Small Businesses Need to Invest in a POS System

POS systems market share increased to $75 billion in 2020. It is expected that between 2021 and 2028, the industry would generate a compound annual growth rate (CAGR) of 6.9%. This is obviously because businesses are increasingly realizing the many benefits of POS systems, with some of them increasing their sales as much as 200%. However, many small businesses, particularly single store retailers still rely on manual methods. If you are one of them, and still considering whether or not to invest in a POS system, this article is for you.

Key reasons why small businesses need to invest in a comprehensive POS system

Increased profitability

By investing in an efficient POS system, you can give a significant boost to your profitability. According to research conducted by Intuit, by using an affordable and integrated POS, an independent retailer with revenue of $300,000 can reduce their costs by about 10%, and save up to $30,000 annually. This can have a significant impact on the bottom line.

Improved efficiency

Once you invest in a POS system, you don’t have to spend time adding large amounts of data manually like you do in a traditional cash register or memorize product prices or other details. While entering data in a cash register takes few seconds, a POS bar code reader takes only a fraction of a second. Even if you make a mistake while entering data, it can be rectified very easily. On the other hand rectifying mistakes in a cash register, even if you can identify them, can be very cumbersome. A POS system can lead to increased efficiency and capabilities, and can boost the company’s bottom line.

Better inventory control

Small businesses often struggle with inventory management. For example, some boutique clothing stores will stock SKUs numbering in the thousands and the actual counts may exceed 10,000 items. The line between having too much inventory on hand or having enough of it is often very thin. Worldwide, the losses due to overstocks stand at $471.9 billion and at the losses due to out-of-stocks at $634.1 billion. However, with the right tools, this problem can be minimized. A smart POS system has far more capabilities compared to a manual cash register. They offer you a clear picture of your inventory at any point of time and you don’t have to waste your time and effort in inventory counting.

Real-time sales performance tracking

One of the key benefits of POS systems is that they
simplify sales related business data management. It lets you log, track and access real-time data easily, quickly and efficiently. With an integrated POS, you get access to real-time dashboards where you can see sales reports and metrics whenever you want. Point of sale solutions help you run promotional discounts and offers with the help of various customer loyalty features.

Improved customer experience

No one likes to wait in a long line to make a purchase. At a time when businesses are offering fast checkouts, why would someone visit a business where the check out line takes a long time. A good POS system can greatly enhance the user experience by fast-tracking transactions and making sure that the customers’ transaction is always correctly. Remember, once you offer a good buying experience to the customer, their chances of returning for a repeat purchase are much higher. These are just some of the benefits a good POS system brings to a small business (in
fact, any business).

It is best to choose a POS system that starts small and grows with your needs. Speak with our experts to know more about your options.