Businesses have all sorts of costs. Some are fixed, like rent. Others are varied, like inventory and labor.
The right point of sale system can help reduce costs in some of those areas. It’s not likely to help with rent but it can certainly help business owners reduce costs associated with labor and inventory.
Let’s have a look at some of the ways the right POS can decrease the burdens of business expenses:
Helps track inventory
Whenever you ring up merchandise through the point of sale, the right system should be tracking each item that goes through. Subsequently, the transaction data will go into the reporting that owners and managers can access, typically through a web portal.
Analyzing that data can yield tremendous results. It can tell you what products are selling when and it can tell you the margin on those products. In turn, it’s a matter of examining inventory levels to see if the business is carrying too much of one product and not enough of another. Too much inventory is wasted capital and prevents the business from realizing profits.
Help track labor costs
Many modern point of sale systems can double for an employee clock in/clock out system. It can also track what employees ring up the most sales.
If you examine the labor costs over, say, a six-week time period, you may learn some important lessons. For instance, it may not be necessary to staff at current levels when business is slower than usual. If you business does better when the sun is shining outside (let’s assume you have an outdoor deck at your restaurant) then you’ll want to schedule some on-call workers but maybe don’t call them in on days when it rains.
The point of sale can match up labor costs with revenues to let you know the percentage of sales that came about during each time period. If you find that having extra employees is an incremental cost that yields no extra revenue, it may be time to re-examine your operations.
Helps reduce fraud
Modern point of sale systems are moving towards using the EMV, or chip card, technology that was introduced in the United States a few years ago. It helps to reduce card fraud by utilizing a new way of transmitting card information to the point-of-sale system that does not expose the actual card numbers. This makes stealing and reproducing cards with fake numbers more difficult than it used to. Also, it makes it difficult to use the stolen numbers with a card because the micro-chip technology is harder to produce than the mag-stripe cards of old.
Helps prevent theft
A point of sale can also help reduce employee theft by tracking the transactions that each employee rings up as a sale. If each sale is in the system, it will track the employee, the products sold and the time the transaction took place.
In some instances, it may be necessary to consult a security camera for footage. Luckily, the point of sale can be linked to the security camera to record the transaction. With the camera watching, it becomes much less likely that an employee would steal.
Want to know more about how the right point of sale system can reduce business costs? Contact us for a demo.