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.
