Founded in 2005, Software Advice matches technology buyers with the right software for their organization. The company serves a range of vertical markets, including the construction, medical, property management and retail industries. In turn, Software Advice also provides a powerful marketing channel for software vendors that are looking to reach buyers in these industries.

When deciding where to move the company, founder & President Don Fornes said that Austin’s favorable business climate and high quality of life made the central-Texas town stand out.

“We wanted to move to a city where we could grow our business cost-effectively and have a great quality of life. I also wanted our employees to love where they lived. Austin gave us the best combination of a friendly business environment, outstanding professional talent and a quality of life that that is unmatched.”

Austin’s reputation as a technology hub played a large role in the move, Fornes said.

“We knew that as the company grew, we would need to find talented employees with a background in technology and Internet marketing. Moving to Austin means that we can find that talent right here while helping to strengthen local business.”

The company is connecting with that talent by hosting a meet-and-greet happy hour for Austin’s blogger and tech community. The event begins at 6 P.M. on August 13th at the company’s downtown office (Click here for our flyer with more information).

Software Advice also walks the walk on the environmentally conscious business philosophy that is shared amongst so many Austin companies. The Software Advice office at 7th & Congress is paperless. Any documents that come into the office are scanned and stored digitally before being recycled. Each month, the company prints fewer than 20 sheets of paper.

Meanwhile, every Software Advice employee commutes to work by foot, by bicycle or by bus. Employees also man the company’s internal recycling program by sorting and transporting recyclables to Ecology Action of Texas every Friday.

“We definitely made the right choice,” Fornes said. “We love Austin. It’s a great fit. Over time, we hope we can have a positive impact on Austin’s local economy, while continuing to serve software buyers across North America.

About Software Advice
Software Advice (www.softwareadvice.com) has helped over 13,000 businesses of all sizes make the right technology decisions. The company has developed sophisticated technology for software needs analysis and requirements matching. Software Advice experts use this technology to match buyers with the right software system during its free telephone consultations. Currently, the company serves the construction, medical, property management and retail industries.

For more information, please contact Chris Thorman at (512) 364-0118.

Update: Here is video from our 1st Annual Summer Bash.

Thank you to everyone who came!

Hopefully this scenario doesn’t sound too familiar, but most retailers will encounter purchasing challenges throughout the year. Purchasing on a yearly basis is parlous; you risk under or overstocking. Open-to-Buy (OTB) software allows you to monitor inventory on a monthly basis, improving margins and cash flow, and ensuring a strong ROI.

What is Open-to-Buy (OTB)?
Simply put, open-to-buy is a budget tool that helps retailers manage inventory. Using the dollar as the standard unit of measure, an OTB budget reveals the difference between how much inventory you have available and how much you need to buy. The desired outcome is a leaner inventory and reduced markdowns, overstocks and understocks.

Developing an OTB budget begins with thoughtful planning. Retailers should first calculate average monthly sales (or weekly for seasonal businesses), then determine how much inventory is required to cover each month. Not only will this help establish a purchase plan, but will also form the basis of a cash flow plan.

Planning and maintaining an OTB budget can be done manually using spreadsheets or pen and paper. However, this can be cumbersome and ineffective for some businesses with large inventories, or those that rely heavily on seasonal buying patterns. OTB software simplifies this process by automating each activity, reducing manual calculations and monitoring stock levels. The benefits are improved profit margins, increased cash flow and greater ROI.

Open-to-Buy Software
Open-to-Buy software is a valuable tool for retailers pursuing an open-to-buy purchasing strategy and budget. OTB software can be purchased individually as a stand-alone system or as a module within a retail management or point of sale software system. Additionally, OTB systems often integrate with popular point of sale systems, so it’s not necessary to replace your current point of sale software.

Implementing an OTB system is relatively painless and intuitive: first you create individual categories of inventory and determine your base numbers for a 12-month sales plan. In the 12-month projection, you can include estimated turn rates, delivery time and shelf life for each category. In turn, OTB software systems will automatically calculate ideal beginning inventory levels. At the end of each month, most programs will allow you to compare estimates against actual inventory levels and then develop an optimized buying plan.

In summary, developing an Open-to-Buy budget and buying plan not only helps improve your profitability, but also helps you run a more efficient retail operation. OTB software system take you one step further by automating the budgeting activities. Not only will software reduce your time spent manually entering data, but it will also help improve accuracy. If you aren’t already following an open-to-buy plan, now is a great time to start.

Here we discuss the five main points to consider when purchasing a POS software system for your jewelry store.

Inventory Management
Using a POS system with inventory management decreases inventory-taking time considerably while improving accuracy.  A handheld scanner easily scans products in and out of the system while the software tracks their every move.  This allows for exceptional accuracy as inventory movement reports can be generated on a daily, weekly or monthly basis.

Rick Albert of Tyler Retail Systems states, “a good system will adjust by seasonality. It knows by vendor how long it takes to receive merchandise, what the selling rate is and can recommend how many items to purchase so you don’t overbuy.”

Inventory Reports
As a jeweler, your inventory is expensive, yet small enough to “walk away” without anyone noticing. Real-time reports enable a dealer to make the best use of the store’s capital and assets while keeping tabs on shrinkage.

Critical reports that play a role in that analysis include inventory, buying and analytical.

These reports should help you find old stock to discount, top sellers, reconcile quantities in stock and give you a snapshot of your inventory status.

“Most importantly, it needs to know where inventory is, what inventory is in what building, what inventory is on display as opposed to back stock,” Albert advised.  “And the system needs to have a good stock transfer system that controls inventory. Intelligent reporting gives the dealer details on each product’s GMROI.”

Employee and Commission Tracking
It’s impossible for you to oversee and track employee sales 100 percent of the time.

POS systems can be used to monitor who is running the register, who made the sale and if commissions are due.  A good jewelry POS software system is also capable of generating comparison reports for GMROI per salesperson.

Customer Tracking
Loyal customers, the lifeblood of your business, deserve a special place in the POS system.

Customer information can be captured to track buying histories and for use in customer relationship management (CRM).  Data such as name, address, birthdays, anniversaries, spouse’s birthday, etc. can be collected and used as a “reminder” for future purchases, loyalty rewards programs or marketing campaigns, both direct mail and e-mail.

During the transaction process, a good POS system offers the salesperson the ability to view add-on selling suggestions as well.

Hardware, Labels and Digital Images
Tedious labeling and inventory count are made easier with the hardware included for POS systems.

POS systems typically use a register/monitor, handheld scanner and label printer to create the appropriate bar code tags.  Customarily, barbell tags are printed and affixed to the item for scanning at checkout.

Digital images of jewelry items are often useful for a dealer’s website or for creating e-mail and catalog marketing campaigns.  Check to see if the POS system has an application for digital imaging. This is usually a standard feature, depending on the software.

Cost and Conclusion
There are many variables to consider when purchasing a POS system, such as how big the company is, turnover rate and what functions you
require.  Software prices run the range, depending on how comprehensive the functionality is.

POS systems have a wide range of capability and most of them can be customized to assist in tracking inventory movement, sales, customer history, accounting and more.  Using computerized technology is the most efficient way to give you the information necessary to make intelligent and sound business decisions.

As software selection advisors, my team has talked to thousands of retailers considering a major new software purchase. The vast majority are replacing an existing system – one they’ve used for years. Why? Why replace what’s familiar? Why pay up for something entirely new when an upgrade is – on paper – less expensive? Why move away from a long-term vendor relationship?

There are plenty of reasons. Here are the top five responses we hear when we ask, “What’s driving you to replace your existing system?”

1. Improve usability and adoption. For many businesses, the system that best matched their functional requirements turned out to be too difficult to use. In an environment where employee turnover is high, poor usability can make it very difficult to get new employees up-to-speed. By far the biggest challenge we hear from buyers is that their existing system is non-intuitive; they are looking for a new system and their primary requirement is ease-of-use.
2. New store growth. It’s a big leap to go from managing one store to managing two, five ten, one hundred or more… This challenge is especially difficult if a retailer plans to manage their inventory and accounting for multiple stores in one single POS software or inventory management system. Often the simple, single-store system that was easy to get going is grossly insufficient for rapid new store growth.
3. Poor tech support. Frequently, buyers come to us when they’ve gotten too frustrated with the poor support they are getting from their existing vendor. Either the vendor was a “one-man shop” that couldn’t keep up, or the vendor “lost its personal touch” as it grew too big, too fast. This impetus for change is even more powerful when poor service is combined with increases in support fees.
4. Integrating multiple channels. Many retailers are moving to support multiple channels – retail stores, e-commerce websites, mail-order catalogs… As they roll out new channels they often implement separate, redundant software systems – one for each channel. We talk to a lot of buyers that are now looking for a new, all-in-one system for multi-channel retailing.
5. Hardware failure. Many retailers have been on the same system for a decade or more. They may have remained patient with an old, DOS-based system, but their hardware eventually gave out. An upgrade to new hardware presents a logical opportunity to bring their software up to current standards as well. Much of the time, they can’t even install a dated system on new hardware and are forced to move to new-generation software.

We’ve heard many other reasons for replacing existing systems, but these are the most common. They also present a good lesson for new retail organizations that want to invest ahead of rapid growth. Consider these challenges and invest in a retail management system that will support your expansion plans.

What is RFID?
RFID is the method of using radio frequencies to track and inventory merchandise. An RFID system allows communication between a product that has been tagged with a small, inexpensive RFID chip and an RFID reader and an in-store server. It can be used anywhere that a unique identification system is needed. Think of it as analogous to a bar code label and bar code scanner, but far more sophisticated and easier to scan (you actually don’t have to scan the item, just have it near the RFID reader).

The RFID system typically has a central in-store server, a reader, pre-encoded labels (tags) and a printer. The central server is the “brains” of the system. It holds all the data that has been collected on-site as well as information that has been transmitted from other stores. It also integrates to the inventory management system or POS system.

The reader communicates with the central server. It contains circular polarized antennae that allow for the reading of multiple tagged items at once. The sensitivity of the antennae can be set for each register it serves, each reader can handle the transmission of up to four registers concurrently.

How can RFID be used for inventory tracking?
Imagine a box of 500 items arriving at the receiving door and it is time to check the items in. Instead of opening the box and scanning each individually all you do is sweep a handheld scanner over them and the inventory count is complete.

Each item that is tagged with an RFID chip can be tracked from the moment it arrives at the receiving door until the time it leaves with the customer. Tags are easily programmed and printed simultaneously while receiving merchandise shipments. A unique identification number is generated for each tag, which is then encoded with a designated store ID and affixed to the item. The tag numbers are associated to each SKU.

Tracking store transfers is simple with RFID, significantly decreasing receiving times. Merchandise is automatically read as it moves from one location to the next. It is as easy as selecting the current store number, then the allocated store destination, scanning the item and saving the transfer. The items are automatically saved as the property of the assigned store.

How can RFID be used at the point-of-sale?
When a customer checks out, the RFID reader automatically detects the merchandise to be purchased as it is placed on the counter and the cashier can complete the sale as usual without individually scanning tags. It “reads” the radio frequency from the encoded labels on the merchandise, virtually scanning them. The information is then communicated to the RFID reader where the data is processed enabling the system to automatically generate the sale at the register.

Returns are as easily generated as the system automatically checks the returned merchandise. A consumer is able to return RFID-tagged items without a store receipt. The tag would reference a database with the time of purchase and original price – even credit card information. Detailed information about customer returns would also help stores refine their inventory selections.

Celerant Technology Corp. recently announced the release of an RFID-integrated POS system, Command Retail. The system is an advanced real-time retail management software that uses RFID to manage all areas of retail including POS, inventory management, warehouse, distribution center, allocation, integrated e-commerce, data mining and back-office in a single integrated system.

The cost to implement Command Retail’s RFID capabilities to an existing POS system is about $3,000, which includes a reader that serves up to four cash registers. It’s been reported that when purchased in volume, the individual RFID tags could eventually have a cost of less than a nickel apiece. This will allow retailers to track even small-ticket items using RFID.

What role does RFID play in reporting?
RFID reports allow for increased visibility of products at all points along the supply chain. This capability helps retailers avoid stock-outs, a significant factor in lost sales and subsequent inconvenience to customers.

The technology also enables the retailer to analyze store space utilization and product location. Knowing where a customer found an item can be particularly helpful when it comes to the placement of seasonal and promotional items.

A variety of inventory reports could be generated in real-time from the central server. Using wireless and offline data synchronization, a retailer could access data at multiple locations to generate up-to-date reports immediately. Authorized personnel could then access the reports over the Internet using a Web browser.

How else could RFID be used?
Possible uses of RFID are expanding every day. Tags can double as theft control devices, since they are easily attached to items and track whether the item has been purchased. They can also be placed in customer cards and once scanned at the checkout counter, offer additional selling suggestions via the POS monitor.

On the floor, employees can use RFID to give immediate help to the consumer to find a particular item or size as well. Scanners can be set to read only selected tags to check the quantity of a certain item in stock, either on the racks or in the stock room.

We are not far from the point where RFID enables an entire cart of merchandise to be scanned instantaneously and a debit or credit card charged as the customer moves through a virtual checkout line. This capability will dramatically reduce checkout time and minimize the opportunity for human error.

Conclusion
RFID is a revolutionary technology. As its adoption makes its way through the major retail channels more mid-size and smaller retailers will begin to see its benefits and uses for significant improvements in operational efficiency, maximum profitability and superior customer service.

At the same time, you realize the benefits of automating your store(s). You can speed up the check out process, better manage inventory and keep a tab on your profits each day. You know it’s time to bite the bullet and find the right retail management system.

The truth is that selecting your next retail management software system doesn’t require in-depth technological knowledge. Instead, you simply need to roll up your sleeves and run a disciplined selection process – skills you probably already have available, assuming you are succeeding in the challenging retail industry.

Here we present ten best practices for selecting your next retail management system. While there are hundreds of retail software packages on the market, you can quickly narrow them down using these processes and criteria.

1. Get management involved. Your retail management software will impact most every aspect of your business, so this is not a decision that can be delegated to a junior staffer or the local “computer guy.” This process demands the management talent, process expertise and perspective that only an owner or senior manager can provide. What if your computer guy selected a system based on an underlying database he liked, but failed to recognize that the system accounts for inventory differently that you do? Take ownership!
2. Determine your needs. Too many buyers let the software salesmen drive the process and determine their requirements. Only you know how best to run your business and where you need to automate for the greatest return on investment. Therefore, it’s critical to map out your core retail business processes and feature requirements. Are you simply looking for a high-end cash register, or do you want integrated inventory management, automated purchase orders and an integrated e-commerce system? Build an exhaustive list of features and then prioritize them based on what will give you the most bang for your buck. Don’t be afraid to phase in components over time.
3. Get the right package for your industry. I doubt that you frequently describe yourself as a “retailer.” No, you’re a liquor store, a grocer, a dry cleaner, an auto parts store… In that case, be sure to select a system that has features specific to your unique retail segment. Highly focused packages will more closely map to how their users operate. Broadly-focused “mega vendors” may have big dollars and broad reach, but are not always specialized in your industry. Ask them for customer references from within your market segment. At the same time, keep in mind that there can be a tradeoff between how narrow a software vendor focuses and what level of investment they can afford to make in ongoing development and infrastructure (see #8).
4. Buy for your size and growth plans. One size does NOT fit all. Retail systems range from shrink-wrapped packages for a small, single location store to “enterprise-class” systems for national retailers. Prices vary accordingly, from just a few hundred dollars to literally millions. When building a short list of systems to evaluate, consider your current scale and future growth plans. How many registers do you need to automate? Do you need to support multiple stores or just one? Do you know each of your three employees or do you need a sophisticated system to manage HR and payroll for hundreds of staff?
5. Focus on ease-of-use. Retail businesses face some of the highest turnover of any industry. Therefore, it’s critical to get new staff up-and-running on your systems quickly. Central to meeting that requirement is finding a system that is highly intuitive and easy-to-use. The simplest way to evaluate ease-of-use is to use a demo copy yourself. Try to manage a common process like ringing up a sale, without a salesperson’s assistance. Did you figure it out right away? These days, the right software should make it easy. Features that can augment ease-of use include on-line help functions, touch screen interfaces and a “training mode” that lets new employees learn without acting on live transactions.
6. Assess support and upgrades. You’ll need them. Leading vendors provide support 24 hours a day / 7 days a week. You’ll most certainly want weekend support and you might want nighttime support too, even if the shop is closed and you’re just managing the books. Consider also how that support is delivered. Are you up for talking to foreign call center staff? Do you want help on-site? And remember, when it comes to software, support isn’t just technical assistance; support often includes access to new features, bug fixes and major upgrades. Assess the vendor’s track record in delivering consistently high quality new releases of their software. After all, you’ll likely pay for them annually.
7. Demand accountability. When it comes to technology, things do go wrong. When they do, you’ll want a single of point of accountability. Unfortunately, in the retail systems marketplace, fingers point in every direction. A reseller may blame the software vendor, who in turn blames the hardware vendor, who blames the credit card processor. Ultimately, you just need to get back up and running, quick! The best strategy may be to buy from a single source that can provide the software, hardware and services you need. Sometimes that just isn’t possible, especially if you want to avoid getting “locked in” to a proprietary system. In that case, determine ahead of time which vendor supports which components. Look for those vendors willing to support third-party products and take ownership. And get it in writing!
8. Consider vendor viability. A retail system isn’t all you’re buying. You’re also entering into a long-term vendor relationship. It’s critical to assess the software company’s viability – not just if they survive, but how… Sure, healthy margins in the software business keep most established vendors afloat, but what about the vendor’s “strategic viability?” Can and will they invest in new development? Will they maintain adequate support staff? Will they sell out to a larger company that soon thereafter “sunsets” their product? All of these situations could have big implications for you. Make sure you assess the vendor’s reputation, financial well-being and their vision for the future.
9. Be smart about your budget. You can quickly narrow down your retail software search based on price. However, this approach will more than likely limit your ability to find the right system. While software does not have to be expensive to be good, never buy on price alone. A good rule of thumb is that retail leaders spend 2% to 3% of their annual sales on technology, while the average retailer spends 1.5%. Of course, if you only invest in technology every five years or so, you should expect to shell out 5% to 15% of sales in year one, for a system that will last five or more years. The more sophisticated buyer will consider the value of the system (as measured by return on investment), rather than thinking in absolute dollars. Consider how incremental investment can help grow sales or reduce costs.
10. Plan your hardware needs. While we recommend that the software you select should drive the hardware you buy, don’t forget that these components are often highly interdependent. The right software for your retail business may only be compatible with certain hardware platforms or software operating systems. Moreover, there is a wide range of peripheral components to consider, such as keyboards, receipt printers, labelers, signature pads and credit card readers. Be sure to assess your hardware and peripheral requirements and make sure your new software system will support these devices.

Best practices are critical for selecting the right software for your retail business. While we could suggest many more criteria for your process, managing to these ten best practices will get you most of the way to finding the right system. Good luck! Compare leading point of sale software systems to find the right solution for your business