What is a Point of Sale System: An Introduction
A point of sale system is a system where customers make a payment for services or goods at your shop. Each time a customer buys something at your store, you have a POS transaction. A POS system acts as a center for your firm’s transactions. Everything from inventory to sales to customer management mixes into your POS.
The location of your POS system can be digital or physical. Most online stores use a digital system to keep track of their sales. Physical stores are perhaps to use a physical POS system. If you own an eCommerce business, you can still use a point of sale system. Some of the systems only take online payments.
A point of sale system is the soul of a business and is utilized for many significant tasks like customer management, sales reporting, staff management, price adjustments, menu customization, labor reporting, inventory management, market initiates, etc. POS systems have allowed anyone, from artisans to business-minded entrepreneurs who want to turn their passion into their profession, to start a retail shop and grow.
Benefits of Obtaining a POS System for Your Business
If you’re thinking about growing your business operations, a POS system is a great way to go. POS systems are full of benefits for your hard-built business. Some of the benefits are mentioned below: –
Better Analytical Planning & Thinking
Point of sale system makes it simpler to keep track of inventory, to notice and analyze tendencies and movements in sales procedure, to analyze sales data and other information in order to ascertain more accurately future trends and your business’s needs.
Increase Your Business Efficiency
It makes the handling of your business’s paperwork more time-saving. Managing orders and bills, reports or sales figures are made very suitable. Besides the working environment, the POS system also surges the efficiency of the everyday sales environment.
Positive Effect on Your Business
It enables you to have better access to your business activities. With a point of sale system, you know exactly which commodities you have sold on a daily or monthly basis, how many commodities are in the storage house, or much profit you have made.
More Efficient Personal Customer Communication
It makes it very simple to gather the contact details of your best customers at the same time they complete their transactions. This data is important for making personal offers and creating personal customer communication. Therefore, with a POS system, you can boost your profits and save money, and also, it assists you to make more informed decisions regarding your business.
Consistency of the Catalog
For retailers selling across many locations, keeping the consistency of their product catalog can be challenging. POS software keeps an online catalog of information that is available across many locations. You don’t have to worry about setting the same item prices across businesses. The POS will do it for you.
How Do POS Systems Operate?
The implementation procedure of a POS system is important to know, especially if you’re thinking about purchasing one. There is a great deal of difference between cash registers and POS systems, but commonly speaking, utilization is typically the same across platforms in the sense that a POS system is utilized to enhance sales and to accept payments. This is the simplest explanation of the work.
Here’s an outline of how POS systems operate: –
- The Setup
There are hardware and software mechanisms to consider depending on the type of the business. For example, if you run a retail business, you require a retail POS system. If you own a bar or restaurant, then you require POS hardware and software concerning the same. The systems aren’t interchangeable. So, you’ll need to choose a POS that would provide suitable solutions according to your business.
Your POS software has to be designed to accept the products, menu, and inventory that you’ll be dealing in. Most POS companies will design your menu items as a prevailing client or additionally for a fee. This can be a time-consuming procedure, especially if you have a lot of inventory items.
If you plan on taking debit/credit card payments with your point of sale system, then you need to go for a business account. A business processing account is required to accept debit/credit cards from your clients. POS companies will provide a business account to integrate with your POS.
Most companies provide some support or service to offer installation. It essential to get a proper installation to ascertain all your hardware and software work properly according to the company’s manuals. Otherwise, you would risk technical problems, and that’s the last thing you need to face when operating a business.
Training and assistance are very critical to get the best out of the software. Some companies will provide remote or online training, but if you’re allowed to get training onsite with all the staff present nearby, that would be the best possible scenario. Although, know that latest the POS systems are user-friendly and easy to learn.
What is a POS Terminal?
A POS Terminal is a card-reading machine that accepts payments for an order placed through the POS system. Such machines may or may not be unified with the POS software.
You might’ve noticed that in certain stores, the card is swiped on a single machine and the bill is printed. These POS terminals are usually designed into the system as a whole and are unified with the POS software for smooth order handling and faster checkouts.
POS terminals usually accept all modes of payments over chip-based and swipe cards. Modern terminals also accept NFC and other payment options like Apple Pay, Samsung Pay, PayTm, Google Pay, etc.
What to Look for in a Point of Sale System?
The POS you select has a great impact on how you perform day-to-day business operations, and how you grow your business each year. Let us tell you what are the factors to look for in a POS suitable for every kind of business: –
- Employee Management
You can utilize POS terminals for an employee coming in and going out, requiring that employees validate their identity, so you only pay them for the time they work in. You can also utilize your POS system to design employee schedules, saving you the time of manually adjusting schedules for alteration.
- Inventory Management
POS systems can help you replace manual counts with time-saving and proper systematized procedures. Certain POS solutions can even notify you when the inventory is running low and offer you the information you require to issue a purchase order timely.
- Third-party Integration
The POS system that you are considering should integrate with your customer relationship management, online ordering, accounting program, or other business-related activity. Third-party integration means data is automatically shared with other programs, saving you extra time.
- POS Reporting
The real-time reports made from your Point of sale system can assist you to pinpoint the sources of shrinkage if any, and keep a close eye on expenses. POS reports also enable you to record key performance indicators that show that your business is moving in the direction of the goals you set.
Receipts make performing refunds simpler since there’s a digital or physical paper proof of the purchased item. They can also make your store look more well-established.
- Tipping Support
For service experts and restaurants, tips can be a great part of getting paid. POS systems that enable customers to add an online tip during the checkout process, make it more possible that they will tip.
Different Types of POS Hardware
The hardware components you require can vary depending upon the type of the business. Below mentioned are the common hardware components used by every POS business: –
- Connected Device
A portable device like an iPad or a tablet can be a great alternative to a monitor. Such devices can be propped up with a stand, enabling your employees to clock in and out.
- Credit Card Reader
A card reading device allows your customers to securely pay through credit card while in-store. Most customers prefer the digital method of payment because it is generally faster and time-saving.
- Cash Drawer
Even if you have a card reader for contactless payment, you still need a cash drawer for the cash payments. POS software that is connected to the cash drawer can mitigate fraud by tracking properly when the drawer is opened.
- Bar Code Scanner
A bar code scanner reads a product’s details so you can purchase it. It is also a great way to double-check the price, inventory level, and other details.
- Receipt Printer
A receipt shows consumers exactly what and when they have bought the brought and how much they paid for it.
A unified point of sale system becomes much more than just a site of transaction. It almost acts as a business assistant for you. Keep in mind, POS system can be expensive, especially when you’re searching for one that is filled with features. Keep your business budget in mind while searching for a POS system.