Despite the features on offer, it’s vital you don’t forget the basic metrics that form the very foundation of your business. 29% of small business failures occur because founders run out of money, highlighting the need to get to grips with your business’ cash flow as soon as possible.
Epos Now systems give you the tools you need to track cost price in real-time. This affords you full control over your accounts, with the ability to highlight potential issues before they can impact profit margins.
Maintain a clear view of all outlay
Purchase orders mean tracking cost price isn’t limited to the stock that’s sitting in-house. The ability to view the total cost of items you have on order ensures you maintain clear view of all outlay. Our cloud-based EPOS software makes this data available at any time, from anywhere in the world. If you go on holiday or take a few days out of the office, profit margins and associated KPIs can still be accessed in real-time from your device.
It’s also possible to combine cost price with stock tracking, giving you an accurate picture of how much money you have tied up in existing stock. The first-in, first-out system further means that cost price will automatically adjust once the old batch is sold.
Promote profitable stock
Detailed performance reports allow you to hone in on the products you sell most of. You can then make sure popular items with the highest profit margins stand front and centre of your ongoing marketing efforts.
Similarly, you may choose to invest more in promoting high-margin products that customers don’t seem to be as engaged with. Putting your most profitable items in the spotlight is a great way to boost your bottom line without adjusting the stock you carry.
Optimise your pricing strategy
Monitoring how well each item is selling can also be hugely valuable when setting out your pricing strategy. For instance, you may notice that your best-selling product has a relatively low profit margin. Compare prices with your competitors and consider increasing the product’s price tag to get the most return from your best-selling items.
It’s also worth looking at those products with high profit margins that aren’t selling well. Reducing the cost a little will lead to a slightly lower margin, but may increase your chances of clearing otherwise dead stock. If you discount specific items, your total margin percentage will update automatically.
View margins by staff member and time period
Maintaining an overview of your profit margins is important, but the ability to dissect this data further will allow for informed decisions that boost your bottom line. Detailed performance reports allow you to analyse cash margins on products sold over a specific day, week, month or by a set custom time frame. From there, you can see at which points your business is the most profitable and adjust rotas accordingly.
There’s also the ability to break reports down by staff member. This means you can incentivise employees to focus on selling particular items, especially if you offer rewards to individuals that generate the most profit.
Boost sales by location
Using Epos Now’s Corporate module, it’s possible to view detailed performance reports for each location your business operates in. From there, you can compare and contrast sales figures and profit margins across different stores and venues.
If a product sells particularly well in one area, you may consider transporting more stock to that location in order to free up space elsewhere. It’s also worth looking at ways to boost sales in your least profitable location, either by amending your prices or investing more into your marketing strategy.
Improve accounting accuracy
Accuracy is key when it comes to managing your finances, and tracking cost price gives you the data you need to manage your accounts with ease. You’ll have the ability to calculate taxable profits and measure exactly how much money your business is making.
Epos Now systems come equipped with tools to automate parts of account management, while the potential to integrate with third party apps such as Xero and Sage further streamlines the process.
Maintaining a clear view of your business’ cash flow and profitability is crucial to its success. Get in touch to discover more about the benefits of tracking cost price using your EPOS system.