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The importance of POS and product placement

If you are investigating point of sale (POS) solutions for your own knowledge, or business, and wanting to understand more about the POS industry, then look no further – we’re going to break it down for you.

Point of sale solutions are about as diverse as the businesses they serve.  This stands to reason, since businesses vary in services, products, management, styles, customer base and location – as well as many other factors come to that.

Systems in point of sale include both software and hardware – coming up with the right balance for a certain business model is no assuming matter.  Point of sale systems make marking down prices and recording the markdowns easy. Instead of going through a mountain of receipts at the end of the day, the point of sale system calculates the markdowns automatically as sales occur.

Depending on the type of business, the hardware requirements will vary. The POS terminal includes a computer tower and monitor, a display for the customer to read, a card reader (only if the business takes debit and/or credit cards), some type of keyboard system, scanner, receipt printer, and a cash drawer. There may be other elements added to the system based on the type of company and the complexity of the point of sale system the company has set up.

Those in the POS industry should know all about this, and so there is naturally an effort to create avenues for helping businesses make decisions and find the support they need.

POS can control what stock has been paid for the most and is a great way to manage stock and understand shopper’s activity. It has a lot to do with product placement and overall merchandising of the products on the shop floor. So, let’s touch base on this…

Why is Retail placement so important?

Pitching to retailers why your products are worthy to be in their store is a very daunting experience. However, getting your product in front of those retailers is just the first step. Even if the retailers initially agree and feel your product would be worthy in their store, you will then have to negotiate to determine where exactly your product will be placed.

You may be thinking, why does this matter? Surely if my product has made it into retail – that’s all that matters right? Wrong. Product placement could in fact make or break the success, and here is why…

Destination of items

Sometimes, do you feel that the product you want is right at the back of the store placed on the back wall? Annoying right? Well, this is their clever way of product placement. Why may you ask. It sends the shopper on a journey. A journey where nowadays we can be easily distracted into temptation buying. If the said shopper is heading to the back of the store, there is more likely that person would buy more than what they originally came in for. Either on their way in or out – it has a lot to answer for! This leads us into impulse buying…

Impulse Buying

One of the most successful destinations for product placement is the lead up to the till. Retailers are now including more designated areas in the queueing area with both free standing units (FSDUs). These items are probably going to capture your attention the most. Why you may think? Let’s break it down… When you’re walking round the shop, you’re not really stood still – unless you are reading something or genuinely stuck for choice on what to buy. However, at the till, you are stood there waiting to be served – Retailers believe that gives the shopper that vital time to digest what is around you and be more likely to make an impulse purchase. You may think you’re not fooled by this – but we’ve all been victims of this.


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  • Posted by Emma Thorpe


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