Every year, Software Advice is contacted by thousands of SMB retailers just like you who are looking for the right point-of-sale (POS) system for their business. We speak with them about difficulties they have with their current POS system (or lack thereof) and what they’re seeking in new software.
From these free consultations, we’re able to provide retailers a personalized shortlist of solutions that fit the needs of their business.
We recently analyzed these conversations to pinpoint trends and identify the top POS benefits SMB retailers like you are seeking. The following are those advantages that are the biggest motivators in getting retailers to finally adopt a POS or replace their outdated system.
Benefit 1: Automate Tedious Processes
We know from a previous report that 64 percent of single-store retailers still don’t have a POS system in place. This is a surprising statistic, considering how draining and inefficient it is to manually complete most retail management tasks—especially counting inventory and generating sales reports.
Our recent side-by-side infographic further articulates this struggle. It compares a day in the life of retailers with and without a POS system, highlighting one of the most impactful POS benefits: the ability to automate these types of tedious, time-consuming processes.
It’s thus no surprise that three-quarters of retailers we consult want robust inventory management and sales reporting capabilities in their new POS system. Their current methods are falling short, and they’re looking for something more efficient and accurate.
The above capabilities should be top priorities when selecting your new software. You’ll benefit from the time and effort awarded back to you through automation: For example, instead of spending three hours each week counting inventory, you can work on building meaningful relationships with customers, or spend this time monitoring and training your staff.
Even better, you can spend it on yourself. Instead of breaking your brain at night with Excel spreadsheets, you can use sales reporting functionality to get a quick analysis of your data—and still make dinner with friends.
Benefit 2: Modernize
When analyzing the conversations we have with retailers, we’re able to break them down into two groups: first-time POS buyers, and buyers replacing their POS system. For the latter group, the top motivations for seeking new software indicate they’re fed up with their current system.
Top Reasons Buyers Replace POS Systems
We find that 31 percent are replacing their current system in order to “modernize,” while 21 percent are replacing their POS system because it’s faulty. Clearly, these buyers are looking for an updated system that offers more modern, robust functionality. After all, POS systems are supposed to simplify and streamline your business, not complicate and burden it.
Today, sleek options such as mobile POS systems enable you to complete transactions from anywhere in your store (or pretty much anywhere in the world, for that matter, as long as there’s an Internet connection). And capabilities such as customer and employee management help you keep tabs on customers enrolled in loyalty programs, as well as monitor schedules and payroll for your employees.
Benefit 3: Affordability
Fortunately for you, this is a great day and age in which to buy a POS system. Advances in modern technology have greatly increased the affordability of many solutions. Today’s cloud-based systems are typically priced on a modest per-terminal, per-month basis.
And vendors often offer discounts if you pay for an annual subscription (12 months up front, as opposed to making a payment each month). What’s more, vendors update these systems automatically, typically for no extra cost. The benefits of cloud-based POS systems are very appealing: great functionality without breaking the bank.
That being said, those adopting a POS system for the first time may have to face significant upfront costs in hardware as well as software—but don’t be deterred. According to this Entrepreneur article, an average retailer making $300,000 in revenue can cut costs by nearly 10 percent by adopting a POS system. As you can see, it’s money well spent!
Our research identifies the average POS budgets of your retailer peers. The budgets for first-time buyers and buyers replacing a POS system are essentially in line with the actual average cost of a POS system.
Per-Month Budget for New POS System
Interestingly, over 10 percent more first-time buyers have monthly budgets of $50-100 (64 percent) than do buyers replacing their current POS system (53 percent). Conversely, over one-third (34 percent) of buyers replacing their POS system budget between $101 and $150 per month, while only one-quarter (26 percent) of first-time buyers budget this much.
This data could show that first-time buyers want a less expensive POS. On the other hand, the data could be indicating that more buyers replacing their current POS systems are fine with spending more on a new POS as long as they’re receiving better capabilities. (It could also be a combination of both.)
Either way, it’s important for first-time buyers to not sacrifice on functionality—especially beneficial capabilities such as inventory and sales reporting—in the name of cost. And if you’re replacing your POS system, you should know what additional capabilities you want based on the shortcomings of your previous system.
We’ve listed these POS benefits to inform you about the positive impacts a system can have on your business. If you’re interested in learning more or getting a personalized shortlist of the best POS systems for your organization, let us help you.
Click the button to the right to learn more, or call one of our retail experts at (888) 234-5187.