10 mistakes retailer make while choosing Retail management software
10 mistakes retailer make while choosing Retail management software
Let us begin with an example. You have probably seen retail management software running at your neighborhood store and planned to install the same. They simply overwhelmed by barcode, computerized billing and collection statement at day-end. Let us move a step further and find out how you can narrow down your requirements:
a) How many transaction you make per day?
b) What is the average bill value?
c) Does it support voluminous data?
d) How fast is the reporting?
e) Does it support multiple modes of payment?
f) Does it support multiple users simultaneously?
Does it cater to a specific retail need (like size, color and design for garments, batch number and mfg, expiry dates for food items and so on)?
2. They look for a cheaper solution
We all have heard a saying… “Pay penny and you’ll get peanuts”. We agree, there are ready softwares available which are cheap, but they have limited competency. Retail management software is the nervous-system of your retail business. This is not the time for experimentation. Making one such mistake could cost you somewhere between $200 to $2,000
3. They do not verify vendor reliability
When you invest in point of sale software, you're buying a relationship, not just a product. In fact, the "quality" of the software company is usually just as important as the product. Why is the software company so important?
Well... After you purchase the software, you will rely on the software company to supply updates, training, technical support, and possibly hardware. Most often they also forget to ask for hidden costs like training and support charges, Updation
charges, annual maintenance charges (AMC) and data conversion cost which results in arising disputes.
4. They do not research for the related products
“It’s better late than sorry”. Most retailers don’t give enough time in exploring available solutions in the market. If we talk in terms of priority, retailers rank computerization 1st from the last. They are too busy setting up space, exchanging ideas with interior designer, negotiating with furniture and fixture suppliers and follow-up with vendors. They actually do not get enough time to research. Finally, when it’s show time they ask a friend which software he is using, possible search website, get a price quote, look for basic functioning and get started.
5. They buy a standard accounting software
We know that a financial accounting system is the base to any business model of any nature. It’s always better to have something than nothing. Gradually you keep looking for features in the same system or you try to mould your needs to suit the accounting software. Finally, you indulge yourself in complex day-to-day activity and your focus lost from business expansion.
There are 100’s of software available and it’s very easy to choose the wrong one. If you have followed this guide, you must have understood one thing, always look for software that is tailored to suite your business need. Every retailer has different needs. A garments retailer’s needs are different from a grocery retailer. Similarly, a gift shops’ requirements are different from a mobile retail store.
6. They buy hardware first
We can't tell you how many times we'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 we hear that, we think to ourselves, "This guy could have saved himself a lot of time and money if he selected his POS software first!"
Why?
Firstly, any retail management software will have specific hardware and operating platform requirements. In addition, a few retail management software works with only certain types of printers, scanners, cash drawers and card readers.
Secondly, when you buy hardware first, you restrict your choices of retail management software. Either you have spend money again to buy compatible hardware or compromise on software.You can avoid frustration and save money if you choose the retail management software first. Then you can ask the software company about their recommended hardware and operating systems.
7. They do not look for future prospects
At times, people forget to look for available future prospects. You’re investing in business to grow, to expand. Does the retail management software you are buying is scalable? Can it cater to multiple retail outlets across different geographical boundaries? As discussed earlier, retail management software and hardware are business investment. Typical life span of such systems is 5 years. You must take into consideration “Future Vision”. It is easily upgradeable because change of systems can be expensive.
8. They designate the job to subordinates
Too many retailers give the responsibility of choosing the retail management software to an employee or a computer consultant that is not familiar with your industry. Most computer consultants have good intentions but they tend to give poor advice when it comes to choosing POS software. This is a big mistake. They are great sources for information about computers, hardware and networking but they do not understand the finer details of retail management software. If you get poor advice and select the wrong type of system, your business will lose money.
Top management and other key personnel must be involved in the selection and implementation process. You should never rely solely on a consultant's recommendation or input. The person that evaluates the software must have in-depth knowledge about your business. Evaluating the retail management software is complicated. Not to mention it can make a huge difference in your businesses productivity. Retail management software is too important to pass the evaluation process to someone else. We see owners and managers make this mistake all
the time. Don't make the same one.
9. They get confused with Technology push
Almost all the salesmen are trained on and will try to give you technology push over practical functioning. This is the only are where most retailers have less or no knowledge. “Our software runs on 32-bit WINDOWS environment and is programmed on .NET; we use SQL or Oracle as backend and integrated tools like Discoverer or OLAP helps you to automate your Retail. The technology is open and scalable to support multiple concurrent users.” Sounds familiar… Don’t worry; this is the only way to differentiate their product and an only mode to get over you in “across-the-table” discussion. “If you can’t convince a person, confuse him”.
Let us distinguish fact from the story. Don’t bother about subjectivity of the product. Figure out objectivity. You’re running retail business with an object of making profits and expand rapidly. Ask yourself following questions:
a) Are you looking for features or functionality?
b) Whether or not retail management software works for your nature of retail?
c) What is track record of Software Company?
d) Will it be able to help me in accomplishing my vision and mission?
And most importantly
e) Is it easy to use?
We are sure that from now onwards you will not be confused with Technology push.
10. They buy independent software
One more thing we have found retailers doing is they buy separate softwares for inventory and financial accounting. The main reason surveyed was they had started with accounting software and later upon realizing the importance of barcoding they have opted for inventory package or vice versa. Finally they end up duplicating their jobs and when required they need to gather details from various sources to make decisions.
As a matter of fact, there are retail management softwares available in the market which is integrated. Hence, while you are making a transaction, software automatically posts it to respective sections. For example, while you make your purchases, software automatically transfers it to accounts payable. Thus, if you want to check your vendor wise stock or vendor wise due, you can view them both from within one system. Another advantage of integrated system is they are modular.
Along with stock keeping and book-keeping it also provides tools such as Customer Relationship Management (CRM) which is most often known as loyalty program, Supply Chain Management (SCM), Merchandise and procurement solution. That means, you can start rapidly and expand easily.
10 mistakes retailer make while choosing Retail management software - To learn more about this author, visit Nilesh Shah's Website.
Like this article? Share it with your friends
1. Their requirements are not clear
Let us begin with an example. You have probably seen retail management software running at your neighborhood store and planned to install the same. They simply overwhelmed by barcode, computerized billing and collection statement at day-end. Let us move a step further and find out how you can narrow down your requirements:
a) How many transaction you make per day?
b) What is the average bill value?
c) Does it support voluminous data?
d) How fast is the reporting?
e) Does it support multiple modes of payment?
f) Does it support multiple users simultaneously?
Does it cater to a specific retail need (like size, color and design for garments, batch number and mfg, expiry dates for food items and so on)?
2. They look for a cheaper solution
We all have heard a saying… “Pay penny and you’ll get peanuts”. We agree, there are ready softwares available which are cheap, but they have limited competency. Retail management software is the nervous-system of your retail business. This is not the time for experimentation. Making one such mistake could cost you somewhere between $200 to $2,000
3. They do not verify vendor reliability
When you invest in point of sale software, you're buying a relationship, not just a product. In fact, the "quality" of the software company is usually just as important as the product. Why is the software company so important?
Well... After you purchase the software, you will rely on the software company to supply updates, training, technical support, and possibly hardware. Most often they also forget to ask for hidden costs like training and support charges, Updation
charges, annual maintenance charges (AMC) and data conversion cost which results in arising disputes.
4. They do not research for the related products
“It’s better late than sorry”. Most retailers don’t give enough time in exploring available solutions in the market. If we talk in terms of priority, retailers rank computerization 1st from the last. They are too busy setting up space, exchanging ideas with interior designer, negotiating with furniture and fixture suppliers and follow-up with vendors. They actually do not get enough time to research. Finally, when it’s show time they ask a friend which software he is using, possible search website, get a price quote, look for basic functioning and get started.
5. They buy a standard accounting software
We know that a financial accounting system is the base to any business model of any nature. It’s always better to have something than nothing. Gradually you keep looking for features in the same system or you try to mould your needs to suit the accounting software. Finally, you indulge yourself in complex day-to-day activity and your focus lost from business expansion.
There are 100’s of software available and it’s very easy to choose the wrong one. If you have followed this guide, you must have understood one thing, always look for software that is tailored to suite your business need. Every retailer has different needs. A garments retailer’s needs are different from a grocery retailer. Similarly, a gift shops’ requirements are different from a mobile retail store.
6. They buy hardware first
We can't tell you how many times we'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 we hear that, we think to ourselves, "This guy could have saved himself a lot of time and money if he selected his POS software first!"
Why?
Firstly, any retail management software will have specific hardware and operating platform requirements. In addition, a few retail management software works with only certain types of printers, scanners, cash drawers and card readers.
Secondly, when you buy hardware first, you restrict your choices of retail management software. Either you have spend money again to buy compatible hardware or compromise on software.You can avoid frustration and save money if you choose the retail management software first. Then you can ask the software company about their recommended hardware and operating systems.
7. They do not look for future prospects
At times, people forget to look for available future prospects. You’re investing in business to grow, to expand. Does the retail management software you are buying is scalable? Can it cater to multiple retail outlets across different geographical boundaries? As discussed earlier, retail management software and hardware are business investment. Typical life span of such systems is 5 years. You must take into consideration “Future Vision”. It is easily upgradeable because change of systems can be expensive.
8. They designate the job to subordinates
Too many retailers give the responsibility of choosing the retail management software to an employee or a computer consultant that is not familiar with your industry. Most computer consultants have good intentions but they tend to give poor advice when it comes to choosing POS software. This is a big mistake. They are great sources for information about computers, hardware and networking but they do not understand the finer details of retail management software. If you get poor advice and select the wrong type of system, your business will lose money.
Top management and other key personnel must be involved in the selection and implementation process. You should never rely solely on a consultant's recommendation or input. The person that evaluates the software must have in-depth knowledge about your business. Evaluating the retail management software is complicated. Not to mention it can make a huge difference in your businesses productivity. Retail management software is too important to pass the evaluation process to someone else. We see owners and managers make this mistake all
the time. Don't make the same one.
9. They get confused with Technology push
Almost all the salesmen are trained on and will try to give you technology push over practical functioning. This is the only are where most retailers have less or no knowledge. “Our software runs on 32-bit WINDOWS environment and is programmed on .NET; we use SQL or Oracle as backend and integrated tools like Discoverer or OLAP helps you to automate your Retail. The technology is open and scalable to support multiple concurrent users.” Sounds familiar… Don’t worry; this is the only way to differentiate their product and an only mode to get over you in “across-the-table” discussion. “If you can’t convince a person, confuse him”.
Let us distinguish fact from the story. Don’t bother about subjectivity of the product. Figure out objectivity. You’re running retail business with an object of making profits and expand rapidly. Ask yourself following questions:
a) Are you looking for features or functionality?
b) Whether or not retail management software works for your nature of retail?
c) What is track record of Software Company?
d) Will it be able to help me in accomplishing my vision and mission?
And most importantly
e) Is it easy to use?
We are sure that from now onwards you will not be confused with Technology push.
10. They buy independent software
One more thing we have found retailers doing is they buy separate softwares for inventory and financial accounting. The main reason surveyed was they had started with accounting software and later upon realizing the importance of barcoding they have opted for inventory package or vice versa. Finally they end up duplicating their jobs and when required they need to gather details from various sources to make decisions.
As a matter of fact, there are retail management softwares available in the market which is integrated. Hence, while you are making a transaction, software automatically posts it to respective sections. For example, while you make your purchases, software automatically transfers it to accounts payable. Thus, if you want to check your vendor wise stock or vendor wise due, you can view them both from within one system. Another advantage of integrated system is they are modular.
Along with stock keeping and book-keeping it also provides tools such as Customer Relationship Management (CRM) which is most often known as loyalty program, Supply Chain Management (SCM), Merchandise and procurement solution. That means, you can start rapidly and expand easily.
10 mistakes retailer make while choosing Retail management software - To learn more about this author, visit Nilesh Shah's Website.
Like this article? Share it with your friends
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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