Why a Lack of a POS System = Lost Money

POS system

POS systemPoint of Sale (POS) is an essential system that industries such as retail, hospitality, and accounting rely heavily on. As profit is the bottom line in business, it is important to use all tools available to you to this end.

Says pos.com, the retailing industry is one of the most dominant users of POS terminals. Here are reasons as to why not having a POS system makes your retail business lose money:

Time is Money

Every businessman knows this age-old adage. And it is indeed true. The more time you spend trying to balance your stability sheet and the shop doorway, the less time you have to make money. Automation is more accurate and, more importantly, much quicker.

Stock Pilferage

A good percentage of retail business stock shrinkage comes from pilferage. When you have a POS method, you can curb retail pilferage right at its roots by being privy to suspicious stock numbers.

Customer Service

No matter how loyal you think your customers are, you can always lose them. Customer loyalty is fleeting. Give them a reason to stay with you. Apart from your products, the best service you can give them is fast service. You can achieve this through quick checkouts with an efficient POS.

Upselling

It is hard to keep track of which products are practically flying off the shelves. With an effective POS system, you can keep track of which items you have in stock that your customers are actually buying.

Profit Margins

POS software gives retailers the ability to quickly determine which products sell the quickest as well as at which price point.

Have you ever heard the sound of a retail business without a full-blown POS system? It is the sound of that same business losing money. With an efficient and dependable POS system, you can ensure that you do not waste your chances of making a profit.

3 Comments

  1. Another area I see where small businesses lose potential money is when they don’t offer credit card payment. I mean, c’mon! Everyone has a credit card these days. Just an observation.

  2. I find it rather hard to believe that there are still retailers who don’t have POS. Even in rural towns, you are sure to find automated systems.

  3. The problem about your shrinking stocks is that it is in-house a lot of the time. I’ve had to be more strict with employees just because of this.

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