10 reasons to automate your retail store
By Monte Enbysk
Here's something to look for the next time you visit one of your local
merchants such as a clothing store or sporting goods retailer: Check out
the cash register.
It may not be the old stereotypical, paper-based cash register we see
in the movies. It may instead be a personal computer with special software
known as "point-of-sale" technology.
More and more retailers are switching from electronic cash registers or
outmoded paper-based systems to PC-based solutions. Why? Because it gives
them the ability to generate better revenues, increase productivity and,
in the end, have more time in their personal lives for something besides
work.
Even if you're a retailer who's not yet sold on this idea, new
point-of-sale (POS) solutions such as Microsoft Retail Management System,
from Microsoft Business Solutions, are worth checking out. They're
affordable, user-friendly and can help you grow and take your business
into the future.
'More efficient, less sweaty'
"Ten years ago, the price points [of high-tech solutions for small
retail] were a concern," says Paula Rosenblum, research director for
Boston-based AMR Research and a veteran of specialty retailing. "Today
it's a different story; the price of hardware is more affordable, too. In
many respects, it's all about sweat ??how much of it do you want to put
into your store?
"Technology can empower small retailers, freeing them up from mundane
chores such as managing inventory and accounting systems manually," says
Rosenblum, whose father runs a small clothing store. "It can enable them
to be a little more creative, a lot more efficient and a lot less sweaty."
Adds Jeff Roster, senior retail analyst at Gartner, whose brother runs
a small meat market, "In any retailing format imaginable, you have
competition coming at you ??from Wal-Mart, Costco, whoever. So you'd
better get a handle on what your organization can do, from an efficiency
and customer management standpoint. Technology can help . . . even if you
are the smallest of the small, and you do volume ordering, why not
automate it?"
Why not, indeed. Here are 10 reasons to automate your retail business.
| 1. |
POS solutions are affordable. Microsoft Retail Management
System, for example, can be purchased through a reseller for $1,290
for a single store with one cashier's lane. This is an investment that
can be paid off over time in money saved on credit-card transactions.
Through a Microsoft agreement with Citibank Merchant Services, Retail
Management System users can sign up with Citibank to get significant
savings in lower card processing costs. "You're getting a payback on
software just by the money you will save in credit-card fees," says
Rosenblum. (Microsoft Business Solutions offers a more detailed
version of Retail Management System for the central office of a retail
chain, enabling the headquarters to keep track of sales and inventory
from multiple stores.) |
| 2. |
POS solutions are easy to use. Microsoft Retail Management
System is intended for use by store cashiers as well as store
managers. No lengthy training sessions are necessary. Built-in wizards
and an intuitive user interface make learning easy. But Retail
Management System is much more than a point-of-sale solution ??you'll
also be able to automate your inventory management, supplier
management and purchasing, shipping and receiving processes, and
integrate sales transactions with your accounting software. Retail
Management System easily integrates with QuickBooks' accounting
software or Microsoft Small Business Manager. |
| 3. |
Hardware requirements are minimal. All you need for
Microsoft Retail Management System is a Windows-based computing device
that accommodates Windows 98 or a later version. But it works
effectively with common point-of-sale peripherals such as printers,
bar code readers, magnetic strip readers and cash drawers. Retail
Management System also can be utilized with laptop PCs and Tablet PCs,
as well as various PDA, mobile and wireless solutions. Imagine taking
your entire inventory report home each night simply by unplugging the
laptop and carrying it to the house. No more late nights at the store,
poring over inventory reports. |
| 4. |
You can eliminate double-entry bookkeeping. By integrating
credit-card transaction processing into your business operations with
Microsoft Retail Management System, you'll help reduce data re-entry
at the point of sale, and can facilitate easier reporting and
reconciliation of transactions at the end of the month. By integrating
Retail Management System with your accounting software, you
eliminate the need for paper, cut down on errors and streamline and
improve your bookkeeping and tax record-keeping processes. |
| 5. |
You can eliminate manual inventory tracking. Here's a
"mundane" but very necessary chore that can be made easier and better
through automation, says Rosenblum. "This is what a computer is
supposed to do for you," she says. With Microsoft Retail Management
System, unlike other point-of-sale solutions, you have the
functionality to track your inventory more closely and efficiently. As
a result, you'll save time and be able to monitor trends and buying
patterns better, which can help you make better decisions in ordering,
buying and pricing. With a better handle on your inventory and how
fast it takes to "turn," you can increase sales. |
| 6. |
You can reduce operating and labor costs. The ability to
maintain tighter control over your inventory, the reduced need to
re-enter information and an overall simplification of associates' jobs
will free your staff to focus on managing and selling more
effectively. You'll know better when to staff up or cut back to
accommodate sales demand. You'll also eliminate the need for separate
point-of-sale terminals for credit cards and the associated phone
lines, freeing up valuable counter space. |
| 7. |
You can serve customers and market products better and compete
more effectively. While electronic cash registers automate
individual transactions, Microsoft Retail Management System enables
you to keep track of customers' entire purchasing histories. You'll
have a better sense of who your best customers are and why they are
buying, to focus more on their needs and to serve customers better in
general. You also can use this data for sales promotions and marketing
campaigns. You'll be able to test-market pricing concepts, sales
promotions and new products better. In the end, you'll put up a better
fight against competitors, including the bigger retailers who are
completely automated ??but aren't as nimble or customer-focused as
you. |
| 8. |
You can more easily expand your number of stores and e-commerce
options. Microsoft Retail Management System is scalable; you can
keep the same software and systems as you grow into multiple stores
and retail channels. You have a trusted provider, too. As your
business adds customers and products, you can store and manage
unlimited amounts of data with Microsoft SQL Server and manage
customer relations more closely with Microsoft Outlook 2003 with
Business Contact Manager or Microsoft CRM. |
| 9. |
You can keep your business around longer. Want to be able
to sell your business more easily or transfer it to someone from the
next generation? Good luck, if you haven't embraced technology, says
Roster. "The next generation will require technology," he says.
"Otherwise, there won't be a way for someone new to come in and grow
the business model." As time goes on, he adds, retailers who rely on
paper-based systems will increasingly find themselves sticking out
like a sore thumb in a supply chain where most will be doing
transactions online. "If you're someone who still wants to handle
paper, that may raise your costs." |
| 10. |
You can go home earlier and have more of a life. You've got
more time now, so why not? You've earned it. |
Monte Enbysk is managing editor for U.S. small-business editorial
content at Microsoft.
|
