Other than retailers worrying about their inventory selling, retailers are even more concerned in purchasing the right point of sale (POS) system for their store. The POS is where the transaction occurs and the POS software is used at checkouts as an electronic cash register. The importance of buying the right POS system is crucial because the decision will affect retailers for many years to come. Therefore, in order to save time and money, retailers must be fully aware of common mistakes that can be easily avoided in choosing the appropriate POS system. Some of the most common mistakes when purchasing a POS system are:
1. Not Understanding Your Needs
First off, your business will need to note every process that is made such as purchasing, receiving, transferring, sales, reporting, and so on. You will be able to quickly decide which company will accommodate to your needs when discussing in detail the process of your business with the POS company representative. The POS provider can demonstrate how the POS software works with your needs and wants in mind. Also if you are new to the POS technology, do not worry! Good POS companies offer consultants to guide you through it all at a relatively good price.
2. Buying on Price Only
POS software and hardware can range from free too extremely expensive. A free POS software and hardware cannot lead to anything good. However, low prices are enticing through their advertisements. Even though low prices are more appealing, save yourself the headache and spend a couple more dollars in a quality POS system. I am not saying the more expensive the POS system the better it will be. Rather, I am saying inexpensive hardware is more difficult for many to support because of the constant changes of the computer’s internal components. Find a POS system that fits your business’s process of sales, purchases, receiving, etc. The hope in saving money for a low priced POS system will end up costly more than you saved. The best way to go is to buy from a POS company that will supply software and provide a backup service as well.
3. Purchasing on Size Fits All System
Finding the perfect POS system is different and unique to every retailer and there is not just one that will fit all. Different types of retailers call for certain requirements in their system and one type of POS system would not work. There may be a time where the software almost meets perfectly to what you need. Also, the software is somewhat customizable to what your business may require without having too much modification. POS companies provide software to all types of retailers with different needs so there is no need to pay for the â€œone size fits allâ€ system. In addition, make sure to stay on top of your software upgrades!
4. Insufficient Training
The right amount of training and knowledge of a POS system is extremely important and could possibly take the store out of business if not trained properly. Often retailers purchase what they believe is the best software and try to save money by not sufficiently training the staff. However, without the appropriate training could do more damage than you would save. The less training the staff is exposed to, the more of a risk you run in adequate inventories, frustrated customers, and discontented sales people. With that said, it is worth the time and money to sufficiently train your staff or possibly say good-bye to your business.
5. Choosing the Wrong Partner
The market of POS systems has been competitive but the few strong companies have managed to stay on top. You want to make sure the POS company you have chosen will be there for you for years to come, rather than running out of business and forcing you to replace your system. Pick from the few companies that are solely dedicated to POS systems because their knowledge and expertise will help your business further succeed. Some simple questions to ask a POS company before deciding your partner are: is POS the company’s primary business? Is the provider THE company or just a reseller of a product? What type on on-going support do they provide? Do they offer onsite technical assistance?
Don’t be hard on yourself! Choosing the right POS system is not the easiest task when there are possible mistakes you could overlook when purchasing. The price range on POS systems can be very low to highly expensive; especially for independently owned businesses when they want the best quality at the best price. However, with new technology independent business owners can now afford POS systems at a much lower cost and at the same quality as their competitors. So the next time you’re looking for the right POS system, keep in mind some of these avoidable mistakes in order for you to worry less about your technology investment and worry more about your inventory.
Have you run into any other common avoidable mistakes when choosing a POS system? Leave comments below. Thanks for reading!
Author: Luke Henry
Luke Henry is a Project Manager of Retail Next – a cloud-based POS solution for specialty grocers. He has over 10 years of experience in the grocery POS space and is committed to delivering solutions that enable independent grocers across the world to compete against the grocery conglomerates.