Our Store's B.F.F.
A saga of pain and gain to find for the perfect P.O.S.
By Christie Tullis -- Gifts and Dec, 12/1/2009 12:00:00 AM
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| Christie Tullis |
As retailers, many of us think of our merchandise as friends because they are tangible items that generate profit. Having the right mixture of merchandise has a huge effect on the bottom line. But how do we know where to put our dollars to increase that bottom line? My best answer: P.O.S. (point-of-sale) reports!
But before we can generate those critical reports, we must choose the software that will affect how efficient and successful we can be. Finding the perfect point-of-sale set up is no easy task; all those pre-purchase details ... I've been there, done that, don't want to go back.
If at First You Don't Succeed...
We opened Ambiance Interiors & Gifts in September 1999. Shortly after moving locations, we went from a primarily design firm to a full-blown retail store. In doing so, we accumulated masses of merchandise quickly, didn't know what quantities were on hand, what items needed reordering, or how much cash flow was needed to pay for upcoming orders. Life in hand-written-receipt Paper Land had to be short-lived.
P.O.S. software wasn't in the budget — or even our thoughts — until after we had accumulated said masses of merchandise. Therefore our first step was to have a "ginormous" sale to pare inventory down.
After meticulously investigating the few software options that we could afford, we settled on Retail Pro. At the time, it met our small budget, appeared to be upgradable, managed inventory for up to 10,000 items, provided a customer relationship management system (C.R.M.), and several other features and reports key to our business. And the salesman helped with the IT set-up.
After purchase and installation, we realized the system did not include several other key features we needed, such as integrating with our QuickBooks accounting software, which would have reduced time and generated more accurate reports.
At that time, the software company was small and in the process of changing hands, resulting in difficulty in getting tech support. Pre-paid tech support didn't return calls; software updates didn't come; and all while we needed pertinent information from reports. Needless to say by 2002, Ambiance got another B.F.F. (Best Friend Forever).
... Try, Try Again
Trying to find the new B.F.F. wasn't a cakewalk the second time either. Fortunately, we were more experienced in knowing what features were must-haves and what were "cherries on top" bonus. We planned to incorporate a real-time inventory with an on-line shopping cart. One program we investigated seriously was Everest E-Commerce, which integrated with the company's in-store P.O.S. At the time, it was one of the only real-time shopping carts and warehouse management tools around. Thanks to a test run, we found Everest too costly: software alone was $20,000; set up would run over $5,000, and the techs were hard to communicate with.
We realized that the real-time shopping cart wasn't a reasonable option on our budget. The next best thing was our miracle in disguise: QuickBooks/Intuit was about to release its first version of P.O.S. software that worked perfectly with its accounting software. We chose to update our bookkeeping software to its Enterprise Retail version to integrate with the new QuickBooks P.O.S. program. Tech support and all updates were only $700 for an entire year, and we got questions answered immediately with no clock running when the IT professionals helped us.
Why It is Worth It
Our P.O.S. system is really a B.F.F to our business. Pulling reports is a breeze that gives us valuable information: what's selling, what products are seasonal and when they should be in stock, what departments are selling fastest, and more. The system can also generate automatic purchase orders for items that should never be out of stock, such as candles. Vendor reports and stock levels per vendor are really helpful during market: we know exactly what items are in stock so duplications don't occur unless by choice.
Finding the right system is no easy task and there is no perfect "one-program-fits-all" solution for gifts and decorative accessories retailers. What works for us, may not be right for you. If you do your homework, establish a budget and evaluate your needs, your transition to a fabulous P.O.S. future should be smooth.
We would love your feedback!
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