Retail: FAQ’s
FAQ’S
1. What are the benefits of computerizing a store?
The number one job in retail, of course, is serving the customer. A point of sale system is a tool which makes that job faster, easier and more profitable, but there has to be a cost benefit to computerizing. With today’s technology the benefit is there as long as the retailer commits to using a system’s full potential. Computerizing your business does not necessarily give you an advantage over your competitors – you may have to do it simply to stay competitive. Three areas where immediate benefits can be seen are:
- Increased margins due to better inventory management and reduced shrinkage.
- Increased sales due to prompted suggestion selling, staff performance tracking and targeted marketing.
- Speed and accuracy in the chores surrounding reports, invoicing, purchase orders and inventory control.
2. Is it best to start with the accounting system and tackle inventory control later?
3. Is taking inventory more complicated once a POS system is installed?
4. What are the advantages of having bar codes on the stock?
5. What reports should we look for in a good system?
6. Does entering a customer name and address take too long and annoy the customer?
7. How long does it take to get a point of sale system up and running?
The setup phase can be a headache if it is not properly planned and then rushed through. Don’t decide on Saturday that the system has to be installed and fully integrated into the business by Monday. Allow lots of time for you and your staff to get used to a new routine. The POS system should start providing useful information about inventory control and customers after a month of full-time use. The point of sale screen has the following features:
- Easy to learn – You do not have to send your staff out for expensive training.
- Easy to use – Requires minimum keystrokes and the mouse is never required (but you can use it if you want).
- Flexible – Handles any combination of discounts, taxes, returns, credits and sale specials in one easy transaction.
- Automatic – Applies automatic discounts or preferred price levels to special customers.
- Rewarding – Helps your staff to practice suggestion selling and tracks their sales commissions.
- Accommodating – If something is not in stock you can send a customer order to the purchase order system.
- Secure – You control who can see the profit margins and stock counts.
- Customer oriented – Lets you reward your best customers with loyalty setup.