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How Much Should You Spend on Computerization?
PricewaterhouseCooper estimates the average retailer spends 2 percent of revenues on computerization
every year.
This means that a store doing $200,000 a year in business will
spend $4,000 on computerization. A larger store doing $1,000,000 in business a year will
spend $20,000 on computerization.
The big question is, what kind of return will you see on your investment in computerization?
The average return is estimated at 5 times your investment in greater profit. That same store
that was doing $200,000 a year and business and started investing $4,000 a year in computerization
on average will see an increase of $20,000 in increased profit. This is not in increased sales
but increased profits. To figure out how much your store will on average increase profits just multiply
your total sales by 10 percent.
Will my profits really increase by ten percent?
Most likely, in fact most of our customers are amazed at the results. An owner of a local
restaurant claimed that after computerizing with cash register express, his gross went up by 50
percent. Where did this increase come from? Computerizing reduced the amount of free food and
drinks that his wait staff gives away for free. It let him take better control of his inventory.
Where else do increased profits come from?
Decrease theft:
When employees know you are monitoring the inventory, items are less likely to disappear.
Reduce Inventory Shrinkage:
Most stores have inventory shrinkage for reasons other then theft. It can be from broken or
misplaced items or items that are given free to customer, this maybe good for business but often
doesn't get recorded and could lead to additional shrinkage.
Better inventory control:
When you are keeping a better eye on your inventory so will everyone else. Knowing what you are
low on or what is selling well will let you make more educated decisions on what's right for
your business. A good pos software can make this simple to do.
Email and Mailing address:
The best customers you have are people who have already shopped with you. Keeping in touch with
them is a great way to get them to come back. Read more about
emailing current customers.
Add coupons onto your receipt:
Letting returning customers know about the valuable savings your store offers can be a great
way to encourage returning clients. This can be done very easily with Cash Register Express.
Quicker more Accurate Checkout:
Dont worry about employees or even you getting the price wrong on an item. When computerizing with
a pos software the correct item price will be rung up at the register.
A good pos software goes a long way.
Return to the POS library.
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Contact Us for the Best Deals Anywhere: 1-866-468-5767 |
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