You Can’t Trust It
Check Your POS Mark-Ups & Margins!
It took a while, but most framers have realized that a point of sale software system is a good business investment. They are fantastic at producing valuable reports, automating ordering, and reducing pricing mistakes. Being able to rely on them is a great time-saving boost to productivity. Most of the systems are fairly easy to set up and automatic cost and new material downloads keep you up to date. Sounds great right? Well yes- maybe…
If you are trusting these systems to maintain your margins without checking them regularly, you might be in for a big shock. The most important thing in your business is making a profit-without that you are working for nothing.
POS systems all work a little differently and you have a choice on how to use them to set your markups. Setting them can be a little confusing, but manually checking them is the key. a good practice is to manually cost out a minimum of 12 projects per month. Do this for each set of the pricing process and then post the retails your system set for each of those areas. Hopefully you wont be surprised- unfortunately if you havent done this in a while you may be.
Discounts from vendors can also cause a problem in some of these systems. That’s because downloads take the full cost from the vendor and if you are paying less, you system could well be pricing things higher than you intended.
If you are not sure how to analyze your pricing, find someone to help you learn how– it could save your business.