What is a POS System and Does My Business Need It?

A point-of-sale device is a core component of the organization and consists of many main components of both hardware and software that work together to allow the cashier to carry out consumer purchases. The programme used is usually similar, but it can vary significantly.

What makes up a point of sale system?

The POS system is very important to your business and it consists of various key components of both hardware and software that work in a team to allow the cashier to be able to complete sales of the customer.

THE HARDWARE

Screen for the Device Registry (monitor, tablet, etc) – Which helps the device to clearly portray the various functionalities. Ring up a transaction, view detailed reports and handle inventory using a GUI.

Barcode Scanning System –  The barcode can be used to simplify checkouts by quickly checking all important details including the price and stock size, to be able to store all items sold by your company in your warehouse system.

Credit Card Terminal – In a 2017 survey (https://www.tsys.com/2017uspaymentstudy), over 1,000 customers were asked by TSYS Credit card terminal payment provider which mode of payment they favour. 77% preferred credit/debit cards, while just 12% opted for cash. Cashless payments can only grow, as contactless payments have become more and more common

Reception Printer – While new POS programmes can deliver e-mail/text receipts to customers, most shoppers still choose conventional paper receipts, since anything that summarises the transaction is easily and automatically gratified.

Cash Drawer – While many consumers favour cashless payment, you can not ignore the use of cash by customers. It is a simple-a drawer with a cash file to adjust the way consumers buy it.

THE SOFTWARE

There are two common types of POS software which is local (on-premise) and cloud-based.  On one or more computers in your business place, local POS systems with an optional backend server are installed which act to centrally store data on any sales point. You are responsible for programme updates and can need additional capital to better set up the network infrastructure to ensure maximum protection and efficiency.

Cloud-based POS solutions are also known as SaaS POS and all of the software is accessed via the internet and is hosted on the cloud. These technologies have typically been designed such that the app can be continually accessed even though the web service crashes. 

What makes a good POS system?

The basic principle of all points of sale schemes is equivalent-the purchase is performed and registered and inventory control is provided. While all this will support your company alone, it can not really make your daily operations more effective. You need the tools and feature sets to carry out all of the activities that are essential for your company to function and expand your business efficiently.

Detailed Revenue Monitoring – Help you evaluate and forecast future revenue, preserve correct records and execute product marketing strategies. Figure out which goods are moving and which are not moving, and use the detail to prepare the marketing or sales campaign better.

Integrated Payment Management – Simplifies the transaction process and manages all data within a consolidated structure for increased accuracy and efficacy.

Flexible Inventory Administration – You can tailor your inventory data to your company form and conveniently import and export your compatible data. It manages automatic inventory-based warnings and other factors like expiry date are developed.

Employee Management – Keep track of your employees and give them a quick way to clock in and out. Manage your preparation and your salary quickly.

Customer Management – Get to know your clients better, remain in contact via mailing lists and other marketing resources even after the transaction. It is a perfect way for consumers to return with a personal touch and loyalty benefits.

Hardware Compatibility – Incorporate accessories like handheld computers, barcode readers and tablets to make it simpler. If you need to run the stocks and your POS device is on the other side of the shop, wireless barcode scanners are a godsend. When you need exact weights to eliminate a possible human error, digital scales are outstanding.

Performance – Regardless of how many positive things the device really doesn’t do well, it is for nothing. It slows down the most fundamental tasks to take so long. System breakdown will frustrate both you and your consumers through crucial tasks. Errors may cause data incorrectness or corruption inside the app. Technology is never flawless: look at how much the code is upgraded. Technology is not flawless. You want to upgrade and patch POS applications for any bugs on a regular basis.

Security – It is important that the infrastructure is stable when you interact with money and individuals and confidential customer information. Security has several aspects, as well as applications, hardware, network infrastructure and even lack of citizens. Since there are so many components, you can use a safe POS method to address at least one component.

Integration – You will benefit immensely from incorporating and collaborating with other applications you use. You may want to synchronise data with your POS setup automatically with Quickbooks. Or you may want to synchronise your distribution outlet, client and order data with your e-commerce platform. With a framework that is able to fulfil this need, you are more effective in running your business.

Scalability – The POS system has to evolve as the company progresses. We advise that you bear in mind the future when you are searching for the next point of sale strategy, whether this is multi-location or omni channel sales.

Does it really matter?

It is crucial to have an outstanding customer experience. One way of achieving this is to make the checkout process quick and easy. The prompt replenishment of supplies is another means of satisfying your needs. It goes a long way to instruct your customers to reward loyalty and to carry out strategic Marketing Plans which keep you interested in goods. Enabling you and your employees to handle regular activities in a clear and efficient manner, allowing more time to concentrate on business growth. By extending to other distribution platforms, you can discover new streams of income simply by using one method.

But… Isn’t it expensive?

Budgeting is true and it is necessary for your business. Although it can be intimidating and frustrating to substitute what you’re accustomed to with modern innovations, it’s crucial to remember that in addition to a variety of helpful instruments that help the clients sell their business more efficiently, the time it spares on daily activities is the exactness it offers them. Any costs are significantly greater than the return on investment.

In reality, your company saves money by using a POS system:

• Removal of stock shrinkages from employee burglary, abuse and misuse.
• Providing greater margins based on detailed revenue data, which can be used to market unique success products strategically.
• Boost accuracy by not punching each object manually during a sales transaction. Say farewell to human error and speculation.
• Reduces the amount of documentation that in turn saves you time. If the taxes are measured, inventories are carried out, revenue statistics compiled and other operating activities are required.

There are nowadays options for points of sale that come under a spectrum of prices. There are free POS solutions that can function for your business, although some features are missing. Many options are also available at low monthly rates. There is no reason why you don’t invest in a point of sale scheme, be it running a grocery shop, a bakery, a pub, a pizzeria, salon or grocers.

At PosZit we are committed to delivering a fully personalized POS approach that fits your business demands, fits your budget and encourages your business growth.