Up One Level
himatix.com Home Page

POS Dealer Resources

The first Point of Sale (POS) Software System for Retail and Restaurant Management with everything available online.
Home > POS Dealer Resources > Key Issues
Reseller Resources
Understand Retail
Key Issues
Low Hanging Fruit
Finding Prospects
Contacting Retailers
Making Money with POS
Links
Forum
FAQ
Knowledge Base
Downloads
Hardware Suppliers
Home Page
Key Issues for Retailers Choosing POS Systems
"Nobody that bought a drill actually wanted a drill.

They wanted a hole."
-Perry Marshall

And no retailer that buys a Point of Sale system actually wants a POS system. This page reveals what retailers actually do want when they buy Point of Sale equipment.

There are several types of key issue that retailers consider at different stages in the process of buying a new Point of Sale system.

This section covers key issues that determine whether or not they will find some new POS system. In general, unless one or more of these issues applies, then a retailer will stay with what they already have, even though they might desire some of the other features available on a new system.

One or more of the following factors will normally apply before a retailer will seriously consider a new system:-

  • Stock Loss or Shrinkage problems which they know are costing them significantly and which they need to address. These problems are likely to be evident after a stocktake, but may not be recognised otherwise.
  • Suspected Cash Loss problems due to employee theft. While retailers are always on the lookout for this kind of thing, it sometimes takes an event such as a staff member being caught, to trigger the realisation that the problem could be much more serious than they thought. This type of "event" can change disinterest in a new POS system to strong interest overnight.
  • Loss of Sales due to stock shortages. When owners become aware of these missed sales opportunities, they look for better ways to forecast demand and ensure adequate stock is on hand.
  • Goods Supplied but not charged in a Bar or Restaurant. Sometimes when staff are busy, they may fill a customer order planning to record it later, and then forget. When owners become aware of this, they look for ways of preventing these losses and a POS system which is used to process all orders can prevent this problem while giving faster service.
  • Staffing Costs too high. POS systems in a bar or restaurant can reduce the number of staff required by making their work more efficient. If staffing costs are high, POS systems can greatly improve efficiency.
  • Existing system inadequate or not working properly. If operation of the current system is no longer possible due to breakdown, rush decisions to find a replacement often occur. When this situation arises, a dealer needs to respond very quickly, because a rapid decision will be made since it is almost impossible for a retailer to operate without a system.
  • To ease the workload on the owner. Owners and managers of retail businesses usually work long hours and often they are looking for changes that can allow the business to run with a reduced need for them to be physically present on the site.
The decision to do "something" about a new Point of Sale system is usually triggered by one or more of these factors. The ability of a POS system to satisfy these key issues, is a "price of entry" factor, and only systems that can address the key issue(s) will be seriously considered.

Back to top

 

Key Issues In All Cases
Once the decision has been made to do something about a new POS system, a new set of key issues arise that the retailer will use to determine which Point of Sale system they will choose.

To be seriously considered, POS systems will normally need to meet the retailer's requirements in all the following areas:-

  • Fast Operation requiring minimal input from the clerk operating the system so that high throughput can be achieved and customer queues kept short.

  • Fast easy user training. If any significant amount of training is required for new users, then experienced retailers know that when staff don't show up for work, chances are that they will be forced to operate the POS themselves, and the work late to catch up on their other work. They don't like doing that.

  • Security and Robustness. Retailers do not want their staff to know their cost prices. They do not want their staff to know their financial information. That information is confidential.

    Retailers don't want their staff to play solitaire or insert floppy disks or CD's or access the internet. They don't want their staff to be able to play around on the computer, change settings or fool around with Windows. These cause unreliability. On POS terminals, retailers don't want features and flexibility. They demand stability.

    Even if they will operate the system themselves most of the time, unless they can lock up the system securely, it means that they can't leave staff to use the system unattended. This is a big problem with most single user POS systems that are part of an accounting package.

  • Easy ability to detect fraud, theft and unusual usage patterns when those patterns change. The number of Voids, No Sale's, Refunds, Price Changes (where allowed) all need to be monitored because these are indicators that fraudulent activity may be occurring, and any changes in patterns of use with these features need to be investigated.

    The ability to cancel or reverse an entry without it appearing in the audit trail is completely unacceptable in a retail environment because it invites theft. Many single user systems based on cheap accounting packages are very weak in this area, and unsuitable for use by anyone other than the store owners.

  • Fast setup and configuration. Retailers are aware that with most systems all products and details need to be entered before the system can be used. If they already have an existing system, or have installed one before, they know the pain and agony involved in setting it up, and they will put off and delay installing a new system to avoid this work.

    SELLmatix with its fast implementation and the ability to start selling before even having a product file, and build that "on the fly" while trading is a very attractive alternative that minimises these problems.

  • Support. It is very difficult for retailers to operate without their POS system. Local support and fast response times can be very important. Quite a few retailers will buy additional capacity, or terminals simply to allow for a case where equipment fails.

    Where retailers have adequate "in house" skills and can resolve problems themselves, this may be less important, provided that they have access to documentation and online support to help them resolve problems.

  • Easy stock control. Every retailer wants to have accurate stock control. Every POS system has the functionality to provide inventory control. Most retailers have tried to implement inventory control. Few have succeeded. Why?

    Because it is too hard.

    If you demonstrate SELLmatix progressive stocktake and staged inventory implementation, along with the features that help retailers identify how stock losses occur in their store and not just how much stock is lost, many retailers will choose our product based on these feature alone.

  • Reduced workload. Virtually every retailer feels that they work too hard. Gadgets and gimmicks which most users consider "cool", to a retailer are just one more thing that can go wrong, complicate their lives and force them to work longer hours. Anything that simplifies is good. Anything that complicates or could go wrong is a strike against.
The above factors are all major considerations in virtually every retailer's mind when considering a Point of Sale system.

Back to top

 

Possible Other Key Issues
There are a number of issues that may be key to a buying decision for some retailers, and may also be desirable but not essential for other retailers. In other cases these issues may not come into consideration at all, but it is important to keep them in mind. These "other" issues include:-

  • Equipment Cost. This is always a consideration, however a cheap system that doesn't do the job is a lot more costly than and expensive system that performs well and does what is required. Knowledgeable retailers don't buy on price alone and evidence to support this is in the number of quite expensive systems sold by manufacturers such as NCR, IBM Fujitsu and others.

    The ability to run SELLmatix on standard equipment using standard parts is a big advantage however that can make systems affordable for retailers that don't have the budgets of larger companies.

  • Remote Control. Many retailers would like to be able to see what is happening in the store without being physically present. With SELLmatix, the ability to run reports remotely from anywhere with an internet connection and see how much is in the till, live in real time, as well as run any of the other normal reports is a really big advantage.

  • Repair and Maintenance costs. This can often be the deciding factor when two systems are almost equal in other respects. The fact that SELLmatix runs on industry standard equipment where replacement parts are readily available and the system can be serviced by normal computer technicians, means that repair and maintenance costs fall into the lowest cost category.

  • Ingredient Control. Some restaurants have trouble with ingredient wastage or pilferage, and where this is a problem, the ingredient control features in SELLmatix can tell the owner in an instant what ingredients should have been used based on the dishes served, and even track ingredient quantities the same way as inventory items.

  • Availability of support documentation. Many POS software companies are secretive about system documentation and this can cause delays and additional expense when information is required. Retailers that have experienced these problems are much more comfortable when the documentation is available online and updated regularly.

  • Pocket PC Implementation. In bars and restaurants the ability to use portable devices like Pocket PC's for taking orders and sending the orders straight to the food or drinks preparation areas can result in faster customer service and reduced staff costs. in addition, it allows the waiters that are good at upselling clients to take orders with the Pocket PC while other staff that are less effective at selling can deliver orders and clear tables.

  • Customer Accounts. Where the retailer sells goods on account, this feature is needed, and even in other cases it is useful for tracking store usage and shrinkage.

  • Low Stock Warnings. In restaurants and bars where stock can be quickly and easily replenished, the ability to warn when there is a "run" on certain product lines allows staff to replenish the stock before it runs out and sales are lost.

  • Ability to Grow System in Stages instead of incurring all the expenditure at one time can result in sales that would not otherwise take place. With many systems everything needs to be upgraded at once, and the cost can cause retailers to delay installation.

  • Language and Localisation. In countries where English is not the primary language, the ability to have the software operate in the local language can be a key deciding factor.

It is important to determine which issues are important to a retailer, and demonstrate the way the system handles those functions. SELLmatix is a strong performer in all of these areas, however if you don't identify which issues are important, there is a risk of demonstrating things that don't matter, and missing key issues that determine a decision.

Back to top