opinion

A Look at Three POS Scenarios Reflecting Three Stages of Retail Growth

A Look at Three POS Scenarios Reflecting Three Stages of Retail Growth

Leading a small-to-midsize adult retail business is exhilarating, yet daunting. Among the gazillion decisions you have to make, choosing the right point-of-sale (POS) system is one of the biggies. Whether you’re just setting up shop or expanding your store footprint, your POS system is the functional backbone of your operations. But with countless vendors vying for your attention, all with seemingly solid pitches, how do you determine which one to get?

To make sure you go in armed with the right information, let’s consider three scenarios, each with its own unique challenges and insights.

Even if you’re not a retail giant with thousands of stores, optimizing your POS system can yield significant cost savings and operational efficiencies.

Scenario 1: Starting Fresh

If you find yourself at the inception of your entrepreneurial retail journey, congratulations! You’re opening your first store or venturing into a new market, and you’re undoubtedly excited and revving to get your doors open. But first, you need to get your ducks in a row. Sifting through the myriad options and advertisements from various POS vendors, you find that each promises affordable transaction processing, with some even offering to throw in a few months free. But beware, not all that glitters is gold.

When opening your first store, opting for a cloud-based POS might seem like a no-brainer. After all, who can resist an attractive graphical user interface and a cost-effective solution? However, don’t be swayed solely by price. Your POS system should do more than just process transactions. It should also offer inventory control, CRM capabilities and robust reporting functionalities, all with an easy learning curve for you and your associates.

Remember, the intelligence of your POS system lies in providing insights into outcomes, pricing, margins and inventory management. Don’t settle for a system that merely scratches the surface. Especially as you form your retail business operations, invest in one that serves as a strategic asset for your future growth and success.

Scenario 2: Growing

Fast-forward a year or two and your business has gained traction. You’re adding inventory, warm bodies and may even be eyeing another location. What now? Well, with growth comes increased reliance on your POS system. Now, more than ever, you’re going to realize that flashy front-end features are much less important than a robust back-end.

At this stage of growth, you will likely be grappling with questions about purchasing, allocation, receiving and tracking. Also, how do you ensure you’re getting the best pricing from vendors? Can you track inventory across multiple locations seamlessly? And what about your customers? Do you have insights into their preferences, purchase histories and even personal milestones, such as birthdays and anniversaries? You may also need to be wary of POS vendors who try to lock you into their proprietary merchant services. While they might offer enticing upfront deals, hidden charges can quickly eat into your profits.

As your business matures, scalability is paramount. You need a POS system that can seamlessly integrate with order management systems (OMS) and other third-party applications. Which brings us to...

Scenario 3: Multiple Locations, Multiple Requirements

Now envision a scenario where your adult business has scaled to multiple locations. The challenges your POS needs to address will multiply, and your chosen system must rise to the occasion. Integrations with ERP/accounting software, ecommerce platforms, loyalty programs and warehouse management systems become nonnegotiable, and the ability to pass information seamlessly between platforms becomes a critical competitive advantage.

This problem is not unique; even the big retailers grapple with their legacy systems. The good news is, you can use this to your advantage! As big retailers continue to be burdened by the cost, time and complexity of cumbersome integrations, you can leapfrog ahead.

This stage of growth is the time to embrace the power of a frictionless system that fuels your retail operations. Even if you’re not a retail giant with thousands of stores, optimizing your POS system can yield significant cost savings and operational efficiencies. Don’t fall into the trap of complacency. Retail is ripe for innovation, and the right POS system can be a game changer for your business.

Selecting the right POS system is more than just a transactional decision. It’s about investing in the foundation of your business, empowering your team, delighting your customers — and pushing profits to the max. Whether you’re starting fresh, expanding your operations or managing multiple locations, remember that making careful choices on your journey will help you reach your destination sooner. So choose wisely, and let your POS system be the cornerstone of your retail success story.

Sean Quinn is the CEO of All Point Retail, a retail technology company that provides managed commerce solutions for businesses. He is a true veteran, both literally and figuratively. Bolstered by years of military experience in a variety of positions and commands, his strategic intelligence background laid the foundation for his passion for business intelligence through technology — especially in the retail arena.

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