If you're like most retailers, you're worried about
making a mistake when you choose point of sale (POS)
software. I don't blame you. Buying POS
software is a big investment. Not to mention, POS
software can have huge impact on the efficiency and success
of your retail business!
What's more, there are around 1,000 different POS
systems to choose from. And they're all different.
All these choices can be overwhelming and
confusing.
The truth is
choosing POS software is very
difficult. And too many retailers end up with the
wrong system. In fact, it's common for retailers to go
through 2, 3 or even 4 different POS systems before they
find one they're happy with. Those mistakes probably cost
at least $10,000 - $100,000.
Here are few mistakes that I see retailers making over
and over again.
They Buy Hardware First
I can't tell you how many times I've heard a retailer
say, "I just bought new computers, printers and I have
everything ready to go. Now I need to find POS
software."
As soon as I hear that, I think to myself, "This guy
could have saved himself a lot of time and money if he
selected his POS software first!"
Why?
What's more, there are around 1,000 different POS
systems to choose from. And they're all different.
All these choices can be overwhelming and
confusing.
The truth is
choosing POS software is very
difficult. And too many retailers end up with the
wrong system. In fact, it's common for retailers to go
through 2, 3 or even 4 different POS systems before they
find one they're happy with. Those mistakes probably cost
at least $10,000 - $100,000.
Here are few mistakes that I see retailers making over
and over again.
They Buy Hardware First
I can't tell you how many times I've heard a retailer
say, "I just bought new computers, printers and I have
everything ready to go. Now I need to find POS
software."
As soon as I hear that, I think to myself, "This guy
could have saved himself a lot of time and money if he
selected his POS software first!"
Why?
P>First of all, your POS software will have hardware and
operating system requirements. For example, the
software will require a certain version of Windows, Unix or
Linux. (Unless it's an "open architecture" system
like ASP) In addition, each program will only
function with certain types of printers, scanners, cash
drawers and card readers.
Second, and more importantly, not all POS systems are
the same. And the system that you choose is very
important. It will have a huge impact on the
efficiency of your business! If you install your
computer system first, you will limit your POS software
choices. The perfect fit for your "unique" business
might run on UNIX but you already bought a Windows 2003
Server! You might also find that the printers and
scanners you just bought aren't compatible either.
You can avoid frustration and save money if you choose
the POS software first. Then you can ask the software
company about their recommended hardware and operating
systems.
They Ask the Wrong People
All too often retailers ask a local computer consultant
for suggestions about POS software. Most computer
consultants have good intentions but they tend to give poor
advice when it comes to choosing POS software.
Computer consultants are great sources for information
about computers, hardware, and networking. However
they don't usually understand the intricacies of POS
software and retail management. Nor do they
realize that there are almost 1,000 different POS systems
to choose from and it's VERY easy to choose the wrong one.
Every retail business is different and has different
needs. If you get poor advice and select the wrong
type of system, your business will lose money.
They Don't Place Enough Focus on the Character of the
Software Company
When you invest in point of sale software, you're
buying a relationship, not just a product. In fact, the
"quality" of the software company is usually just as
important as the product.
Why is the software company so important?
Well...
After you purchase the software, you will rely on the
software company to supply updates, training, technical
support, and possibly hardware.
Let me ask you a few questions
to help you understand why the company is so important...
- What if the software company went out of business?
(Dozens of POS software companies come and go every
year!)
- What if they don't give you software updates when you
need them?
- What if it takes 2 days to get your technical
questions answered?
- What if the software has a bug and they don't fix
it?
- What if they didn't give you sufficient training? And
as a result, your sales reports are showing the wrong
totals!
- What if you can't print and it takes 6 hours to get
help from a support technician?
The truth is, the level of service and the financial
stability of the software company is very important.
It's critical to evaluate the software company;
otherwise you could run into some frustrating and expensive
problems.
They Pass The Buck
Too many owners give the responsibility of choosing a
POS system to an employee or a computer consultant that is
not familiar with your industry. This is a huge mistake!
Top management and other key personnel must be involved
in the selection and implementation process. You should
never rely solely on a consultant's recommendation or
input.
The person that evaluates the software must have in-depth
knowledge about your business!
POS software is complicated. Not to mention it can make
a huge difference in your businesses productivity. POS
software is too important to pass the evaluation process to
someone else!
I see owners and managers make this mistake all the
time. Don't make the same one!
They Overlook Important Features
Unless you are a retail POS expert, it's difficult to
sort through countless POS systems and figure out what you
need. What's more, it's difficult to understand the
"true" potential of your POS system. As a result,
many retailers get confused and they overlook important
features that would save them a lot of time and money.
Most people don't realize that every POS system is VERY
different. Some are designed for large ticket items
like tractors. And others are designed to work in
fast moving retail environments like a grocery store.
As a result, it's common for retailers to end up with
POS software that isn't really designed for them.
That's why it's important to properly analyze the
needs of your business (even if you're a small retailer).
Then you can create a list of features that are
important. That list will help you compare and choose
the right system.
This might seem complicated, but with a little
guidance, you can quickly find the right POS system.
You just need to know which mistakes to avoid, where
to look, and the right formula.
Jeff Haefner is the author of "The Retail Point of Sale
Software Buyers Guide - How to Choose POS Software and Avoid
Problems". This guide shares Jeff's secrets to choosing
point of sale (POS), inventory control, or business
management software.
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