July 27th, 2020 by Loyalty Sense Inc.
A POS setup or Point-of-Sale system is the core of business for many merchants to an extent that it runs their operations, helps in managing inventory, finances, employees, customers, kitchen orders and much more. In short, a POS system is something merchants rely on to help run their business functions. Therefore, it is crucial to have a proper understanding of a business’s needs in terms of point of sales and have an optimized POS solution that meets those needs. We believe that an optimized POS solution is essential to a business’s success as it will relieve unexpected costs, losses, theft, accidents, support fees, maintenance costs but will also help in growth and management.
An economical POS solution comprises a computer connected to a display screen and several economical POS peripherals or hardware parts such as barcode scanners, receipt printers, cash drawers. These components are likely purchased off-the-shelf and placed together to serve their individual purposes. For example, cash drawers to store cash, thermal printers to print receipts, payment terminal to take credit card payments and so on.
Is this the right option? When starting a new business maybe it’s smart for one to go for an economical option like this one, because hey savings are God. Initially, an economical POS solution might seem like an easy plug and play. However, after being in the industry for over five years, we have learned that being low cost is just about the only plus point this approach may have. When starting a business that requires a comprehensive point of sale experience such as retail and or restaurant, there is a lot to factor in. Things like business growth, marketing, customer experience, employee management, inventory management, menu management, theft, finances, and much more. Most of the time, self-configured POS options do not accommodate these factors, because at a starting point merchants are usually busy with many other tasks, which makes having a POS to be something that JUST operates. But as the business runs and grows, we can guarantee that these factors will want to have a bigger role, and that’s when the problems begin.
Think about it this way. If one needs a car for a trip that may make them millions, they are most likely to invest in one that a reliable industry expert built such as Toyota or Honda. Gathering off-the-shelf parts to build a car will never cross one’s mind, especially when they have no experience in car mechanics or the road conditions they have yet to drive on! Don’t get us wrong, we are not saying that their self-configured car may not run, but who knows about what screw they forgot to place in the right place, or the roads that await them. Is anyone volunteering to find that out while on that drive? It’s a similar concept in terms of point-of-sales.
An integrated point of sale solution is a robust system tailor-made and configured for the point of sales and business management needs by an expert. It comprises specially procured components such as the point of sale terminal, payment terminals/pin-pads, POS displays, cash drawers, receipt printers, barcode scanners, and occasionally even weight scales. Including a pre-configured software solution that will meet all the point-of-sales needs of the business in question. Plus, it will be compatible with scaling. An integrated POS solution will connect with most of the payment methods such as online, and various payment service providers along with other up-to-date POS trends such as mobile and online ordering.
But the cherry is that an integrated point of sales solution provides analytics tools within a comprehensive dashboard in the form of a cloud-based central data management platform. Here, one can review sales trends, match surveillance footage, credit or cash transactions, employee shifts, POS ring-ins, and all sales actions. This central dashboard can provide tremendous value by providing metrics that will help increase business efficacy, operations, management and ultimately growth. Basically, with an integrated point-of-sale solution, a merchant can see, run and grow a business safely from a laptop. It will also help save time and offer the flexibility a merchant needs to make important strategic and business management decisions. However, a downside to an integrated POS solution is the initial upfront investment, as a conventional integrated POS solution will cost from $4,000 – $20,000, however by doing that one is most likely signing up for a smooth sail of their business lifetime!