As a small business owner, it can be difficult to keep track of all the moving parts in your enterprise. To that end, it’s helpful to be able to grab a quick snapshot of how the different parts are performing.
That’s where POS reports come in handy. They can provide incredibly useful information because the point of sale is a central hub of data collection, yielding insights into your sales, employees, inventory, customers and cash flow.
Here are five POS reports that can be helpful in unlocking and even improving cash flow:
Sales by Staff Member
Are you wondering why sales take a dip during a certain shift? One area to hone in on might be the sales by employee. If each employee is responsible for ringing up their own sales, the sales by staff member report can provide insights into how well each person is performing. If you notice that some staff seem to ring up more sales than others, it can be an opportunity to retrain the ones who are not performing as well. Do they miss upsell opportunities? Are they forgetting to offer all of the special options? Do they get distracted with non-selling duties? All of these are areas to improve if the employee routinely appears in the bottom quarter of the sales by staff member report.
If your point of sale solution includes a loyalty program, then you should be able to access a report that can identify your top customers. There are a few things you can do with this. You could send each of the customers a thank you note, acknowledging your gratitude for their continued support of your business (that always makes people feel good). Or, you could use this report to market directly to these customers and let them know about an upcoming promotion. Beyond that, you can use this report to try to find other people similar to the people in this report. Are there any characteristics that stand out about them? Do they all seem to be attracted to your business by one particular product or menu item? Do they all live in a certain zip code? Do they tend to come in at one particular time of the day? Figure out if there are any similarities and then use that knowledge to look for more of the same types of people.
Sales and Margin by Product (or Menu Item)
It’s easy to view sales and think selling more of a particular item is a good thing. But then you see the margin (the profit margin) and you might have second thoughts. What if the margin is too small that it’s not even worth the effort to stock or cook this item? What if you spot a product that’s not selling as much but realize the margin is terrific? Can you do anything to improve sales of that item? These are the types of ideas that can be gleaned from reading this report. You can use it to know where you’ll get the most bang for your sales buck.
Product Performance by Vendor
If you know which vendor sold you which products and you can include that information in your reporting, you’re in luck. You can use this report to know which vendor’s items are selling best and which ones are selling the worst. This could come in handy as a leveraging tool when it comes time to reorder these products. Try it and see what happens!
Speaking of vendors, it’s sometimes helpful to review what items have been ordered. At the very least, this can potentially stop you from ordering again when it’s not time. On top of that, keeping track of open PO can help you forecast expenses. Given the fact that the two variable costs in any brick and mortar retail store or restaurant are inventory and labor, this exercise of forecasting inventory expenses can help you get a grip on one of these two variable expenses.
Want to learn more ways that a point of sale system can help make operations run smoother at your restaurant or retail shop? Contact us today for a free demo.