Point of sale (POS) system is the spot where your customer makes the payment for goods or services that are offered by your company.
Point of sale systems are systems that enable the business transaction between the client and the company to be completed. POS system is a computerized network that consists of the main computer linked with several checkout terminals and supported by different hardware features starting from barcode scanners and ending with card payment terminals.
As businesses have different profiles they need a various point of sale systems as well. For example, restaurants, retail businesses, and grocery stores all have their specialties and that is why they need a POS system that meets their specific needs.
A food store requires a scale at the point of sale and a cafe needs to have an opportunity to customize menus in case of special offers.
But in general, there are two primary types of businesses that need the point of sales system. These are retail companies and hospitality businesses such as restaurants and hotels. That also means that there are mainly two suitable POS systems one for retail and the other for restaurant businesses.
Why Is POS System Useful?
Using the POS system can have a positive effect on your business.
It allows you to have better control over your business operations. With a POS system, you know exactly which products you have sold on a daily or monthly basis, how many products are in the warehouse, or how much money you have made.
It allows doing better analytical thinking and planning.
For example, the POS system makes it easier to keep track of your inventory, to notice and analyze movements and tendencies in sales processes, to analyze your sales reports and other data in order to predict more precisely future trends and your company’s requirements.
It allows you to increase your business efficiency.
POS system makes the managing of your company’s paperwork more time-saving. Managing bills and orders, sales figures or reports is made very convenient. Besides the office environment POS system also increases the efficiency of the everyday sales environment thanks to different POS features such as barcode scanners or credit card terminals.
It allows you to make personal client communication more efficient.
A POS system makes it very easy to gather the contact details of your best clients at the same time they complete their purchase. This information is valuable for generating personal offers and developing personal client communication.
Thereby with a POS system, you can save money and boost your profits and in addition, the POS system helps you to make more informed business decisions.
Elements of the POS System
First of all, you need to think about system computers because a computer is an essential part of a POS system. You need a computer to run the POS software. It is possible to buy a POS system together with computers, but you can buy computers separately. It is also important to keep in mind that POS computers should only be used for POS.
Then as mentioned you have to choose suitable software for your business needs. As there are many different points of sale solutions there are also different software. But in general POS software packages contain features and functionality that will help you to manage easily all common customer-related transactions that are needed in your business.
The development of cloud technology has also lead to cloud-based POS systems.
These systems can be accessed directly from the Internet and they use data for operating that is stored on a remote server.
Cloud-based POS systems are also created to be compatible with a wide range of POS hardware. Cloud-based POS also helps to expand POS systems in addition to computers to mobile and tablet devices. For example, a cloud-based POS system that runs on iOS-based devices can also be used on an iPad based POS system.
And thirdly, you need POS system hardware.
System hardware consists of different equipment, such as a cash drawer, barcode scanners, monitor, receipt printer, etc. You also need touch screens, programmable keyboards, scanners, and handheld terminals to be able to enter necessary data into the POS system.