For many job shops and repair places, payment processing is a rather simple – if rudimentary – affair. After invoicing, the customer would pay for the goods through a check, credit card or cash. However, with new advances in payment technology and an exodus from traditional methods of payment spreading to non-retail businesses, there’s an increased demand for faster and simpler methods of paying for services from consumers and clients. In turn, companies want to receive their compensation much more rapidly than before to sustain a consistent and strong cash flow. That’s why point-of-sale systems are an ideal way to get payments quickly and effectively.
A more accurate transaction
The way POS systems function is that they’re essentially a computer, cash register and credit card terminal all in one. While the retail and hospitality sectors are the primary benefactors of these systems, as noted by AllBusiness, they have a lot of uses specific to repair shops. For one, they can create an accurate invoice a repair shop owner can deliver to the customer. When he or she comes up to pay, all a clerk needs to do is pull up the invoice either by putting in the number or scanning the printed barcode, then complete the transaction from there.
The rise of mobile POS systems are a particular boon for repair shops. While regular systems are large terminals that require significant investments, all a shop needs is a cash drawer, a couple mobile devices such as tablets or smartphones and the appropriate software. Many enterprise resource planning platforms, including Microsoft Dynamics NAV, make things even easier by incorporating POS software. This has the distinct benefit of connecting to parts inventory, labor timekeeping and related material.
When connecting the POS to the ERP, a business can create a more accurate invoice. It can take into account the cost of the parts a shop bought to fix some equipment, the amount of time the technician took to complete the task from assessment to testing and any extraneous factors such as customer requests, all automatically. Instead of having to guess the cost of the service, a shop can clearly tell the customer what they owe. Then, it’s a simple matter of paying with cash or credit. Moreover, recent technological advances make it possible for shops to allow their patrons to pay with their own smartphones, utilizing mobile wallets to complete the transaction. That can make it easier for both customers and businesses to hand off the money for a necessary service.
A room full of data
The other major benefit of POS systems, especially when linked to ERP platforms like Dynamics NAV, is they record and store all the transactions onto a local or cloud-based hard drive. Keeping receipts becomes less of an issue, which helps with accounting. Moreover, the data from these sales presents a clear picture of the common and uncommon services a repair shop can provide, according to Entrepreneur magazine.
The data can also offer insights as to the overall pricing of particular services based on the amount of labor involved and their popularity. For example, in an auto repair shop, if transmission repairs are common amongst customers, it can adjust the price of service to ensure the maximum profitability. An engine overhaul, on the other hand, may happen less often and require more technicians, so increasing the cost accordingly will ensure there is little loss for the effort.
In addition, the transaction data can open up a clearer picture as to what’s happening at the shop. If there’s lag in between transactions, for example, it may present opportunities for shop employees to perform other productive tasks to keep operations running smoothly and maintain a steady cash flow.
Repair shops interested in implementing a point-of-sale system should book a demo of Microsoft Dynamics NAV today.