Business

3 Mistakes to Avoid When Choosing a POS System

Today’s business owners need POS systems that offer similar features that are available in POS programs favored by large competitors. If business owners avoid the following three mistakes when selecting a POS system, they will control costs, improve quality and streamline efficiency.

Purchasing Based on Price
Business owners will be bombarded with offers of low priced POS systems. Ads from major technology manufacturers will be very tempting, but try to resist saving a few dollars with a cheap POS system. In the end, it will end up costing much more than expected. The reason that low priced POS terminals and printers are advertised so cheap is because they are not engineered to handle twelve hours of daily operations. Be sure to always verify the business level duty cycle rating. In addition to this, cheap hardware is difficult for technical support to deal with because they will most likely end up suggesting a complete upgrade or replacement. While it may take some time, carefully research and select a POS system that is flexible, scalable and user friendly.

Ignoring the Vendor’s Reputation
There many vendors that rush the business buyer trough the sales process. These companies are focused on quick, easy solutions and one-time commercial transactions. There are also established companies that have dominated the market for decades with their vast amounts of expertise and knowledge. The first will be inexpensive and the latter will be expensive, so try to find a mid-sized vendor that has a solid customer base and reputation. Find out how long has the company has been in business because most vendors tend to fail within the first three to five years. Find out how large the company is in terms of employee count and revenue because financially healthy companies will have sufficient revenue and resources to support customers. Also, companies with more employees will most likely offer better training, support and installation services.

Neglecting the Following
An expensive and effective POS system will quickly become a mediocre system if data entry and standards aren’t maintained. Modern software may have the capability to transform raw data into meaningful information, but this depends on employee’s work consistency and quality of data input. Be sure to have established guidelines regarding the unit processes and departmental policies. Clearly categorizing products and workflow procedures will empower managers to effectively identify sales and inventory trends. Next, neglecting disaster recovery is a mistake that business owners tend to just make once. Regularly backing up the POS system will be an easy process, especially with cloud-based solutions.

To wrap up, be sure to carefully choose the right partner because the POS vendor market is highly competitive with many companies quickly entering and leaving the industry.