I agree, the starting point for a POS system is quite pricey for most small businesses. It’s not to say they aren’t worthwhile once you reach a certain level of sales, as I think later on it is a natural add-on to a business. But until you reach those levels of sales where they are justifiable, I think small business owners can generally find better uses for their P70,000 that will add more value for their customers.

Thanks, as always, for dropping by!

May thanks for the feedback.

P70k for a basic system sounds a little rich for what I am trying to do. I may be able to justify investing in an extra PC but considering that the rest is software…

My quest for all things open-source continues. I’ll let you know if I find anything.

Thanks again.

cheers,
Dennis

Thanks for dropping by again! I am not aware of any open-source POS systems, but that doesn’t mean they don’t exist. Perhaps someone else with knowledge can jump in.

If your operation has grown big enough to make use of a POS system, then I do know there are many commercial groups that can put together a specific package for your business. We’ve had 4 companies provide us with quotes in the past year or so. Two of the quotes came from outfits in Davao, so you should be able to get into contact with someone locally. How expensive the system is depends on how big or complex the work is, and whether you want multiple stations or not. If my memory serves me correct, the prices ranged from P70,000 for the basic system and requirements and went up from there.

I hope this is helpful.

Cheers!

An excellent checklist of dos and don’ts for keeping pilferage at a minimum. Great feedback from your readers as well.

We started our bar/restaurant with an ad-hoc business plan (one of those paper napkin deals over one too many drinks)and zero experience. So we can attest to a few scenarios that you and your readers mention above. We’ve learned our lessons the hard way and have paid dearly

Over the years, we’ve implemented most of the systems mentioned as gaping holes were discovered – often too late. . . but still better than never.

I would be interested to know if there is such a thing as an open- source restaurant POS system. I am a big fan of automation in terms of reports, metrics and tracking. This manual way of doing stuff is just way too painful (even just to watch). But an even bigger fan of “free”.

Hoping all is well everyone.

cheers,

Dennis

Thanks as always for sharing your angle on topics like these. It’s great that you commented on the retail angle. I only looked at the issue from the F&B side of things, but you’re very correct in that it is a problem in other industries as well.

I don’t have experience in big-box retail, so I was really shocked at how you gave examples of entire trucks and pallets either being missed or purposely miscounted. That’s a huge problem, and the losses could potentially be enormous. It goes to show how important it is to be on the lookout for ‘shrinkage’ in just about every size of business or organization.

Cheers!

That horrible word “shrinkage”. Many ways, and I know your article is about the Food & Beverage industry mostly..but customer theft is one of the biggest shrinkage here in Palm Beach County Florida, employee theft is probably second..as far as retail goes. Receiving clerks are very important..to have a trusted employee receive an order.
Now I know this isn’t always a problem wit small business owners..because I am guessing they will check in the items most of the time.
But with some of the big box companies I have worked for, we have trailers just dropped off, and the invoices confirmed with out checking it. Also trailers unloaded by the pieces..some trailers with 2000 to 3000 pieces..so it is not counted..just confirmed automatically.
But usually a good dept. manager will catch it, a pallet missing here, a pallet went to this store instead of my store..things like that.
Great article..please take care.

Danny

I don’t agree with much of your assessment, but hey, everyone is entitled to their own opinion. I’m sure there are people who will want to travel down the same path you are advocating. It’s a free country. What works for some may not work for others.

Please understand that for the past year I have been writing this column with a small business owner in mind, so that necessarily means I need to tailor my topics to businesses that operate within certain budget limitations. This is not a column geared towards establishments that serve XO Hennessy. This column is geared towards smaller bars and restaurants that face more down-to-earth issues. For example, brownouts are a major issue in many parts of the Philippines. Computers and brownouts don’t really jive. Most small bars and restaurants don’t have a generator either. So if there’s no budget for a generator, you can imagine just how big the budget is for a POS system. But I’m sure your comments are great for those wanting to open a much more sophisticated establishment.

Thanks again, John.

That’s a great point you’ve made! Bringing in outside bottles is a crafty ply — a way to steal business, but not necessarily inventory. Thanks for sharing another real-world example of what small business owners need to be on the lookout for.

Thanks for sharing!

The importance of having a computer in a business environment cannot be underestimated. The computer may be the businessman’ best friend, aside from his dog.