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Key Issues for Retailers Choosing POS Systems |
"Nobody that bought a drill actually wanted a drill.
They wanted a hole."
-Perry Marshall
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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.
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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.
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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:-
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.
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