55% of U.S. businesses report being disappointed in a software purchase — and if you’re not careful, you could be one of them.
There are a lot of point of sale (POS) systems on the market, and all of them (at least on the surface) are built for retail. But, as you know, not all retail businesses are the same. Rush into a decision, and you might overpay for features you don’t need or commit to a system that isn’t a good fit for your business.
In this article, we’ll walk you through the most common problems with POS systems, including industry-specific examples to keep in mind.
Small stores in the U.S. sit on an average of $48,000 of excess stock, equivalent to 22% of their overall inventory. And one in six retail stores find it ‘practically impossible’ to know how much stock they’ll need in the next six months.
Implementing modern inventory management software is a must to avoid stock levels and keep costs down. Most POS systems have some form of digital inventory, but a lack of industry-specific features leaves businesses scrambling for workarounds or doing extra work.
Think delis that price most of their items by the pound or tobacco shops that need to manage specific tax rates for different types of products. A generic retail system, even a brand-new one, might give them more work than if they didn’t have one at all.
Here are some specific features to keep in mind when looking at a POS system’s inventory management software:
| Weight-based sales | If you own a grocery store, deli, or specialty market, you need an inventory system that tracks price by weight and weight on hand. |
| Consolidated inventory | Many stores, but particularly liquor and tobacco stores, carry the same item in different sizes (e.g., a case of wine vs. a bottle, a carton of cigarettes vs. a pack). Industry-specific systems can consolidate different product variants into a single entry for better tracking, easier sales, and accurate visibility. |
| Age restrictions | If your store sells age-restricted items (e.g., certain medicines, liquor), you can use your inventory management system to mark these items to automatically prompt for an ID. |
| Tax rates | If you operate a multilocation business or sell a mix of products with different tax rates (e.g., a grocery store that sells liquor), you need the ability to set variable tax rates in inventory to stay compliant. |
| Vendor integration | Integration with vendors allows you to upload a vendor’s items to your system and update your stock automatically based on purchase orders. This is a huge time saver, especially for businesses with thousands of unique SKUs. |
| Product databases | Digitizing your inventory is important, but entering each product individually is tedious. Look for systems that have product databases to update product information automatically. |
| Custom UPC support | If you have nonstandard items (i.e., any item without a UPC code, like homemade food), the ability to add custom UPCs both lets you track them like any other item and print custom barcodes to be scanned at checkout. |
The bottom line: Inventory control is the heart of any healthy retail business. Your POS system can have all the sleek UI features you want — but if it can’t manage your inventory effectively, it’s practically useless.
When most small businesses think of reports, they think of basic tax or earnings documents from software like QuickBooks.
Most POS systems let you see daily or quarterly sales reports. However, looking at overall sales numbers alone isn’t enough to see where your business is succeeding and where it’s falling short.
A modern POS system already tracks inventory and sales in real time. This produces a ton of data that can be visualized in helpful reports. POS reporting tools uncover helpful metrics, like:
These reports help you discover bestsellers and areas for improvement you might otherwise miss. For example:
Long story short, you’re generating a bunch of useful numbers just by using your POS system to run the store. Reporting tools let you take that data and turn it into action.
Updating your POS system is a big deal. You’ll use your POS system every day — yet, many POS providers take a “sink or swim” approach. In other words, once they make the sale, they leave you to do the heavy-lifting of getting set up and comfortable with the new system.
When shopping around for a new POS system, don’t forget to ask about training and support. Specifically focus on these areas:
Investing in a new POS system shouldn’t just feel like you’re paying for a product — a great POS provider acts as a partner in your success.
One of the most common problems with POS systems is feature bloat. Many systems come packed with bells and whistles you don’t need (but you pay for anyway).
For example:
Finding industry-specific software helps you narrow down the features you need, while cutting out the ones you don’t.
That said, when you’re shopping for a new POS provider, make a list of both your short-term and long-term goals to ensure you pick a system that can grow with your business.
Imagine you’re a butcher who mostly sells meat by weight, but your POS software doesn’t reliably connect with your deli or scanner scales. Or you’re a liquor store owner that needs to check ID for every sale, but your system doesn’t support ID scanning.
Many store owners get sold on software, but don’t think about the physical hardware they need. Not only that, but not all systems work with any hardware — and some require you to use proprietary hardware.
Suddenly, that once-cheap monthly subscription fee is a lot higher after all the new hardware you have to buy.
When looking at POS providers, make sure to see what hardware they’re compatible with and if it makes sense for your industry.
SMB owners are busy people. Why add to that stress by having to physically go into the store every time you want to check product pricing, set up a sale, or see store performance?
Imagine a store owner closes up shop only to realize they forgot to set up a promotional sale for the next day — or maybe you got a new item and forgot to enter the UPC into your system. With a cloud-based system, these scenarios cease to be problems.
Cloud-based POS systems allow you to monitor your store, adjust inventory, and track employees from anywhere. Better yet, data is backed up locally, so if your internet goes down, you can still keep things running.
The option to manage your store remotely is a huge time saver for many store owners and helps you react and make changes more quickly.
If you’re opening a new business or looking to upgrade an outdated POS system, you want to avoid problems before they start.
Finding a POS system that’s actually built for your industry is the first step. At POS Nation, we’re passionate about supporting Main Street retailers with affordable, specialty POS systems that help them achieve long-term success.
Speak with one of our experts today to demo a POS system that fits your business needs.