Having set up thousands of businesses with POS we’ve seen first hand how many small business owners prioritise so much else over their EPOS system. Business owners who wince at the thought of spending £50 per month on the most important tool in their business, but will happily spend £00’s on chairs and knick-knacks. The long and short of it is that not all POS software are created equal, and your assumptions that they are could be hurting your business.
The issue at hand is value, and in particular, the gap between perceived and actual value when it comes to POS software. Think about if for a second; if you knew in advance that your POS software would save you £100’s per month, you’d have no issue spending £50 per month would you? The problem is that you don’t and can’t know this in advance. This is further exacerbated by your fear of talking to sales people… that’s not all your fault though, in the POS world there are a few companies who are notorious for the ‘hard sell’ rather than selling on the value of their products.
The old adage of ‘you get what you pay for’ definitely rings true in POS. The only difference here is that the differentiator is data. Data is what you’re paying for, and data is what’s going to give you a positive return on investment. The more data a system gives you (or the more specific the data), the more it’s going to cost. Simple. Data gives you the power to make informed business decisions that you wouldn’t otherwise be able to make and that’s where value comes into play.
How does data create value?
The value comes from the decisions you can make by interpreting the data, not the data itself. The more data you have to hand, the more business decisions you’re likely to be able to make. These are decisions that can directly save the business money, or enable you to make more money. The easy accessibility of this data in cloud based POS’s can result in many man-hours being saved that would ordinarily be spent on calculating timesheets and filling out excel management reports.
Let’s consider 2 scenarios:
- Restaurant owner a has a basic POS solution with 5-10 reports, costing £20 per month
He can see sales for each day, week & month as well as individual product performance. This allows him to see when he’s busiest and what products are selling the best/worst.
- Restaurant owner B has a more advanced POS with 20 reports costing £59 per month
He can see all of the above, but he can also see much more granular data. How are individual products performing at different times of the day? Are his staff up selling enough? Is there a difference in performance of different tables within his Restaurant? How do sales on different days of the week compare?
That’s all good and well, but what does that actually mean for me?
Well, If Restaurant owner B turns over a modest £10k per month and can use all of that extra data to increase his average spend per head by just 0.5% then he should easily cover the extra software cost….anything more is all upside. As Kevin Bacon would say, it’s a no-brainer.
We’ve written a separate article on how to make the most of your POS data for a quick ROI.
Our POS experts have years of experience and will happily walk you through different options. We only work with softwares that are worth their price tag!