| Low Cost Point of Sale Systems |
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When we started our Ranch Store at States Inn, we knew we did not want just a dumb cash register. Being interested in things like inventory control, reduce data entry errors, sales data import into Quickbooks, and strong reporting capabilities, a cheap cash register from a big box store was not going to meet our needs. But complete PC-based POS systems often go for $1,500 or more, which was simply out of the question. So we went the budget route, and were up and running for under $800 with bar codes, credit card reader and everything.
In the past we've done a lot of work with grocery stores, supermarket chains and larger retailers all over the world. Their ability to tap into their sales data and find out what was selling, the prices and profitability of individual items and categories was impressive. When we opened out small store here to sell things we grow and make, and from our neighbors, we wanted to have good inventory control, and especially to see what is selling well and what is not moving, by day, by week, by category and other controls. Here are some of the features we wanted: Cash Drawer tied to the register. With several people working in the store, and people coming and going, leaving money in a cigar box was not an effective method of cash management. Reduce cash register keying mistakes Having a list of all produce with bar codes virtually eliminates pricing errors. Even our small store ahss about 100 items. Using a bar code reader means individual items are not priced, reducing labor costs. Accept credit cards Adding credit card reader to the PC reduced costs (no extra equipment) and footprint at the checkout counter by sharing the same printer. Reporting How many meat pies did we sell this month, compared with the same month alst year? What are our best days of the week for various products? What is the contriubtion of our Dairy proudcts to the store's gross? To the store's net? Most small stores can answer such questions only after a good deal of manual effort. Our inventory movement is all in the computer. Of coursse, that does mean time must be spent putting the inventory into the computer, keeping prices updated, etc. But that is part of the work of retail. A little more time up front means a lot more information available in the back end. This was accomplished by using OpenBravo POS, free (yes, free) software available on the internet. It does take some computer knowledge to set up, and does require a computer and peripherals to be integrated. If you are not computer savvy it is best to hire someone to help set things up. The software can run one Linux, the free comptuer software, so it can be setup and run with NO software cost. And No Annual Subscription Fees. Total Cost of Ownership is pretty much the hardware costs, AND the cost of some softwre person helping you out from time to time as upgrades are needed, or your business expands (additioanl register, second location, etc.) Costs were managed by purchasing the peripherals from Ebay. We did spring for a new computer from Dell, that was the singel biggest expense. Our total costs were about $600. A stongly worded suggestion: Your accountant and your computer person need to be part of the procesws in implementing an new POS system, to help plan product categories, tax reporting, inventory processes and reporting for input into your accounting system. The software is in use all around the world, and it has a restaurant compenent as well. The company also provides a free materials planning system, but that is the subject of another article. |
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