Point of Sale Configurations

POS is short for "point of sale" or "point of service." POS systems are used by businesses to facilitate transactions and can be described as a complex computer cash register. POS systems have been used for a long time by large businesses, but, in recent years, the technology has been scaled down for use by small businesses as well.
 
The use of POS systems by an increasing number of businesses in recent years has also been called The Touch-Screen Revolution, as many POS systems use a touch-screen interface.

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How POS Systems Work

POS systems typically consist of hardware and software components. The POS hardware systems gather information, such as merchandise being sold (using a barcode scanner or portable tablet) and customer payment details (using a machine to scan credit cards). Other hardware components include:
  • LCD display for customer to view prices of items as they are added to an order
  • receipt printer
  • touch-screen order bank.

These parts interact with a central computer loaded with software. The software can:

  • create reports
  • encrypt customer data
  • tally sales.
Software is often the element that differentiates POS systems for different types of businesses.

Types of POS Systems

Several types of POS systems and configurations are on the market. Each system has been developed for a specific type of business:
  • Food Delivery POS Systems: POS systems designed for food delivery businesses can increase productivity. Software for these systems can help track ingredient inventory but can also produce maps to customer locations for drivers and even track customer histories.
  • Grocery POS Systems: Grocery stores need a variety of hardware options in addition to software to track inventory and sales patterns. They need to weigh items and calculate prices and also be able to show all of this information to the customer.

    Grocery POS systems also typically employ a system where the customer scans their own credit cards or enters a pin number. Some grocery stores have additional systems for customers to scan their own items and choose payment options.
  • Restaurant POS Systems: Restaurants have developed POS systems for many uses. The systems have facilitated communication between wait staff and kitchen immensely. Wait staff can input orders into a central order processor, and kitchen staff can print out duplicates to cook orders.

    In more advanced systems, waiters can use a portable e-tablet to take orders at tables, which are sent via a wireless network to a central bank, from which chefs can access order details.

    POS systems can also be used in restaurants to track inventory in kitchens based on incoming orders and activity from the bar and dining tables. Since the information is all being processed electronically in a central database, running reports about sales activity is much easier than if each table's receipts had to be manually entered into a database.
  • Retail POS Systems: Retail outlets now track inventory much faster with the use of POS systems. Managers can keep a running tally of merchandise, as updates to the database are in real time. Information about sales can also aid management in determining strategies to move more items per order.
  • Salon POS Systems: Salons can implement POS systems to help manage client appointments and reminders. Specially designed software can aid customer service representatives during their interface with clients by suggesting when they should schedule appointments and which products would be suitable to recommend for additional sales.
  • Wireless POS Systems: Also known as WPOS, wireless devices can be used for orders and payments. In WPOS systems, the wireless devices submit data to a server.

    WPOS are becoming increasingly popular, as concerns over identity theft are on the rise. With WPOS systems, rather than handing a credit card to a waiter or staff member to swipe in an area out of the customer's sight, customers can swipe their own credit cards through a scanner at their seats.

With the ability to track inventory in real time, many small business owners feel the expense of installing a POS system is worthwhile. Plus, the software on small business POS systems can also create reports to interpret all the data collected. This allows managers to make more informed decisions in a quicker timeframe, which can also be important to the success of a small business.

Prices on all these systems vary depending on the number of terminals and peripheral equipment needed. You can expect a basic system to cost about $2,000. Prices go up as you add additional features and software capabilities.

Resources

POS Guys (2007). POS Systems. Retrieved September 11, 2007, from the POS Guys Web site: http://www.posguys.com/retail-cash-register-system_39/.

POS Nation (2007). POS Systems and POS Software. Retrieved September 11, 2007, from the POS Nation Web site: http://posnation.com/.