Point taken: four ways to integrate an effective point-of-sale system into your business

Pool & Spa News, July 23, 2004 by Chris Callanan

Regardless of their size or sophistication, pool and spa retailers can't afford to stay in business today and not be computerized. This rings especially true at the cash register. A good point-of-sale system has the potential to make a positive impact on almost every aspect of your business.

POS systems tackle inventory issues, provide up-to-date pricing information and retain customer histories. A strong POS program tracks the items in your inventory, letting you know what you have, how much you've sold, who you sold them to, who you bought them from and for how much.

In the 1990s, our store purchased a basic POS system. However, at that time, we made a few mistakes when selecting it. We thought we didn't need the more expensive option, and then found that the one we chose crashed frequently. The company we purchased it from couldn't fix the problems, and we were left with a system that didn't work.

When seeking that program's replacement, we tried a different game plan. The following four steps helped us make the selection and installation process easier, and will help you too:

1 Assess your needs.

Before selecting a new program, we talked to a variety of retailers to get their input. We also partnered with our chemical manufacturer, who was researching the same topic. I invited myself onto its screening committee and went to its headquarters to view presentations from various vendors.

Through our research, we found we weren't keeping up to date on fluctuating prices. We would buy items in the same quantities as in previous months, but didn't take into account that the prices had increased. These unexpected costs can add up. Keeping that in mind, the POS system we selected has a feature that shows the prices you paid previously and the item's average price, so you know immediately if there has been an increase.

We also determined that we needed a program that gave us the flexibility to add features over time. We didn't want a program that couldn't grow with us.

We then had to evaluate our current technology to make sure our computer equipment was compatible with the new system. Because POS systems are "live," the data resides on a server and is accessed by computer workstations. You may need new computer hardware if you're not currently operating a network with a dependable server. While not absolutely necessary, you may also want to invest in bar-code scanners and keyboards that read credit cards.

To organize the requirements for our future POS program, we created a running list of what we wanted on a white board in our main office. When we found a system that would address what we needed, we could easily check off the applicable criteria.

2 Allot ample time for installation.

Setting up a POS system from scratch is a time-consuming process. Plan on several weeks.

The majority of our time was spent inputting information about the products we sell into the program's database. We divided the inventory into broad categories such as chemicals, equipment, spas and the like. We then took each category and further divided it into subcategories to end up with profiles for each item. Example: "Equipment/filter" or "Parts/spa."

We then imported the item names, pricing, vendor numbers, cost and selling prices. To make it easier, we generate the initial files in Excel and import them back into the inventory-control system.

3 Ask for outside assistance.

When you begin the process, it's well worth the expense to bring in professionals to assist you in planning for and implementing the system. Even if you feel confident in your abilities, remember that these folks have done it before, can ensure that you're successful the first time, and can prevent you from making some costly and frustrating mistakes.

Our consultants worked for our POS system's vendor. We spent one week with them in their offices going over the system's setup and receiving initial training. Afterward, we'd call them as questions arose.

We still call them occasionally as our needs change. For instance, we recently had a consultant come for an on-site assessment and update. She set up in one day what would have taken us a week or more to figure out. We paid for a day's worth of her time, plus airfare and meals.

If she had needed to stay longer, of if we were located in a less urban area, we also would have been responsible for her hotel expenses.

4 Get employees up to speed.

There's an associated learning curve involved when you bring in new technology. Most POS systems are designed to be easy to use, so new hires typically can ring up sales almost immediately. However, more advanced functions such as creating purchase orders for vendors take additional time to learn.

The largest amount of training is needed to master the back-office functions of controlling inventory, monitoring purchasing and receiving, and integrating information into the bookkeeping system. Fortunately, only a few employees need to be skilled in all those tasks, so you can focus your training on a smaller group of people, not the entire staff.