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I had been putting off changing from my trusty old cash register to a computerized point of sale system, as I was intimidated and daunted by the task. I kept telling myself, changing to a new system would not really benefit my business that much, and in any event, I don’t have the time.

A friend of mine, who had gone through the process a year earlier, was kind enough to sit down with me and share how he had handled the changeover process, and some of the tremendous benefits this had provided for his business. Now, two years later, I would like to pass on, how your business could also become more efficient and profitable, by switching to a modern computerized point of sale system.

Here are some of the great benefits I have come to appreciate after installing a computerized point of sale system in my business.

Isn’t a point of sale system just like a cash register?

A POS software system does more than just replace your cash register. Showing your cash flow for the day is principally all a cash register does. It is unable to provide any information about profit margins; products sold or best/worst selling lines. On the other hand, a computerized POS system, can on demand instantly report on how much money is left in your cash drawer, and how much of that money is in fact profit. Product specific reports can also show how many were sold today, how many are left on the shelf and when that product needs to be re-ordered.

Helps prevent theft by just being there.

Studies have shown computerized point of sale systems typically, reduce theft by around 2.5%. That means an average small business with a turnover of 0,000 per year, could be losing approximately ,750. This amount could be reduced or eliminated completely by simply installing a point of sale system. Inventory is watched much more carefully, because your employees know that stock is being monitored. All involved are more alert.

Reduce inventory shrinkage.

A computerized POS system monitors obsolete and broken inventory more carefully and in greater detail. Shelf inventory stock on hand counts are easily and accurately compared with computerized stock on hand counts, further reducing losses by an additional 2.5%.

Better manage your inventory.

Using detailed product reports, the flow of inventory can be managed much more carefully by monitoring increased sales. Historical product data helps in the prediction of future inventory needs. Orders should be based on what you know you sell, not on what you think you sell.

Watch your margins.

Examination of your product reports may indicate you have sold 9000 products that cost 48 cents, for 50 cents each. Or, that you have sold 200 products that cost .90, for .95 each. Correct use of your reports will help you stock more of what delivers greater profits, and fewer of what produces lesser profits.

Keep your customers happy.

Computerized POS systems, with touch screens, fast barcode scanners, fast thermal printers and many other tools, make the checkout process efficient and much quicker. This results in happier customers.

Pricing accuracy.

Completely eliminate the guesswork associated with manual pricing of your products. Using a computerized point of sale system ensures every product in your store has an associated and accurate price. Your sales staff will have no need to guess prices anymore.

Build a customer list.

Possibly, the most important and beneficial aspect of switching to a computerized point of sale system, is the ability to build a customer list and track your customers purchasing habits. Analyzing your best, worst, high profit, low profit, high frequency and infrequent customers becomes as easy as reading a report. Predicting when customers are about to stop patronizing you store means you are able to directly target market these customers with special offers or gift vouchers, in an attempt to win them back. You can use your POS system to market to a group of customers in a particular region or just to get to know your most loyal customers on a first name basis.

A computerized point of sale system has been one of the best investments I have made for my business. My business has become more efficient, more profitable and a better place for my customers.

Any doubt I may have had 2 years ago has been replaced with absolute amazement for what a computerized POS system has done for my business.

About the Author: Raymond D of MELBOURNE VIC - POSActive Customer