Pool and spa professionals considering new point-of-sale (POS) software for their businesses are often unsure whether the company’s information should be maintained on an in-house server or in the cloud. Before deciding, you should ask yourself a few questions:
- Does the cost of your current software system exceed the price of purchasing new software?
- Are you dissatisfied with your current solution?
- What is the cost of owning an in-house server vs. cloud hosting?
If the answer to any of these questions is yes, it’s time to define the current true cost of your systems. A cloud-based POS system may be a better option available to maximize your profits and ensure your business stays ahead of the competition.
The Cost of Doing Nothing
Assessing the actual cost of your current business software system is the best way to determine if it’s time to switch to new software. Start by asking “What is the cost of doing nothing? What does it cost my business to operate with manual systems or inefficient software?” Most pool and spa businesses generate more than 80% of their revenue in less than six months of a year. In this trade, time is money. No one should spend valuable time on paperwork or manual/duplicate software entries. With several software options and price points on the market, it’s important to consider opportunity costs.
Opportunity Costs
When employees are writing tickets by hand at the counter, you may not immediately assess a significant cost to the stationery used. In reality, it takes more labor hours to write tickets by hand rather than with a computerized system with a barcode scanner and integrated credit card reader. Since employees are paid by the hour, you should question the opportunity cost of writing invoices or tracking inventory manually. Rather than spending 30 minutes per hour with manual systems, staff members could spend this time helping customers, selling more products, and building customer loyalty. Instead of paying employees to perform manual tasks, companies should pay them to generate revenue. Time-consuming tasks, especially during the busy summer season, invariably lead to lost sales opportunities. Also, manual processes can make it difficult to react quickly to market opportunities. Whether these prospects come from a slow-moving inventory or the marketplace (a competitor that goes out of business or an algae outbreak), having easily accessible, up-to-the-minute information is key to capitalizing on these opportunities. For example, the most current inventory data allows you to react quickly to market changes or set up a sale for slow-moving items. Pool and spa professionals often use Excel spreadsheets and enter data by hand, but this can be time consuming and cause extra complications. Plus, performing repetitive tasks and applying formulas can make unintentional errors commonplace. It’s easy to imagine how a single transposed number can wreak havoc on a spreadsheet, causing hours of extra work. That’s valuable time your business can’t afford to waste during the peak summer season. The information in a spreadsheet may also be outdated, making it difficult to make smart business decisions like reducing inventory or locating a part on a service truck to sell to a customer.
Ensuring A Quick Return on Investment
To ensure a speedy return on investment, you should learn everything about your business software to get full use of its features and benefits. Before researching new solutions, you should consider what you currently have and what a better system for you might look like. Today, there are many programs that can manage all business processes from sale to purchasing, so don’t be afraid to dream big when thinking about possible features. Remember the goal is to improve efficiency and accuracy while saving expenses in the long run. Evaluate options by asking other pool and spa businesses about their software providers. Trade shows, distributor open houses, and buying group meetings are good opportunities to investigate solutions preferred in your industry. Keep an eye out for companies that offer live training to help set up and run the software. Once you’ve identified a few options and learned more about what’s possible, make a list of must-have features to ensure the new software solution can accommodate your needs. There are also differing costs depending on whether you host the system on your own server or you choose a cloud-based POS system. Don’t forget to ask about the cost of training and support services to install and run the software, as well as its maintenance costs. Options that collect data in a system and provide accessibility anywhere, anytime are ideal. When considering software that offers this, don’t be intimidated by price – these systems often pay for themselves quickly through saved labor hours and higher revenue. Make a list of areas where your employees could generate more revenue if they had 20 extra hours a week to follow up on sales leads, make more service calls, or attend to customers in the store. If you choose a system that can help you capture these missed opportunities, you can begin immediately saving money. Many software solutions offer built-in features that will immediately generate revenue. RB’s Related Items feature automatically prompts sales associates to ask customers if they’d like to buy items that supplement their purchase. For example, a ladder mat with every ladder, an additional scoop to measure the diatomaceous earth they’re purchasing, hose clamps with filter hoses, etc. Imagine the impact if, for six months a year, the staff upsold items with a $5 profit to 15 customers a day. You could increase your profit by more than $13K. Some providers also offer route optimization features that allow service companies to lower fuel usage and reduce maintenance costs. Business owners have also found that optimizing their service routes enables them to perform more jobs in a day. For employees, a new software solution can eliminate printing, stuffing, and stamping accounts receivable invoices. With a new program, invoices could be emailed in bulk and credit cards can be kept on file for batch processing. A simple equation can help determine the break-even point for purchasing new business software. Overall, streamlining processes and procedures can also save time and money, allowing you to quickly recoup the initial investment and improve operations at the same time.
In-House Server vs. Cloud-Based POS System
Selecting the right server solution is important. The choice of whether to host your business operations in-house or in the cloud depends on your in-house technology resources and business goals. Both options may sound simple, but there are three important things to consider before deciding which you prefer:
Expense
In-house servers require a significant upfront investment in hardware and IT services for installation and implementation. A dedicated server is a physical computer that is purchased and installed at a particular location for the company’s use. Think of it as a house: you own it, you don’t share it with anyone, and you are responsible for its maintenance and security. Similar to a house, the initial cost of a physical server is higher, but once purchased it belongs to you. The server can then be expanded, modified, and managed to match the needs of the business. The downside is that you are also responsible for the server’s maintenance and security. In addition, accessing data from outside your network must be done through remote software. On the other hand, a cloud solution doesn’t require any upfront or on-site hardware expenses. However, it does require business owners to pay an ongoing monthly fee to host their data. A cloud server is a shared virtual network environment that is managed by a hosting provider. It can be compared to living in an apartment complex: you live in a shared building with other residents (companies), but you don’t have the keys to anyone else’s unit (data). Your landlord, the hosting provider, is under contract to lease the space that houses your data, maintaining and securing it. There are many advantages to a cloud-based POS system, including:
- Accessibility: data can be accessed from anywhere through a smart device.
- Scalability: as your business grows, the cloud software allows you to easily upgrade your package to gain new features. Cloud software packages are designed to make it easy to expand your service and product offerings.
- Reliability: if a power outage, weather damage, or other adverse event happens to your business, your data will be safe and backed up.
- Simplicity: you are not responsible for updates, maintenance, or security.
- Cost-Effectiveness: initial costs are less than purchasing an in-house server.
The downside is that you have restricted control over your data. The server must be shared with others, so you don’t have complete control over the security of your data.
Control
An in-house server provides physical control to access your data and manage backups. Also, there is no third party with access to your company information. The cloud hosts your services and controls access to your data. In some cases, this causes problems, especially when a business chooses to discontinue their services. On the upside, a cloud solution offers unlimited storage without the need to upgrade hardware.
Access
A cloud server requires a constant and stable internet connection for uninterrupted usage. If the internet is down, data cannot be accessed. The internet is usually not required for an in-house server. You should also consider processing power. With a virtual server, processing power is shared among all the residents of that server. If a company needs more on a particular day, the available resources are diminished for others. One option to offset this sharing system is to pay an additional cost for priority on processing power resources.
RB Offers A Cloud-Based POS System or Software for Your In-House Server
You could generate more revenue, increase productivity, and enhance profitability by streamlining daily operations. Ask yourself:
- Would the business save money if I had a software solution that automatically optimizes service routes?
- Could the software make it easier to track inventory on service vehicles?
If you know you’re leaving money on the table because you don’t have the right software system, consider an in-house or cloud-based POS system from RB designed to streamline operations to save you time and money. With 2022 projected to be another busy year, now is the time to decide whether you should move your pool and spa business to the cloud. Regardless of what you choose, RB is there to help you make the transition smoothly and easily. Schedule a demo with us today.
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