ETD: 713 SPECIAL REPORT - "Will You Make These Mistakes When
You Buy Retail Point of Sale Software?"
E-Tailer's Digest
etd_post@gapent.com
Tue, 19 Aug 2003 07:22:45 -0400
E-Tailer's Digest --- Everything for the Retailer
Issue #0713 August 19, 2003
George Matyjewicz, Moderator mailto:georgem@gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
==================================================================
CONTENTS
[1] Greetings
[2] SPECIAL REPORT - "Will You Make These Mistakes When You Buy Retail
Point of Sale Software?"
==================================================================
[1] Greetings.
==================================================================
Hi All:
Today we have a special report from list member Jeff Haefner, which is
quite enlightening. Jeff brings it all down to the basics - something that
many of us have preached for decades.
I'll be traveling and at conferences through the end of September two
trips to the UK; two other shows in US. So, some special reports would be
appreciated. We'll publish anything that would be of interest to our
readers. 1,500 to 2,500 words. And we post it to our "Special Reports"
section of E-Tailer's Digest site, which does get a lot of
visitors. http://etailersdigest.com/resources/Specials/index.htm
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com
==================================================================
[2] Will You Make These Mistakes When You Buy Retail Point of Sale Software?
==================================================================
"Will You Make These Mistakes When You Buy Retail Point of Sale Software?"
by Jeff Haefner
http://www.possoftwareguide.com
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 a 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?
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.
If you'd like to learn about more mistakes and how to choose
POS software, visit:
http://www.possoftwareguide.com
Jeff Haefner
PosSoftwareGuide.com
2880 26th Ave
Marion, IA 52302
319-360-0314
jeff@possoftwareguide.com
http://www.possoftwareguide.com
Author Bio:
Jeff Haefner is a nationally known author and retail software expert. He
has past experience as a programmer, retail consultant, computer
consultant, network administrator, POS software salesmen and marketing
manager. He's also the author of "The Point of Sale Software Buyers Guide"
- How to Choose POS Software and Avoid Problems.
==================================================================
Links to follow
==================================================================
GAP Enterprises, Ltd. http://www.gapent.com/
Sarbanes-Oxley 2002 http://www.sarbanes-oxley2002.com
E-Tailer's Digest http://www.etailersdigest.com
ETD Archives: http://topica.com/lists/etailer/read
Prior to 29 Dec
1999 http://etailersdigest.com/archives/index.htm
Marketing Your Web http://www.gapent.com/myweb/
Automated Press Releases http://www.automatedpr.com