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**Selecting Point of Sale Software**

***Will you make these mistakes?***

***The following article appears courtesy of Jeff Haefner.  Jeff is the author of “The Point of Sale Software Buyers Guide – How to Choose POS Software and Avoid Problems”. For more information on his guide or to contact him, visit his website at****http://www.possoftwareguide.com/**.*

If you’re like most retailers, you’re worried about making a mistake when you choose point of sale (POS) software.  I don’t blame you.  Buying POS software is a big investment.  Not to mention, POS software can have a huge impact on the efficiency and success of your retail business.

What’s more, there are around 1,000 different systems to choose from and they’re all different.  The choices can be overwhelming and confusing.

The truth is choosing POS software is very difficult.  And too many retailers end up with the wrong system.  In fact, it’s common for retailers to go through two, three or even four different systems before they find one they’re happy with.  Those mistakes probably cost between $10,000 - $100,000.

Here are a few of the mistakes I see retailers making over and over again.

###### They Buy the Hardware First

I can’t tell you how many times I’ve heard a retailer say, “I just bought new 

computers, printers and I have everything ready to go.  Now I need to find POS software.”

As soon as I hear that, I think to myself, “This guy could have saved himself a lot of 

time and money if he selected his POS software first.”

Why?  First, your POS software will have hardware and operating system requirements.  Second, and more importantly, not all POS systems are the same.  The system you choose is very important, as it will have a huge impact on the efficiency of your business!  If you install your computer system first, you potentially limit your POS software choices.  The perfect fit for your “unique” operation might run on UNIX but you already bought a Windows 2003 server!  You may also find that the printers and scanners you just bought aren’t compatible.

You can avoid frustration and save money if you choose the POS system first.  Then you can ask the software company about its recommended hardware and operating systems.

###### They Ask the Wrong People

All too often retailers ask a computer consultant for suggestions about POS software.  Most computer consultants have good intentions but they tend to give poor advice when it comes to choosing POS software.  While computer consultants are great resources for information about computers, hardware, and networking, they do not usually understand the intricacies of POS software and retail management.  Nor do they realize that with about 1,000 different software programs, it is VERY easy to choose the wrong one for your business.

***They Don’t Place Enough Focus on the Character of the Software Company***

When you invest in point of sale software, you are buying a relationship, not just a product.  In fact, the “quality” of the software company is as important as the product.

Why is the software company so important?  After you purchase the software, you will rely on the software company to supply updates, technical support, training, and possibly hardware.  

Let me ask you a few questions to help you understand why the company is so important...

· What if the software company went out of business?

· What if they don’t give you software updates when you need them?

· What if it takes 2 days to get your technical questions answered?

· What if the software has a bug and they don’t fix it?

· What if they didn’t give you sufficient training?

The truth is, the level of service and the financial stability of the software company are very important.  It is critical to evaluate the software company; otherwise you could run into some frustrating and expensive problems.

#### They Overlook Important Features

Unless you are a POS expert, it’s difficult to sort through countless systems and figure out what you need.  What’s more, it is difficult to understand the “true” potential of your POS system.  As a result, many retailers get confused and they overlook important features that would save them a great deal of time and money.

Most people don’t realize that every POS is VERY different.  Some are designed for large ticket items like tractors.  And others are designed to work in fast moving retail environments like a grocery store.  As a result, it is common for retailers to end up with POS software that isn’t really designed for them.  The key is to properly analyze the needs of your business.  Only when you have done so can you create a list of features that are important to you.  That list will assist you in comparing systems, and ultimately, purchasing the right system for you.

This might seem overwhelming, but with a little guidance, you can find the right POS system.  You just need to know which mistakes to avoid, where to look and the right questions to ask.  

As you can see from the above article, employee associations are not so different than any other business in this regard.  In the past, we have considered identifying POS systems in an attempt to standardize employee association operations.  In our search, we have consulted with industry experts like Jeff Haefner as well as audit firms familiar with employee association operations and POS vendors.  Based on our research, we have concluded that standardization would prove prohibitively expensive for employee associations given the uniqueness of each operation and the local conditions specific to each.

The CR staff will continue to identify POS software that may be appropriate for employee associations.  We will also continue to provide best practices in the selection of POS systems.  In that regard, we encourage associations to tell us about success stories and lessons learned so that your colleagues in the field can take advantage of your experience.  You may contact the CR Operations Team at foodandfun@state.gov.  

*An Enjoyable Shopping Experience*

*by Christy Grimste, CR Operations Officer*

Obviously, the more enjoyable a customer’s shopping experience, the more likely he/she is to return.  Right?  The real question is, “What makes a customer’s experience enjoyable?”.  A number of factors may contribute to a positive shopping experience.  Let’s discuss a few.

Customers are faithful to a particular grocery store, for example, because of its floor plan – in other words, the layout of the merchandise is organized and logically placed for ease in shopping.  Consider the sample merchandise layout provided below.  [The sample can also be downloaded from the CR internet site (www.state.gov/m/a/c8225.htm).] 

Developing a floor plan can be tricky if your space is small or unusually configured.  Basically, merchandise should be arranged to flow naturally according to the type of goods.  In general, non-food items should not be located or grouped with food items.  For example, pet food should not be located in close proximity to cereal.  When possible, complimentary products should be grouped together.  Non-frozen pie shells can be merchandised with pudding mix.  Salsa should be co-located with tortilla chips.  These are just a couple of examples of appropriate “tie-in” merchandising techniques.  Not only will this technique be welcomed  by  your  customers, product tie-ins will also serve to boost sales as customers purchase items they may not have thought to purchase or might not have realized were in stock.

Customers also want a clean store.  Begin with good housekeeping practices.  Shelves should be clean and free of debris at all times.  Goods must be rotated according to date/code, leveled and fronted for the best appearance.  Floors should be swept daily or more often as needed.  Do not stack merchandise directly on the floor as it impedes the cleaning process and may attract pests.  Good housekeeping practices will also keep you in tune with how your inventory lines are selling.  

Your customers value a high standard of customer service.  In order instill this high standard; promote a positive, courteous and cheerful environment for the staff.  One of the most widely used marketing techniques in retail is to promote the idea that the customer is always right (even when they are wrong).  Keep in mind, it will be management’s responsibility to see that customers do not take advantage of this policy to the detriment of your staff.

What about “extras”?  Extras are anything management can do, no matter how small, to make customers happy and welcome.  For example, your customers may appreciate seasonal and other background music (at the right volume).  

Samples of products that you are promoting are a good way to bring in business.  You could set aside a particular day/time to let your customer’s know that samples will be provided.  Food samples have become very popular in the industry in recent years.  You may also find that your grocery vendor is willing to provide you with “not for resale” samples you can pass on to your customers.

Provide simple recipes that tie in various product lines.  You’ll find that these techniques will also boost sales.

Celebrate the holidays with your customers.  Given away noisemakers for New Year’s celebrations or small American flags for July fourth.  Plan ahead for the holidays important to your customers by ensuring enough lead time in placing orders for seasonal candies, baking items, decorations and other essentials.

These are just a few examples of the ways you can create “the enjoyable shopping experience” for your customers.  If you have others you would like to share, contact the CR Operations Team (foodandfun@state.gov/).  Your ideas could be featured in a future edition of *The**CRonicle*.      

***New Training Strategy***

As many of you may know, the Office of Commissary and Recreation Affairs  will not be conducting an employee association training conference this year.  Training conferences had been held every other year since 1988.  While we were sad to break with the long-standing tradition, we believe biennial conferences are no longer cost effective in meeting training needs given the high turnover rate of general managers.  We are currently looking at ways to target new managers in the most cost efficient manner.  At the time of publication of this newsletter, the CR staff was busy putting together final preparations for a training workshop in India.

The American Community Support Association (ACSA) located in New Delhi, India is hosting the 2003 regional training workshop.  Training will be provided to approximately 15 managers from the Near Eastern and South Asian regions.  We have targeted this area due to the significant number of new managers in the area.  Managers will receive two and a half days of training seminars in topics ranging from controlling food and beverage costs to budget preparation to food safety, to name a few.  As part of their training, managers will be taken on tours of the ACSA’s kitchen and its commissary sales floor to reinforce in-classroom training. 

We are very excited about this new training format.  Our hope is to conduct training workshops every year based on the new format.  We will announce those  training opportunities as they become available.

***The next issue of The CRonicle will be published in November 2003.***

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