you want to implement something that doesn’t fit your type of business. Small businesses should go for a POS service provider that offer free trials so they can test the system firsthand.
Consider the features your small business needs. Write down a list of features and once you have the list take a look at the best POS suppliers to find the best option. Here are a few important questions to consider:
➔ Are the basic features all your business needs?
➔ Which POS system works best for you – cloud-based or on-premise software?
➔ What payment processors must the Point of Sale system have?
➔ Are any extra hardware elements your store needs? Is it going to be just software?
➔ What price range/monthly fee are you comfortable with?
By answering these questions, you will be on your way to choosing the best POS system for your small business, of course, if you think that a POS system is right for you.