| This article argues that return on investment analysis is | | | | of sale system brings to our business, and therefore |
| crucial to evaluating a point of sale system. The article | | | | these are all factors that must be included in the ROI |
| gives a brief overview of the most important details | | | | analysis. Each factor shares a common quality. They |
| that the ROI analysis illuminates. Many small businesses | | | | all take away a menial task from the human business |
| view the point of sale (POS) system solely from the | | | | owner or employee freeing them to do something for |
| perspective of cost. Our business needs this | | | | the business that a computer cannot replicate. |
| equipment, so how much will it cost us, and how can | | | | Consider how POS affects gross margin: |
| we limit that expense? This perspective often costs | | | | Dramatic reduction of pricing errors through |
| the small business more money in the end. | | | | computerization |
| A point of sale system is not simply an expense. | | | | Amazing reduction of waste through automated |
| It’s an investment in your business, and like any | | | | management of the inventory |
| good investment, it has the potential for a return. The | | | | Focused marketing and promotion through |
| business will achieve greater success by considering | | | | inventory analysis |
| the point of sale system from this perspective: How | | | | High-margin up-sells at the point of sale |
| does point of sale earn money? | | | | The key factors above deal with inventory, and |
| A point of sale system that earns the business money | | | | inventory is the key to building revenue through the |
| pays for itself. Therefore, the business should be less | | | | point of sale system. All of these aspects combined |
| concerned with limiting that initial expense and more | | | | create what is known as a just in time (JIT) inventory. |
| concerned with fine-tuning a configuration for their | | | | JIT inventory system maximizes the business’ |
| business’ needs. | | | | inventory dollar in ways that we never imagined prior |
| However, the return on investment (ROI) analysis | | | | to the modern point of sale equipment and software. |
| cannot be limited to the potential benefits. In order to | | | | However, while inventory is the key, it is hardly the only |
| have the complete picture, the business must examine | | | | aspect contributing to profit. The other factors include |
| the cost of not upgrading. How much money will the | | | | labor costs, theft, under-rings, marketing, |
| business earn if it continues to use the current | | | | checkout processing efficiency, accounting integration, |
| system? How much money will the business earn if it | | | | etc. |
| uses the less expensive system B rather than the | | | | How a point of sale system reduces shrinkage and |
| more full-featured system A? | | | | theft: |
| Consider how POS can spur or limit top-line revenue: | | | | Inventory analysis and reports |
| Automated recognition of frequent patronage | | | | Immediate inventory access versus floor counts |
| Automated volume discount handling | | | | Shrinkage reports highlight products that require |
| Efficient management of discounts, promotions and | | | | monitoring |
| sales | | | | Computerized analysis can highlight employee theft |
| Highly targeted marketing and promotions | | | | at the register |
| Seasonal inventory tracking and automatic | | | | The information presented here should inspire all |
| inventory adjustment | | | | businesses to perform an ROI analysis before making |
| More cash-in per customer via efficient and | | | | a POS decision. It is the only way to appreciate fully |
| targeted up-selling | | | | what that point of sale system will mean to a business. |
| Those six items are just a subset of all that the point | | | | |