The point of sale (POS) is a critical component of your company’s success. A robust point-of-sale system helps the sales process run smoothly and quickly. However, a sound system will bring a lot of value to the point of sale above and above that. This guide will show you how to maximize the value of your point of purchase to increase efficiency, enhance company operations, and increase sales. Point-of-sale systems allow your small business to accept payments in various formats, including cash, credit, debit, and mobile. A sound POS system can also help your business boost sales and customer loyalty, control inventory, and increase overall efficiency in today’s world.
Basics of POS finance
It’s the point at which a customer decides to buy something. Since most transactions were made in cash, the point of sale was relatively easy in the past. To count up the day’s profits, all a business owner wanted was a simple cash register. Today’s point-of-sale systems are capable of even more. A genuinely modern point-of-sale device can perform the following functions:
- Accept all forms of new payment, including credit cards and digital wallets.
- Inventory inflow and outflow are managed and tracked.
- All processes that depend on the point of sales, such as accounting and customer loyalty, should be automated.
- Utilize mobile payment options to get the transaction to the consumer.
These essential functions distinguish today’s POS systems from cash registers of the past.
Essential Factors to consider while choosing the POS financing system
- Determine the following cost-related factors first:
- What are the costs of an installation?
- Are there any extra fees or charges for receipt printers, cash registers, tablets, or scanners?
- Is it necessary to pay for hardware upfront, or will you be charged monthly?
Accepting credit card costs varies depending on the scheme. However, due to the possibility of fraud when the card is not present during purchases, payments can be higher if you manually input the numbers rather than swipe the card. For example, PayPal charges 2.7 percent plus 15 cents on swipe transactions and 3.5 percent plus 15 cents on keyed-in transactions. Depending on the month, Shopify charges between 2.4 percent and 2.7 percent on all in-person purchases.
To avoid spending days teaching cashiers how to use the POS system, it should be reasonably set up and used. Choosing one that is too difficult to use will cause employees to become frustrated and slow down customer service. It doesn’t matter how powerful a solution is if you can’t put it to use. A small-business owner has little resources and time to devote to tinkering with it. When it comes to device evaluations, I believe that simplicity always wins. Items sold are deducted from the inventory list, so you’ll still know how much of a commodity you have on hand and can order more if you run out. Convenience and grocery stores, restaurants, coffee shops, food trucks, boutiques, liquor stores, and retail shops will benefit from this feature.
Inventory monitoring will also help you spot mistakes if sales and inventory numbers don’t add up and give you a clearer picture of which products your customers want the most and most petite. Shopify, Clover, ShopKeep, and Revel are POS finance systems that provide inventory tracking. “It’s important to prevent missed sales due to stockouts or poor cash management caused by over-ordering products.” To avoid running out of goods and missing a deal, you can also set up automatic reorder reminders. You can also display product statistics in all locations if you manage several stores.
Capabilities for EMV
Businesses that haven’t updated their payment technology to accept EMV-enabled cards, which have a security chip that is scanned for each transaction, have been liable for counterfeit fraud since October 2015. Any POS financing solution must be EMV compliant or have an EMV-compliant reader attached to it. Purchasing a point-of-sale device is pointless.
Consider the following scenario: you have a long line of customers waiting to pay for goods, and your system fails. Having access to skilled support, whether you run into problems when running your POS or need assistance setting it up, is critical. Ideally, 24/7 support via email, live chat, and phone, so you can contact a live person if you need assistance. You never want to be in a position where you can’t get a fast answer to a crucial issue because your POS system effectively runs your business’s daily operations. Your company will be able to process payments with the help of a robust POS finance system. On the other hand, an excellent point-of-sale device would be inexpensive, simple to set up and use, come with 24/7 technical support if you need it, be compatible with EMV credit cards, and have various features that are appropriate for your small business.
With so many POS systems on the market, ranging from simple configurations to more sophisticated designs with a range of software and features, you can be focusing on features and technical specifications. But, when it comes to prices, don’t forget to do your homework. Some vendors, for example, charge a flat percentage for all credit card purchases with no extra fees. Some vendors offer lower monthly subscription rates and leasing options if you don’t want to pay high upfront fees. As a new business owner, you can also take advantage of free 30-day trial periods to see if a POS system is right for you.