Point of Sale (POS) systems – the backbone of good retail
All good retail businesses, no matter how big or small, understand the importance of an effective Point of Sale (POS) system. A good system does more than just process sales, it helps boost sales, keep your customers happy and ultimately save you money.
No matter what you sell, if face-to-face sales are at the heart of your business, then a good POS system is essential. For retailers there are huge benefits to closely monitoring your sales patterns, and now it’s easier than ever with online POS systems that integrate seamlessly with your online accounting software. Here we have highlighted the main benefits.
Information is key to selling. The more information you and your staff have on your products, the more knowledge you can pass on to your customers, to help you influence their decision to buy.
POS system makes product information available at the click of a button, giving staff the confidence to sell, up-sell, cross-sell related products.
Simple inventory management
As simple as it sounds, working out what sells well and what doesn’t can have a huge effect on overall profitability.
If you run out of your bestselling lines you are missing out on revenue until you can replenish stocks. Equally, if you have stock that just won’t shift, you need to know so you can adjust orders to avoid tying your capital up in stock and prevent future losses.
All good POS software has a built-in inventory management system or easily integrates with one. Insight from inventory reports helps you streamline your stock orders, reducing waste to improve profitability.
When connected with your accounting software the right POS system also helps to assess profitability of product lines. This will allow you to explore trends between sales volume and pricing, so you can make adjustments to achieve the best returns.
Understanding your customer
By understanding your customers and their buying habits, you can provide the best possible service and tailor your marketing and promotions accordingly.
POS software allows you to track information about your customers buying habits, loyalty and seasonality, so you can target special offers, loyalty rewards and promotions. You can use this to boost sales at the times you have identified consumers are most likely to buy.
Managing your people
Retail staff are at the forefront of your business and key to making those all-important sales. Effective POS software has individual staff logins which track sales performance for each employee. This provides great insight into who’s performing well or highlight those who may need extra support or training.
Not just for big business
Not so long ago this type of technology was only available to larger chains – but not anymore.
Xero’s cloud-based accounting system links to many POS and inventory management systems which are both easy to use and affordable. This gives independent operators and small businesses the competitive edge to succeed in their fast-paced markets.
To find out more about how we can help you setup and manage Xero for your retail business contact Adrian Le Roux