| How would you like to use point of sale software to | | | | system and advise staff that negotiations at point of |
| increase profit margins by up to 5%? Most businesses | | | | sale are not possible. |
| would leap at the opportunity of increasing margins by | | | | Make sure that any discounts you offer are calculated |
| this amount, but by using your software properly you | | | | by the software and not by staff at the checkout. This |
| may be able to do just that. | | | | reduces calculation errors and enables the speed of |
| By carefully classifying details of your sales and | | | | sale to continue at optimum levels. |
| keeping track of all the costs involved, point of sale | | | | If you have a large inventory you can request your |
| software can become the most vital tool in the day to | | | | suppliers to provide you with their product details and |
| day operation of your small business. The economy of | | | | pricing in electronic format so that you can integrate |
| scale that large businesses have been able to utilise in | | | | that with your point of sale system. This allows you to |
| the past is now available to any business for a | | | | change prices electronically store wide without having |
| relatively small investment. | | | | to individually reprice every item. |
| This means that small businesses can now compete | | | | You can maintain your profit margin by automatically |
| with their larger rivals on a much more even footing by | | | | setting up your software to calculate price by |
| utilising the same information to massage their pricing | | | | percentage profit margin rather than by adding dollar |
| and cost control measures. | | | | amounts. Gross profit margin is one of the most |
| Let's look at some of the methods you can use to | | | | sensitive aspects of business planning and by |
| ensure you are using your point of sale software to | | | | electronically controlling your pricing structure in this |
| the greatest advantage. | | | | way you can ensure that your profit targets are |
| Always ensure that the minute details of your pricing | | | | reached. |
| information are entered into your data descriptions. | | | | Test individual price points with every item on a regular |
| This means that you will be able to analyse every sale | | | | basis and use the information generated to work out |
| from every position in your store enabling you to track | | | | the optimum price point. By doing this continuously over |
| individual staff performances and even the location | | | | a period of time the data you collect will be priceless in |
| effectiveness of your individual checkout points. | | | | maintaining your profit. |
| Analysing sales results regularly during the day will | | | | By implementing some or all of the above strategies |
| allow you to implement a re-pricing strategy the instant | | | | you can quickly turn your business into a sharp edged |
| it becomes necessary. You can print price tags | | | | pricing machine. Your POS software system will allow |
| instantly and have them replaced across the store to | | | | you to not only maximise your profits are all so make |
| give immediate effect to a price strategy change. | | | | quick decisions and implement them in an instant. |
| Set your pricing accurately and strictly within your | | | | |