Is your company’s POS system out of date? Do you tend to think that it doesn’t matter if you take the time and money needed to upgrade your POS register? Change can be difficult for companies that are used to doing things a certain way. However, if you look at upgrades as an investment, it is easier to see the rationale behind taking the necessary steps to invest in upgrades.
If your business is behind the times when it comes to point-of-sale (POS) technology, you genuinely don’t understand what you are missing out on. The advancements in this area are intended to increase the efficiency and workflow in the retail sector. This guide will show you why investing in a new POS system will prove to yield a strong return on investment (ROI).
Use the POS ROI calculator to calculate your return on investment for upgrading to a POS system.
1. Time is Money
We have all heard this before, to the point that this phrase has become a cliché. However, more exact words have never been spoken when it comes to making sales.
The new POS equipment available on the market today is a far cry from the primitive cash register of the past. An updated POS register can speed up transaction processing time, therefore increasing the number of sales.
The time taken to track and maintain stock is a hidden time usurper in business. The time spent managing inventory can amount to dozens of hours paid out in wages to inventory managers and stock workers. You can reduce this time by incorporating inventory management systems.
The current POS systems are equipped with inventory tracking that does the job that used to take a team to accomplish. You are able to know exactly what is on hand in real-time, and available quantities are updated with every transaction.
2. Reduce Human Errors
To err is human and it is an inevitability that people will make mistakes from time to time. The problem with this is that all errors are not created equal, meaning that some may be far more expensive to remedy than others. This goes double when you are dealing with retail purchases which can differ significantly from one transaction to the next.
Mounting mistakes can be quite costly in the long run. Upgrading your POS register can significantly reduce human errors during transactions. One of the ways that errors are often seen is when sales associates have to manually input transaction information at the POS.
Modern POS systems are integrated with payment terminals. These terminals make it far less likely that errors will occur during sales transactions.
3. Save Money on Marketing
There is no question that marketing is an expense that every profitable company has to factor in if growth is the objective. The problem with many companies is that they spend time soliciting for new patrons always.
This means that the money paid to drum up new business is necessary, sustainable profitability. In other words, it is much cheaper to work with an existing customer than to acquire a new one.
You may be wondering how your POS register upgrade can help reduce your marketing costs, and that is a logical inquiry. Modern POS systems save customer data and provide personalized service that entices clients to keep coming back. These systems are also capable of winning customers over by rewarding them for their loyalty.
4. Reduce Payroll
We illustrated the way an upgrade to your POS register can save in the inventory department, but that is just the tip of the iceberg. This goes back to the time-is-money theme we mentioned previously. A modern POS will serve a variety of functions that used to take hours of manpower to achieve.
Task automation is a feature of modern POS systems that cannot be overlooked. How much time does the management team at your company spend generating sales reports, or calculating taxes? How much time is spent manually tracking sales at your business?
Upgrading your POS will eliminate the need for anyone at your company to ever perform any of these tasks again. Your upgraded system will automate tasks like expense reports, tax calculations, sales tracking, inventory, etc. In turn, your operation will require a smaller staff.
5. Increase Sales
It is not ideal for sales associates to try to upsell customers at the point of sale since it will hold up the checkout line, frustrating customers behind them. A POS register upgrade will include features that can take your company beyond just the checkout line, to further increase your sales revenue.
Using tools such as eCommerce, you can create an online shopping experience that will allow customers to shop at their leisure.
When customer shop online, they can make sure they get everything they may need, without wandering around trying to locate things in your retail location. The eCommerce system can also upsell customers with products and services they may have overlooked or are unaware of.
Another way to speed up the customer experience is to use self-service kiosks in your retail location. The addition of kiosks in your area can significantly impact your company’s ability to upsell customers. It offers helpful suggestions that will result in them spending more per visit at your location.
Business is all about making sound investments in the future of your company. Just like investing in inventory to keep the supply that your patrons demand in stock, investing in other areas of your business will offer a return on investment in the long run.
While this ROI may not be so clear at the time of the initial investment, it will be evident as you witness the efficiency and ancillary benefits. As you can see from the descriptions above, investing in upgrades to your POS can enhance the quality of your business in a variety of ways.
The best way to put this in its proper perspective is to look at the upgrade of your POS as an investment rather than an expense.
Need to upgrade your POS register? Test drive eHopper POS today!