Why are Cash Registers Machines Still Relevant Today?
The global retail and consumer goods industry is highly competitive. Low initial investment for entry into the market, rising consumerism, and government subsidies are some key factors for increasing participation of new companies in the consumer goods and services market. Product quality, price difference, distribution channels, and word of mouth marketing leads to retail competition between companies in the consumer goods and services industry. Also, companies in the consumer goods and services industry need to interpret cultural mindsets and customer purchasing behavior regionally to be successful in retail markets.
What Exactly is a Cash Register Machine?
The official definition of the term “cash register machine” is “a business machine that usually has a money drawer, indicates the amount of each sale, and records the amount of money received.” A cash register logs transactions that occur in your store, creating a record of the money coming in and going out. It can also calculate and add taxes, generate receipts, and offer basic sales tracking. Many major grocery stores and department stores use cash registers.
The cash register machine was first invented back in 1879 by whiskey, wine and cigar merchant James Ritty as a preventative measure towards employee theft. And while we’re willing to bet employee theft was a lot more rampant back then, it’s still a concern for retailers. In fact, employee theft is the second-most leading cause of shrinkage for retailers, according to data by the National Retail Federation.
Cash registers machines have come a long way since their early iterations. Now, we have electronic cash registers that you commonly see in restaurants. While a basic cash register is set up to handle cash transactions, newer ones have more robust options.
Generally speaking, cash register machines are only a few hundred dollars in cost, but if you want additional functions like credit card readers, barcode scanners or scales, then you’ll need to invest in additional hardware.
The one item in a retail store a business owner cannot do without is the cash management system. Whether it's the traditional, electronic cash register or an elaborate computerized point of sale (POS) system, every store needs a machine to process sales.
When the doors are open and the lights are on, the cash register machine becomes more than a safe place to store money. It has the ability to save money, quickly process a customer's transaction and accurately keep records. One reason for the high initial expense involved with a cash register or point of sale system is that a business can expect to get many years of service from the first machine they buy. The life expectancy of a cash register is between 10-15 years, with upgrades around 5-7 years.
How Do You Decide on Buying Which Cash Register Machine?
For a new business, the choice of a cash register or POS system may simply depend on the budget of the retailer. Don't pass the responsibility of selecting the cash register to employees or a consultant. Do your homework. Before selecting a cash register or POS system, understand your business needs, the cash management options and POS hardware available and make your selection based on an educated decision.
Cash register machine lets you ring up sales and is equipped with a secure drawer for deposits and bills. Some cash registers can be customized based on your tax requirements, and others can also provide basic sales reports. This makes it a cheaper and viable option of small and medium sized businesses.
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