Jul
15
By Gavin Dixon
Retail Point of Sale software has many obvious benefits to the business owner – tracking sales, managing inventory, streamlining accounting practices, and building customer loyalty.
Not so obvious is its ability to deter theft. Deter theft?
Shrinkage, or merchandise stolen by employees, remains a significant problem for the nation’s retailers. The Australian Retailers Association estimates between 1 and 5 per cent of total turnover disappears this way with those in the jewellery, perfume and accessories businesses being hit the hardest.
Raising prices to cover those losses often isn’t feasible or competitive and with an absence of insurance policies to cover shrinkage, business owners see profits slashed and workloads increased to make up the difference.
Good POS software effectively manages inventory, allowing business owners and managers to view stock levels instantly. Accurate inventory control keeps them in control while ensuring employees are not helping themselves to merchandise. The result, most retailers will find, is saving thousands of dollars each year.
Inventory management is by many accounts the most important benefit Retail POS software brings to the table.
Aside from the added advantage in working as a theft deterrent, inventory management capabilities enhance the business owners operations by allowing the creation of customised reports. Such files can track sales, stock items on hand, service items and even group items to be sold as a kit or purchased in a case and sold as 6 packs. All are at the software operator’s fingertips and are readily available in order to maintain at accurate pulse on stock levels.
Besides inventory management, what other features should business owners be looking for in a point of sale package?
Sonya Farrawell, a Reckon Retail POS software expert with Calculated Analysis in Sydney, says the software must be easy to use, produce professional results and include great reporting capabilities. In addition, it needs to be efficient so customers aren’t stalled at the checkout counter waiting for sales staff to process the transaction, she says.
Point of Sale software allows retailers to maximise their selling potential while at the same time keeping a close watch on income and expenses. Retailers can quickly see which products are selling and which aren’t, mark-ups, and those that are the most profitable.
Sales can be further enhanced through the creation of customer loyalty programs and promotional pricing that the business owner can establish for certain shoppers based on any number of criteria. While loyalty programs are often high on business owners’ wish lists, they are low on being put into practice, says Tim Coop, managing director at POS PLUS & TCI Professional Services in Bulleen, Vic.
The real value, he notes, is using point of sale software to build customer profiles to include the items each purchases most frequently as well as the best selling goods over say, the last 6 months. This enables retailers to set up product promotions in advance to capitalise on customer buying patterns.
While tracking customer purchases, POS software can also identify which sales staff are selling which products and how much each sells over a given time period – a valuable tool for those business owners who pay their employees by commission.
Other functions an effective Retail POS package will offer, Farrawell says, include the ability to create bar codes, integration with EFTPOS, multi-site capabilities and automatic stock level reorder points. For those in the hospitality industry, the ability to send orders to the kitchen, recall orders from any terminal and kitchen printing capabilities are also invaluable management and time-saving tools.
Touch screens, seemingly a major component of most retailers store front operations, further improve simplicity and time efficiency. As such, selecting a touch-screen compatible Retail POS package is a wise investment.
For cafes, bars, convenience stores and other businesses, time and image are vital aspects of customer service. Touch screens deliver both. Without one, you’re trying the patience of customers with sales staff who fumble with a keyboard or mouse to complete a sale.
Similarly, there is no question Retail POS software is easy to use.
Coop says it is the simplest software program to run at the counter with an operational logic that is based on a cash register. Many business operators still remain frightened of technology and computers in general, he notes, but once retailers realise how easy Retail POS software is to operate, they never go back to the register.
Gavin Dixon is the CEO of Reckon Limited’s Business Division in Sydney, Australia. Reckon is the supplier of QuickBooks accounting software. http://www.reckon.com.au
Article Source: The expected, and unexpected, value of Retail POS software