Importance of billing software for retail shops:
Importance of billing software for retail shops
Retail industry is a huge industry which sells the goods to the end users directly through small shops, supermarkets and malls. This industry has direct contact with end user in order to sale their goods. In other words, retail industry makes transaction between business owner and customer for their daily usage goods. These transactions may be small quantity but client base is huge. Profit of every transaction is also very less compare to whole sale profits. Maximum profit for the transaction is 1 to 3 percent of the MRP.
Thus, tracking of each and every product sale determines the profit or loss of the business. For an example, if we sell a product worth of 100 rupees, business owner will get 1 rupee as profit. But if cashier forget to include an item to make bill, business owner will lose 100 rupees. Hence, tracking each and every transaction is very important in retail industry. In this article we are going to understand about retail industry and importance of billing software for retail shops.
There are three active players in the market for delivering a product to the end users. These three players fix the price of a product and hold the retail market to grow or crash. Below are these.
Manufacturer is the first player who determines the product quality and base price along with their price. In this first step, they will use raw material and manufacture their finished product. According to their raw material, labour cost and operational cost they will finalize a price to next level. Sometimes it will directly to retail shops but most of the times it will goes to wholesaler and then it will go to retailer. In addition, there is an addition cost of the product is Tax. Each and every manufacturer should pay Tax for manufacturing their product. These are the factors to finalise a product price to the wholesalers.
Wholesaler acts as middleman between manufacturer and retailer. This entity will simply purchase goods from manufacturer and sells directly to retail shops such as supermarkets and malls. While moving goods from manufacturer to retailer they will adjust the price of a product in order to wholesaler to make profit to run the business. In addition, there is sales tax involved in product price. As per government, sale tax will be varied according to the industry.
Now it is called as GST in modern world. Depends upon the business GST percentage will vary. To track the wholesale process, a wholesaler or distributor (called as) can use retail ERP software in their business. Retail software solutions has huge amount of features to track the daily operations of distributors. Wholesaler can get 3 to 5 percent as profit in their sales. These GST details and profits will be tracked by best retail software in India.
Retailer is actively interacting with end users and wholesalers or manufacturers. In the supply chain of retail, product can be purchased directly to the manufacturers and wholesalers. This can be defined by capability of product manufacturers. Because, some manufacturers can supply the product directly to the retail outlets. Retailer or retail outlets can sell thousands of products in single outlets. In order to maintain the stocks and cash flow, business owner should have best online retail software. This will take care of inventory, profit and purchase management. Below are the outlets can use pos retail software.
- Retail shops
- Footwear shop
- Sportswear shop
- Stationary shop
- Cosmetic Store
- Electronics store
How retail sales work?
As we discussed previous paragraphs, retail is process of selling goods to end user for their daily usages. Here we are going to analyze how retail sales is differs for various industry. Sales process is varied for different shops. For an example we can take jeweler retail shops. In jeweler shop user cannot take required jewels directly and make payment. Sales executive should show the jewels as per the customer requirements and sales person will generate invoice through e -commerce retail software and eventually user has to make payment. Unlike jewels shop we cannot purchase from medical store. First we need doctor’s prescription to buy a medicine from a medical store.
Online sales is also comes under retail industry since it was used by end users. Ecommerce is not only B2C market but also a B2B market. B2C is nothing but Business to Customer in other words retail sales. B2B is called as wholesale market. In terms of ecommerce, user has to search the product online and user has to make payment first and same will be delivered to the user through delivery persons. User can return the product to the seller if it is not satisfied up to the mark. Though it is online sales, seller has to give a bill to the user. Hence, automated retail software management needed for generating bills to the customer. Unlike shop retail software, ecommerce retail software in India has to maintain it online and bill has to be generated once user has purchased a product online.
Pricing Techniques in Retail
Most of the retail shops will use below formula to calculate the profit. Modern retail software solutions India will calculate selling price automatically based on below formula.
Retail Price = Manufacturer Cost + Profit
Using above retail price manipulation, top retail software’s will calculate the final price automatically based on purchase price. If a product entered in purchase bill cashier has to enter batch number of product in order to calculate final price for sales. To accomplish this, business owners should enter profit percentage in product master. Based on batch number of the product, final selling price will be calculated at the time of sales. So, retail shops should contact top retail software vendors to install retail billing software. If the business owner couldn’t find best retail billing software, they can contact retail software consultant to find the top 10 retail Software Company in India.
As the profit in retail industry is very less, each and every sale should be recorded and monitored by management people. But it is always difficult to monitor all sales it happened in a day. In order to monitor the every sale, business people can purchase a retail billing software where every sale will be recorded and same will be monitored later. Now-a-days retail software price is also reduced because of competition in software industry.
Monitor the sales! Monitor the Profit!