A point of sale, POS, system can help both large and small businesses. Nowadays, they are much more than just a means of collecting payments from customers. Investing in one can help with a number of important business functions by making things easier and much more efficient. Also, they are pretty easy to learn how to use. There are many options to choose from, buy you need to research to find one that best suits your needs. Below, we will dive into 5 ways that a POS can help your business.
Track top sellers
Regardless of what industry you are in, it’s important to keep track of your best-selling items. You know understand the products that your customers buy most frequently. It’ll let you know what items need to be displayed in front. Also, if you track your top sellers, you can ensure you order enough supply to keep up with the demand. Along with this, a POS software will automatically keep track of purchased items. Then, it can generate reports to show you the top-selling products.
Establish inventory levels
If you don’t order enough of a product, you can lose sales. If you order too much, you could get stuck with unwanted items. Which might cause you to sell it at a loss just to gain a percentage of your investment. With a POS system, you can avoid both of these situations by enabling you to establish appropriate inventory levels.
You are able to set stock levels in your POS. You should take a close look at your sales history and pay attention to how many of a certain product you’ve sold since your last shipment. Also, you should look at data to see what tends to sell better during a certain time of the year. With this data, you can order enough stock to help you keep up with the demand without overbuying.
Track lost sales
Lost sales can cost you a lot of money. Similar to knowing your best-selling products, you also need to track the products that you lose sales on. This means using your data to see when you’re losing sales on particular items because they aren’t in stock.
With a POS system, you can gather data and estimate the number of sales you lose when one of your products is out of stock. It may come as a surprise just how much money you’re losing by not having enough of a product stocked. While figuring this out may be difficult, a POS system makes it much easier. It allows you to view buying trends and other helpful information.
Create purchase orders
POS systems make it much easier for you to create purchase orders to send to your suppliers. You can use your system to enter your desired quantity for each item you ordering. This will also create a record of how many products you tend to order and allow you to make an informed decision about how many you need when you place your next order. Also, you’re able to set a minimum number for each of your products. This way, when the inventory drops below your set minimum number, a purchase order is automatically generated to help ensure you always keep products in stock.
Maintain inventory accuracy
For many businesses, reconciling your inventory is a dreaded task. The task of going through all of your products to ensure that the physical quantity matches your inventory records can be very time consuming, and without a POS system this has to be done manually. However, with a POS system you can make this process much easier by maintaining your inventory accuracy. When you receive a shipment, you can instantly confirm the amount that you received matches the amount on your purchase order in your system. It can also keep track of when products are sold, returned, etc.