Restaurant and retail owners have a lot of options when it’s time to purchase point of sale (POS) technology. One of the best ways for value-added resellers (VARs) to close more deals is to change the way the customer thinks about the purchase. You want them to think of it as an investment, not an expense. Show them how they will gain much more than basic transaction functionality, and focus on what they’ll save versus what they’ll spend. Demonstrating return on investment (ROI) is easier than you think. Here are three ways you can show ROI on POS technology.
- Better Inventory Tracking
Modern POS systems have built-in inventory tracking and reporting to monitor retail products on the shelf or ingredients in restaurant dishes. Integration with RFID technology and scales make it simple to scan barcodes or measure bulk items or liquor for accurate counts. Controlling inventory and managing product levels will save business owners money in several ways:
- Getting real-time information without spending the time and labor on manual inventory (which is also subject to human error);
- Avoiding lost revenue from stock outages;
- Making better-informed decisions about what to restock based on sales — so restaurants, especially, avoid food waste;
- Identifying and fixing areas of shrink or theft, which become readily apparent when tracking inventory trends versus sales.
You can show potential customers ROI on POS technology by charting the decreased costs and increased profit margins associated with inventory tracking.
- Labor Management
Labor is always a major headache for retail and restaurant managers to deal with, and it can be a budget sink. Many POS systems now have integrated time clocks, giving managers insight into employee scheduling and overtime. And the POS can analyze historical data and sales trends to predict the busiest and slowest times of the day, week, month, or season, so managers can make more efficient staffing decisions. They can avoid both understaffing, which leads to negative customer experiences (and potential lost revenue), and overstaffing, which increases labor costs. ROI can be demonstrated in terms of the money saved by using POS labor modules.
- Increased Average Sale Amounts
Increasing the average check size at a restaurant or sales ticket in a retail store is all about upselling and suggestive sales prompts. Managers no longer have to depend on servers or cashiers remembering to upsell consistently. New POS software solutions can provide employees with the information they need to make recommendations that bump up the sales total. Wait staff can suggest additional sides, compatible wines, or desserts, and sales associates can ask if the customer needs other items related to what they’re buying (batteries, service plans, the shoes they love in multiple colors). An increase in sales (and profits) can be directly correlated to investing in POS software with cross-selling features.
Helping customers calculate ROI on POS technology and pointing out areas that will improve with a new system is a great way to win business. It also helps to be partnered with a provider that offers innovative products and reliable support. Contact Paradise POS for more information about the advantages of joining our global network of VARs.