7 Ways POS Profits Businesses and Helps Save Money

Retail POS is much more than a tool for processing transactions. Today a good POS system can increase a business’s overall profits. This is because POS technology has improved over the years, becoming an integral part of any business. However, POS profits organizations that actually use its features correctly. Companies that use the insights provided by today’s POS systems will grow faster than their counterparts. A POS system is critically necessary for a modern fast-paced business environment. Profitability hinges on how fast you transact. Effective POS software like Revel or Lightspeed provides notable advantages that can maximize your revenues and decrease cost. Times have changed. A POS system is no longer a simple ‘cash register’ and if yours still is, then it’s time for an upgrade. Plenty of companies are saving money with POS by embracing the capabilities of modern solutions. Think of it as the control center of your operation. POS increase profits by monitoring and connecting everything else that is required to achieve business objectives. Adjusting your view of how you see POS is important if you want to increase revenue with it.

1. Greater stock controls and tracking

Before you sell anything, you need inventory. Efficiently controlling and managing your stock is ultra-important. Inventory used to be managed mostly by hand prior to advancements in POS technology. This caused issues such as the overstocking of particular items and running out of products that would have otherwise made you money. Both of these scenarios typically equate to lost sales. POS profits your company by helping you with tracking and management of inventory levels. You won’t have to worry about overstocking products since POS systems alert you whenever items are running out. They can also use past performances to project specific product sales (e.g. using the average sales from last quarter to estimate revenue). On-demand reports will show you exactly which items are selling like ‘hot cakes’ and those that aren’t doing well. This means inventory budget can be focused on items that sell quickly instead of overspending on slow moving products. For example, TouchBistro tracks inventory cost, availability, and calculate profit margins so you can make informed stocking decisions. You will definitely handle inventory purchasing more efficiently and effectively with these kinds of insights. Not to mention that reports are usually extremely detailed and often include day-to-day stats with the exact time of activity.

2. POS profits your business by improving marketing

POS systems let you create or run trackable marketing campaigns such as coupon give away or social media contests. You will know what is working as a result of specific marketing efforts. So you can determine what marketing activities to keep doing and what to get rid of. As a business owner, it’s important that you and your team know what’s bringing in the most profits for your company. For instance, let’s assume that you ran a buy one, get one free campaign and a 50 percent off coupon promotion. Your POS can reveal critical information about your marketing campaigns. In this case, POS profits your organization by showing you the following. How many sales were as a result of the buy one, get one free campaign compared to the 50% off coupon promo. In addition, reconnecting with customers is much easier with a POS system because they record consumer data by default. This tremendously improves your overall marketing and subsequently sales.

3. Loyalty programs are more fun with a POS system

Consumer loyalty programs are a convenient way of increasing customer returns or visits, which leads to more sales. They cost nothing to implement since POS software typically includes the capability of setting them up. Plus your customers won’t need any special application or software to participate. For example, you can reward people based on specific items purchased, how often they frequent your establishment, and even how much they spend. You set the terms and conditions of your reward program (e.g. customers earn points or cash back after specific requirements are met). It's possible to customize the opt-in process as well. For instance, customers can enter their phone number or email address during check out to participate. Loyalty programs keep customers coming back and encourage them to spend more money at your store or establishment. This is another way POS profits organizations.

4. Upsell recommendations

Upselling or selling-up is extremely crucial but few companies do a good job at it. This is because plenty of businesses solely rely on their sales training programs. Training is great for teaching employees how to upsell but they don’t do a good job of reminding them to do so. A POS system is able to remind staff to upsell by recommending a variety of product options based on items being purchased. Employees can quickly suggest additional products to customers that may appeal to them as they check out. Yet, another way that POS profits your business.

5. Mobility facilitates transactions

The mobility of POS software can increase your sales by facilitating mobile transactions (e.g. pizza delivery paid via debit on a phone). That is unless you’re still using an old school POS system that lacks modern capabilities. There’s no need for a specialized terminal (e.g. an Interac machine). This is because smartphones, tablets, and just about any Internet-enabled device can process payments.

6. Thefts and loss prevention

Only an approved administrator can tamper with a POS system. This prevents theft or any dishonest activity from taking place. Additionally, POS systems come with built-in security features such as activity monitoring. For example, you can limit the number of voids allowed per employee (daily or otherwise) before an approval becomes mandatory. Reports will indicate which employees have the most voids or price changes so that you can further investigate any potential issues. Good POS software will always identify these kinds of ‘red flags’ quickly so that you can avoid potential losses. In this case, POS profits your company by discouraging malicious activities, which improves overall profitability.

7. Less bookkeeping

The right POS system will automatically handle all of your crucial accounting for you to make tax filing easier. It only takes seconds to calculate transaction taxes and to generate accounting and quarterly sales reports. You will spend less money on accounting and bookkeeping professionals, which is a great way POS profits your organization.

Operating more efficiently

Hands down, improved operational efficiencies will make you money and that’s something a solid POS system does. Inefficient systems erode profits. Indeed, consumer purchase habits have evolved and so too must your business practices. Now more than ever, mobility, speed, and flexibility are of the essence.