What are POS and POP? This two terms pertain to a very simple way of keeping track of customer transactions in any retail or service business. The main purpose for this system is to record every single transaction that takes place so that the owner can make good managerial decisions based on actual transactions rather than on rumors, “guesses” or what-have-you. Here’s a closer look at what is POS and POP.
A Point of sale (POS) system involves a machine that allows customers to swipe their debit or credit card to make their purchase. The machine then calculates the appropriate charge and deducts it from the customer’s total bill. In most cases, the system will track each transaction and give the business owner real-time data about every single sale. POS can be used to keep track of all types of sales and all types of products sold in any retail or service location.
A Point of purchase system also has a feature known as product branding. This is where the company logo or symbol is embedded into the product. This allows a customer to identify with the product and recognize it immediately. Once the customer uses the product, the system automatically credits the seller with the correct amount. This not only helps increase sales but also allows the seller to better advertise the products.
An example of this would be candy. Many people might walk into a business and buy a box of chocolate candies. If this business sells other products such as diapers, toys or cleaners, chances are they would go to a different store. But if the business sells only chocolate candies, they will buy a box from the candy store. By using this type of POS system, all sales are recorded and can be tracked down based on each transaction that was made.
A Point of sale system allows a business to sell more than one product. If a business only sells confections, they might want to expand their offerings. In order to do this they need to get a POS system in place that allows them to add different items to their lineup. By using this type of POS system, any additional items added to the line can be tracked through the computer system.
So the next question that one may ask is, what are pos and pop? A POS system not only helps increase profitability, but also allows a business to grow without much effort. It tracks all transactions and helps a business to decide what products they should offer. They can use this information to find new markets and increase their profits.