Small businesses in the Philippines face many challenges to succeed in today’s fast-paced digital world. Because of this, managing inventory and transactions can feel overwhelming.
That’s where point-of-sale (POS) systems come in. These powerful tools help small business owners streamline their operations and keep track of sales, inventory, and customer data. With a POS system in place, businesses can save time, reduce errors, and make more informed decisions based on real-time data.
What is a POS System?
A point-of-sale or POS is where the transaction occurs, in-store or online.
A POS system combines both hardware and software to handle retail transactions. Hardware may include components like computer, printer, scanner, or a physical terminal that work together to operate the point-of-sale software. While the software is responsible for organizing and monitoring all the store’s information.
In essence, a POS system functions as a central hub. This allows customers to finalize purchases and make payments for goods and services. But it goes beyond being a simple cash register.
The use of POS systems in small businesses is becoming increasingly popular in the Philippines because of their different functionalities that help make business operations smoother and more efficient.
Different Types of POS Systems
Mobile POS system
Mobile POS systems uses mobile devices as primary hardware. Their cost-effectiveness and portability make them popular among pop-up shops and small businesses. Most of these apps are free and usually work with a portable receipt printer. This makes it easy to send email receipts to customers.
Tablet POS system
Businesses use Tablet POS systems to speed out checkout and ordering processes. These systems have a simple interface, using tablets as the main hardware for processing transactions. They are also popular in bars, cafes, and restaurants. Servers use Tablet POS systems to take orders and process payments right at the table.
Terminal POS system
These POS systems are the type often seen at the counter. Despite being software and hardware-based, most still need access to the internet. Terminal POS systems are usually sold as all-in-one solutions that include cash drawers, barcode scanners, cloud-based system and more.
Online POS system
An online POS lets you use your own hardware, which can either be a tablet or a PC. Its minimal startup cost is also an advantage. PC solutions can’t match the convenience of touch-based POS. But they can still be fast enough to meet your needs if your business has low-volume, big-ticket sales.
Self-service kiosk POS
Self-service kiosk POS systems serve specific purposes. These are prevalent in various industries, especially in businesses with self-check-out options. Some of these include hospitality, ticketing, and quick-service restaurants. Self-service kiosk POS systems enable customers to complete transactions without help from staff. In turn, this reduces queues and enhances customer satisfaction.
Multichannel POS systems
Businesses that sell products in many physical or online stores enjoy multichannel POS systems. These systems combine all the sales from your physical and online stores. This prevents stock shortages because the inventory for one store won’t affect the others.
Open-source POS systems
Open-source POS systems allow you to personalize your POS software interface. You will need software engineers to achieve this – they usually charge high fees.
How POS Systems empower small businesses
Make your inventory management easier
Manually managing inventory can lead to errors, including overselling and stock outs. If not properly done, this can harm your business’s reputation and lead to missed sales opportunities.
Thankfully, having a POS system for your small business gives you a simple and efficient solution. POS systems let you keep track of your store’s inventory, guaranteeing real-time insights into stock levels.
This approach helps maintain optimal inventory levels. At the same time, you get to seize every sales opportunity thrown your way.
Improve your customer experience
Sales are the most essential factor that drives customer growth. But the only way to maximize sales is by satisfying your customers’ needs.
A reliable POS system will help your small business speed up payment transactions. It also lets you send invoices by email or printing them using a receipt printer.
Customers can also pay by cash, debit, or credit card, depending on the functionalities. This makes payments more efficient and streamlined. You can also incentivize them to visit your shop more often. By sending targeted promotions to build customer loyalty and patronage.
Time and cost savings
Manual administrative tasks and record-keeping can take up a lot of time and resources. This is especially true for small business owners and staff.
With POS systems, your small business can reduce operating costs. Intuit Market Research’s study revealed that an independent retailer with $300 000 worth of revenue can cut costs by roughly 10%. This saves $30 000 annually just by having a POS system.
POS systems automate tasks like financial reporting, inventory management, and sales recording. This decreases the risk of errors and allows you to save funds and allocate resources more efficiently.
You can access your data faster
Fragmented data makes it challenging for small businesses to get a complete view of their operations. Customer records, sales data, and inventory information may be scattered across various systems. When this happens, obtaining a comprehensive picture of the business can be difficult.
POS systems are omni-channel systems, which means that they provide a centralized hub for all your store’s data. Whatever you’re looking for, data is accessible, ensuring you always have the most up-to-date information within your reach.
Data-driven decisions & increased business revenues
Businesses may need easy data access to identify opportunities and understand customer preferences. Most times, this leads to intuition-based decisions that can be detrimental to the business.
POS systems for small business can offer comprehensive data and analytics about your store’s transactions and sales. Allowing you, as a small business owner, to make strategic choices and offers to customer needs. This also helps you recognize areas for improvement which can engineer business growth.
At the end of the day, a well-designed and well-implemented POS system can be a game-changer for small businesses in the Philippines. By leveraging the power of technology, your business can stay competitive in an increasingly digital world.
POS systems are more than just convenient. It can help businesses streamline operations and keep a close eye on sales and inventory. These systems offer real-time insights that can lead to better decision-making, ultimately empowering your small business for growth and success.
If you are looking for a mobile POS app for your business, you can download Peddlr for free!
What is Peddlr?
Peddlr is a POS mobile application for all business owners – sari-sari stores, milk tea stands, coffee shops, Shopee and Lazada seller and more. It’s free to download, free to use, and works even without an internet connection. With Peddlr, you can easily manage and track your business performance and inventory.
Here are some of the useful features that you can access through Peddlr app:
- FREE Point-of-sale system (POS) or a mobile cashier system
- FREE Credit Reminder – send SMS to your customers for free to collect credit/debts easily
- FREE Inventory Manager/Tracker – take control of your product inventory
- Loading and Bills Payment Services – enjoy rebates and cashback