Bematech Blog - January 25, 2017
If one of your New Year’s resolutions is to implement strategies aimed at improving your revenue, it’s time to get a plan in place or risk a less than rosy financial future. There are many ways to get the job done, but there are five particular Point of Sale benefits that pack strong potential to help spark revenue improvement in 2017.
Your POS solution can help you:
- Know the industry. Lack of industry knowledge ranks among the top five reasons most businesses fail. In addition to understanding the basics of the retail industry as a whole, it’s important for merchants to become intimately familiar with the ins and outs of their particular market and customer base. A POS solution that allows you to analyze data from sales as well as other areas such as loyalty program participation and inventory data can provide you with valuable insights including clues about the items your customers really want and the price points that work in your market.
- Practice replenishment planning. Replenishment planning is a critical element on the list of revenue-improving Point of Sale benefits, because without the right merchandise at the right time, a loss of business is inevitable. Keep in mind that replenishment planning and inventory planning, while related, are not the same thing. Inventory planning entails setting optimal inventory levels for each SKU. Replenishment planning entails planning for the acquisition of product on a recurring basis to support actual or anticipated need and demand. Use your POS system to collect data on lead time on orders, shipping times, and internal replenishment process that help you plan to have the right product in the right place, at the right time.
- Buy and price for maximum profit. This is one of the most basic Point of Sale benefits that can have a positive impact on profitability. Consequently, it’s a great strategy upon which to focus this year. To buy and price merchandise for maximum profitability, retailers should first consider that the price of their merchandise is just a temporary estimate of what the customer is willing to spend. In devising an overall pricing strategy, then, start with a practical approach based on supply and demand. However, being competitive is also a factor in pricing. Join buying groups and look for manufacturer discounts that make it possible to acquire merchandise at less than wholesale prices. Such a strategy will pave the way for offering better values and use the data you collect with your POS system to monitor whether pricing is having an impact on attracting more customers and increasing profits.
- Manage cash properly. No matter how unique or wonderful a store may be, no retail business can survive without adequate cash flow. Cash that comes into the business is a vital component of its financial health. Only through wise, careful budgeting and paying attention to your stores’ monthly income and expense intervals will you be able to ensure that cash levels are always where they should be. Your POS system’s reporting feature is the perfect tool to keep a close eye on cash flow as well as overall store-level and company-wide finances.
- Link you to help when necessary. Another Point of Sale benefit that can help you increase revenues in 2017 isn’t related to hardware or software; it’s related to who sells it. Leverage the experience and knowledge your POS solutions provider has, as well as information they can provide on solutions that have successfully worked for other merchants. Trying to learn, and settle on the right retail or hospitality solution by trial and error, can be a time consuming and costly process. Using an expert to help move your plans forward could end up being the most profitable decision you make this year.
Point of Sale benefits can help you understand your market and your customers, avoid lost sales from out-of-stocks, and keep a close watch on your business’s finances, but you have to have the right solution to provide you with the functions and data analysis you need. Speak with your POS solutions provider about how Point of Sale can benefit you in 2017 and beyond.