Experts have long pegged the average return from a computerized POS system at five times the annual investment, reflected in higher profits—for example, a $20,000 hike in profits would be garnered by a store with sales of $200,000 per year and a $4,000 annual in investment in computerization.  But where do these increased profits come from? Here are a few key areas:

1. Increased employee honesty. “Sweethearting”—a practice wherein employees give inventory or food to their friends at a reduced price or for free—decreases many-fold when staff knows management is monitoring the “goods” with a POS system. One restaurateur reported a double-digit increase in gross profits after implementing pcAmerica’s Restaurant Express software. The increase stemmed from a reduction in the amount of food and drink being “sweethearted” by the operator’s wait staff.

2. Reduced inventory shrinkage. Theft causes some, but not all, of stores’ inventory shrinkage. A good POS system, such as pcAmerica’s Cash Register Express, allows retailers to record incidents of breakage, misplaced items and goods given free to customers for legitimate reasons (for example, to replace defective merchandise). Neglecting to track these could induce additional shrinkage.

3. Improved inventory control. Knowing what is and isn’t selling—right down to the SKU level—leads to better buying decisions and, in turn, increased profits.

4. Increased transaction accuracy. Left to their own devices, many employees will just guess how much an item costs rather than take the time to check its price. With a POS system in place, merchandise is scanned at the checkout counter, and its price automatically comes up in the POS system.

5. Enhanced contact with customers. Computerized POS systems make it easy to communicate with existing customers by maintaining a database of email addresses and/or other contact information. These systems also allow retailers and restaurant operators to incorporate coupons into customer receipts; the receipts, in turn, cultivate repeat business.