POS Software Blog

Maximize the Investment in Your POS Solution

Sean Connors — Fri, 08 Mar 2013 16:59:00 GMT

As a POS (point-of-sale) solution provider, we see a great deal of underutilization of functions and features far too often. Business owners make the commitment and the investment to automate their retail or hospitality operations. Typically, a great deal of time and energy is invested in selecting the appropriate solution provider. However, after implementation, many POS solutions quickly become glorified and expensive cash registers.

Sometimes, this situation is the fault of the solution provider. Failure to educate the merchant on features that might provide additional benefits obviously results in the underutilization of the complete POS solution. Failure to provide proper training on these functions results in the same failure. Other times, the merchant is at fault by ignoring the power and potential financial gains that can be realized by taking full advantage of the power of the POS solution.

Being that this opportunity is a two-way street, we would like to offer some insight on features and benefits we see as underutilized in the field every day. In order to maximize the return on investment for a POS system, it is critical that the merchant take full advantage of all the solution has to offer. In rare occasions, there are situations where the efficiencies gained provide enough savings to the operator to justify the cost in time, energy and money used in a POS deployment. However, most times there are opportunities left on the table due to ignorance and/or underutilization of the power of POS.

The reality is that a solid POS solution should do much more than save the merchant time and money through efficiencies. The solution should also provide marketing and revenue generating functions that can transform the POS from a cost item to a profit generator. This provides the win-win scenario that all business transactions should contain. The solution provider is able to charge more for licensing and services while the merchant gains both efficiencies and ways to generate additional revenues.

Some examples of these underutilized and under-deployed functions are:

Email/SMS Marketing – Most independent merchants have something in place in this area. Companies like Constant Contact, MailChimp, HubSpot, etc provide powerful solutions for communicating with customers and prospects. However, merchants often fail to utilize the power of the POS data that is gathered over time. When the POS solution has its own email/SMS marketing component, extremely targeted communication can be sent based on purchase history, frequency of visit, loyalty levels, preferred products and services, etc. If no internal marketing platform exists, it is still wise for the merchant to analyze this POS data and utilize it through 3^rd party providers like the ones mentioned above.
Gift Card Processing and Promotion – Providing gift cards through the POS system can increase revenues significantly. There are many published findings on this topic. But, it is far too much information for the purposes of this blog. However, ignoring this opportunity is like a merchant refusing to accept free money. This is also a great opportunity for gaining brand new customers when these cards are passed along as gifts.
Customer Loyalty Programs – Most POS solutions offer integrated customer loyalty. Some solutions provide internal programs. Others utilize 3^rd party integration. Some combine the two offering complete flexibility. In any case, we have found that many merchants fail to take full advantage of these features. Whether it is time and effort or luck and happenstance that brings a customer to a merchant, the onus is on the merchant to give them every reason to return and spend more money in the future. Utilizing a loyalty program via the POS system is a simple and cost-effective way to accomplish this.
Integrated E-commerce – Many brick-and-mortar merchants extend their offerings to the entire planet by offering integrated e-commerce solutions. Most POS solutions provide some type of integrated e-commerce platform. However, surprisingly enough, many merchants still offer only traditional POS commerce where the consumer must have a physical presence at the merchant’s location to make a purchase. E-commerce provides convenience to the consumer, extends the reach of the merchant geographically and opens the store to the worldwide audience.
Miscellaneous POS-integrated Promotional Tools – If the POS solution offers emailing of receipts, the merchant gains the power of gathering customer data for future promotion. Further, the body of the email should contain marketing messages to promote the merchant and return visits in addition to the transactional information. Customer displays attached to the POS system should promote in-store marketing messages. Paper receipts should contain some type of marketing messages. Coupons generated through the POS system can promote future visits to the establishment. The list goes on. These miscellaneous items are simple yet powerful and often overlooked or ignored by merchants.

The bottom line is that the POS solution deployed by merchants should not be viewed as an expense. It can actually be a powerful revenue generator. The difference is often in proper deployment, training and the operator recognizing this concept instead of only factoring gained efficiencies into the POS ROI calculation.

To learn more about ways to maximize the power of your POS solution investment, download our free checklist today!

QSR POS - Focus on Healthy Nutrition

Sean Connors — Fri, 22 Feb 2013 17:23:00 GMT

Today’s QSR customer has evolved. This is clear in the diverse offerings on the menus of the most popular fast food restaurants that are famous for their burgers and fries. Although the burger and fry customer still exists, QSR’s have adapted menus to satisfy today’s more health-conscious consumer. It has been proven that a steady diet of burgers and fries will shorten one’s life significantly and cause a multitude of health problems along the way. Hence, the recent success and growth of QSR’s like Subway, Qdoba and Panera just to name a few.

Independent QSR owners and operators are recognizing the trend. Therefore, some of the most successful start-up QSR’s are focused on providing healthy choices in addition to the traditional fare. Others are focused completely on providing healthy nutrition and carrying a “healthy and fit” theme throughout the entire menu as well as the branding and marketing efforts. Our generation is certainly more aware of our intake of calories, sugar, fat, etc. and how that intake effects the body. Our children’s generation will most likely push the envelope even further. With this strong movement focused around a healthy lifestyle in place, QSR POS (point-of-sale) providers must address the issue and provide technology that supports the needs of the independent QSR.

From a POS design, delivery and support perspective, the onus on the solution provider goes beyond pleasing the QSR customer. The POS provider must deliver solutions that please the customer’s customer. Otherwise, the solution provider and the QSR operator fall short of the ultimate goal of consumer satisfaction. With the consumer shifting toward a focus on a healthy lifestyle, the QSR operator must provide menu selections and information that support that lifestyle. QSR POS solution providers can assist in the following ways:

By designing robust methods of tracking and calculating nutritional information in the QSR POS system
By communicating the information to the consumer via the POS system
By extending the information to the consumer via additional channels like online ordering components with nutritional calculators

Many QSR operators have deemed it sufficient to communicate nutritional information to the consumer via in-store materials such as placards, menu boards, placemats, tabletop displays, etc. Others list nutritional information on their websites. Many provide both methods of awareness. However, despite the movement toward healthy living, today’s consumer is also typically in a hurry. Hence, the success and growth of today’s QSR market. Therefore, the consumer will rarely take the time to research the nutritional information of a meal provided by a QSR by looking for the information and performing manual calculations. QSR POS systems can calculate the nutritional information and display it in a user-friendly format on receipts as well as web ordering applications. This makes life simpler for both the QSR operator and the consumer to actively participate in the healthy lifestyle movement that is here to stay.

For more information on POS system selection for your QSR, download our free checklist of items to consider today.

Credit Card Surcharges at POS

Sean Connors — Mon, 28 Jan 2013 15:41:00 GMT

Independent merchants are faced with many challenges in controlling costs and maximizing ROI for their businesses. One of these challenges comes in the form of fees paid to credit card companies. This area can be quite confusing for some merchants due to the layers of complexity involved in the payment processing industry. As a POS solution provider, I have gained some insight on how the industry works and did my best to simplify the structure of those layers in a previous blog post located at this link – https://blog.posprophetsystems.com/blog/bid/110007/Paper-or-Plastic-Payment-Processing-Considerations-from-an-Objective-Source.

The latest news that has merchants asking lots of questions is the result of a lawsuit between a collection of merchants and the credit card industry giants. In this case, David conquered Goliath. The merchants won the right to assess surcharges (up to 4%) on certain electronic payments to offset some of the costs associated with doing business with the credit card companies. As of January 27^th, 2013, merchants in most states are now legally permitted to apply these surcharges.

This is a huge win for independent merchants on the surface, right? Maybe… However, it is important to take a look under the hood before firing up this engine. Like most issues that revolve around the payment processing industry, there is still a great deal of items to consider before jumping on the surcharge bandwagon.

First and foremost, many of the details are still not clearly defined. Even industry giants like major payment processing platforms and gateways have not settled on the best way to support merchants that wish to exercise their new right to apply surcharges on payment methods. Most POS providers are waiting on solutions from their payment processing partners before writing code to support robust methods of supporting this new functionality. Workarounds will need to be implemented prior to solid solutions that are user-friendly and bullet-proof.
With #1 under consideration, it is my understanding that at least a handful of states still find it illegal for merchants to charge any type of additional fees to consumers who pay with plastic. I believe that California is one of them. I am almost certain there are others.
It is also my understanding that no fees can be charged by the merchant on PIN debit transactions. PIN debit has become even more confusing since the Federal government has dipped their fingers into that cookie jar in the past year.
Also, merchants must be aware that American Express and Discover issue completely separate and unique agreements than Visa and MasterCard. I am fairly certain that the agreement between AMEX and its merchants clearly states that no additional fees can be assessed by the merchant when a consumer pays with an American Express card. Discover’s agreement may contain something similar.
Last but not least, merchants must consider the impact on the loyal customer. In the current economic environment, consumers will not take the additional fees lightly should the merchant elect to apply the surcharges. I would bet that the big box stores will hold off on implementing the surcharges until all the dust settles. They may elect to never implement them. So, merchants who compete with the Wal-Mart’s of the world may find themselves losing customers to big box retail over the issue of credit card surcharges.

The purpose of this blog post is to provide issues for merchants to consider prior to jumping into a pool that is not yet completely full of water. At this point, the industry has not completely embraced this new legislation. So, it is important to take caution and do your homework prior to implementing any surcharges. This is all over the news – even at local levels. So, my intent is for merchants to be well-equipped to discuss this issue with customers when questions arise.

Lastly, in respect to issue #5 above, one of the thought leaders on our team, Ian Versaw, proposed an idea to reverse the logic on this issue. The crux of Ian’s idea is to build the surcharges into retail pricing and offer discounts to consumers who pay cash. This turns a negative into a positive if implemented carefully and thoughtfully. We will continue to develop new ideas on this topic to assist merchants in protecting the bottom line while maintaining the loyal customer base.

For detailed information including the states that are not allowing or limiting surcharges, click on this link https://usa.visa.com/personal/using_visa/checkout_fees/index.html to learn more.

Top 5 Benefits of Farm and Feed Store POS Solutions

Sean Connors — Tue, 22 Jan 2013 16:19:00 GMT

Farm and Feed stores are relied upon heavily in the communities they serve. While some serve primarily as supply houses for farmers, others provide a broader range of products and services for the community in which they operate. This is typically driven by location and the proximity of the feed store to other types of retailers that serve each community.

Both large and small, feed store owners and operators face the same business challenges as big box retailers. Although some of these challenges may be on a smaller scale, they do exist and each has an impact on the bottom line. Examples of these challenges are inventory controls, cash management, customer service, payment processing, etc. Farm and feed stores are turning toward point-of-sale (POS) technologies to assist them in maximizing efficiencies and combating these everyday challenges in the business.

The top 5 benefits that farm and feed store owners/operators enjoy from their POS solutions are:

Inventory Controls – Most feed stores sell thousands of unique products. Without a POS system, managing the inventory can be a very time-consuming and tedious task. A POS solution provides the tools for bar coding and scanning at POS, at shipment arrival and at physical inventory time. This reduces errors in all of these processes allowing the owner or operator to maintain full control at all times
Speed of Service – Especially during peak periods, moving customers through the store quickly is critical. Now more than ever, maintaining the existing customer base and providing a great first impression for new visitors are critical objectives for farm and feed store owners. A well-designed POS solution provides the speed and accuracy to produce 1-3 second transaction times. Compare this to a cash register or paper system combined with a separate credit card terminal (eliminated by the POS solution). Multiply the difference by the number of transactions on any given day. You may find that you are gaining hours each day!
Customer Accounts Receivable – Most feed stores have customers to whom they extend charging privileges. Although this is a great customer service offering, it can also become a labor intensive process if not automated. The right feed store POS solution provides internal accounts receivable functionality. This provides fast and efficient management of all accounts, aging and collection activities.
Cash Controls – Daily reconciliation with a well-designed POS solution is a snap. With integrated payment processing, it is essentially impossible for an operator to make a mistake on any electronic payment transaction. Cash transactions still leave room for errors. However, a POS system minimizes those errors by providing tools in the POS module to eliminate the need for the operator to think and/or perform any math. Robust reports provide quick and easy reconciliation of every till. Built-in security features promote accountability of every operator for every transaction.
Accuracy/Efficiency – Farm and Feed POS solutions eliminate pricing errors completely. They also provide real time information that allows for intelligent analysis that is used to make the purchasing and staffing decisions that have a great impact on the bottom line for the operator. Eliminate the “guess-work” from the entire operation and make the right decisions based on factual information in the POS data.

Although the list continues, these are 5 of the most beneficial components of a well designed farm and feed store POS solution. To learn more about things to consider when seeking the right POS system for your farm and feed retail business, download our free checklist today.

Setting Prices for Maximum ROI

Alan Fisher — Fri, 04 Jan 2013 12:00:00 GMT

Setting Prices

by Alan Fisher

After 25 years of working with retailers, I found that most of my clients used a formula for setting prices. In the industries where I consulted, most of them used the old Keystone method (two times cost). If their products actually sold at that price, the stores would be profitable. But, as we all know, we rarely end up with the profit margin that we intended (in this case 50%).

It is important to understand, mathematically, what happens to the net profits of a business with specific levels of markdowns. The starting point is to look at a financial statement that covers 12-month and look at Operating Expenses at a Percent of Income. Many of my clients operated at 42-44% OE. If we pick the lower one as a starting point, everything that sells above 42% is profitable, below is a loss. If we Keystoned the products and sold them, we’d have an 8% net profit.

But, if we take a 20% markdown on some of those items, the gross profit drops to 37.5%. Uh-oh, we lost money on these. If we sold one at full and one on markdown, the gross profit drops to 44.4%, but at least there would be a net profit. With 2 markdowns and 1 full price, the store is at breakeven. This sounds like a big risk to take, having to sell 2 of every 3 at full price.

As I worked with retail buyers, I tried to get them to get away from pricing formulas and consider ‘What is my customer willing to pay for this?’ before they considered their cost of acquiring the product. If the buyer believes $50 is the right customer price and the product costs $30, then it has a high likelihood of ending up as markdowns if a formula is applied to its selling price. If the buyer thinks $50 is the price and $20 is the cost, then it represents a good chance to earn profits (particularly if the buyer did not apply the Keystone formula and set the price at $50, not the 'calculated' price of $40).

In many cases, we were able to increase that initial price to a point where it was closer to 60% (2.5 times cost if you want to know what that is mathematically). Now when the store took a 20% markdown on unsold products, the gross profit was at 50% and it took a second markdown effort to drop this in the loss column.

It is surprising that many times the objection to such an approach to pricing is in the owner’s mind, not in the consumer’s mind. They don’t recognize what you paid and they want to believe that there is value in the price vs. product comparison. I once had a client who dug her heels in to fight me on this, but agreed to try. Six months later, she told me that no customer seemed to flinch and that she didn’t believe she had pushed her prices to their limit. For a store that was breaking even before the pricing philosophy change, she turned to quite profitable in a short period of time.

I realize that there are many factors in pricing, not the least of which is competition. But aren’t there products where this approach could be used? What have you got to lose (except for some of your losses)?

To learn more about maximizing the ROI of your retail business, schedule a free consultation with one of our industry experts.

Merchants Ring in the New Year with the Power of POS Data

Sean Connors — Mon, 31 Dec 2012 16:48:00 GMT

I've always been fascinated with how words take on new meaning within particular industries or social circles. In retail and hospitality, the word "ring" is a prime example. Anyone who has ever worked as a clerk, a cashier, a server, a bartender, a delivery person, etc is familiar with "ringing" up a customer or guest check. The derivative of this industry-specific term is the sound made by a cash register drawer. Most older cash registers contained a bell that would ring each time the cash drawer fired open. Many modern-day computer peripheral cash drawer devices used with automated POS (point-of-sale) systems also contain optional bells that will ring each time the POS system fires the cash drawer.

So, what can merchants do to "ring" in the New Year in 2013 by keeping the cash drawers "ringing?" The Holiday shopping season has ended. Returns seem to be as frequent as sales at the POS terminals. The cold weather has consumers dormant in their homes and offices. What can be done to generate additional revenue during these tough winter months?

Here are a few ideas:

Reach out to your customer base. Don't allow your business to be "out of sight - out of mind.". You've gathered many email addresses with your POS system during the busy Holiday season. Convert those email addresses into revenue by sending targeted communication pieces based on demographics and purchase history.
Be mindful that gift cards continue to be a powerful tool even after Holiday shopping has ended. If you promoted your gift card program during 2012, strong redemption numbers should help your revenues during the slower winter months of 2013. Provide plenty of reasons for gift card holders to visit your business to use their cards through promotions, proper merchandising, staffing levels and product offerings.
Promote your POS customer loyalty program during slow times. Offer double points on purchases through January and February to jumpstart 2013. Many of your visitors during these months may be first-time customers redeeming gift cards or exchanging items they received as gifts. Give them every reason to return as loyal customers in 2012.
Act on the powerful messages your POS system is sending you. Analyze the trends from last year and act on them now. Maximize profits through proper ordering and staffing.

Your POS system provides powerful tools to help you "ring" in the New Year. We are well beyond the days of using POS systems only to "ring up" customer orders. January is an opportunistic time that is often overlooked. Let's get 2013 off to a great start by utilizing the power of the POS to drive additional revenue. If you would like to learn more about using the power of POS to drive revenue, click the button below for a FREE consultation with an industry expert:

Just How Much Does a New Customer Cost?

Alan Fisher — Fri, 21 Dec 2012 19:57:00 GMT

Every business is different, but each time someone comes to the point-of-sale, the opportunity exists to develop a lasting business relationship with that person. But way too many storeowners reject this business tool from their POS software.

As a retail consultant, I have heard the excuses of why capturing a name and email address is too time-consuming (and, in some businesses, it is true). But for a large percentage of businesses, that moment could be the start of something big!

Those people who give you their contact information are giving you permission to inexpensively contact them on a regular basis and let them know they are valuable to your business. Some studies show that these people who you contact are up to 10 times as likely to come back for an ‘unplanned’ visit. They are 20 times or more likely to become a valued customer.

The most frequent excuse told me is that the customer doesn’t want to take the time during the transaction to give you their name and email address. But, having worked with some high transaction businesses, including golf (which has a time limit for check-in), I can tell you the objection is more in the mind of the shopkeeper, rather than the consumer. It takes seconds, not minutes.

I have worked on marketing campaigns in small businesses and watched owners spend a lot of money on email lists. There are plusses to this approach because you can define the demographic of your customer base and purchase lists that are more likely to identify potential customers. And, it can give recognition to your business in cases where local residents may not know of your existence. But a less expensive way is to just ask that person in front of you for that information. That warm body is much more likely to open a marketing email from you than the person from a purchased list.

So if you have not been taking the time to do this, I suggest it be one of your business New Year resolutions. Make sure your staff is aware of this ‘mandatory’ change to procedures. It costs more money to find a customer than it does to take a first-timer and develop them into a good customer.

How Merchants can Maximize the Holiday Gift Card Opportunity

Sean Connors — Mon, 19 Nov 2012 18:16:00 GMT

***Updated from previous 2011 post***

The 2012 holiday shopping season is upon us. Malls will soon be packed with shoppers seeking something special for their loved ones. However, despite the amazing variety of products and services available, many shoppers find themselves coming up empty-handed while seeking that perfect gift. Hence, the popularity of electronic gift cards continues to rise.

According to the National Retail Federation, NRF’s 2012 holiday consumer spending survey conducted by BIGinsight shows that 81.1 percent of shoppers will purchase at least one gift card and will spend an average of $156.86 on gift cards, the highest amount in the survey’s 10-year history. Total spending on gift cards will reach $28.79 billion. So how can merchants maximize this incredible sales opportunity?

Awareness - Be sure to display your gift cards in an attractive way that is perfectly visible from several customer touch points within your store. Both printed and digital signage should also focus on your branded gift cards. Also, your employees on the front lines should be equipped with persuasive selling techniques to prompt gift card sales with your existing customers.

Availability - Be sure to offer gift cards on your e-commerce site in addition to your brick and mortar locations. The steady growth in the number of web shoppers also is helping to boost e-commerce sales. Forrester says that 192 million U.S. consumers will shop online in 2016, up 15% from 167 million in 2012. But the bigger factor in driving e-commerce growth is that each shopper will spend more on average, the report says. U.S. consumers in 2016 will each spend an average of $1,738 online, up 44% from $1,207 in 2012. Stock up now!

Creativity - During the season of giving, many merchants will make donations to various organizations and auctions. Instead of donating money or your products, try donating gift cards. This is a great way to acquire brand new customers that have never visited your business. Although you donated the card, you may achieve an ROI by retaining this new customer for future sales growth.

January and February can be slow times for merchants. Customers are returning items as often as they are making purchases. Having a successful holiday gift card sales program will combat those wintertime sales blues by driving traffic to your facility for gift card redemption and reloading.

So stock up on your gift cards, prepare your store, equip your staff, and have a record-breaking holiday shopping season!

Bakery POS Solutions

Sean Connors — Tue, 13 Nov 2012 21:47:00 GMT

Even the smallest of towns in the US have at least one great bakery. When researching the numbers, there is a wide disparity from source to source. The reason for this is that bakeries come in so many different flavors. Some market research includes segments of the industry that are fairly specialized like donut shops and bread outlets. Others include “big box” bakeries like Panera Bread. Personally, I would classify Panera as a QSR (Quick Service Restaurant) rather than a bakery. Nonetheless, the numbers are staggering. Simply put, every city and town has a need for a great bakery.

A large portion of the market is made up of independent bakeries that focus on baked goods such as cupcakes, customized cakes, and other delicious sweets and treats. With the wildly popular TV shows like Cake Boss and DC Cupcakes and their growing fan bases, many entrepreneurs continue to pursue the dream of owning and operating a bakery.

Like many entrepreneurs in reckless pursuit of their dreams, these new start-up bakery owners are faced with a number of challenges and business decisions that need to be made in order to be successful in the new endeavor. Often times in the case of a bakery, the owner has a passion and an expertise as a baker. However, they don’t always have business experience and especially lack retail experience.

A retail bakery is very much like other types of retail. However, it is also very much like a QSR in many cases. Some bakeries have eating areas and offer light food and beverage services. Others offer retail items that typically focus on baking and various kitchen accessories. Some offer all of the above. So, from a product mix standpoint, most bakeries are a bit of hybrid. This makes them more complex than they appear to be on the surface from a business perspective.

To manage a hybrid facility like a bakery, it is critical to deploy the right technology tools. One of these tools is the POS system. A bakery typically demands a flexible, hybrid POS solution that offers a mixture of features and functions to support the different types of revenue streams. A standard retail POS system is not the best fit. A standard hospitality POS system is typically not the best fit. The bakery POS solution needs to provide a mixture of the two concepts to achieve the ultimate in efficiencies and controls.

A few examples of the functions a good bakery POS solution will support are:

Flexible pricing utilities that support tiered pricing, kit pricing, package pricing and date/time-sensitive pricing
A completely integrated customer loyalty program to keep the clients coming back for more
Speed of service features like touch screen design and 1-second approvals on credit card payments
Fully integrated gift card platforms
Cash controls to keep the employees accountable in a high volume bakery
Integrated e-commerce solutions to keep the bakery open 24/7 and allow the greatest in customer convenience

The bakery POS solution is a critical component to the business. The items listed above are just a few of the many items to consider. If you are considering opening a bakery or currently own and operate a bakery that needs a POS solution, download our free checklist of items to consider when selecting a POS system.

Mobile Inventory Management for Small Business

Sean Connors — Mon, 12 Nov 2012 21:35:00 GMT

One of the greatest challenges for independent merchants is inventory control. In most cases, inventory is the largest investment for the independent merchant. So, controlling costs in this area is critical to the success of the small business. Automating the ordering process, the checking in of shipments, physical counts and controlling shrinkage can be time-consuming and painstaking tasks for smaller retailers.

The big box stores have used sophisticated technology for decades to control inventory. Larger organizations have always had the capital resources to deploy these control systems. Historically, it has taken both human capital and financial capital resources to accomplish the ultimate inventory controls in retail. The big box stores typically had both. So, they would deploy EDI systems, logistic controls for shipments, handheld devices at the store level, cameras and RFID devices to reduce theft, etc. Again, controlling retail inventory on any level can be a daunting task.

So, where does this leave today’s independent retailer? After all, most have adopted POS systems that assist in controlling the inventory. Most have invested countless hours in performing physical counts, ordering processes, employee training, etc. Some have simply thrown in the towel and resorted to the eyeball method. What can be done to decrease the time spent on feeble attempts to control inventory?

Go mobile…

That’s right! Go mobile! All the buzz in the industry is about mobility. Merchants are being hammered by companies trying to sell them mobile marketing, mobile shopping apps, mobile loyalty, mobile POS systems, mobile websites, etc. However, many of these mobile applications are so new and so immature that independent merchants have been slow to adopt them. Many independent merchants do not understand the concepts or see the need for them to be deployed in such a hurry. Why fix what isn’t broken, right?

Inventory is broken…at least in most cases. It has always been a pain point for independent merchants. When broken down into small pieces, inventory is actually quite simple. It is the size of the beast that becomes overwhelming for many merchants. Retail inventory is made up of many moving parts. If a merchant only sold widgets and received a new batch of widgets every week, inventory would be quite simple. However, that is rarely the case. Merchants deal with multiple vendors carrying 1000’s of unique items. These vendors ship products multiple days of the week using multiple delivery methods based on volume of orders and other logistics.

So, go mobile. Right?

Allow me to explain. Most of us own a mobile phone or an iPod Touch. If we don’t, we have children, nephews and nieces that do. The most difficult and time-consuming parts of controlling inventory are the parts that are typically removed from the POS system. These are the parts where independent retailers rely on people and pencils and paper. The good news is that companies are now manufacturing scanning devices that attach to the everyday smart phone or iPod to automate some of these time-consuming inventory tasks. The better news is that software developers are building apps that make these devices useful and affordable to the independent merchant. These devices and applications can assist the retailer with:

Physical counting of inventory
Receiving shipments of inventory
Spot checks of inventory for ordering
Mobile POS applications

So, even if the merchant is unready or unwilling to embrace the mobile revolution, deploying a mobile inventory solution can save countless hours while gaining significant controls over the cumbersome task of inventory management. Most POS software solutions will support some type of integration with these devices and mobile applications. So, save the paper and the pencils for your next art project. Save the manpower and redirect it into customer service efforts. Go mobile with your inventory management.

To learn more about POS and inventory management, download our free checklist today. It provides 10 items to consider when seeking integrated solutions for independent merchants.

Cash Register or POS for my Small Business?

Sean Connors — Wed, 07 Nov 2012 12:42:00 GMT

The cash register was invented in 1879 by James Ritty. James Ritty was a saloonkeeper in Dayton, OH whose bartenders often pocketed the profits instead of turning them over to their boss. James’ brother John was a mechanic who helped him design the first, most basic of cash registers to preserve profits in their saloon. The original device did not even provide a drawer for storing cash. It consisted of a series of keys that represented specific amounts of money. The concept came to Ritty while he was on a steamboat trip to Europe. He found himself intrigued by a device that counted the number of rotations in the ship’s propeller. Brilliant!

Since 1879, the cash register has evolved quite significantly. The most basic of cash registers (similar to Ritty’s original) can still be purchased at office supply stores and on the web. Extremely sophisticated and more expensive cash registers can be purchased through dealerships that provide service agreements and of course, on the web as well. Although PC-based and Mac-based automated POS solutions are readily available today, thousands of cash drawers are still in place in storefronts, bars and cafes all around the world.

Clearly, many independent merchants have not fully embraced the POS technology available in the information age. Today’s modern POS solutions provide a multitude of features and benefits that even the most expensive and sophisticated cash drawer cannot deliver. Most automated POS systems are more compact, more robust, and easier to operate and comparably priced. Yet merchants continue to deploy newer versions of a device that was invented in the 1800’s.

In talking with merchants in the field, I find that much of this stems from a “don’t fix what isn’t broken” mentality. Others fear that deploying automated POS solutions might be complex and/or expensive. Some even fear that the data trail created by a POS solution might negatively affect their business tax situation with the IRS. Others simply don’t seem to understand the benefits or realize the ROI generated by today’s modern POS solutions.

Below are just a few benefits of automating the business via a modern POS system:

Speed of Service

1-5 second transaction times – even with credit cards
Eliminate manual calculations and hand-written sales orders
Eliminate lines that frustrate your customers
Train employees in minutes

Customer tracking and communication

Track customer activities and purchasing history
Email promotions, events, news, coupons to the customer base
Communicate with prospective customers
Use data gathered by POS transactions to target your communication

Inventory and Pricing Controls

Eliminate all user errors on pricing, payment processing, etc.
Stop inventory shrinkage
Order what you need when you need it, not what the vendor tells you
Reduce waste and overstock

Reporting Power = Decision Making Power

Reports can be automatically emailed to you on a schedule
Know when you are busy and slow to make staffing decisions
Know what customers frequent the facility, what they buy while they are there and when
Know what products and activities yield the best profits at your facility

Cash Management/Security

What gets measured gets managed
Every transaction is time stamped and tracked for accountability
Reduce time spent reconciling cash and credit cards
Work toward removing cash altogether through automation

Clearly, this is a very small sample of items to consider when weighing the pros and cons of cash register VS POS solution. If you are an independent merchant debating the upgrade from a cash register to POS or just getting started with your business and would like to learn more about things to consider, download our free checklist today.

The Importance of POS Data Backups

Sean Connors — Mon, 29 Oct 2012 11:30:00 GMT

With Hurricane Sandy wreaking havoc on the entire East Coast and a large portion of the Mid-Atlantic, I am reminded of the importance of backing up POS data. Independent merchants often lose sight of the importance of this concept. Often times, it is a simple case of “out of sight – out of mind.” Other times, merchants assume that their POS provider is taking care of these tasks for them. Although this may be the case in some instances, it is critical that independent merchants understand the importance of backing up the POS data as well as how it works, where the backup resides, etc.

POS systems are deployed in a variety of ways. The architecture of the POS software as well as the database platform used can sometimes determine how the POS solution is deployed. Other factors are the number of sites involved, ownership structure, hardware in place, etc. One primary consideration is whether the POS data resides at the merchant’s facility or in an off-site data center. As far as POS data backups are concerned, the systems that are deployed with data residing at the merchant’s site are typically the most suspect to failure in the database backup and disaster recovery concept. Although this “localized” model is common with POS deployment, these merchants need to be the most cautious with the backup and recovery plan.

Receipt printers can be replaced quickly. Touch screens and cash drawers can be replaced easily. Even PC’s, touch terminals and POS software are fairly easy to replace in the overall scheme of things. The one and only item that absolutely cannot be replaced for a merchant in the event of a disaster is the POS data. The POS data is the only portion of the POS system that is unique to the merchant and cannot be replaced by the POS solution provider. When a storm like Hurricane Sandy causes widespread damage, merchants need to be reminded of this and take action immediately. All the bottled water and toilet paper in the world will not recover your POS data in the event of a disaster.

A few points to consider:

If your POS data resides in a data center (the cloud), there should be enough redundancy built in to recover from just about any disaster. However, it is better to be safe than sorry. Find out what type of redundancy is in place and how quickly data can be restored if something terrible should happen. Do you have anything in writing? If it is way over your head, do you have an IT consultant who can understand it and explain it to you or work with the data center on your behalf?
If your POS data resides at your facility, are you making frequent backups? If it is supposedly happening automatically, do you check to verify that it is happening at the scheduled time or is it simply out of sight – out of mind?
Do you remove a copy of your POS data backup from the site on a regular basis? If your building burns to the ground, your data backups won’t do you much good if they are inside that building.
Do you know the process for restoring your POS data? Do you know how long it takes? If you have a solid support agreement with your POS provider, you may not need to worry about this. If you don’t have a support agreement in place, it is critical that you find out how to restore from a backup.

With decades of experience as a POS solution provider, we have seen our fair share of disasters in this area. Don’t allow yourself to become the next statistic. Protect your POS data in every way that you can. Our best recommendation is to partner with a company who specializes in off-site backup and recovery systems. This will usually take the entire process completely out of your hands. If you need help with this, we can provide some recommendations for reputable companies who provide these types of services at affordable prices. By the way, just like anything else, the cheapest backup program is typically not the best backup program. Be careful to make sure the program you select supports the database platform of your POS system and also guarantees a speedy recovery in the event of a disaster.

If you have any questions in regard to POS data backups or any other POS deployment concerns, [email protected] or by clicking the button below: " target="_self">feel free to contact us directly at [email protected] or by clicking the button below:

Coffee Shop POS Systems

Sean Connors — Thu, 25 Oct 2012 20:35:00 GMT

In 2011, the National Coffee Association reported there were 22,549 coffee shops in the USA. This was an 18.4% increase in the number of stores over the previous 3 years. We are clearly a nation that loves our java. More importantly, we love the charm and atmosphere provided by these coffee shops and tea houses that seem to appear on every street corner. We love the aroma, the décor and the trendy music playing in the background. As a society, we love the entire coffee shop experience.

Coffee shops have become great places to meet clients and prospects. They are fantastic spots to catch up on administrative work for traveling business people. Free Wi-Fi and an abundance of outlets are typically readily available. They may even be a comfortable venue for a casual first date or a quiet moment with your spouse. They have become as much a National Treasure as our local pubs and watering holes.

With the staggering growth numbers mentioned above in an overall downward economy, the owners of these coffee shops are faced with a number of business challenges. In 2010-2011, 2500 coffee shops had to close their doors. The struggle to stay relevant and profitable in a virtual sea of competition requires the right amount of effort coupled with the right tools for the job. Coffee shop POS technology can assist these owners with many of these challenges.

Far too often, coffee shop owners view POS solutions as overkill for their business. After all, the business model does seem relatively simple when compared to most retail or hospitality environments. However, in many cases, it is actually just as complex if not more. Below are just a few examples of how deploying the right coffee shop POS system can help owners maintain or increase profitability:

Controls for the Hybrid Model – Most coffee shops sell much more than coffee. Even the smallest of coffee stands have retail items such as packaged blends, travel mugs, logo merchandise, granola bars, music CD’s, books, etc. These items carry with them all the inventory control challenges that face traditional retailers. This retail component mixed with a plethora of light food and beverage items creates a challenge for the operators. A well-designed coffee shop POS solution addresses both sides of the business for both ease of use and maximum controls. The standard retail POS system will not. The standard hospitality POS will not. A hybrid POS solution is required to maximize efficiencies.
Speed of Service – During peak periods, coffee shops can be profit machines. However, the only way to maximize those opportunities is to move people through the shop as quickly as possible. A key component in that process is the POS system. The most sophisticated cash register cannot process a transaction paid by credit card in 1-3 seconds. A solid coffee shop POS system will – every time!
Customer Loyalty and Marketing – The obvious ways to beat out the growing competition are through maintaining the existing customer base and adding to that base with new loyal customers. The right POS system provides fully integrated gift and loyalty platforms to keep customers incentivized to return time and time again. An added bonus to some of these systems is the ability to send text and/or email marketing based on customer preferences and purchasing history.
Cash Controls - Well-designed coffee shop POS solutions provide complete cash controls that are far superior to those provided by a basic cash register. Cash reconciliation also becomes simpler with POS which saves time as well as labor dollars while providing full barista and cashier accountability.

Many owners are surprised to see how affordable coffee shop POS systems can be. They realize the ROI of these systems when they use some of the functionality listed above to gain efficiencies and continue to grow their customer base. If you would like to learn more about things to consider when selecting a POS solution, download our free checklist today.

Private Club POS Solutions

Sean Connors — Tue, 16 Oct 2012 17:27:00 GMT

Private clubs come in a variety of shapes and sizes. Some provide activities for members such as golf, swimming, tennis, hunting, boating, etc. Others simply provide an exclusive and unique ambiance where members can relax and enjoy a cocktail, a cigar or a great meal. Many clubs provide a combination of the luxuries mentioned above. Although private clubs are non-profit organizations, they are faced with many of the same business challenges that for-profit businesses face on a daily basis. Private clubs also introduce some other business challenges that are unique to that market segment.

Because of these unique challenges, private clubs often find themselves at a loss when seeking technology solutions. The larger private club segments such as golf clubs and yacht clubs can usually find POS solutions that are designed specifically for their business type. These segments are large enough that solution providers are willing to develop POS software that addresses most specific needs of these industries. However, smaller private clubs and membership facilities often find it difficult to deploy affordable solutions that resolve most of their unique business challenges.

Operations at a membership-oriented facility are typically more complex than at a public retail, service or hospitality venue. In addition to cash controls, payment processing and inventory management, private clubs are faced with additional business challenges. The POS solution must manage the aforementioned basics, but must also include robust functions to support the private club business. Examples would be membership tracking, recurring charges, mass billings, batch payments, tiered pricing based on member classes, etc.

Needless to say, automating the business functions at a private club by deploying the right POS solution produces tremendous results through gained efficiencies, error reductions, speed of service, cash controls, inventory controls and increased member satisfaction. By deploying a club POS system, the operator of the club positions himself or herself to provide better service to the members using less staff members and payroll dollars.

Below are just a few of the many reasons to deploy an automated POS solution at a private club:

Speed of Service

1-5 second transaction times – even with credit cards
Eliminate manual calculations and hand-written chits
Eliminate lines that frustrate your members
Train employees in minutes

Member tracking and communication

Track guest activity
Email promotions, club events, club news, recruiting info
Communicate with prospective members
Use data gathered by POS transactions to target your communication

Inventory and Pricing Controls

Eliminate all user errors on pricing, payment processing, etc.
Stop inventory shrinkage
Order what you need when you need it, not what the vendor tells you
Reduce waste and overstock

Reporting Power = Decision Making Power

Reports can be automatically emailed to you on a schedule
Know when you are busy and slow to make staffing decisions
Know what members use the facility, what they buy while they are there and when
Know what products and activities yield the best profits at your facility

Cash Management/Security

What gets measured gets managed
Every transaction is time stamped and tracked for accountability
Reduce time spent reconciling cash and credit cards
Work toward removing cash through automation

To learn more about items to consider when seeking POS solutions for your club, download our free checklist today.

The ROI in Café POS Solutions

Sean Connors — Fri, 28 Sep 2012 17:43:00 GMT

There is nothing in the world like the charm of a small, independently owned and operated café. Small villages in Europe are lined with these small treasures. Most towns in America offer a fair share of these gems as well. Smaller cafes provide a warm intimacy that is very hard to come by in the larger chains. Each has its own persona in terms of ambience and menu offerings.

The entrepreneurs that own and operate these small cafes are faced with the same operational challenges that exist in the larger chains. They need to implement systems that preserve the profitability of the café to protect their hard work and investment in the facility. Among these internal systems is the POS (point-of-sale) solution.

Many café owners feel that modern automated café POS solutions are overkill for their small operations. Some see these POS solutions as an exuberant cost item that produces little or no value compared to a basic cash register. However, in today’s market, there are many POS systems that are both affordable and yet robust enough to ensure ROI for the small café owner. The key is finding the appropriate café POS solution that contains the features that provide ROI at the right price.

Some of the functions of today’s café POS solution that ensure the ROI for the owner are:

Speed of Service – Transaction times are critical in a café particularly during peak periods. A well-designed and properly implemented café POS solution provides 1-3 second transaction times regardless of the payment method. The most sophisticated of cash registers cannot provide that level of service. Further, fine dining POS solutions fall short here as well. Many café operators select full hospitality POS solutions for their café. Generally, they find that it is not the right tool for the job and too many steps are required to process the simplest of transactions.
Customer Loyalty Programs – Most successful cafes enjoy the luxury of customer loyalty simply due to their unique atmosphere and offering. However, in today’s climate, many consumers make value-driven decisions when selecting where to dine or where to enjoy their next cup of gourmet coffee. A solid café POS solution provides integrated customer loyalty programs that incentivize the value-minded customer to frequent independently owned cafes.
Cash Controls – Well-designed café POS solutions provide complete cash controls that are far superior to those provided by a basic cash register. Cash reconciliation also becomes simpler with POS which saves time as well as labor dollars while providing full barista and cashier accountability.
Integrated Marketing and Communication – Many café operators utilize powerful systems like Constant Contact to communicate with their customer base and market to prospective customers. However, when the marketing component is tied directly to the POS solution, the power of the delivery of the content is increased significantly. Offers and updates can be personalized and delivered based on preferences, history, buying habits, frequency of visit, etc. This is all powered by the data collected in the POS solution.
Pricing Controls – Small cafes can lose significant amounts of revenue through errors in pricing, employee giveaways and ordering mistakes when antiquated systems are in place. Sound café POS solutions eliminate paper, handwriting, calculators and other potential points of failure when it comes to pricing controls. Over time, this can save a small café thousands of dollars.

There is often quite a bit more to consider when selecting the right café POS solution. As mentioned above, every café is unique which is what makes them so special and successful. Therefore, no 2 situations are exactly the same. For more items to consider when seeking the right café POS solution, download our free checklist that will help to guide you through the process.

Farm Market POS Solutions

Sean Connors — Fri, 21 Sep 2012 17:00:00 GMT

Grocery stores are convenient. Grocery stores typically have most of what the average household needs to survive. Grocery stores are often open 24/hours/day. However, nothing compares to the quality of the fresh goods you can purchase at a local farm market. Most of the available items were never transported eliminating the need for preservatives and additives that take away from the quality or the health benefits of the food.

Farm markets come in all shapes and sizes. Some big, some small. Larger farm market operations become more complex and have similar business needs to a grocery store. These markets face the same challenges on a smaller scale. So, managing these larger farm markets and maximizing their profitability and efficiency requires the same business tools implemented at grocery stores but on a smaller scale.

In essence, farm markets are retail operations. At the heart of most retail operations are the team members, the mix of products for sale, and the control systems in place to move these products from the farm to the shelves and to the checkout counter. Implementing the proper POS solution at a farm market seamlessly integrates all facets of the business to maximize efficiency and profitability.

Some of the benefits of automated POS solutions in a farm market are:

POS Scale Integration – Much of what is sold in a farm market is priced by the weight of the item. Scales that are fully integrated with the POS solution are a must for speed of service and pricing controls.
Touch Screen Design – The POS solution in a farm market should be designed with touch screen buttons that provide pictures of the items on them. This provides the fastest transaction times and the ultimate ease of use for the team members using the system.
Bar Code Controls – A Farm Market POS package needs to generate bar codes for merchandise as well as utilize existing bar codes provided on products. This allows for complete inventory and pricing controls for the grocery and convenience items offered in addition to the fresh produce.
High-Speed Payment Processing – During peak periods in the farm market, transaction times are critical. Credit card processing can be fully integrated with the POS software. Payments are processed in 1-3 seconds – faster than cash!
Customer Management – Implementing the right POS solution allows the farm market to track customer activity, benefit from customer loyalty programs and utilize targeted marketing and communication techniques to keep customers coming back to the market for repeat business.

Farm markets have been a staple in our communities for centuries. Many of the owners are just beginning to learn about the benefits of utilizing technologies like electronic POS systems. The research and decision process can be a challenge for various reasons. If you would like to learn more about POS solutions and how they can benefit your farm market business, download our free checklist of things to consider today.

Family Fun Center POS Solutions

Sean Connors — Wed, 19 Sep 2012 16:00:00 GMT

A couple of vertical markets have managed to perform extremely well during this prolonged economic downturn. It seems that consumers have continued to spend money on their pets and their kids regardless of the situation. I suppose it makes sense that people continue to invest in what makes them happy and what brings them the most joy and satisfaction in their lives. Hence, the pet industry and several industries that focus on children continue to experience growth.

One of these successful markets focused on the kids is the family fun center market. Some larger franchise chains like Bounce U have continued to build new units across the U.S. However, most of these family entertainment centers are local start-up entrepreneurs. These business owners enjoy the satisfaction of serving their communities while earning reasonable profits along the way. Further, the concept comes with special perks like reasonable hours, a fun and playful atmosphere and far less headaches then running a restaurant or retail establishment. No late nights. No returns. No liquor license required.

However, one challenge these business owners face that is similar to any other business is finding the right technology tools to gain efficiencies and maximize profits. One of these technology tools is the POS system deployed at the fun center. The proper POS solution needs to come in the form of a hybrid solution due to the unique nature of the business. A family fun center typically combines entertainment, retail and light hospitality to create a complete experience for children and parents alike. Therefore, the POS requirements for these facilities are a bit different than with traditional retail or hospitality merchants.

Family fun centers require a special blend of features and functionality from a POS provider. Examples of these requirements are:

Support for inventory and sales of retail merchandise in addition to admissions and food and beverage
Robust customer management features including electronic punch passes, tiered pricing based on membership levels, integrated email marketing component, accounts receivable for party reservations, etc
Integrated reservation software for booking parties and events
Gift Card and Customer Loyalty programs fully integrated with POS
Hybrid touch screen design to support speed of service for a mixture of tangible and intangible products sold at the facility

Although the business model appears to be relatively simple on the surface, the reality is that the family fun center is fairly complex in terms of the mixture of methods it generates revenue. Therefore, the POS solution deployed at these facilities must provide a hybrid solution to support the hybrid business model. Standard retail or hospitality POS packages don’t typically provide the solutions required by this hybrid business model.

If you are considering owning and operating a family fun center, your future is most likely a bright one. These facilities continue to generate profits for small business owners across the country. Be mindful of the importance of the proper POS solution particularly if this is your first effort as a merchant. The industry standard packages in retail and hospitality may not be the best fit for your business. If you would like to learn more about other items to consider when seeking POS solutions, download our free checklist on POS selection.

Benefits of E-Commerce for Independent Merchants

Sean Connors — Wed, 12 Sep 2012 17:05:00 GMT

I am a true believer that brick-and-mortar retail is here to stay in the USA. Too many Americans love to shop. Also, Americans are still social creatures despite our addictions to our smart phones and iPads and other electronic gadgets that continue to consume more of our time each day. We still love to window shop, browse the aisles of a specialty retail shop and walk the mall taking in the sights, sounds and aromas. This is especially true during the Holiday Season. Further, the hospitality segment is even safer. Although take-out and delivery are nice conveniences, there is nothing like a sit-down meal in an attractive venue even if it is a QSR (Quick-Service Restaurant).

However, there is no denying the data that supports the significant increase in e-commerce transactions over the last few years. According to the US Commerce Department, 5.1% of all retail sells in Quarter 2 of 2012 were e-commerce transactions. This is a 15.3% increase over Quarter 2 of 2011. Further with total retail sales showing a 0.4% decrease from the prior quarter, e-commerce transactions posted a 3.3% increase. You can view the entire report here - https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf.

So, whether brick-and-mortar retail is here to stay or not, there is no denying the benefit of e-commerce capabilities for independent merchants. After all, the big box stores have been offering very robust e-commerce extensions of their physical stores for many years. They have the big budgets and the technology infrastructure to accomplish just about anything in the world of e-commerce. This offers their customers the flexibility and convenience of shopping from their homes. So, it is an issue independent merchants cannot ignore if they want to remain competitive.

Below are just a handful of the benefits for independent merchants who implement e-commerce solutions:

Extended Range – Obviously, a consumer in California is unlikely to walk into a store in South Carolina to purchase a specialty retail item. Certainly, if this consumer was traveling, the possibility exists. However, it is extremely unlikely. The chances of a repeat visit are even more unlikely. However, if the store in South Carolina implements an e-commerce extension of the retail location and truly provides a unique offering and a great value, there is a good chance the consumer in California will buy from the business in South Carolina on the web. Implementing SEO and effective online marketing are key factors to success. But, the lack of an e-commerce platform altogether leaves the South Carolina merchant essentially invisible to the California consumer. Essentially, e-commerce capabilities open your store to the entire planet in addition to your local community.
Customer Convenience and Savings – With gasoline at $4/gallon and rising, many consumers decide to shop online just to save the trip. Imagine the money spent in fuel alone when Americans complete their Holiday shopping. If even a portion of that can be saved through shopping online, consumers will do it in this economic climate. Further, many consumers don’t like the madness of the Holiday Shopping season and simply prefer to complete their shopping from the comfort of their homes.
Labor Savings and Efficiency – Implementing an e-commerce solution can reduce labor costs and free employees up to perform other productive tasks. Clara’s Tidbits (www.tidbitsfood.com) implemented an online ordering system for their QSR in Jacksonville, FL. The owner’s objective was to get employees off the phones, eliminate order errors and pricing errors, and provide convenience for the customers. Employees were often tied up on the phone for long periods of time taking carry-out and catering orders for area offices. Now that they have implemented an e-commerce platform that is fully integrated with their POS solution, employees spend less time on the phone and more time taking care of business in the store.
Image/Brand – As trivial as it sounds, providing an e-commerce extension of your store improves your image as a company. Today’s consumer is sophisticated and appreciates and respects high tech offerings from the brands they know, like and trust. Offering e-commerce options to your customers shows that you are committed to survival in a high tech world.
POS (point-of-sale) Integration – E-commerce platforms don’t need to add another layer of complexity to your sales and order processing. Many of them are fully integrated with POS solutions so that orders don’t need to be keyed into the POS when they originate on the web. Some POS solution providers offer add-on modules that are essentially a web extension of the POS system. This provides a completely integrated solution for controlling inventory, producing packing slips, shipping documents and automatic order entry and payment processing. Now, that is efficiency!

The numbers don’t lie. E-commerce is definitely here to stay. When implemented properly by independent merchants, the opportunity to increase sales, efficiency and customer service is endless. To learn more about issues to consider when selecting integrated POS and e-commerce solutions, download our free checklist here.

Maximize Holiday Sales with POS Tools and Early Preparation

Sean Connors — Mon, 10 Sep 2012 15:43:00 GMT

The busy Holiday shopping season is just around the corner. The kids are back to school. The days are getting shorter and the nights are getting longer and much cooler. It’s time for merchants to start preparing for another busy time. Whether you operate a retail shop, a coffee shop, a small café or a children’s play center, the Holidays will impact your business and it is time to prepare.

So, what are some of the simpler things merchants can do to maximize the Holiday Season shopping opportunity?

Marketing – Get as much information out to your customer base as possible. Use your web site, SEO, social media, email marketing and text marketing to make sure your business is the first the consumer thinks about when shopping in the competitive marketplace. A survey conducted on the 2011 Holiday Season by the Pew Internet & American Life Project states that 57% of adult Holiday shoppers used their cell phones to get help with purchasing decisions while they were in a store. Unfortunately, 37% of those adults left the store and decided to purchase elsewhere. So, make sure you are at the top of the list on the web, in their smart phones and in their minds this Holiday Season.
Inventory Planning – Many retailers wait until the Holiday Season is over to perform a physical inventory. I would argue that RIGHT NOW is the best time to perform this function. Make sure the inventory in the POS system is 100% accurate now. Then, review the trends from 2011 to make sure your merchandise orders are optimized for the 2012 Holiday Season. Don’t get caught scrambling for product in the middle or end of December. Likewise, be careful not to have tons of unwanted inventory the first week of January. Use the tools provided by your POS solution to maximize profitability during this opportunistic season.
Staffing & Training – Now is a great time to review daily and hourly sales trends from the 2011 Holiday Season. I am certain you will find that you were overstaffed at times and understaffed at times. Analyze the data in your POS system to plan for maximum efficiency in the 2012 season. Reach out to your part-time college and high school students in an effort to bring them back to work for the Holidays. This will decrease training time for seasonal help and typically provide a better experience for your customers dealing with tenured employees.
Gift Cards – Maximize the sales opportunity of gift cards. Obviously, now is the time to re-order gift cards if you are running low. Be sure to advertise the availability of gift cards inside and outside the store. Train employees to suggestively sell gift cards to in-store customers. Display gift cards at the POS area so customers can make impulse gift card buys at checkout time. The more gift cards you sell during the Holidays, the more sales you will have during the slower months of January and February.
Housekeeping – Review your merchandising materials and overall store layout objectively. Get a second and third opinion from people both inside and outside your organization. Make changes now that will maximize the Holiday sales opportunity. Once the madness begins, it may be too late to make any changes. Review the interior and exterior condition of the facility. Is the signage attractive? Is the store neat, clean and organized? The visual appeal of your facility can sometimes be the difference maker between your business and your competition. Make improvements and changes now in preparation for the busy Holiday Season.

The Holiday Season is the most profitable time of year for most merchants. Capitalize on this opportunity by being prepared in every way. Lincoln once said “If I had eight hours to chop down a tree, I would spend six hours sharpening my ax.” This is great advice for retailers and QSR’s. Your six hours is right now!

Merchants Profit from Business Personalization

Sean Connors — Fri, 31 Aug 2012 20:54:00 GMT

It’s just business - nothing personal… WRONG! Although it is a common saying, it is becoming less and less true particularly in the context of customer service provided by small-to-medium sized merchants. Successful merchants in today’s climate focus on personalization of the business. Personalization and humanization separate independent merchants from the big box chains. Personalization of every business transaction assists independent merchants in preserving their relevance in the marketplace and in keeping the cash flowing.

At the Inbound 2012 Conference in Boston this week, successful entrepreneur, Gary Vaynerchuk summed it up quite eloquently toward the end of his keynote speech. Gary said that too many people run their businesses with their minds exclusively and not at all with their hearts. Much of the focus of his keynote and the entire conference revolved around personalization and humanization of marketing and business in general. The overall premise was that customer retention was far more important than customer acquisition. Long-term sales and profits generated through retention of existing customers can far exceed those generated through new customer acquisition.

So, the point is that sometimes business people lose sight of the need to focus on the existing customer base because we become so focused on building new followers. After all, it can take years to gain a new customer but minutes to lose an existing customer. One way to maintain the base that you have worked so hard to grow is through personalizing your business.

Below are a few methods of getting to know your customers allowing you to inject personalization into your business:

Track Customer History – Merchants can use robust POS systems to easily track purchasing habits of their clients. If used wisely within the POS, offers can be made that are personalized to the customer based on their past behaviors.
Communicate with Customers – Touch customers using a variety of methods. Use email marketing tools inside your POS system. Use social media like Facebook and Twitter. Consider adding a blog to your website which will communicate with your customers as well as attract new customers searching for your products and services. A blog is a perfect platform to showcase your expertise and build trust.
Showcase your Team – Include photos of your team members doing things they love to do in your marketing materials. Rather than using stock photos in marketing pieces, include actual photos of your location, your team members and your products in action. Your customers will engage with your team and identify with your business through personalization.
Send Personalized Thank You Notes – If you are doing massive transaction volume, you may need to use automated email tools to send electronic communication. However, robust POS solutions as well as CRM systems like SalesForce, Constant Contact and Hubspot will allow you to personalize these messages to include key fields from your customer database. Hand written thank you notes that include your company logos go a very long way with customers if you can make the time to write them.
Learn Your Audience – Take the time to find out the interests of your audience, communication preferences of your customers and social media networks that are frequented by your clients and partners. Engage in conversation with them in real time via Twitter so they identify with your business and you personally when seeking your products and services.
Entertain Your Audience – Lighten up and have some fun. Create a culture within your business that has personality, humor and an overall persona of fun and entertainment. Customers will remember this and have more incentive to continue buying from you. They will identify with you and feel a sense of engagement with your brand.

In this high speed world of incredible technology and overwhelming constant connectivity, it is easy for businesses to get lost in the shuffle. Independent owners and operators gain trust and commitment through personalization of their business and increased connection with their customers. Technology and Automation are amazing and provide wonderful tools that help businesses run more efficiently. However, customer engagement and business personality cannot be automated processes. They require time, effort and lots of heart. Today’s business is something VERY personal.

POS Solution Implementation Considerations

Sean Connors — Fri, 24 Aug 2012 15:01:00 GMT

Most merchants go through a detailed process to select the right POS (point-of-sale) solution for their business. There are several factors to consider which we discuss in our POS Solution Selection Checklist and our POS Selection Guide. These factors vary in level of importance from one market segment to another. Once that decision process comes to a close and the POS selection has been made, the merchant is faced with the POS implementation process. Most of the challenges and issues involved with the implementation process are consistent among the different market segments. The POS implementation process is critical to the success of the POS deployment.

So, what can a merchant do to ensure a successful deployment of the new POS system to protect the investment? There are several issues to consider and tasks to complete by both the POS solution provider and the merchant prior to the first live transaction processing through the new POS. Below are just a few critical items that require attention and cooperation between the solution provider and the merchant.

Hardware – Whether purchasing all new hardware or salvaging hardware from previous systems, it is critical that all hardware used in the deployment is compatible with all the new POS software. Nothing is more frustrating than struggling through compatibility issues when rolling out a new POS solution. Vendors and merchants must work together to ensure that every last detailed requirement is met from a hardware perspective prior to installing new POS software.
IT Infrastructure – Similar to hardware, proper networking components and topology are critical to the success of a POS solution deployment. POS systems handle sensitive data that must be secured. POS systems are mission-critical in retail and hospitality environments so network connectivity can be key to the successful operation of the POS on a daily basis.
Data – With POS data, a few factors come into play during a new POS solution deployment. First of all, data must be converted from previous systems to avoid countless hours of typing just to get the new POS off the ground. When converting from a cash register to an automated POS system, data can be gathered from the merchant’s suppliers to be massaged and converted into the database format of the new POS system. Configuration of a data backup and disaster recovery plan also needs to be part of every POS deployment. The POS data is the only component of the POS solution that is truly unique to the merchant and cannot be easily replaced in the event of a disaster.
Integration to Existing Systems – Prior to launching a new POS system, it is critical that seamless integration is provided to existing systems that will continue to be in use by the merchant. For example, be sure the new POS system will integrate smoothly with the back office accounting package in place and the merchant services/payment processing systems in place.
Adequate Training – End user training is arguably the most important factor in a successful POS deployment. Typically, owners and managers are trained to be “site experts” on the new POS solution. This allows them to be somewhat self-sufficient moving forward so that ongoing training from the POS solution provider becomes less necessary. As new employees come onboard with the merchant, owners and managers need to have all the knowledge and tools necessary to teach employees proficiency in the operation of the new POS system.

Protect your POS investment by focusing the required time and energy into the implementation process. After all, a great deal of time, energy and money are normally put into the POS solution selection process. It doesn’t stop there. The POS deployment project must be carefully planned and executed to ensure the success of the project. For more information on issues to consider when deploying a new POS solution, download our free guide today.

Gift Shop POS Solutions

Sean Connors — Mon, 20 Aug 2012 17:31:00 GMT

Gift shops are some of the finest hidden treasures in the retail segment. They come in many shapes, sizes and flavors. Most focus on specific target audiences while others provide gifts of all kinds depending on the location and other factors. Aside from resort and airport locations, most gift shops are independently owned and operated by small business people. Consequently, it is very rare that a gift shop business enjoys the luxury of the budget and/or the technology infrastructure you would find in corporate America.

So, how do gift shops obtain the technology they need to compete and run efficiently like the big box stores do? After all, the owners are faced with the same challenges that larger retailers combat with high-end, expensive technology. Although it may be on a smaller scale, gift shops still need to control inventory, manage cash flow and provide excellent customer service. However, many gift shop owners continue to fight this battle using manual processes due to lack of education on retail technology available and/or lack of funds to implement systems.

Below are just a few of the benefits provided when a solid gift shop POS solution is deployed:

Real Time Inventory Control – Gift shops carry extensive inventory. Often times this inventory is made up of thousands of small parts. Gift shop POS solutions provide all the controls necessary to maintain appropriate stock levels and control profit margins.
Pricing and Theft Controls – Even the most basic of POS systems can assist a gift shop owner by eliminating pricing errors and reducing theft. Cash registers leave far too much room for operator error and provide limited (if any) reporting power.
Superior Customer Service – Although a gift shop is not always the fastest paced environment, customers still appreciate a speedy checkout experience. The right gift shop POS solution will provide 1-3 second transaction times. Further, POS systems often provide robust customer management modules that provide critical information to speed up returns, suggest additional up-sell/add-on items, recognize customers by name, track and reward customer loyalty, etc.
Sales and Profit Boosters – A robust gift shop POS solution will provide additional features to assist the gift shop owner in growing the business. Examples are integrated gift cards, customer loyalty programs, integrated online stores and email marketing initiatives based on customer history stored in the POS system.
Efficiency of Operations – Gift shop POS solutions eliminate several manual processes for the business owner. When the right POS system is in place, gift shop owners and staff members spend a fraction of the time dealing with tedious activities such as pricing/tagging of items, reconciling cash registers and credit card terminals, placing orders with suppliers, etc. When the POS system eliminates or assists in these activities, more time is available for the staff to focus on customers and other money-making activities that grow the business.

Although the list of benefits provided above is fairly short, it depicts some of the power of implementing a POS solution in a gift shop. So, how does the owner of a small gift shop afford such powerful technology? Surprisingly, POS providers that focus on the gift shop segment often offer solutions that are extremely affordable. Some of these systems are offered on a “pay-as-you-go” basis to eliminate risk and large up-front investments. Typically, the investment pays for itself in the form of controls and gained efficiencies that simply cannot be provided by the most sophisticated of cash registers.

In any case, there is a great deal to consider when selecting the right POS solution for your gift shop business. For more issues to consider on the topic, download our free checklist of items we have found to be very important when seeking the right POS solution for your business.

POS Solutions for Multi-site Merchants

Sean Connors — Tue, 14 Aug 2012 16:39:00 GMT

Multi-site merchants are faced with numerous challenges. This is why the franchising model continues to grow in its success. However, many independent business owners continue to operate multiple locations without going out to the franchise market. Obviously, it is impossible to be in more than one place at the same time. So, owners must build a solid and trustworthy team of people around them to ensure profitability.

In addition to the team of people, owners can utilize powerful technology tools that reduce the desire to be in several places at once. For merchants, the POS (point-of-sale) system deployed in their storefronts is typically at the core of the technology infrastructure of their business. The POS system automates many functions that drive the success of the business. The POS solution manages inventory, payment processing, invoicing, gift and loyalty programs, customer relationships, targeted marketing, etc. All of these items become more complex when spread across multiple locations owned by the same entity.

Below are a few critical factors in the successful deployment of a multi-site POS solution:

Everything must happen in real time. In this day and age of constant connectivity and sophisticated data centers, there is no reason a merchant should have to wait for a batch synchronization of data. Aside from the unnecessary wait time, data synchronization contains too many moving parts that create potential points of failure. These points of failure lead to headaches for the merchant.
The POS must be scalable with no limitations. Multi-site owners are successful and will continue to grow the business. There should be no technological limitations to the number of locations to add to the POS deployment.
The POS solution should perform the same as it does for a single site deployment. Often times, POS providers will shift the application to a browser-based model if the merchant owns multiple locations. The browser is great for Facebook and online banking. However, it is difficult to build a POS solution that is robust and user-friendly within the framework of a web browser.
The POS rollout should be simple. Adding additional locations to a POS deployment should require very little configuration changes, minimal set-up tasks and no training. It should be a flip of a switch to add on additional sites.
The POS investment should be scaled. In other words, the merchant should not have to purchase the solution over and over as locations are added. The pricing should be scaled in such a way that the investment required in the POS as locations are added is less than the original purchase.

Robust POS solutions provide multi-site operators with powerful tools to operate all locations from one place. For other items to consider when seeking POS solutions, download our free checklist today.

5 Pillars of Success and POS Solutions

Sean Connors — Mon, 13 Aug 2012 03:04:00 GMT

At the Purina Mills Retail Solutions Expo in Nashville last week, the theme of the conference was "5 Pillars of Success." Although this conference is focused specifically on farm and feed retailers, the theme of this particular seasonal event pertains to all small-to-medium merchants in most every vertical market. The conference focused on the following 5 keys to success for the retailers in attendance:

Have solid industry knowledge and insight
Have a plan and vision for your store
Focus on serving the customer
Consistently tell your story
Be unique/Be real

In this fast-paced and ever-changing competitive environment, focusing on these 5 "pillars" can be a difference maker for many retailers. One might ask how this pertains to POS (point-of-sale) solutions. Some successful merchants would argue that it has quite a bit to do with POS solutions based on their stories and experience.

In today's retail environment, the technology solutions deployed are at the core of the success of the organization. One key component of these technology solutions is the POS system - particularly if the POS system integrates with or internally provides additional technology components like e-commerce, loyalty programs, email marketing and customer communication tools, etc. These related technology tools allow the merchant to be unique among their competition and remain constantly focused on catering to the customer in a variety of ways.

Below are 5 key factors pertaining to POS solutions that allow merchants to focus on the 5 Pillars of Success listed above:

POS systems save merchants time. Even the simplest of POS systems will provide time savings by reducing the number of manual tasks required to run the business. A robust POS system that is a good fit for a given market will save the business owner, managers and staff tremendous amounts of time. The time saved can be spent focusing on activities that reinforce the 5 pillars of success listed above.
POS systems provide faster service. The third pillar of success listed above demands quick service to the customer. Today's customer demands speed of service in every environment. Nothing frustrates the customer more than a cumbersome checkout experience. The right POS system eliminates that potential point of failure and provides 1-3 second transaction times even with credit card payments.
The right POS system will provide support for customer loyalty and personalized customer communication. A robust CRM (customer relationship manager) fully integrated with the POS system allows smaller merchants to focus on customers through automation using the POS data just like the big box stores attempt to do. Loyalty programs are another great differentiator for small-medium-sized merchants. Some consider them a "must have" to compete with the big box stores. Sound POS solutions will provide all of these items as part of the standard package for small businesses.
POS solutions provide the controls a business owner needs to maximize the bottom line. This frees up capital that can be used for other initiatives built around the 5 pillars of success. Although time is money, so is profit. In addition to saving time, the POS solution must also provide sophisticated controls that increase the bottom line every day.
The POS solution must provide the tools necessary to plan the future of the operation. Intelligent analysis of data provides forecasting, purchasing power, cash controls and proper staffing levels all based on a history built in the POS system. The POS solution should provide a crystal ball so the merchant can predict the future of the business.

Business owners invest in all kinds of technology every day. Often times, selecting a POS system significantly impacts the overall success of a merchant in more ways than one. We have barely scratched the surface in the examples above. If you would like to learn more about POS system selection, download our free guide of 10 other items to consider.

Small Business POS Software for Farm and Feed Retailers

Sean Connors — Fri, 27 Jul 2012 18:57:00 GMT

5 Benefits of Automated POS Systems for Farm and Feed Stores:

Inventory Controls - Even the smallest of feed stores carries quite a bit of inventory. POS solutions provide bar coding and complete up-to-the-minute tracking of all inventory items in the store. Feed retailers benefit by knowing what to order and when, what sells and what does not sell, whether items are disappearing from the shelves, etc.
Pricing Controls - The price of feed changes every day. Controlling all pricing through an automated POS system eliminates any room for errors and ensures the feed dealer's profit remains in tact. Some POS systems also support tiered pricing to automatically apply the appropriate discounts or mark-ups for special customers.
Speed of Service - Well-designed POS software combined with the latest and greatest POS hardware provides quick and easy transaction processing. Feed stores can accept credit card payments in 1-3 seconds with POS integrated processing. Touch screens provide a quick and easy way to sell bulk items from the warehouse.
Accounting Efficiency - A solid POS solution will make daily, weekly and monthly reconciliation almost effortless. Many systems offer a full Accounts Receivable package to manage customers with charging privileges at farm and feed retailers.
Reports for Business Analysis - Small Business POS Software provides robust reporting to help farm and feed dealers analyze business trends, make buying decisions, control cash and accounts receiveable, etc.

Ultimately, the right small business POS software provides instant ROI for farm and feed retailers. However, there is a great deal to consider in addition to the 5 points listed above when selecting the right POS solution for your farm and feed business. If you are seeking the right solution and would like to learn more about the process, download our free guide containing issues to consider when seeking POS solutions.