Page 185 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes Which is Better? Cash Registers or POS?

For a new business, the choice of cash register or POS system may simply depend on the budget
of the retailer. Don’t pass the responsibility of selecting the cash register to employees or a
consultant. Do your homework. Before selecting a cash register or POS system, understand your
business needs, the cash management options and POS hardware available and make your
selection based on an educated decision.

Benefits of POS Systems

More detailed reports
Better track inventory
Improve accuracy
Easily grows with business

Benefits of Cash Registers

Low cost for startups
Most models easy to use
Fewer components

Basic functions and reporting
Before you buy either a cash register or a POS system, learn what kind of warranty or support
comes with the machine. Plan how you or your staff will be trained to use the equipment. Once
you make your purchase, stock up on any necessary supplies such as ink ribbons or receipt
paper.

Where to Buy?

Complete retail point of sale systems can run anywhere in the neighbourhood of $1,500 to
$20,000. The more POS hardware added to the system, the higher the cost. Retailers can find a
simple cash register for under $200, but expect to pay between $250–800 for more advanced
registers with scanners, display pole and many functions. It is fine to choose a low-end model to
start with as long as you upgrade later, as the business grows.
Look in your local paper for businesses closing their doors. A second hand cash register or POS
system will be much less expensive than a new on. If the business has recently closed, it may be
a fairly newer model. Another option for cash-strapped start-up businesses is to lease a system
from a business equipment supplier.

Task Before you buy or lease a cash register or POS system, get the advice of an experienced
professional before making your final decision. What were recommended suggestions to
you?
A bad choice could result in loss of sales or negative customer service. However, in the end only
you know what’s right for your retail business.

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