Yes, a point-of-sale (POS) system is used to conduct transactions when customers are ready to make purchases, but it is so much more than a cash register. Using the reporting feature of your POS can be a valuable tool that helps you make important business decisions. Inventory turns, days-out-of-stock, items per transaction and employee sales are just a few of the essential metrics to utilize in order to run and grow your business.
Analyzing your POS data can help to increase your inventory turns, eliminate out-of-stocks and minimize markdowns. Other POS metrics can also provide insight into how your sales staff is doing in terms of ancillary sales. Ingraining the analysis of your POS data in your day-to-day process will drive your revenue and increase your profits.
If you are not already using POS data to analyze sales and influence buying decisions, it can be difficult to know
where to start. Let’s take a look at some of the more common and very useful reports that can be generated from your system.
Items Sold Report – This report will provide information to see if any of your sales have excessive or negative margins. Pairing that with key performance indicators (KPIs) helps identify any anomalies which can be indicators of an incorrect cost or selling price for an item.
Negative Quantity on Hand Report – The report usually indicates improper receiving processes. Incorrect quantities greatly affect the amount of confidence that you can have in your inventory reports. It is an indication that you have an inventory process problem and should not be ignored. This easily accessed report will allow
you to start seeing the true impact of an incorrect receiving process. Only after correcting the quantity discrepancies will you be able to identify your true inventory investment.
Days Out of Stock Report – When items customers are looking for are out of stock you lose revenue. If your
POS system is able to generate an out of stock report, you will be able to identify items that may need to have their minimum and maximum levels adjusted. Certain products in this industry will always be tough to obtain, but staying on top of those items makes it much more likely that they will be on your shelves when your customers want them. And everyday items should never go out of stock.
Items per Transaction Report – Firearms are an important part of your business, but accessories are
where the money is made. Some POS systems will provide metrics that can identify items per transaction, letting you know if you are truly realizing the full potential of each sale. Items per transaction information can also help
you to determine how to incentivize your employees’ sales performance or identify training opportunities. Analyzing these transactions to see what was sold with a given firearm could lead to opportunities for bundling items and increasing the revenue earned on each firearm sale.
Now is the time to start using the data that your POS system provides in order to inform your decisions and grow your business. Contact your POS provider if you have any questions concerning the capability of your system, and start including these metrics in your daily reporting in order to reap the benefits of higher inventory turns, less out-of-stocks, fewer discounts and, most importantly, higher profit margins.