PoS Machine: Types, Benefits for small businesses & more
What is a PoS Machine & how beneficial is it for small businesses? Read.
While there are companies that handle multiple transactions over the internet, most of the businesses deal with a one to one transaction. Depending on the type of business, you always need to give new and modern forms of accepting and giving out payments that enable smooth and seamless transactions and keep a record of the same. Considering the instances at play, business digitalisation is a significant task that needs to be handled efficiently.
Considering the overall process, businesses have come up with PoS "point of sale," machines. If we take a closer look at it, these machines are used to finalise the transactions. To lay it out in simple terms, its work is to initiate a seamless transaction and record all the transactions that occur, making it the work of a cash register for your business. PoS machines help in the effective functioning of a business in many ways. They serve multiple purposes, depending on the type and nature of business.
According to a study in the USA, 68% of small business owners use an average of four apps to offer convenient transactions to their customers.
Now that we know what a PoS machine is, let's have a look at some of the essential PoS functions:
Brief history
In the beginning, PoS machines were used as a simple cash register to notify the transactions' business owner. While it didn't comply with the modern standards, it was only useful in maintaining a record of every sale that the cashier wanted to record. PoS machines were utilised as a successful solution to record all the transactions that have taken place as it is a human tendency to forget things.
The previous generation of the PoS machine was used to display the totals at the end of the day to provide the business with an idea of the profit and loss at a glance. As per a report released by Fundera in 2019, 70% of consumers prefer card payments over cash.
The modern-day PoS machine
The modern retail PoS machine is something that is just impressive and powerful and serves functions way beyond what the initial generation of these machines could do. Even if it shares a similar look to an old-school cash register, the functionality it provides has changed at several levels. Previously, every product sold in a business needs to be mentioned manually, making it a mammoth task to sell and record every article. On the other hand, the modern-day PoS is different as the prices are pre-programmed into the system and can be quickly recorded via a barcode scanner.
This development in the UI has proved to be an effective solution to cut prices and decrease making mistakes. Interestingly, the PoS terminal can also be used to check a record of the track and refer to your total sales record of products and services.
Another added advantage of the new PoS machine is the multi-purpose adaptability that gives it the ways to serve as a cash register and cash drawer. The traditional keyboard arrangement that mates with a built-in receipt printer records all the transactions that occur and uses a specific credential to access the cash drawer underneath. The more computerised upgrades of PoS use the touch screen to record such transactions.
How PoS machines are beneficial for small businesses?
Improved efficiency:
When you replace your old and traditional recording sales methods with a PoS system, you save time by eliminating the need to remember prices manually. You also save yourself from the trouble of manually calculating vast amounts of data inputs as it is with a traditional cash register. This enables dealers to keep unlimited stocks without needing to memorise the prices of an individual product.
Interestingly, if you input a wrong value or calculate the same product twice, you can quickly rectify it in a matter of clicks with the PoS systems. For what could cause a lag in the entire text, you can easily manage to gain practical calculations and corrections with PoS machines. When added together, all of this leads to improved efficiency and an organised workforce where they can focus on serving the customers in real-time. This step also helps in boosting the company's revenue in the long term.
Effective stock management:
If we talk about traditional stock management instances, it is a mammoth task, depending on the business type. Businesses that require large stocks to keep running would spend days behind the effective physical review of their current inventory, every time they receive a stock update.
However, if we talk about PoS in the same place, the results will be very different. Businesses that make use of such features can easily have a look at their overall stock without having the need even to check it physically. It is now a matter of clicks to check the overall stock levels. Based on that, they can easily decide their purchasing dimensions.
Interestingly, POS systems come pre-installed with applications that help them in effective inventory management. This helps small businesses work on the JIT (Just In Time) inventory management approach and also proves to be a cost and time-effective solution.
Customisable solution:
Since every business is different in nature and no single solution can meet all, PoS management systems are developed in various ways to complete multiple operations' business efficiency. Since any business can need to have a PoS system, PoS systems need to be synchronised as per the specific needs of a small business.
Effective reporting:
Another exciting feature of installing PoS systems for businesses is that it results in effective reporting. Individual items registered as sold can be tracked down based on their time of purchase, store location, payment mode, cash or card. Interestingly, businesses can easily access this data as it is made available in user-friendly reports. Having a look at such reports can help you form an idea of the best selling product.
Moreover, these detailed reports can also help you get a compelling insight into the overall operations and provide you with an idea of the places that need to be worked on. With a picture of the products that are selling efficiently and the products that are not so effective in sales, you could do some smart marketing for your business and plan your stocks accordingly.
Easy to use:
The last thing you would want your employees to do is spending sufficient time over learning to operate the PoS system. Thankfully, these systems come in are not very hi-tech and are made to comply with every individual's use.
Listed above were some of the most common but effective reasons to switch over to PoS systems now. If you already lack it, don't waste your time anymore.
Types of POS machines
Take a look at some details about various types of POS machines. Each POS depends on the specific system it runs on. Businesses can choose a particular system that fits the best with the sale and payment collection process.
POS System: Terminal type
The terminal POS System is most commonly found in supermarkets and departmental stores. It is mostly used in cash counters of all kinds of shops. Business owners need cloud software and an internet connection to run a Terminal POS System.
It not only helps the proprietor to transact money in different ways against the sales but also provides tracking support. The UI of Terminal POS Systems is user-friendly.
Moreover, its compatibility with other devices, like money drawer and barcode scanner makes Terminal POS Systems fit for different kinds of stores, spas, and salons.
POS System: Mobile Type
The Mobile POS System is so-called as it runs on a smartphone. With this system, store owners can easily exchange payments. Mobile POS systems mostly come as applications.
You can get access to a card reader and printer complementary to the Mobile POS System. If you are a freelancer or a daily wager who needs no inventory management, the Mobile POS system can be the best companion for you.
POS System: Online type
An Online POS System allows owners to track the sales points using their hardware. This type of POS fits the best in the case of selling big-ticket items, like cars.
The Online POS System not only helps users register a sale but also to record other aspects related to it. Moreover, you can go with this system if you want to save money by avoiding the purchase of any hardware. However, make sure you have a printer to produce printed bills for your customers.
Online POS Systems are used mostly by car showrooms, large vendors, and curio shops.
POS System: Tablet type
A tablet POS system resembles a Terminal setup but is, however, quite updated. Here, you need to download apps that provide POS services. You can also attach cash card processors according to your choice.
The Tablet POS System is multi-layered and can help you manage large stocks of goods for selling. The best trait of Tablet POS System is that it gives the benefit to the employees of a big business organisation to manage their own sales profiles. This helps the proprietor to track the total sales in a given period easily.
POS System: Kiosk type
If you own a film theatre or a retail store for small commodities, a Self-service POS System can be the best option for you. The Kiosk POS Systems are used in most parking lots and railway stations too.
Final Words
POS machines have been one of the vital support systems of the business sector as it keeps track of the sales and points. Technological advancements have resulted in the drastic development of such payment collection systems, be it for security, ease of use or automation.
If you are planning to have a business anytime soon, don’t miss out incorporating a POS machine. However, the choice of type depends on you. Thorough online research can lead you to choose the befitting POS system for your business.
As a business owner, consider the type of commodities and service you deal with at the time of choosing a POS machine. Generally, a comprehensive POS can be the best for you if you are aiming to expand your small business rapidly.
Also read:
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FAQs
Q. Will any form of commission on sales be charged for installing a PoS system?
Ans: No, these are free to use. The only charge that you need to pay to the installation company is for the pieces of equipment and some service charges if applicable.
Q. I have a small retail business. Can I opt for a PoS system?
Ans: Yes, businesses at every level can opt for these PoS systems as they can be customised to meet every type of business's needs.
Q. What to check in a POS installer company?
Ans: If you are planning to install a POS system for your business, the first thing you need to consider is the type. The providing companies can help you with the Terminal POS System and Self-Service Kiosk System. You must primarily check the quotes and the features that they are providing you.
Q. Can I customize the POS system according to my needs?
Ans: Yes, you can customize the POS system according to your needs. In case of downloading apps, check if it satisfies all your needs. Similarly, before installing Kiosks or Terminal POS Systems, tell the provider about your expectations from the device.
Q. Are the POS apps expensive?
Ans: When it comes to expenses, you can get the POS apps on different charges. However, most apps are inexpensive as they do not have monthly charges. If you have a small business, you can easily take a free app and manage the monetary section seamlessly.
Q. Are POS apps secured?
Ans: Yes, the POS apps are made with advanced technology, and they provide you with multiple layers of security.