Using QuickBooks POS, you can easily customize your product pricing and offer sales and discounts on selected merchandise.
One of the most important tasks for any storeowner is determining effective pricing models for your goods. All too often, storeowners become lax about product pricing and fail to implement pricing policies based on supply and demand economics. This situation can be detrimental to cash flow and could affect your store’s overall profitability.
Make sure you’re not leaving money on the table. Come up with a flexible pricing policy and evaluate your policy often to see if it is optimal for your particular business. As you modify or update your store’s pricing policy, you should consider: · Consumer demand for your products and the price customers are willing to pay for each item· The implications of deflation in the retail market· Your competitive position when compared to prices found at other businesses that sell the same or similar goods and merchandise· The suggested retail price of each item you sell, as provided by your suppliers· The specific characteristics of your goods, such as shelf life (if your goods are perishable), seasonality, and current trends and styles. If your store uses a POS system, you can take an aggressive approach to pricing. Not only can you assign specific prices to each item, but also you can assign different price levels for employees, sales promotions, friends, family or any other group you choose. For instance, with QuickBooks POS, you can assign discount percentages by customer. Whenever that customer makes a purchase, the assigned discount is automatically applied.
You can also use QuickBooks POS to track markdowns. Use the pricing information stored in your POS to determine when you need to implement sales, promotions or discounts. You may find that you need to take markdowns to make room for other merchandise that can be sold faster. Or you may want to mark down items that don’t sell after a specified amount of time. In fact, some retailers donate excess or hard-to-sell items to charity. Then they can deduct part of their value from their federal taxes. But to know when this strategy makes sense, you have to closely monitor sales of your merchandise.
Keep in mind that even a 1 percent improvement in price could yield big gains in your operating profit. Don’t let your approach to pricing be random and haphazard. Use effective markup techniques to establish selling prices, and use QuickBooks POS system to monitor your price metrics. Doing so could help you raise your return on investment (ROI) on inventory, improve your short-term cash flow, and potentially maximize profits. Plus, you can sleep easier at night knowing that incremental sales dollars are not slipping through your fingers every time you ring up a customer.