Retail business owners need some form of cash management system to carry out their daily cash or debit/credit transactions. The two most commonly used cash management systems are the electronic cash registers and the modern computerized point of sale system (POS). Both these systems have their own advantages, and many retail merchants have either of these two cash management systems in their retail stores.
Cash registers are suitable for small businesses where more advanced features are not required. Cash registers help in storing money in a safe and secure manner. One of the main reasons why many new retail owners go for an electronic cash register is because these are affordable. These usually come in the price range of $300 to $1000; therefore, many cash-strapped retailers find it easy to install an electronic cash register in their stores.
POS systems, on the other hand, are a relatively modern phenomenon in the retail cash management industry. Although it is more expensive than electronic cash registers, the advanced features that it provides makes up for the initial investment. In the recent past, POS systems were usually used in big retail stores; however, due to the stiff competition in the market, many affordable POS systems have arrived, making it possible for small and medium business owners to install it in their stores. There is a huge variation in the prices of POS systems as the price is determined by a lot of factors such as the type of software used, and the number of hardware devices connected to the POS system. As a result of this, a POS system can cost you as little as $1,500 and as high as $20,000. Choosing a POS system for your retail business should involve careful research and planning on your part about the needs of your business.
Benefits of Using a POS System
· One of the biggest advantages of using a POS system is that it provides you detailed information about your business. You can get complete information about the daily, weekly, and monthly sales, including information on which products are selling off the shelves, and which are struggling to take off. This can help you in making informed purchasing decisions.
· Business owners are spending more and more time on knowing the changing preferences of their customers. Today, the business is all about keeping your loyal customers and scouring for new ones. To do all this, you need a reservoir, or a database, through which you can get information on the buying patterns of your customers. This is where POS software can be really effective. As it stores all the information related to your sales, you can get crucial information on peak selling hours, or how discounts have worked for you in the past. In a nutshell, if you want your cash management system to do more for you than just secure money, you should definitely go for a POS system.
· A modern POS system will help you in knowing exactly which inventories need restocking. As a business owner, you don’t want your customers to walk off from your store without making a purchase just because you couldn’t restock the items in time. POS system gives you a headstart on the various aspects of your business.
This was some information on a POS system and its associated benefits. As we mentioned in the beginning of the article, you should do ample research before buying a POS system. Analyzing your needs and comparing the POS systems available in the market should be done before you invest money in it.