U-S-E Your POS

To the editor,

I read the article, “Going the POS Route,” in the November 2005 issue of G&DA and believe it was well written, with the exception of just what using a POS (point of sale) system can save or cost a retailer.

I run an 80-year-old garden center that sells gifts, patio furniture and Christmas items, as well as lawn and garden products. We have been on a POS system for eight years.

I'd estimate that 80 percent of small businesses on a POS system use it for little more then a regular cash register. I get this from talking to people at trade shows, and at various other meetings.

The point is that the average retailer does not have the will to invest the time and effort to use the system the way it is designed. Initially, retailers may have to spend more on labor using a POS system if it is operated correctly, since there is more “upfront labor” involved when buying goods.

This is because items have to be assigned a SKU number, and information such as delivered cost must be entered. Additionally, product must be checked in and scanned for accuracy (price as well as UPC, if it's attached to the item) when received. Then someone must make sure the invoice has all this information to be entered into a POS system.

There is also the daily routine of checking margins, sold outs, etc. In other words, I am my own IT guy!

But all this effort in the beginning means that all the reports retailers receive will be timely and accurate. My inventory and financials can be printed on any given day and be reliable. But if retailers are not this diligent at the outset, then a POS system is worthless.

Savings are on the back end: accurate sales and profit margins on a daily, monthly and yearly basis; knowing best sellers by profit or volume, and knowing the month they sell. Financial statements tell retailers NOW if they're making money.

So while a POS system may not be labor-saving, it is well worth the cost and time for what retailers can get out of a system. Remember the saying: “Garbage in is garbage out.”

I can't imagine running a business without a POS system. But worse than that is having one and not using it to the fullest extent, like most retailers.

Stuart A. Cofer, Cofer's Home and Garden, Athens, GA