In the time of the novel coronavirus outbreak, hairstylists, makeup artists, nail technicians, and salons in general are all in a really, really tough spot. Many state and city governments have mandated closures of these types of businesses. Some states that have ordered the closure of salon businesses include Minnesota, Ohio, Kentucky, and Nevada—and the list is sure to grow. Salons in some states are still open for the time being, but business has slowed to a trickle.
In this article, I’ll offer you some useful advice on how your salon can adapt and survive during this incredibly trying time.Â
Why The Beauty Industry Is Going To Be Hit Hard By Coronavirus
Given the current state of things with social distancing guidelines and mandatory closures of nonessential businesses, hair salons, makeup artists, barbershops, spas, and other similar businesses are all suffering. Salons, their employees, and independent contractors who rent space will all be affected.
Even if your business is still legally allowed to remain open, you might have to make the difficult decision to close temporarily due to the pandemic. Salon workers have a job that requires close physical contact with people, putting both the customer and the worker at risk. Worse still, many salon workers are contractors, who have to build their own business from the ground up and keep a book of clients—and many of these workers don’t have health insurance.
4 Things You Can Do Right Now To Protect Your Business
Here are some actionable steps you can take to limit the spread of coronavirus and protect clients and workers if your business is still open:
Relax Cancellation Policies
Obviously, many customers are going to be canceling right now, and for good reason. Although there’s no rule or law that says you need to waive cancelation fees or refund down payments right now, there’s a good chance that if you don’t, the customer will not return to your salon once the current crisis is over.
Revisit Sanitation & Hygiene
Make sure your business in compliance with the CDC’s sanitation and hygiene guidelines re: COVID-19 (see CDC: Interim Guidance for Businesses & Employers). If you operate a medical spa that employs doctors and/or nurses, you should also follow the CDC Guidelines For Healthcare Professionals.
Revisit Attendance Policies For Employees
Now is the time to encourage sick employees or workers who may have been exposed to the virus to call in sick—with or without a doctor’s note. This may require you to relax your current attendance policy. Specifically, here’s what the CDC is recommending right now:
Employees who have symptoms of acute respiratory illness are recommended to stay home and not come to work until they are free of fever (100.4Â° F [38.0Â° C] or greater using an oral thermometer), signs of a fever, and any other symptoms for at least 24 hours, without the use of fever-reducing or other symptom-altering medicines.
Communicate With Clients
Remind customers to not come in if theyâre sick or have been exposed to someone who might be carrying the virus. You should also communicate with your clients about whether or not your location is still open, if your hours of operation have changed, and information about your sanitation policy. You can use email and social media for these communications.
6 Things You Can Do To Keep Your Business Going In Hard Times
Here is a list of things you can do today to help keep your business afloat during this time of extreme uncertainty.
Analyze Cash Flow
Take a look at your bank account, your bills, and your income. How much money do you have, and how long will it last you? Can you survive a closure or reduced business? How long can you reasonably afford to close for? Interest rates are at rock bottom right now, so it could make sense to invest in a small business loan that will help you bridge the gap during this temporary lack of cash flow.
Add Gift Cards
Selling gift cards allows clients to buy services now and redeem them later. Some POS systems, including Square, Shopify, and Clover, allow you to sell digital gift cards, which makes things even easier during this time of social distancing. Depending on your setup, you may be able to sell gift cards on your website or on social media. Once you’re all set up, send a text or email to customers with a link to buy a digital gift card from you, perhaps at a discounted rate.
In addition to gift cards, an eCommerce website allows you to sell merchandise, such as beauty products, “home spa” kits, or anything else that relates to business. And again, you can use text or email marketing to advertise whatever it is you’re selling. If you don’t have an eCommerce-enabled website, you can look into options offered by your salon POS system or use a web builder such as Wix or Squarespace to set one up.
Look Into Business Interruption Insurance
If you have business interruption insurance, find out whether your insurance policy includes disruptions from communicable diseases. If you don’t have an insurance policy that would cover a closure related to COVID-19, find out if you can get one before it hits your area. It may be too late to get a policy to help you with COVID-related business losses, but it doesn’t hurt to check, or to protect your business for the next crisis.
Talk With Creditors
Stay in communication with your landlord, creditors, and vendors to whom you owe money or have contractual obligations. They may be willing to work with you and will appreciate that you’re making an effort rather than just dropping off. Some relief may be available to help you meet your obligations or pause some of your bills—for example, governments in some states and cities are prohibiting evictions and utility shut-offs.
Look Into Unemployment Benefits
Even if employees are not fully laid off and are on reduced hours, they might be able to claim for time off during the outbreak. Put together some resources to provide unemployment information for your employees. As a business owner, you should be able to file for unemployment if you were paid a normal salary that had unemployment taxes taken out. Self-employed individuals and independent contractors are not generally eligible to receive unemployment benefits, but it is possible that states may expand unemployment benefits to these types of workers as the epidemic progresses.
Coronavirus Resources For Small Business
Here are some additional resources for beauty/wellness professionals and small businesses in general:
What SBA Disaster Loans Are & How To Qualify For One
The Fed Has Cut Interest Rates To A 12-Year Low: Hereâs What It Could Mean For Your Business
Small Business Outbreak & Pandemic Guide: Coronavirus Edition
How To Implement A Gift Card Program For Small Business: What You Need To Know & How To Get Started
Social Distancing For Small Business: How You Can Adapt & Survive The Coronavirus
Coronavirus Payments Guide: Everything You Need To Know About Switching To Online & Phone Payments
If you need funds for your salon right now, I would head straight to the SBA’s disaster loan assistance hub, as the SBA has made disaster relief funds immediately available for businesses suffering economic injury due to COVID-19.
Being Proactive Is The Best Safeguard For Your Business
Now is the time to act. Even if your business is still doing okay, you need to get on top of this now and start making plans before the epidemic hits your area. If all you do today is send out emails to customers, you’re still taking action to keep your business going, even if your salon’s doors are temporarily closed.
For more advice, be sure to check out our complete collection of Coronavirus (COVID-19) Guides & Resources where you can find more helpful advice about coronavirus and small businesses. We’re adding to this information hub every day, so keep checking for more small business advice and updates.
The post Salon Survival Guide: Coronavirus Edition appeared first on Merchant Maverick.
The COVID-19 (or coronavirus) pandemic has changed the world we live in. This global emergency is all that anyone’s talking about, whether you flip on your TV or log onto social media. One thing that has been circulating throughout the news in recent days is the term “social distancing.” For consumers, social distancing may be an inconvenience that ultimately helps slow the spread of the virus. For business owners, on the other hand, social distancing has a much bigger impact. With states putting restrictions in place and the majority of consumers opting to self-isolate, many businesses are shuttering their doors. It may feel like too much for you and other small business owners to handle.
It is a scary time for everyone. And while we don’t know what the future holds, there are a few things you can do starting now so that your business can adapt to and survive the coronavirus. In this post, we’re going to take a look at social distancing. We’ll talk about what it means, how it may affect your business, and how you can adapt and grow closer to your customers during this challenging time.
What Is Social Distancing?
Social distancing is a strategy designed to help slow the spread of the coronavirus. On March 15, the Center for Disease Control (CDC) recommended that events or gatherings of 50 people or more be canceled for the next eight weeks to slow the spread of the virus. If you do go out in public, it’s important to stay at least six feet away from other people, as one of the ways that the virus is spread is through close contact.
It’s also recommended to limit going out in public unless necessary, such as when buying groceries or receiving medical care. Travel bans are being put in place by countries around the world, and unnecessary travel should be canceled or rescheduled.
What Does Social Distancing Mean For Small Businesses?
Many businesses are also taking steps to protect their employees and customers, either by law or simply by choice. In states like Illinois and Ohio, all bars and restaurant dining rooms have been required to close. Other states may follow suit, while some businesses are choosing to close their doors before it’s even required. This includes retail stores, gyms, daycares, movie theaters, hotels, and casinos. Others aren’t completely shutting down but are closing public spaces, such as restaurant dining rooms and hotel conference rooms.
Unfortunately, social distancing means that most small businesses will see a downturn in their business. Reduced operating hours, closures, and fear and uncertainty among the public all equal a reduction in customers. The good news, though, is that there are ways that you can better connect with customers and continue to bring in revenue — strategies that we’ll discuss a little later.
With all that’s going on in the world today, there’s no better time than right now to evaluate your business policies for now and the future. For starters, take a look at your staffing policies. It’s a good time to inform employees that anyone that is sick should stay home to protect themselves and others. Not only does this apply to the coronavirus, but also to other contagious illnesses such as the flu.
Next, reevaluate your cleaning and sanitation policies. It’s likely that you already have some in place, but are you doing enough? In addition to your typical cleaning and disinfecting routine, consider cleaning more frequently. Many businesses are changing their hours so that employees have extra time to clean and sanitize surfaces before opening again the next day. Taking the time to clean and sanitize your business helps protect you, your employees, and your customers from the potential spread of the coronavirus.
Another thing to take a closer look at is your payment policy. Will this remain the same, or will you only accept payment cards? If you’re now taking orders online or by phone, do you have a way to do that securely? If not, it’s time to explore your options to make payments safe and convenient for customers. Learn how to get started by checking out Coronavirus Payments Guide: Everything You Need To Know About Switching To Online & Phone Payments.
No matter what you choose to change within your business, there’s one thing that you must do: keep your customers in the loop. Send out emails, post signage (if your business is still open), or use social media to provide updates, such as new hours, online ordering options, and measures your business is taking to protect customers.
4 Ways You Can Adapt To Social Distancing & Keep Your Business Afloat
The coronavirus has already made its impact on the world, and there’s no predicting what will come next. Instead of sitting around and waiting, it’s time to take initiative and find new ways to serve your customers and keep the money flowing. You may have to get creative, but there are options that can help keep your business operating despite social distancing. And the best news? Many options don’t even require a huge financial investment!
Unsure of the next steps for your business? Consider adopting one (or more!) of these strategies:
Self-ordering kiosks & checkouts
Online ordering & carryout
Selling on social media
Let’s take a deeper dive into each of these strategies to help you determine which is best for your business.
Adding Self-Serve Kiosks & Checkouts
If your business is a retail shop or quick-service restaurant, consider adding self-serve kiosks and checkouts. Implementing this technology into your business allows your customers to scan products they’re buying, place orders from your menu, and even pay for their purchases all through a kiosk or checkout terminal.
How does this benefit your business? There is less interaction with other people, so this strategy can mitigate the spread of the coronavirus. If you’ve reduced your staff due to illness or expenses, self-serve kiosks and checkout terminals help ease the burden that falls on your remaining staff.
However, there are a few potential drawbacks to consider. First, not every business will be able to use this tech in their business. Retail stores and quick-service or fast-food restaurants would benefit the most from the addition of self-serve kiosks and checkouts. And while these conveniences can lighten your load, you’ll also need to remember that your equipment must be cleaned and sanitized thoroughly, and often.
Another drawback is the expense. Installing self-serve kiosks and terminals can get pretty expensive, and businesses that were struggling prior to the epidemic may want to look at more cost-effective options. However, it may be well worth the cost for a number of small businesses. Adding this technology to your business can help you better compete with your competitors — and in some cases, even give you a leg up. More businesses are moving to the latest point-of-sale (POS) systems and terminals, so now could be the time for your business to get set up.
If pricing still has you on the fence, know that there are options. Some POS providers provide financing, allowing you to make affordable payments over time. You can also write your equipment off come tax time.
If the concept of self-serve kiosks and checkouts is foreign to you, learn more about this technology and why it could be right for your business by checking out, A Basic Guide To Self-Service POS Systems.
Adding Online Ordering, Delivery, & Carryout
Many governments around the world are ordering the closure of restaurant dining rooms. Whether a closure is mandated in your area or you simply choose to close the dining room on your own, there are still ways to bring in revenue. Many restaurants are now offering online ordering, delivery, and carryout services.
If this sounds like a lot of work, in many cases, it’s hardly any work at all. In fact, you may already have everything you need to start serving your customers in new ways. Before you get started, determine what strategies will work best for your restaurant. For example, do you have an unused drive-thru window? Do you have servers and bussers that you could keep on staff to deliver orders or box up takeout options?
Now is a good time to get really creative, too. For instance, if you plan to shorten operating hours in the evenings, consider offering “take and bake” meals that customers can heat up at home for a quick and tasty dinner. Or you could take a load off of your fatigued customers by offering curbside pickup — they place an order, park their vehicles, and one of your staff members brings their order right to their car.
How do you get started in offering these new options to customers?Â It may be easier than you think. Here’s how to get started.
How To Accept Call-In Orders
Some customers may not have access to the internet or simply prefer to call in their orders. Call-in orders can be used for delivery, in-store pickup, or curbside carryout. There’s a good chance that your restaurant’s POS system already offers this feature. If you’re unsure of how to do this, contact your POS company to learn if this feature is available.
If your POS system doesn’t have this feature, it’s possible to do this manually. Have someone man the phones, take down orders and relay them to the kitchen, and ring up each customer.
How To Accept Online Orders
During the pandemic, many people will be at home placing restaurant orders online. The easiest way to offer online ordering is by seeing if your POS system integrates with third-party services such as GrubHub, Postmates, or DoorDash. Customers can easily place online orders for pickup or delivery, and you won’t have to add extra staff to handle your deliveries.
If you want to keep your employees busy, consider adding in-house delivery services. While this will require more work on your part, you can utilize current employees to take on this task. The benefits of this option are two-fold: you’re providing a needed service for customers while allowing your employees to continue to work and get a paycheck. Like the other strategies in this post, this is also one that you can maintain after restrictions have been lifted and life begins its return to normalcy.
If you’re in the restaurant industry, this time can be a challenge. Keep serving your customers and bringing in revenues by checking out our Coronavirus Survival Guide For Restaurants.
Expanding To eCommerce
If you are a retailer, you’re in luck. Even if your doors remain closed during the pandemic, you can still provide your products to customers that shop online. If you’re new to eCommerce, making the switch can seem long, difficult, and expensive. But you’d be surprised at how easy this is for may retailers.
This option will be easiest for retailers with limited inventory. If you’re a larger business with a lot of inventory, setting up an online store isn’t impossible but may take extra time and effort.
While you can certainly set your web store online manually, first look into the capabilities of your POS system. Many systems already integrate with popular web store options and even offer automated features like importing inventory.
New to eCommerce? Learn how to get started in just five easy steps.
Selling On Social Media
If you’re unable to easily set up a web store or you have a large online following, you can put social media to work for your business by selling on selling on Facebook or using Instagram Shoppable Posts. The advantages of selling on social media are that it’s quick, easy, and inexpensive. This is a great option for any retailer that doesn’t want to set up a full eCommerce site but still wants to reach customers and bring in revenue.
The Best Ways To Stay Close To Your Customers (While Practicing Social Distancing)
Social distancing may mean that your business sees fewer customers. Even when the pandemic is over, it may take some time for business to return to normal. This doesn’t mean that you have to drop off the radar of your customers. Use these strategies to continue to connect with customers while practicing social distancing.
Use Social Media
Many people are stuck at home right now checking their social media. Why don’t you let your posts be among those that they see? Use your social media pages to keep customers updated on what’s happening with your business. Post updated store hours, closures, and any other changes to your regular operating schedule. You can also use social media to announce new services (such as your new online store or delivery services), post current and upcoming promotions, and keep your customers excited for what you have to offer during and after the pandemic.
Use Email Lists
Not everyone uses social media, so make sure to keep all customers updated that have signed up for your email list. If you don’t already have an email list set up, make sure to add a sign-up option on your website and social media pages. Just as you did on your social media pages, you can update customers on changes within your organization. You can also use your email lists to offer exclusive promos to subscribers.
Offer Gift Cards
Now is a fantastic time to offer gift cards that can be purchased now and used later. This is a great way for customers to plan future purchases or even provide a quick and simple gift for their loved ones. E-gift cards are easily purchased online and sent right to the customer — no plastic cards or in-store pickup required. Many POS systems, payment processors, and online stores integrate with gift cards, so check with your provider to learn more. You can also read our post How To Implement A Gift Card Program For Small Business to learn how to get started.
Promote A Good Cause
While you want to remain top-of-mind for your customers, don’t just think about the hardships of your own business. Instead, spend time encouraging your community to give back in any way possible. Donations to food banks or local organizations and volunteering are just a few options that can bring the community together during these difficult times. You may even consider launching a fundraiser or directing customers to other fundraisers, events, and news in your area.
It’s a scary time for all of us out here, so try to remain positive and keep your customers in good spirits. There is enough negativity throughout the news and social media that can raise fears and anxiety. Don’t pretend that nothing is happening in the world around us, but instead, put out positive and encouraging messages. There’s no better time than right now to connect with your community and offer your support for your followers and customers.
Adapt Your Business To Social Distancing To Weather The Storm
People are dealing with a lot of fear and uncertainty worldwide, and business owners are no exception. Your health, the health of those around you, and maintaining your livelihood can easily overwhelm you. But just know that there are options available that will help keep your business afloat. While you may have to dedicate your time and may even need to consider a small investment, these efforts can boost sales and help your business come out on the other side. Good luck!
For more resources on surviving the economic impacts of the novel coronavirus, check out our COVID-19 hub for small businesses.
The post Social Distancing For Small Business: How You Can Adapt & Survive The Coronavirus appeared first on Merchant Maverick.
It’s no secret that owning and operating a restaurant can be one of the riskier small business ventures you can undertake. Trendy “It” spots in seemingly ideal locations open and shutter rapidly, and even a seemingly successful establishment with a consistent customer base can find itself struggling to stay above water. It goes without saying that operating with peak efficiency is of the utmost importance. According to a 2019 survey by point of sale company Toast, 52% of restaurant professionals cited operating and food costs as their No. 1 challenges. This shouldn’t come as much of a surprise; the costs of ingredients can be volatile, and if not properly tracked and monitored, may literally be the difference between success and failure.
Many restaurants operate with margins as low as 2-3%, meaning that if any area of your business is leaking cash, it could drop you into the red. And food costs are often a likely culprit. There are a number of reasons why you may be spending too much on ingredients while not getting back an appropriate return. You may be offering the wrong sized portions, certain menu items may be priced wrong, or you may be buying too much of an ingredient and letting a percentage of it go to waste. This is why it’s vitally important to be able to accurately calculate your food costs.
In this article, we’ll let you know what percentage of food cost you should be targeting and how to make sure you’re hitting that goal.
What’s Included In The Food Cost Formula?
Now let’s get to the good stuff. How exactly do we calculate food costs? It’s actually a fairly simple equation — with a catch. The first thing you’ll want to do is figure out your actual food cost.
Easy enough right? So, as an example, let’s say that you value your inventory at the beginning of the week at $10,000 (because we love the Base 10 system). You then make $3,000 in purchases. At the end of the week, your inventory is valued at $12,000. Using the calculation, we see that the first number would be $1,000. If you also had $3,000 in food sales, then you would divide $1,000 by $3,000 for an actual food cost of 33.3%. Make sense so far?
$10,000(starting inventory)+ $3000(purchases) – $12,000(ending inventory) / $3,000(sales)= 0.333(an actual food cost of 33.3%)
Industry standards vary slightly, but generally, an actual food cost percentage of roughly 30% should be your target. If you’re coming within a couple of percentage points on either side, you’re probably doing something right. Now, if you’re math-averse, unfortunately, that’s not the only calculation you should be making. There’s also the ideal food cost.Â In a perfect world, this percentage would match up directly with your actual food cost total, but nothing is ever that simple. The difference between these numbers is what helps you detect where you may be losing profits, either through waste or potential theft.
Ideal Food Cost Formula
Ideal Food Cost = Cost per menu item / Sales per menu item
To go off of the above example, if your total inventory cost each week for the ingredients in a dish is $900 and your sales on that menu item add up to $3000, you are left with an ideal food cost of 30%.
$900(cost per menu item)/ $3,000(sales per menu item)= 0.30(an ideal food cost of 30%)
Exactly where you want to be, right? However, let’s look back at the actual food cost we calculated earlier. There’s a 3.3% discrepancy in your actual and ideal numbers. Now you can start trying to figure out the reason behind that gap. Keep in mind that, although the goal is for those numbers to be as close as possible, you’re likely never going to cut down on waste entirely.
Download Our Food Cost Calculator For Restaurants
Restaurant owners (and managers) are busy people! We know. Sometimes you just want a tool that will do the work for you, with minimal time or effort required. I mean, honestly! Who wants to spend hours totaling up inventory purchase orders just to see how much you’ve spent?
(Spoiler alert, if you’re doing this manually it’s time to invest in a better system.)
To that end, we’ve put together a handy food cost calculator for you. This downloadable file will help you calculate both your ideal and actual food costs and highlight the difference between the two.
Get Our Food Cost Calculator Google Sheet
Or Download The Excel File
Strategies To Manage Your Food Costs & Increase Your Profit Margins
In the above scenario, a difference of 3.3% between ideal food costs and actual food costs probably isn’t going to make or break you. However, if you find the gap to be higher than that, you should probably try to lock down the culprit as quickly as possible. Left unchecked, a food cost discrepancy could bleed tens of thousands of dollars from your bottom line over the course of a year.
Here are a few reasons why you may not be getting an optimal return on your food costs.
Menu Items Mispriced: Menu pricing can be tricky, and restaurant owners often make choices based on gut instincts. But even micro-adjustments, particularly to popular items, could make a significant difference in bettering your food cost percentage. You can also try to redesign your menu to increase profitable items’ visibility. Keep your customers in mind and stay on top of current food trends; if you have seasonal items on your menu, make pricing adjustments accordingly.
Overspending On Ingredients: It’s important to shop around to make sure that you’re getting the best value for the items you include in your dishes. Buying in bulk can be a cost-saver, but you can offset those savings if you’re purchasing too much and letting ingredients go to waste. Carb-heavy items like breads and pastas are usually cheaper, so implementing more of those menu options could increase your profits. If your ideal and actual percentages are off by a large margin, you may want to hold back on giving away items at tables (like bread or chips).
Dishes Portioned Incorrectly:Â One easy thing to check that may end up making a big difference is simply whether the dishes you’re serving are too large. If you see the same dish coming back half-eaten again and again, that may be a sign that you need to adjust your recipe. Make sure that all of your cooks are on the same page. Even one lone cook with a penchant for adding more sauce or dishing up a larger portion can affect the bottom line.
Not Utilizing Your POS:Â If you’re running a full-service restaurant, chance are good you have a strong point of sale system. If any of the above measures seem too daunting, a strong inventory management and reporting system can do the bulk of the heavy lifting. A POS with strong inventory can help you keep precise counts of ingredients and can tell you what items sell best and if there are things like seasonal trends that you can utilize to your advantage.
Find A POS System That Helps You Control Your Food Costs
That last bullet-point above is of particular interest to us because helping you find the perfect POS system for your business is kind of what we do. Most POS systems will have some form of inventory management, but they are not all created equal. If inventory management is going to be crucial for your restaurant, there are some areas where you’ll want to make sure your system excels.
First, if you have a large number of SKUs, having a system that can import and edit items in bulk is going to virtually be a necessity. Most good systems, but not all, will allow you to import via a CSV file and some will even let you import existing barcodes. Features like this in the back end that cut down on how much you’ll need to input manually will save you countless hours. Along those same lines, having a system that allows you to create and print your own purchase orders is a huge benefit. While this is a common feature, it can occasionally be a time-consuming process depending on the POS, so be sure to utilize a free trial or demo when you’re shopping around.
Raw ingredient tracking could be the feature in inventory management that will help you cut down on food costs the most. And again, while most restaurant POS systems worth their salt will have this feature, some are more robust than others. Make sure your system provides real-time alerts to let you know if stock is running low. You can also usually set levels to automatically place a new purchase order when an ingredient is nearly out. Other systems automatically track waste, which can save you time when trying to calculate your ideal food cost. It’s also nice if your inventory syncs with your reporting, giving you detailed numbers on how much of a certain ingredient is selling and how much profit individual dishes are turning. In short, your POS can (and should) do a lot of the heavy lifting for you when it comes to calculating your inventory to make sure you’re running at peak efficiency.
The Bottom Line: Managing Food Costs Is Key To Improving Your Profit Margins
If you’re running a restaurant, you’re already aware of how volatile the industry can be. When you’re working with narrow margins, you need to find ways to cut costs anywhere you can. And while food costs are one of a restaurant’s biggest expenses, the good news is that it’s possible to shave down those costs if you’re vigilant. Calculating your actual food cost and your ideal food cost may seem like a tedious and perhaps arduous process. However, a POS system with a robust and easy to use inventory management system can make things much easier. In the process you might find some key areas of waste or some simple fixes that could save you thousands of dollars in the long run.
Get Our Food Cost Calculator Google Sheet
Or Download The Excel File
The post How To Calculate Food Cost For Your Restaurant appeared first on Merchant Maverick.
The novel coronavirus global pandemic is quickly reshaping American life as we know it. As a small business owner, you’re no doubt concerned about how COVID-19 will affect your livelihood. Restaurant owners especially face challenges due to restrictions on gatherings of people, local quarantines and curfews, and just the general fearful atmosphere that has your most loyal patrons now fearful to leave their homes.
Nevertheless, people still have to eat.
While it’s hard to predict the future as things are changing so rapidly, it seems likely that many restaurants will remain open throughout this pandemic, if only in a limited capacity—i.e., for delivery and takeout. We’re here to help you weather out this storm so you can stay open, or at least stay in business, even if you must close your restaurant temporarily because of COVID-19.
Keep reading to learn how your restaurant business can adapt to new business conditions in the age of coronavirus, including resources on how you can save your business from closing and even continue serving customers during this crisis.
Whatâs Going To Happen To Restaurants As Coronavirus Spreads?
As more and more cities are affected and local governments declare emergencies, all businesses should be prepared for a downturn. This downturn will almost certainly be temporary, and it will be worse in certain regions than in others, as outbreaks are occurring in different regions at different times. However, it’s becoming pretty clear that no customer-facing business—retail, restaurant, health and beauty, service etc.—will be unaffected.
As a result of the worrying spread of COVID-19, many restaurants are temporarily shutting their doors, reducing their seating capacity, or restricting business to only take-out and delivery.
Will the government mandate a shutdown of all restaurants? Well, some state and city governments have already done this as of the time of writing this article, and more will likely follow suit. However, delivery and take-out are not included in those closure orders thus far, and some governors and mayors are only ordering restaurants to operate at half-capacity. Of course, it’s very possible that measures may become stricter in the coming days and weeks.
White House guidelines issued March 16 recommend against gatherings of only 10 or more people over the following 15 days, and that all restaurants close (dine-in service) in states with evidence of community transmission; however, at the time of writing, those announcements were just guidelines and not mandated orders.
Is Your Business Prepared For A Pandemic?
So, is your restaurant business ready to deal with the coronavirus pandemic? Have you actually ever thought about what to do if thereâs ever a large-scale crisis? It might seem like it’s too late, but you can still prepare for what changes might be ahead, including even future pandemics or national emergencies. While everyone’s hunkering down, the internet makes it possible to communicate with employees and customers, and even apply for and access emergency funds during this time of crisis.
5 Essential Things You Can Do To Prepare For A Community Health Crisis Or Other Disaster
As a restaurant owner, there are some basic things you can and should be doing from a business management/community health perspective. These actions apply not just to the current health crisis, but also to protecting your business from future crises.
Revisit Health & Safety Policies
This may seem kind of basic, but it’s nonetheless important. We’re talking handwashing techniques, proper sanitation, and when people should stay home from work. You can help protect your business, employees, and patrons by implementing some stricter health and safety policies, today.
To inform such policies, be sure to consult the official CDC guidelines for businesses regarding COVID-19 and all local ordinances and guidelines. You can also find some helpful information about maintaining worker health in the U.S. Chamber of Commerce Toolkit for Coronavirus.
Revisit Employee Attendance Policies
Do you have an overly strict attendance policy? You’ll probably need to relax this policy — at least for the time being — so that people donât feel tempted to go into work when sick. Make it easy for your employees to make the right choice.
Again, be sure to consult all local laws and ordinances. For example, the city of San Diego has ordered that the city’s businesses can no longer require a doctor’s note when an employee is sick, as they don’t want doctors to be burdened by paperwork instead of helping sick patients.
Analyze Your Cash Flow
Cash flow is super important, now more than ever. Take a look at where things are right now and what you anticipate your cash flow will be over the next few months—including worst-case scenarios. How much do you have on hand? How much do you need to keep the lights on? When are your next bills due? Are you eligible for a cash-flow loan if you need one? Check your POS reports for changes. Your revenue may be down, but by how much? Donât just rely on âimpressionsâ or visual scans.
Here’s a good resource you can use right now to analyze your business’s cashflow: How To Calculate & Analyze Business Cash Flow
Check Your Business Insurance Policy
Familiarize yourself with your business insurance policy. What does it cover? How much does it cover? Here are some resources we have on business insurance:
Business Insurance For Florida Small Businesses
Business Insurance For Startups: How Much It Costs And Why You Need It
How To Get Business Insurance In 4 Easy Steps
Do I Need Business Insurance?
Own A Business? Here Are 7 Types Of Business Insurance You May Need
Monitor News & Policy Changes
While it’s not necessarily helpful to obsessively check the news all day for developments (though it can be hard not to right now), it’s important as a business owner to stay on top of all local, state, and national health policy changes that could affect your business. Find a reliable source of news for health updates specific to your city, and make sure your device is set up to receive alerts so you get all the relevant updates.
Of course, you’ll need to make sure you’re adhering to all current policies so that you don’t get shut down. For example, you’ll need to adhere to social distancing policies from the CDC which recommend that customers be seated at least 6 feet apartÂ and that dine-in seating is reduced to 50 or less. Depending on your state or city, there may be additional guidelines you must follow.
5 Strategies To Keep Business Going In A Tough Time
Okay, so weâve covered basic emergency preparedness. Now, what can you do to keep your restaurant going during a time of crisis? Here are some ways restaurants can cut costs and/or keep money flowing in.
Implement Takeout & Delivery
Offering takeout and delivery is important when people do not want to dine-in or you’re unable to offer dine-in service due to the current emergency policy in your area. As mentioned, some governments are mandating that restaurant dining rooms close or operate at half-capacity. You can offer a takeout and delivery option via an online restaurant ordering system that works with your restaurant’s website, or you can offer delivery via a third-party delivery service.
While third-party delivery services typically take a big cut of the sale—as much as 30 percent—during the crisis, food delivery services like Uber Eats, GrubHub, and Seamless are currently suspending their commission fees to independent restaurants. These services are also instituting “no contact” food delivery policies in adherence with social distancing recommendations.
Sell Gift Cards
People in our communities cherish their local businesses and want to help them out. After all, you want the businesses you love to frequent to still be around after the current crisis ends. If your restaurant offers gift cards, people can buy a gift card now (providing the money you so desperately need at the moment) and redeem it later once your regular operations resume.
Here’s an excellent resource that can help you set up gift cards for your small business if you haven’t already: How To Implement A Gift Card Program For Small Business: What You Need To Know & How To Get Started
Adjust Your Menu & Hours
This is a time to trim the fat and focus on just the essentials. This is the time to update your menu and drop high-cost/low-profit items, and slow-moving items. Focus on what’s cheap, popular, and in-season. Further reading:Â 14 Ways To Create, Implement, & Maintain A Great Restaurant Menu
Many restaurants are adjusting their hours to save money and also to minimize risk. You might consider temporarily closing during your least-busy days or hours to save costs, or getting nixing your happy hour when people would be less likely to practice social distancing.
Communicate With Customers
Most businesses have an email list and/or a social media presence. Even if you’re not sure if you do, check your point of sale. POS systems like Square automatically collect customers’ email addresses and other contact info so you can reach out to them. Whether you are closing or staying open, be sure to contact your customers to let them know what precautions you are taking against coronavirus and any adjustments your business has made to your hours, sanitization policies, or anything else.
If your restaurant is closing temporarily, you may just want to reassure customers that you will reopen when it’s safe and perhaps encourage them to purchase a gift card in the meantime.
Advertise & Promote
If you’re still open, you need to let customers know, and entice them to buy food from you. For example, you can use social media, text marketing, and email to offer some specials for takeout. You may even want to use online advertising in the form of pay-per-click ads and (paid) social media ads on Facebook and Instagram. As far as what foods to offer for your promotions, you will especially want to focus on selling meals that are super cheap to make with high profit margins.
What To Do When A Temporary Slow-Down Becomes The Worst-Case Scenario
What are your options when things start going from âwe need to tighten our beltsâ to âhow long can we keep the lights on?”—or worse, when government orders force closure?
What measures are being taken now to help small businesses after the COVID-19 outbreak? Here are some steps governments are taking to help businesses affected by COVID-19:
The SBA has announced it will provide disaster relief loans up to $2 million for small businesses affected by COVID-19. Here is SBA’s news article about coronavirus SBA loans and its guidelines for businesses re: COVID-19.
The Fed has cut interest rates to zero to help businesses and consumers during coronavirus—This means your business could qualify for a very low-interest loan.
State and city governments have announced various measures to help small businesses during the crisis; for example, the city of San Jose, California voted to adopt a temporary 30-month moratorium on evictions for small businesses and residents of the city, which has been hard-hit by the virus.
The U.S. Chamber of Commerce is lobbying to cancel payroll taxes for April and May (this has not been made into law yet).
Some more things you can do:
Check Your Local Chamber Of Commerce to find out about coronavirus disaster relief programs for small businesses in your state and city, such as eviction moratoriums, payroll and sales tax relief programs, low-interest loans, etc.
Communicate With Your Creditors and also with your vendors, your landlord, etc. Everyone is hurting right now and they will likely be willing to work with you, especially if you can negotiate arrangements for when things pick up. Some credit card issuers are even offering special relief programs. It’s better to be proactive than to get behind and then ask for help.
Check Your Business Interruption Insurance PolicyÂ if you have one. Your policy must include communicable disease coverage for it to cover coronavirus-related losses.
Here is more coronavirus-related information and resources for restaurants compiled by the National Restaurant Association: Coronavirus Information & Resources.
Being Proactive Is The Best Way To Protect Your Business (& Your Customers)
Why is it so important for businesses to get ahead instead of just waiting this crisis out? Well, even if you have to close or drastically reduce your operations, you still have the ability to take actions that can lessen the impact of coronavirus on your restaurant. You can:
Promote your takeout and delivery services
Communicate with your customers
Sell gift cards
Apply for disaster-relief financing
Negotiate with your creditors
At the end of the day, we’re all in this together. Also, state and local governments are very motivated to reduce the impact of this crisis and small businesses, which are the backbone of the American economy. Seek out the resources for small business help because they do exist.
Read our Small Business Outbreak & Pandemic Guide: Coronavirus Edition for more actionable information for small businesses during the COVID-19 pandemic.
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Cloud technology is at once powerful and versatile. When applied to point of sale, the cloud enables business owners to not only sell, but also to optimize their sales using the data these systems effortlessly collect. In just a day’s worth of transactions, your POS has the potential to collect a wealth of information about your sales, your employees, your customers, and the trends that can make or break your business.
There’s a good chance you’re not taking full advantage of even your POS system’s basic data reporting capabilities. Or if you’re shopping around for a new cloud POS, you may be having a hard time sussing out the reporting features of each different POS app.
In this article, I’ll discuss how you can use POS reports to make better decisions concerning your business. Read on to learn how to harness the power of the cloud so you can sell smarter.
Why Your POS Data Is One Of Your Most Valuable Assets
The POS system is a central hub for most brick-and-mortar businesses. Using web-based technology, your POS gathers data about your sales, customers, employees, inventory, and more, and assembles all this information into digestible reports. The business owner or store manager can then access these reports online. POS reporting data can (and should) be used to make important decisions about things like staffing, which products to sell, and when to restock.
The importance of POS reporting becomes abundantly clear when you start shopping for a POS and you see that most systems charge extra for advanced POS reportingÂ capabilities.
With that said, you need to know how to interpret and apply your POS data in order for it to benefit your business.
Let’s dig a little deeper into how you can go about doing this.
How To Effectively Handle POS Data Analysis
POS systems organize raw data about your business into reports, which are typically pretty user-friendly. Still, you need to be organized and methodical about checking these reports in order to make them actionable.
Here are tips for checking your POS data:
Pull End-Of-Day Sales Report(s) Daily: In your daily sales reports, you can typically view things like your total sales, which items sold most, your busiest selling time that day, and other metrics for the day. The exact type of daily sales reports vary by POS, but your POS should have at least some kind of general daily sales or closeout report you can check to get a general overview of how the day went.
Pull “X” & “Z” ReportsDaily: The “Z” report shows a more detailed breakdown of your daily sales and is run at the end of each day; the “X” report shows that same data but can be run at any time of day to show a current snapshot of the day’s sales so far. These reports show detailed sales breakdowns by category, tender type, employee, as well as taxes, gratuities, gift card spends, voided items, and more. Importantly, the Z report will let you know how much cash should be in your register at the end of the day.
Pull Employee Reports Daily: See who worked that day and what they did. Checking daily will help you spot any discrepancies or suspicious patterns, and also make sure all employees have clocked out by EOD.
Check Payments Report Daily: You need to send your credit card transactions to your merchant services company daily in order to get paid. POS systems with integrated payment processing should automatically batch your transactions each day, and you should be able to view this information in some kind of daily payments report. It’s a good idea to check each day to ensure the batch was sent, and also check daily to make sure your bank deposits are matching your batch totals.
Check Other Reports Periodically & As Needed: POS software offers various other reports, including reports on order histories, stock counts, customer behavior, returns & exchanges, gift cards, discounts, comps, and more. While you don’t need to necessarily check all of your reports every day, it’s good to have this data at your disposal so you can dig deeper when you need to solve a problem—for example, if there is a discrepancy in your daily “Z” report, you might check your comps and discounts reports to see who might have issued a discount and why. Another example is checking your batch history for a certain day if a customer complains they were double-charged.
Pull Your ReportsWeekly, Monthly, & Annually To Identify Trends: In addition to pulling key reports daily, looking at sales and other metrics over longer time periods such as weeks, months, quarters, years, etc., will provide important insights about your business’s performance and help you identify trends over time.
With multi-location businesses, the manager at each location should have access to reports, and there should be a system in place for regularly sharing reports from each branch with other managers and/or the business owner.
POS Web Reporting VS Mobile Dashboards
In recent years, more POS systems have embraced mobile POS reporting, which lets you run reports on a dedicated mobile app. These apps may even show a live view of your sales in real-time. Mobile reporting apps make it convenient to quickly access key information about your business’s performance when you’re at home or anywhere else.
However, POS reporting apps often have a somewhat pared-down version of the reporting suite you’ll find on the web dashboard that you log into from your browser. When evaluating POS systems, find out if it offers mobile reporting, and if so, see how the mobile reporting suite differs from what you’ll see in the web portal.
A couple of examples of POS systems that offer strong mobile reporting apps are ShopKeep and Square, which offer the mobile reporting apps ShopKeep Pocket and Square Dashboard, respectively.
How To Optimize Your Point of Sale Data Collection
To generate accurate reports, business owners need to make sure their POS is accurately gathering data. While POS systems generally make it quite easy to collect data, you’ll still need to do some setup to optimize your data collection. This setup process can be tedious if you just want to get up and running, but it’s super important for data and analysis purposes. Trust me: you’ll thank yourself later.
Implement A Strong Inventory Management System
Inventory reports will only be accurate if you have a good inventory management system in place. For example, all of your inventory must be properly tagged by category. To gather information, you need to generate reports on your business’s profitability, and you’ll also need to enter the raw cost of each item.
Depending on your needs and the strength of the POS system’s inventory tracking feature, it may benefit you to also use an outside inventory management software program that integrates with your POS. Which brings us to the next item…
Make Sure Your POS “Talks To” Your Other Business Software
Whether you use software for inventory management, accounting, email marketing, or any other business function, it’s important that this software integrates seamlessly with your POS. Otherwise, you won’t be able to transfer data between systems. For example, many businesses use QuickBooks and thus need a POS that integrates with QuickBooks. Or, you may operate a Shopify online store and need a POS that integrates with Shopify to sync your in-store and online sales.
Sometimes, you may have to pay an extra fee for POS software integrations, especially if you need to hire a developer to create a custom integration. Depending on cost and other considerations, you might consider switching to a POS system’s in-house add-on for accounting, eCommerce, etc. (if they offer an add-on for that function).
Customize Your Reports To Track KPIs
Your business should have key performance indicators (KPIs) that relate to your goals for your company. Measuring and tracking these KPIs helps you focus on the data that matters most for your business. For example, if you have the goal of increasing the amount each customer spends, you’ll have a KPI for average spending.
Some POS systems let you create custom reports which can be helpful for tracking your unique KPIs—Square is one example of a POS with this capability. Even if your system doesn’t let you generate custom reports, you may be able to customize your reporting dashboard to show the reports that relate to your KPIs, or modify your reporting settings to send you those reports at your preferred frequency.
Train Employees On Best Practices
Not just cashiers, but everyone on your team needs to be trained on best practices to accurately collect data using the POS. This could mean making sure your sales team is trained on how to onboard customers to the loyalty program, training warehouse workers on how to properly tag inventory, etc.
The first step of training your staff is for the manager themselves to become well acquainted with all POS functions and how it collects data. Once you know what data the POS collects, you’ll be able to advise your staff accordingly.
6 Clever Ways To Use Your POS Data To Firm Up Your Bottom Line
What can you do with reports to actually increase sales or lower operating costs? Here are some ways to put that data to work:
Get Smart About Staffing: Check employee management reports to see if you’re adequately staffing for busy times or overstaffing during slow times. You can also gauge the performance of individual employees to see who earns the most commissions, who comps the most items, and other key metrics.
Optimize Your Outlets: Even if they’re only across town, two locations of your store or restaurant can have very different customer bases, so it makes sense to individualize your offerings at each location. With multi-location POS reporting, you can compare data between different locations to customize inventory and staff to meet each store’s needs.
Stock Only What Sells: Run reports to see what hasn’t sold and what’s selling like hotcakes. Then you can clear out the non-selling product for a more popular item. You can also use reports to see what items may sell best during certain times of the year and make stocking decisions based on that data.
Retain Your Customers: POS systems with CRM reporting help you maintain relationships with your customers. For example, you might check reports for lapsed customers and offer them a coupon to win them back. Or, identify your top customers and reward them with an exclusive offer. If your POS has a loyalty program, you can also track the success of any offers and coupons you send out.
Find & Fix What’s Gone Wrong: Theft, errors, and mismanagement are all problems that can be detected using POS reports. When you encounter a problem, there’s a good chance that the solution lies in the data. For example, if you see a lot of voids, this may indicate that your staff needs more training on how to use the POS system.
Motivate Your Team: Sharing information from your POS reports can be a useful motivational tool in a team setting. For example, you might have a meeting to show everyone how much sales increased last month — and then provide an incentive to sell even more this month! The employee insights from your POS reports can also prove useful for individual performance reviews, as they provide information on what the employee is doing well, and perhaps things they can improve upon.
Your Point of Sale Data Can Make Your Business More Successful, So Use It!
Point of sale data can tell you a lot about what’s going on at your business. From employees’ daily activity to inventory stock counts and long-term sales trends, POS reports put actionable information right at your fingertips. To better acquaint yourself with the different types of POS reports, I recommend reading the Top 5 Standard POS Reports and POS Reports: Getting Beyond The Basics.
If you’re ready to go get yourself a fancy new POS system that has better reporting tools, we have a plethora of information on the best POS systems for your buck. Here are some additional resources to help you find a POS system with excellent reporting:
Best Retail POS Systems
Best Restaurant POS Systems
Best Salon POS Systems
Best POS Systems For Bars & Nightclubs
Best POS Systems For Food Trucks
Best Coffee Shop POS Systems
Best Liquor Store POS Systems
Have a question about POS data or point of sale systems with strong reporting? Leave me a message in the comments and I’ll get back to you.
The post Why Point Of Sale Data Is The Secret To Understanding Your Business And Making More Sales appeared first on Merchant Maverick.
Clover is a big name in small business point of sale and if you’re currently in the market for a POS system, it’s likely that Clover is on your radar. But with so many different entities selling Clover, it can be difficult to gauge how much you should pay for a Clover system or what’s a good deal (and what’s not).
There are three aspects to Clover pricing: one-time hardware costs, monthly software costs, and ongoing credit card processing fees. In this article, I’ll break down how much you can expect to pay in each of these areas, and where you can find the best prices for Clover POS.
Who Sells The Clover POS System?
Many different entities sell Clover, ranging from national banks and merchant services companies to even retailers like Sam’s Club. The following are some popular Clover POS system vendors:
Bank of America Merchant Services*
Dharma Merchant Services
Leaders Merchant Services*
Sam’s Club Merchant Services*
Wells Fargo Merchant Services*
*Not a recommended Clover reseller
Generally, we recommend purchasing your Clover system directly from Clover.com or from a high-quality Clover reseller such as Payment Depot, Dharma Merchant Services, or National Processing.
How Much Does A Clover Credit Card Machine Cost?
As with the cost of POS systems in general, Clover hardware pricing depends in part on where you purchase it, as well as which pieces of hardware you want to include in your POS setup.
A Clover Station is the largest, most complete Clover POS setup, and includes 14″ swiveling POS screen, cash drawer, and receipt printer. The Clover Mini has a smaller swivel-screen and can be used by itself or with a Station. The Clover Flex is a handheld smart terminal with an even smaller screen that can also be used by itself or as part of a larger Station setup. Finally, the Clover Go is a mobile credit card reader that connects to an app on your iOS or Android device.
All Clover devices sync together so you can pretty much mix and match them however you like. For instance, you could have a Clover Mini with a cash drawer as your main terminal, while also using a Clover Go for occasional mobile sales. Or, you might just use a Clover Station and nothing else, or a Clover Flex with a Clover Mini, etc.
The following prices are what you can expect from Clover.com directly. Other Clover vendors vary in their pricing, and we recommend you do your research to compare prices to find the best options out there.
Clover Station for any business: $1,399. Includes Station, cash drawer, and receipt printer with customer-facing display and NFC. Including Clover Mini: $1,749.
Clover Station for full-service restaurants: $1,349. Includes Station, cash drawer, and standard receipt printer (kitchen printer sold separately). Including Clover Flex: $1,699.
Clover Mini: $749. Has built-in scanner and receipt printer but does not include cash drawer.
Clover Flex: $499. Has built-in scanner and receipt printer but does not include cash drawer.
Clover Go: $69. Includes Micro USB charger. Charging dock sold for an additional $29.
Additional hardware add-ons, such as scales, barcode scanners, kitchen printers, and debit PIN pads can drive the price up further.
Various vendors may offer lower prices on Clover hardware (Clover.com hardware prices are MSRP), but those lower prices may come with a catch, such as having to sign to a long-term merchant services contract for payment processing. Many Clover vendors also offer the option to lease your Clover POS, but we never recommend leasing your POS system. It’s always a much better deal to buy your system outright, or pay for it installments if the vendor offers 0%-interest financing.
To learn what each of the Clover hardware devices can do and which ones you need for your business type, I recommend reading our dedicated reviews of the Clover Station, Clover Mini, Clover Flex, and Clover Go. My post on The Best (And Worst) Companies To Get a Clover Credit Card Machine From also has more information on the different Clover hardware options and how much you can expect to pay from different vendors.
Understanding Clover Fees For POS Software
Clover charges monthly fees for its software, letting you choose from several different plans that offer different features. You can also purchase additional software features from Clover’s App Store.
Here are Clover’s monthly software plans:
Register Lite Plan: $14/month
Best for businesses with credit card sales of less than $50,000/year
Flat-rate processing at 2.7% + $0.10 (if plan is purchased directly from Clover)
Accept all credit and debit cards, including chip (EMV) cards
Accept contactless (NFC) payments
Track cash payments
Process payments when offline
Send paperless receipts
Accept on-screen signatures & tips
Ring up items, discounts, & tax
Charge taxes at the item level
Theft protection (set employee permissions)
Employee management (payroll, shifts)
Export basic reports (sales, tax, payroll)
Liability protection up to $100,000 in the event of a data breach
Access to 200+ apps and integrations on Clover app market*
Monitor activity, sales, & refunds remotely
Track sales with item-level reporting*
*Available on Flex, Mini, & Station only
Register Plan: $29/month
Best for businesses with credit card sales of more than $50,000/year
Flat-rate processing at 2.3% + $0.10 (if plan is purchased directly from Clover)
Pre-authorize credit cards (for bar tabs, reservations)
Build your mailing list automatically*
Read customer feedback, and reply with coupons*
Create a simple, custom loyalty program*
Fire orders to a kitchen printer or other stations
Add gratuity to checks
*Available on Flex, Mini, & Station only
Dining Plan: $69/month
Best for full-service restaurants
Flat-rate processing at 2.3% + $0.10 (if plan is purchased directly from Clover)
Includes everything in Register plan, plus:
Floor Plans app: Build dynamic floor plans that match your layout
Orders app: Set up order types and categories; move or transfer orders; fire orders directly to kitchen or prep stations; add items to partially paid orders
Apply service charges to large parties
Split checks in any proportion
Run reports per revenue center (patio vs. bar)
Other bundled that come pre-installed: Bar Tab Auths, Tips, Shifts, Discounts, Happy Hour
As you can see, the Register Lite plan is best for very light, low-volume users who don’t need to do things like process exchanges, manage inventory, or accept tips. For most retail or quick-serve businesses, the Register plan is best, especially considering the lower rate for payment processing. Full-service restaurants may benefit from the Dining plan, but it depends on your needs; you might be fine with just the Register plan. Note that Clover used to offer Payments Plus, which was free and more limited in features. However, that plan has been discontinued.
Still, $14/month to $29/month is pretty affordable for a POS, especially since Clover doesn’t charge extra for additional registers or devices. Of course, Clover apps might add to the cost if you need specialized features. But again, most businesses will find everything they need in the $29/month plan.
Note that while most Clover providers sell Clover software services, those companies often charge their own markup on top of Clover’s monthly fees.
How To Navigate Clover Credit Card Fees
Clover is always offered in conjunction with a merchant account, whether you buy it from Clover.com or elsewhere. Clover.com offers a flat-rate pricing structure, whereby you pay 2.7% + $0.10 or 2.3% + $0.10 for all card-present transactions (and 3.5% + $0.10 for card-not-present transactions, regardless of plan).
Clover’s flat-rate pricing scheme is straightforward and doesn’t include any extra merchant services fees. Generally, flat-rate processing works great for small, low-volume businesses. The processing fee on the Register plan (2.3% + $0.10) is quite competitive, especially compared to Square’s rate (2.6% + $0.10). (Note that Clover merchant accounts are still subject to underwriting and approval—make sure you read the fine print as you sign up.)
Not all Clover sellers offer flat-rate processing; some providers like Payment Depot offer interchange-plus rates, which might work better for higher-volume merchants processing more than $10K/month. Other less-desirable Clover vendors offer tiered pricing or enhanced billback pricing, which are both confusing and expensive. And still other vendors offer flat-rate processing, but at rates higher than what Clover.com offers. For example, Bank of America sells the Register plan with 2.7% processing.
How Much Should You Pay For Cloverâs Point Of Sale System?
All in all, most businesses can expect to pay somewhere around $1,400 for a complete Clover Station setup, with a $29/month software fee, and credit card processing fees of 2.3% + $0.10. As mentioned, Clover.com is a good place to buy your Clover devices and your system’s associated software and payment processing account. However, choosing one of the top-rated Clover providers could also be a good bet.
Whatever you do, beware of sub-par resellers offering expensive leases and tiered pricing. If you don’t buy directly from Clover.com, make sure you shop around and understand what fees are being absorbed or passed onto you in other forms.
Finally, if you’re not 100% sure whether you want to use Clover as your POS, you might also want to evaluate some of theÂ best Clover alternatives.
The post How Much Does Clover POS Cost? Everything You Need To Know About Clover Pricing appeared first on Merchant Maverick.
Pricing is foundationally important to your business, and that careful dance between your product and its price is both an art and a science. Price too high and you might not see the sales you deserve; price too low, and the undervaluation of your product sends the wrong message to consumers and may cut into your profit. What’s a savvy business owner to do?
Be smart about pricing!
Do your research, analyze trends, and demonstrate flexibility. Pricing is foundational and it needs your constant attention.
Before You Set Your Price, Know Your Costs
It might seem simple in hindsight, but some business owners don’t know or haven’t calculated the cost of making (or obtaining) their products, and you can’t set a price without knowing that crucial detail. Period. The cost of goods sold includes everything from the material costs to labor and everything in between. (Don’t forget to factor in all your overhead, too. Rent. Electricity. WiFi. Shop fees. Advertising.) If something is priced correctly, the sales cover the cost and turn a profit. Priced too low, you lose money (or your product loses esteem!); priced too high, you may lose sales altogether. Meticulous budgeting is necessary if you want to step-up your pricing game.
Creators of lists and lovers of spreadsheets will rejoice at the chance to employ those skills to run cost analysis. Be judicious and thorough, and once you have the bottom-line for all your products, then you can develop a pricing strategy that fits with your business.
5 Types Of Pricing Strategies You Can Use
Each pricing strategy has its own pros and cons depending on several factors, including (but not limited to) the type of business you own, your cost of goods, and how many products you sell. Remember that the key to any pricing strategy is to research your options, analyze the numbers, and adapt and show flexibility if sales are stagnant.
This is the most common method of pricing. Once you have calculated your cost of goods (material, labor, overhead costs, etc.), from there you add a percentage of sales on top to calculate your listed product price. There are differing theories about the best way to calculate the “plus” (the markup) part of the cost-plus system. Markup largely depends on the market and your competition. The retail industry standard is 50%.
As an example, we’ll use cost-plus pricing to look at a product I sell: paperback books. I have a paperback book that I print through a third-party distributor. Author copies of this book cost me roughly $5.00. That’s the material cost: $5.00. But I still need to add in other costs: labor, advertising, convention fees. Let’s round and say the cost of goods is $7.00. I know my industry and know that a full 50% markup on this paperback would be a hard sell. I sell the books at $12.99 for a $5.99 profit.
From there, depending on where I’m selling the books (my website, an online store, a convention), I can calculate how many books I need to sell for my bottom-line and how many I need to sell to make a profit.
Cost-plus pricing has a lot of advantages. It lowers your risk for loss, is easy to calculate, and makes it easy to navigate price increases as costs change. Additionally, cost increases are passed on to the customer, and these price changes are easy to explain to suppliers and customers. It works well for stable industries where material and overhead costs don’t change. The disadvantages? A set markup ignores demand, determining the cost of goods may not be exact, and there’s no incentive to cut costs or streamline on the supplier end.
A loss leader is a product offered at a profit loss in order to encourage customers to buy additional products or services. This is also an industry pricing strategy in publishing and many other businesses that have a consumable or buildable client base. So, giving away a free copy of book one of a series is a great way to grab readers who will subsequently spend to buy the rest of the books. This also works for game consoles or other technology: often, you can get a console at a reduced price because buying individual games is how the company turns a profit.
There are also more predatory ways of using loss-leading, which is why it’s banned as a pricing practice in 50% of the United States. (And it may not be illegal, but restricted, in your state, so if you have a question about the legality of your pricing model, please contact an expert.)
The advantages are that it works well for industries that want customers to keep coming back for repeat sales, and it’s a safer model for a company that is large enough to absorb the initial loss. The disadvantages? Predatory practices ruin it for everyone.
“Riding down the demand curve.” Skim pricing is when you start off with a high price and lower it slowly to reflect competition/market over time. Game consoles work as another great example of this pricing model. When a console is first released, it’s marketability comes from anticipation and a feeling of scarcity. However, the product can’t sustain itself at that price and will come down over time to reflect a competitor’s prices more effectively.
The advantages to skim pricing are that it creates a high-profit margin after launch and helps recuperate costs quickly. But if you don’t have the clout or product to pull off the high price, this pricing model could backfire. Also, businesses need to find a way to incentivize the product if consumers know price skimming is coming and subsequently wait for the lower price.
Also called competition-based pricing, this pricing model relies on an understanding of what else is currently available from the competition. Based on knowledge of the market, a company will price its product higher or lower, depending on the needed strategy. Does your company want to offer the same service or product for less? Or do you want to advertise your superiority over the competition to prove why your brand is worth more? Researching your competition and their prices is an absolute requirement.
The advantage of market-oriented pricing is that you get a leg-up over the competition — and it’s fairly simple to price yourself based on what the competition is using. The disadvantages are that not knowing why a product is priced that way is a short-term solution, and following the crowd doesn’t always pay off (remember that time you copied another kid’s math worksheet answers and they got all the questions wrong?). If you want to price an item based on a market-oriented pricing model, that’s fine, but make sure you are running all the numbers, too, and that your decision is rooted in your long-term business needs.
Price anchoring has a lot to do with human psychology. (Pricing, in general, is often based on psychological research; human beings aren’t exactly the most rational of consumers.) The psychology is this: Humans tend to place importance and value on the information they hear first. So, if the perceived value of a product is $1000, slashing its price to $399 induces a great feeling of savings for consumers. But shhhh…the price was going to be $399 the whole time. (It’s like magic. Ooooh. Ahhhh.)
In retail, we see listed prices all the time that are pure invention: no one was going to pay that price. But if you see the original price connected with savings, your brain will be more likely to make a purchase. Anywhere you have a listed price and a sale price, you’re seeing anchoring in action.
Anchoring is also seen when you price a luxury item significantly more expensively than your target product. People will buy the target product feeling like they received a deal.
With anchored pricing, people will feel like they are getting a deal, and the product benefits from a perceived higher value. It’s not all good, though. People can become loyal to price and not company, and consumers may be annoyed at the tactic.
4 Major Considerations For Setting Prices
Pricing psychology is a major factor in your pricing decisions. There are copious books, research papers, and websites dedicated to the exploration of how the human brain works during purchasing decisions. You may or may not have known the names for the different tactics, but once you learn them, you see them employed everywhere.
One thing popular in the United States is charm pricing. Charm pricing is where you price something ending with a 9 or 99. For example, $19.99 instead of $20.00 or $5.59 instead of $5.60. It is one of many psychological pricing tools you can employ.
I would highly encourage you to check out additional resources, as we can only scratch the surface here. However, beyond the psychology of pricing, there are four other specific considerations you should keep in mind when setting prices:
Know Your Customer
It might be simple, but it cannot be understated.
Do. Your. Research.
Who is buying your product? Who buys your product generally? Who are your repeat customers? What pricing strategies worked in the past? Knowing your customers is knowing the psychology of their purchasing habits and understanding the marketing tools that would turn them off.
Know The Competition
Even if you don’t use competition-based pricing, you should still research your competition’s prices on the regular. Informed pricing is empowered pricing, and you cannot be informed unless you know what your competition is selling their product for.
Have A Financial Target
Don’t forget to consider a financial goal as you set your product pricing. Even if your goal is to break-even, that should translate into numbers. How many of X do you need to sell at what price to cover your costs? To make a 20% profit? To be able to take your family to Disneyland? Whatever the need, make it a goal, and give it numbers.
Know Your Worth
Heart-to-heart moment: it shows great respect for you and your product to price your work well. Both over-valuing and under-valuing yourself is a mistake. When you implement a pricing technique, it needs to come from a place of understanding: what does this cost to make and how much is it valued? You are worth more if you are in demand, it’s true, but humans will also pay more for things made with careful love and quality.
How A Good eCommerce Platform Or Point Of Sale System Can Help You Track Costs & Profitability
Math and spreadsheets are fun! For some people. For a few people. Select people, perhaps. But for the rest of us, there’s good news: eCommerce and point of sale systems now have reporting tools that can calculate pricing factors with a click of a button. According to our Merchant Maverick eCommerce and POS experts, any good software will include the cost of goods sold and profitability reports. Advanced reports can even track prices over time or specific vendor costs; employee labor costs and job costing.
POS products like Lightspeed have specific reports for businesses to manage markup and margins, and creating promotions.
Accounting software may also have access to reports that manage pricing tools. Check out our top accounting software picks post to see if there is a good fit for your small business needs.
Don’t Forget To Keep Testing Prices
Markets and products change all the time, and if you aren’t staying current on pricing in your industry, you won’t be able to navigate the shifting tides. Test a price and monitor its sales over time. If patterns emerge, use that knowledge to set a more permanent price.
Your pricing model is a guide, but prices and strategies shouldn’t grow stagnant. Being flexible and understanding the market, your bottom-line, your markups, and your margins will all help create a successful business.
The Bottom Line: Pricing Your Products Is Key To Building A Sustainable, Profitable Business
Pricing truly is the most important business decision you can make. There are things you can control about how you run your business, and one of them is the price. Your pricing should drive profit, and long-term profit, too — not just short-term sales. A good boost of sales during a promotion is nice, but it’s not a sustainable pricing model.
Know the competition, but don’t venture blindly into pricing without a clear understanding of your costs and market, too. If your current situation limits experimenting with building up an inventory or investing in advertising new pricing, you can look into a working capital loan to jump-start or renew your business growth!
No matter what, research, analyze, and demonstrate flexibility.
The post How To Price A Product The Right Way: Pricing Strategies & Smart Tips To Succeed appeared first on Merchant Maverick.
If you are looking to expand fundraising possibilities for your charity and are considering Square to process payments for your nonprofit, you may have a lot of questions. Fortunately, you’ve come to the right place; this post covers all the information you’ll need to make an educated decision. We’ll look at the costs, fees, and all of the features that wait for you behind the curtain of Square’s processing. Square constantly updates what they offer, so there’s a good chance that within the next year, Square will offer even more features for nonprofits. That’s not to say that Square isn’t already a viable option for charities to take paymentsâyou’ll find that from setting up a free online shop to engaging your donors throughout the year, Square provides all the tools you need to get going, with options to integrate or add features as you need them. Let’s get started!
How Do Nonprofits Benefit From Using Square?
One of the biggest reasons I have a sweet spot for Square is that they have competitively-priced processing rates, and your nonprofit organization won’t face any surprise fees or markups on the backend. In addition to a straightforward fee structure, Square offers a considerable amount of free software.
Not only that, Square is so easy to set up that you can get your account up and running to start taking donations, sell merchandise, and even set up your website all on the same day.
While Square for nonprofits offers a plethora of benefits, it’s not without some potential hiccups, however. In the world of payment processing, one merchant’s dream is another’s frustration, so let’s take a look at what Square has to offer and discover if this solution is right for you.
The Limitations Of Using Square for Nonprofits
It’s important to understand that Square isn’t a traditional merchant account provider. As a third-party processor, Square offers greater accessibility to a wider amount of businesses, but there’s inherently a bit more risk involved as far as account stability with this model. When a business or charity raises a red flag, sometimes it’s hard to make things right again.
One of the most important ways to avoid issues is to accurately disclose your type of business and ensure that you don’t sell anything on Square’s prohibited goods and services list that would throw you into the high-risk merchant category.
While representing a very small fraction of all Square’s accounts, the largest complaints against Square involve account freezes and terminations. No matter what processor you go with, you’re going to have this risk, however. That’s why we encourage all of our readers to learn how to reduce their risk of termination or funding freezes.Â
Beyond this, Square offers a lot of useful tools for a very low price, but it’s certainly not all-inclusive. When it comes to SaaS (Software as a Service) for a charity, you can find other options that cover the basics for next to nothing — and there are also more complex solutions that go as high as $15K for mid-sized charitable organizations and above. It really depends on what your organization needs in ancillary tools.
With that in mind, let’s take a look at what to expect with Square, and then look at how your charity can make the most of this low-cost option.
What Are Square’s Fees For Nonprofits?
As I mentioned before, what you see is what you get as far as payment processing costs. You won’t have any other additional monthly fees: no authorization fees, statement fees, refund fees or PCI compliance fees. You’ll also pay the same fee no matter what type of card your customer uses.
Be aware that accepting in-person payments versus web or invoice payments varies slightly, however.
Here are the Square fees for nonprofits:
2.6% + $0.10 for any tapped, dipped or swiped cards you take in person
Â 3.5% + $0.15 when you enter in a credit card number manually from the SquarePOS app, take payment in your Square Virtual Terminal, and process card-on-file transactions, including recurring invoices.
2.9% + $0.30Â for Square Invoices and eCommerce donations as these are both web-based transactions
You can also learn a bit more about Square’s Pricing in our article, How Much Does Square Charge?
Note that Square’s fees for nonprofit organizations are exactly the same fees that small businesses pay, and they’re designed for organizations that process less than $250,000 per year. Does your charity have higher projected donations coming in? Square may design a custom pricing package for charities and small businesses that process more than $250,000 per year in sales, but they consider that on a case-by-case basis rather than offering any sort of standard pricing for nonprofits.
Now that we’ve got the fees out of the way, let’s see what free goodies and other options await with Square for charities.
8 Ways Your Nonprofit Organization Can Make The Most Out Of Square
Square offers more than just payment processing for the nonprofit organization. Let’s take a look at the free tools Square offers that could support your charity in several ways.
1. Accept Donations Online
You have quite a few options to accept donations online with Square. The easiest option is to create a free Square site with ready-made templates that make it easy to build a simple web storefront. You can create a space that explains your mission and lets your donors contribute to the cause, or make a fully functional eCommerce store that allows you to sell things like t-shirts and other merchandise to support your organization and mission.
To start accepting donations, simply click Donations from your online dashboard and add the details. You can also allow custom donation amounts to let your donors give the amount of their choice, up to $1,000.
If you have multiple focuses for your nonprofit, you can create more than one campaign on your site. Just repeat the process in your dashboard from the donations area. That way if you want a focused fundraiser, you can do so while still maintaining the ability to accept general donations.
Below is an example of a storefront using Square’s free site template. You have a range of colors, but customization is limited. Also, take note that you do not have a custom domain with Square’s free site.
You can also upgrade the free site to a premium option through Weebly â it’s all easy to navigate and choose through your Square dashboard. This way you’ll get a custom domain and other bells and whistles that help you create a site you want for your cause.
If you already have a site, you can choose from one of the plugin integrations for Square at your Dashboard for a pretty easy setup.
If you’ve got some expertise when it comes to code (or have a developer on staff) you can build a branded checkout flow with Square Transactions API that allows you to accept digital wallets, too. Check out How To Accept Online Payments With Square for a full, in-depth explanation of each of these possibilities, and a few more (like in-app purchases).
2. Accept Donations In Person
Hoping people have cash on hand or the even more archaic option â a check â can really limit you. When you set up your Square account, you’ll get the free magstripe reader, but we strongly suggest that you opt for the Square Reader for contactless and chip. Square’s chip reader is the best way to protect yourself from chargebacks and give people more options (and convenience) to donate. That’s because chip readers better meet current security standards. The chip reader is competitively priced under $50.00. This little reader is an important tool to keep your costs down in the long run.
You have even more options in hardware, however. Whether you need something mobile or you need something a little sturdier for a kiosk or desk setup or both, you can find what you need to accept payments in person.
Want even more information on Square’s hardware options? Check out The Complete Beginner’s Guide to Choosing Square POS Credit Card Readers And Cash Register Bundles.
3. Take Donations And Orders Over The Phone
Like most point-of-sale software, Square comes with a virtual terminal right on your dashboard that allows you to take a payment over the phone or manually key in credit card data. What’s important to understand here is that a virtual terminal is really the only way to safely process credit card data. That’s because when you receive credit card information, security has to be considered during transmission and storage.
Jotting credit card information down a piece of paper or worse â keeping this information on a spreadsheet â is a big no-no. You’d be surprised to find out how many organizations store credit card data this way, but in the event of a breach, your business will face expensive fines (not to mention a huge PR issue).
Taking donations for your charity over the phone is really easy with Square. You simply enter in the credit card data on the form. Since the full credit card number isn’t visible once you key it in, you never have to worry about this information being vulnerable.
4. Recurring Donations
As a charity, there is probably nothing that feels better than an ongoing commitment from your supporters. These folks help you keep up your daily operations and allow you to plan for future growth.
Square makes setting up recurring donations super easy for your charity. Whether you’re on your mobile device or at your full Square dashboard on your PC, you can create what you need.
I’ve included the screenshot below so that you can how easy it is to set up and schedule your invoice for delivery on whatever recurring plan you want.
If you desire more consistent branding for your charity, you have some options. Check out the full post How To Use Square For Recurring Payments and Invoices for information on integrations or a pre-built workflow.
If you’re wondering about any additional cost regarding invoice scheduling for charitable donations, I have some good news: Setting up recurring donations for your charity doesn’t cost anything extra beyond the processing charge (3.5% + $0.15).
5. Sell Merchandise
Ready to sell merch at your event or want to offer online sales? As mentioned earlier, you have some options when it comes to setting up an online store via Square’s free store or upgrading for more space or design freedom.
Selling in person couldn’t be easier, either. Square’s free Point of Sale app works as a cash register or mobile app, so you can run a gift shop or merch table at a fundraiser. You can even accept payments for charity auction items right then and there (or send an invoice for payment after the event).
Whether you sell merch at an event, through your online store, or you take a phone order through your virtual terminal, Square syncs the sale at your dashboard so everything stays up to date. All your inventory is tracked across all your sales channels. When it’s time for a sale, you simply select the item from your inventory and you’re all set to make a sale. You’re also free to just enter in any amount and charge a card that way as well. After entering their email, your customer receives a digital receipt, and you now have their info.
You can also set up alerts at your dashboard to stay on top of dwindling t-shirts or other fundraising merchandise you offer. That way you can re-order supplies before stock drops to zero!
6. Manage Events And Registration
Planning an event for your charity can help you connect with both your supporters and those who become one. That’s why I’m glad to see that through Square, you can also find what you need to sell tickets for any event you have in the works. You’ll do this through your online store. You can set up your tickets for electronic delivery or you can print for shipping or in-person pickup options. Square gives step-by-step information on how to sell event tickets through their help center.
Square also has a partnership with Eventbrite so it’s that much easier to organize, manage your event, and sell your tickets.
The great thing about selling with Square is that your sales for tickets, merch, and donations all seamlessly sync to improve your record keeping. Whether you take a ticket at the door with your POS or sell a ticket online, everything stays up to date.
And that brings me to my next point: Square’s donation and sales tracking can improve your bookkeeping.
7. Track Your Income And Improve Your Bookkeeping
Square offers simple income tracking. You can download sales history, view deposits, and view everything that’s happening over a set period of time.
View income by categories like merchandise sales, donations, or ticket sales. You can also compare new givers with long-time supporters, as well as average donation size. While you’re not going to see more advanced reporting features with Square Analytics, we feel it delivers more than expected considering these features are completely free.
Need something more? One thing to note is that Square integrates with Quickbooks so you can sync sales data here and get the sales or expense reports you need all in one place. QuickBooks has some specialized accounting features for nonprofits, which can make it a must-have piece of software.
8. Collect Donor Information And Engage
You can export a list of your donations or the details about your donors from your online store at any time. All of this is accessed under Order Management right from your online dashboard.
As you collect donations, you can also manually enter any notes about your supporters. Because electronic receipts are delivered when your customer shares their email, you can also build a robust email list for future marketing.
Square has a few customer engagement features that are completely free. The emails that you collect during transactions are yours to add to a separate email campaign service, of course. You can also create, import, and manage all of your customer profiles within your Customer Directory, which you can then use to get more insights into your donors and plan future giving campaigns based on that information.
You don’t need to find a solution outside of Square for email marketing tools, however. Square Marketing gives you some pre-designed email templates with campaign suggestions and scheduling tools that help you create and manage your email list and marketing campaign. Square Marketing Starts at $15 / month. In the screenshot below, this particular campaign provides those on your list with a special offer. To the right, you can see that you have a selection of templates and themes to create something in line with your branding. Though it’s not fully customizable, you can add your logo, business name, and other images where desired.
Email remains one of the most cost-effective marketing tactics, so it’s nice to see that Square makes it easy to collect emails or opt for this relatively low-cost email marketing tool.
Is Square Right For Your Nonprofit?
Square remains a strong option for most nonprofits. You can start taking donations — and even have access to a few ways to grow — without having to spend any extra money right off the bat. However, for advanced reporting features, marketing, and other integrations you may need, you’re going to pay more each month. And in my mind, that’s okay. Square provides basic reporting features so you can gain insight into patterns of giving as well as set up multiple ways to give on your site and more ways to connect, and that’s all free.
While Square does not offer any special discounts for charities, the processing fees are competitive. And with all of the freebies, it’s a bit remarkable for a processor overall. Be aware that account stability issues exist, however, but they aren’t unique to other processors by any means. Be sure to review each section or check out our full Square Review so that you understand how to make the most of this option.
Not sure if Square is right for you (or already sure it isn’t)? Read Become A Hero & Save Your Charity Money With Discounted Credit Card Processing For Nonprofits or check out the Top 7 Square Alternatives.
Want to get started with Square and open an account? This step-by-step tutorial shows you how to set up an account, navigate your dashboard, start accepting donations or selling merchandise. Have any questions? We’d love to hear from you.
The post Square For Nonprofits: Everything You Need To Know About Seamlessly Accepting Donations, Running Events, & Selling Merch With Squareâs Platform appeared first on Merchant Maverick.
It’s a beautiful spring day, the sun is shining, and the birds are chirping. Out in the fresh air, you’re surrounded by vendors selling the freshest local produce, natural products, and unique handmade gifts. No, this isn’t a dream — it’s a trip to your local farmers’ market.
Farmers’ markets are growing in popularity across the nation, so it’s no surprise that farmers, artists, and other local vendors are capitalizing on this money-making opportunity. Perhaps you’ve even pondered the idea, or maybe your family and friends have suggested you make some extra cash by selling your handmade or homegrown wares.
In this guide, we’ll explore how to become a seller at a farmers’ market. While it may seem as easy as grabbing your goods, setting up a table, and bringing in customers, there are actually tips and strategies to keep in mind to improve your odds for success … and increase your profitability. From selecting your products to marketing to buyers, we’ll cover it all to help you get started on the right foot. Read on to find out how you can start selling your goods at your local farmers’ market.
Why Are Farmersâ Markets So Popular?
From small towns to big cities, farmers’ markets are quickly popping up everywhere and attracting people of all ages. What makes a farmers’ market so appealing? It might be easier to ask what’s not to love about these local stops!
There are a number of reasons that more people are frequenting farmers’ markets. One of the top reasons is that these are places where you can purchase fresh local produce, most of which is organic and isn’t genetically modified. Compare this to your local supermarket where you aren’t sure of when the produce was picked and shipped or how it was grown. Farmers’ market produce is the freshest, and often the healthiest, that you can find.
Buying locally isn’t just good for your body — it’s also better for the environment. Produce at farmers’ markets usually comes from small family farms, which use fewer pesticides and chemicals. Because these products aren’t being shipped around the country, shopping at your local farmers’ market also conserves fossil fuels.
When you shop at your local farmers’ market, you’re supporting small businesses, whether it’s a small family farm or a local artist peddling paintings, pottery, or other handmade art that you won’t find in your local department store. In addition to supporting your local economy, attending a farmers’ market is a great way to meet new people. Farmers’ markets are family-friendly (and sometimes, even pet-friendly!) events that let you meet and socialize with people in your community. Some farmers’ markets even offer live music, classes, and other special events that only add to the fun. Add in local food trucks serving delicious meals and treats, and it’s not hard to see why farmers’ markets are truly the place to be.
Now, it’s pretty easy to see why you would visit a farmers’ market, but what are the benefits for sellers? In a 2015 survey, the USDA found that over $700 million of goods were sold at over 8,000 farmers’ markets around the United States — and the majority of that money is being funneled directly back into local economies. The USDA also found that farmers and ranchers make less than 16 cents for every dollar when selling to retailers. On the flip side, they can retain nearly 100% of their profits when selling locally through farmers’ markets.
10 Kinds Of Products You Can Sell At A Farmersâ Market
Despite its name, you don’t have to be a farmer to sell at a farmers’ market. There are lots of ways that you can connect with the community while earning a profit. Items to sell might include:
Sure, you don’t have to be a farmer to sell at a farmer’s market, but if you are, you can certainly bring your freshly grown produce to sell to your customers. Seasonal local fruits and vegetables really sell, but don’t forget about unique products you won’t find in most supermarkets (think colorful heirloom tomatoes or purple cauliflower). No matter what you bring, make sure that you only provide the freshest, highest-quality produce for your customers.
Don’t feel stuck to just fruits and vegetables, either. Mushrooms and fresh herbs that you’ve cultivated yourself are also big sellers at farmers’ markets, providing you with additional opportunities to earn some extra cash.
Milk, Meat & Eggs
If you raise cattle and chickens, it’s a no-brainer to bring your milk, meat, and eggs to the farmer’s market to share with your community while making a profit. These are popular items at farmers’ markets because of freshness, but also because many people prefer buying from small farms that treat their animals humanely, as opposed to large factories that may have questionable practices.
Not a rancher, but you enjoy hunting? Venison, bison, and other wild game can be sold at the farmers’ market. And it doesn’t stop at fresh meat, either. You can always sell your dried meats and jerky that you’ve marinated, cured, and dried yourself.
Your family and friends think you could be the next Betty Crocker, so why not bring your baked goods to the masses? If you love to bake, there are endless possibilities and a whole lot of money-making potential at your local farmers’ market. Bake your homemade cookies, cakes, pies, scones, and cinnamon rolls and sell them to customers during your free time. Again, you can think outside of the box to boost your profit potential by selling unique items such as dog treats or treats for customers with special dietary needs (i.e. vegan or gluten-free).
Flowers, Plants & Seedlings
From season to season, people spruce up their homes inside and out with colorful flowers, outdoor plants, and houseplants. From flower baskets that add a touch of color to your front porch to common and unique species of plants, many customers bypass big-box home improvement stores and instead purchase from local growers.
You don’t even have to wait to have fully grown plants and flowers. Some shoppers may prefer to buy seedlings that they can plant and grow themselves. Succulents and herbs are also popular options to consider.
If you grow roses, tulips, lilies, or other beautiful flowers, you can also create unique arrangements that shoppers may snap up for weddings, prom, Valentine’s Day, or even “just because.”
If you’re a beekeeper, cash in on the benefits of your (and your bees’) hard work by selling your delicious honey at the farmers’ market. Customers can purchase high-quality honey for use as a natural sweetener, but there are also additional benefits of eating local honey. Local raw honey is often marketed as a natural home remedy used to help with seasonal allergies, soothe sore throats, kill bacteria, or even help you get a good night’s sleep.
Want your honey to stand out from the rest? Switch up the way you process your honey to create creamed honey, or consider adding natural flavors to make your own unique honey blend.
Also, don’t overlook the value (for health and your wallet) of pollen granules. These tiny pellets contain a mixture of nectar, saliva, and pollen and are rising in popularity due to their perceived health benefits. Pollen granules are used for treating inflammation, strengthening the immune system, reducing stress, and other ailments.
Soap & Skincare Products
As we learn more about the chemicals in everyday household items, more people are stepping away from these potentially harmful ingredients and going a more natural route. If you’ve created the perfect recipe for homemade soaps, lotions, or other skincare products, set up a display at your local farmers’ market to peddle your natural concoctions.
As more people move to natural products, the farmers’ market in your area gives you the perfect platform for selling your goods. There are lots of opportunities in this space, from creating your own natural (and great smelling!) bug repellent to homemade sugar scrubs and natural deodorants.
One thing to remember is that you can be multi-dimensional at a farmers’ market. For example, if you keep bees, not only can you sell honey and pollen granules, but you can also sell natural beauty products made from pollen, honey, or beeswax.
Need some inspiration for what to sell at the farmers’ market? Look no further than the neighborhood kid with a lemonade stand. And the great news is that you aren’t just limited to lemonade, although selling freshly squeezed lemonade to hot shoppers is an easy way to make some extra cash.
If you make your own local wine or mead, brew your own craft beers, or even make a mean cup of hot apple cider, selling beverages can help draw in customers. Your booth or display can serve as a showcase for your homemade brews, or you can sell beverages in addition to other products. Many people that frequent farmers’ markets are looking for products that are unique and can’t be found in the local grocery store, so think outside the box. Flavored lemonades made with freshly squeezed lemons and natural flavorings, kombucha, and other tasty beverages can be sold by the glass, bottle, or jug.
Spending a long time at the farmers’ market can leave shoppers feeling famished. Why force hungry customers to drive to restaurants when you can bring the food right to them? If you operate a food truck, consider bringing your tasty fare to the farmers’ market. If you have openings in your schedule, a partnership with a local farmers’ market can fill your weekends with customers and the profits they bring with them.
Arts & Crafts
Whether you’re a professional or just an amateur artist, locally-made arts and crafts are big sellers at farmers’ markets. No matter what type of art you make, a farmers’ market is the perfect platform for selling your creations.
Paintings, drawings, embroidered items, crocheted blankets, hand-painted t-shirts, pottery, wood carvings, sculptures, and homemade greeting cards are just a few of the arts and crafts you can peddle at your local farmers’ market.
Other Unique Goods
Don’t see anything on the list that appeals to you? Then tap into your own unique talents. The great thing about the farmers’ market is that there are relatively few limitations when it comes to what you sell. While you can’t sell anything illegal or dangerous, you can let your creative flag fly and bring something truly unique to the table. What can you offer that is different and unique? Exotic spices, ethnic goods, homemade candles … the list goes on.
One way to be a successful seller is to think about what your customers want or need. For example, if you live in an area known for its tasty barbecue, consider selling your own dry rubs or barbecue sauce. Whatever you decide to sell, make sure that it’s unique to attract the most customers. Homemade, natural products are popular, but items like vintage clothing and shoes may also sell quickly. Whatever you do, just make sure that what you’re selling is allowed by your chosen market.
7 Ways To Prepare For Selling At A Farmers’ Market
Once you’ve decided that you want to sell at your local farmers’ market and you’ve decided what products you’ll be offering, the hard work is over, right? Not exactly. Whether your goal is to sell on occasion to earn some money on the side or you dream of bringing in a steady income by selling your goods to the community, there are some steps you need to take to help boost your chances for success.
Find Farmers’ Markets In Your Area: Once you know what to sell, the next step is to figure out where to sell it. And just like the unique products you’ll find from sellers, not all farmers’ markets are the same. Get a good idea of the culture, people, and products at each farmers’ market by visiting them yourself. Keep your eyes open for markets that have a need for what you’re offering, but don’t forget to find a farmers’ market that’s a good fit for you. For example, if there are no other artists and you’d feel uncomfortable selling your art, keep searching. If you’d like to bring your four-legged friend with you, look for a dog-friendly market. You can also turn to the internet to learn more about the farmers’ market in your city and surrounding areas. Look for official websites and social media profiles that feature pictures, posts, and information about each market. Finally, you should get an idea of the registration process. While this process varies across markets, you need to be aware that vendor registration windows aren’t always open, and you may have to sign up weeks, months, or even longer in advance to secure a spot. You can find this information online or talk to a manager in-person to learn more about signing up as a vendor.
Research Local Ordinances & Health Regulations: Nothing can bring your business to a halt faster than getting shut down by the health department or local authorities. Do your research to learn about local ordinances and health regulations, such as how produce and prepared food must be stored or how baked goods are prepared. Laws and regulations vary, so contact your local health department to learn more.
Make A Business Plan: Even if selling at a farmers’ market feels more like a hobby than a business, it never hurts to create a business plan before you get started. This business plan can be used to outline your goals, how you plan to finance your business, and your marketing plan. If you’re panicked at the thought of a business plan that’s an inch thick, don’t — a one-page plan is sufficient for keeping you on track. Don’t know where to get started? Learn how to create your one-page business plan in no time.
Get Startup Capital & Set A Budget: While selling at a farmers’ market can certainly be one of the more inexpensive ways to make money off your homemade goods, there are still some expenses to consider. One of the most common expenses is a booth rental fee. You need to consider other expenses, too — think signage for your booth, tablecloths and other items to spruce up your display, price stickers, and the cost of materials and packaging for samples. It sounds like a little, but these small expenses can add up quickly if you don’t watch out. Determine if you need to get financing before you start selling, set a budget, and stick to it. Want more tips? Check out our guide, How To Start A Side Hustle.
Look Into Business Registration: Depending on local regulations, you may be required to register your business before you take part in a farmers’ market. Some farmers’ markets require you to provide an Employer Identification Number (EIN) or Taxpayer Identification Number (TIN) when you register as a vendor. If an EIN is required, it’s easy to obtain one for free from the Internal Revenue Service. Contact the farmers’ market you’re interested in to learn more about the requirements for sellers.
Research Business Insurance: Some farmers’ markets require their vendors to have their own business insurance. Even if this isn’t a requirement, though, you still want to research your options to protect yourself from liability. If you’re unsure of how to get started, check out our article on general liability insurance for your business and contact your chosen farmers’ market to determine if insurance is a requirement. They may even be able to recommend local insurance companies that other vendors use.
Get Accounting Software: Even if you’re just making a little extra money on the side, do you really need accounting software? Yes, you do, and though it may seem like a pain now, you’ll thank us later. No matter how much you’re bringing in from your sales at a farmers’ market, it’s important to keep track of your finances. The best way to do that? Accounting software. The good news is that there are many options available that are low cost (or even free!) and easy to use, even if you have no prior accounting experience. Tracking your finances will help you see how much money you’re making, as well as where you’re spending it — allowing you to determine where you can make changes to increase your profits. You’ll also be glad that you kept track of finances when it’s time to pay your taxes. If you don’t know where to get started, take a look at some of our top accounting software choices for small businesses.
Should You Accept Credit Card Payments At Your Farmers’ Market Booth?
In a world where paying with plastic is quickly becoming the standard, you might be wondering if you should accept credit cards at your farmers’ market booth. Unfortunately, there isn’t a clear answer, but here’s what you should consider before making your choice.
Mobile point-of-sale (POS) apps make it easier than ever to accept credit cards. With your smartphone or tablet and a card reader provided by your chosen provider, you can accept debit and credit cards with ease without a bunch of heavy equipment and complicated systems. Some credit card readers are even available for no cost, and you could even score extras like stickers that advertise that your booth accepts debit and credit cards. There are lots of POS apps to choose from, so do your research on top choices like Square, SumUp, and PayPal Here.
On the flip side, though, you don’t have to accept credit card payments. Many farmers’ markets are prepared for customers that are paying with plastic, so they allow customers to purchase tokens which can be used to buy products from vendors. At the end of the day, these tokens can be redeemed so the seller gets their earnings. If you’re thinking of going the cash-only route, check out our article, Can You Really Run A Cash-Only Business?
If the farmers’ market you’ll be attending does not offer this service, you definitely want to consider getting a POS app and card reader so that you can serve all customers, regardless of how they’re paying. Mobile POS apps come with additional features that may be beneficial to your business, such as inventory tracking and sales reporting.
Another consideration to keep in mind is whether or not you’ll be taking larger orders or custom orders. If this is the case, you’ll need to have the ability to create invoices for tracking your orders and getting paid by your customers. Let’s say that the holidays are coming up, and you’ve been commissioned to make baked goods for a Christmas party. Before you invest your time and money into fulfilling the order, you can make sure you get paid by sending your customer an invoice that can even be paid online. Some mobile POS systems like Square Invoices allow you to create and send invoices, or you can use your accounting software if that feature is available.
Can You Accept Food Stamp/SNAP Benefits At A Farmers’ Market?
Statistics show that the Supplemental Nutrition Assistance Program (SNAP) helped 40 million Americans each month in 2018. This program — formerly known as food stamps — provides benefits that allow low-income households to afford food. SNAP participants are provided with an Electronic Benefits Transfer (EBT) card, which is used like a debit card at participating retailers. This includes grocery stores, convenience stores, and, yes, even farmers’ markets. This system makes it easy for you to accept EBT without having to jump through hoops.
Most farmers’ markets have a system in place that allows SNAP participants to purchase tokens with their EBT cards. These tokens can then be used to make purchases. Many states even reward SNAP participants for shopping at farmers’ markets with “double-up” programs. These programs match each dollar spent (up to a certain amount), allowing these households to receive more healthy and nutritious food using their benefits.
5 Clever Marketing & Promotion Tips For Your Farmers’ Market Stand
You’ve decided what to sell and where to sell it — now, it’s time to sit back and wait for customers, right? Wrong! While you won’t have to have a huge (and expensive) marketing campaign for your farmers’ market stand, there are some steps you need to take to make your business more appealing to shoppers.
Business Cards: A customer that isn’t interested in what you’re selling now may become a customer in the future, or you might have a customer that wants to spread the word about your business. Make sure that they can get in touch with you by passing out business cards. You can easily create business cards online and have them shipped to your door for a low price. Make sure to include critical contact information, including your name, the name of your business, your email address, social media or website links, and any other relevant information.
Email List: Allow your customers to sign up for an email list. There are lots of options for the emails you send, including new product announcements, upcoming sales, or your schedule if you attend multiple farmers’ markets and events. Mailchimp is one good option that’s free for small businesses.
Social Media: Social media isn’t just for connecting with overseas relatives and old classmates. Social media is a great outlet for advertising your business. Create a social media profile for your business and provide contact information, photos of your products, customer reviews, and important updates. You can also join groups in your area that allow you to interact with customers, take preorders, answer questions about your products, and more.
Dress Up Your Display: You can’t just throw your products on a table and expect them to sell. Sure, you may make a little bit of money, but to maximize profits, it’s time to pimp out your display. For this technique, you’ll have to invest a little bit of money, so make sure you budget and plan before implementation. Use signs, tablecloths, and decorations to make your space stand out. Arrange your products neatly and make sure that everything is labeled and priced correctly. This is your chance to really show off your personality, so take advantage of the opportunity to attract customers.
Offer Free Samples: Nothing in life is free — unless you’re a customer and businesses are giving out free samples. While providing samples of your products does come with some expenses, allowing your customers to try before they buy is a good way to get them interested … and have them reaching for their wallets. Provide small bites of your baked goods or testers for your natural lotions and body products. Before distributing your samples, make sure that you’re aware of all health regulations to keep your business in operations and provide a sanitary shopping experience for your customers.
Are You Ready To Start Selling At Farmers’ Markets?
On the surface, selling at a farmers’ market seems easy, but as you can see, there’s actually quite a bit of work that goes into planning, prepping, and selling your products. While it may take a lot of hard work and expense to sell your products and make a profit, there are many benefits to peddling your goods at farmers’ markets, including low costs, more personalized interaction with your customers, and creative freedom.
It’s up to you to determine if selling at a farmers’ market best fits your business goals. Once you’ve made the decision to move forward, we offer plenty of great resources to help you launch and operate your small business. From learning how to apply for a small business loan to choosing the right accounting software and POS systems, you’ll find everything you need to make your business dreams a reality. Good luck!
The post How To Sell At A Farmersâ Market (Plus 7 Clever Tips To Succeed Before You Even Get Started) appeared first on Merchant Maverick.
In the restaurant industry, business owners are constantly looking for areas where they can potentially cut overhead costs or increase their turnover rate even slightly to maximize their profits. But reaching that goal is often much easier said than done. Fortunately for these owners, technological advances in the industry might just have a practical solution. One of the more recent trends in the point of sale industry has been to offer self-ordering kiosks. What started as a novel or niche idea just a few years ago has now spread to a large number of the top restaurant POS companies, making it a feature that you may not even realize you can implement affordably.
There are different types of self-ordering kiosks as well. Some allow customers to walk through the entire purchasing experience on their own, punching in their order, walking through automated modifiers, and eventually paying. If you don’t want to lose the personal touch from your employees entirely, you can also add on-table kiosks that can simply ease the burden from a server by automating the payment process or allowing customers to browse a digital menu.
X Must-Have Features To Look For In A Good Kiosk POS
Even if your POS system does offer kiosk hardware and software, it doesn’t necessarily mean it will be a good fit for your business. You’ll want to make sure that it has all of the functionality you’re looking for to make it worth actually implementing. Here’s a few features that POS systems can offer in kiosk mode that you may want to check out.
Designing an eye-popping menu that highlights your unique or profitable items can be a difficult task. Having a kiosk can show customers appealing photos of each item and allow individuals to click on various menu options to either view a description or ingredients. This can lead to an increase in impulse sales and free up employees. It can also save you money on printing and laminating when physical menus get destroyed or when the menu simply changes. With most systems, menus can be updated quickly with a few button pushes.
Along that same vein, when a customer is filling out his or her order, the system can quickly and efficiently walk them through various options and areas for up-selling. These prompts and modifiers can be easily added in most POS software and can lead to a decrease in ordering errors and a potential uptick in sales.
How many times have you been making a purchase and, as you were ready to pay, a representative asks you if you want to enter your phone number or email address to receive promotions? By this point, most customers are usually ready to be done with their transaction and don’t feel like spelling out their information. An automated system can also make this process easier, letting customers enter their own information that is then automatically stored for future marketing. In some instances, you can also incentivize customers to sign up for loyalty by offering an immediate or future discount on a purchase.
Variety Of Payment Options
This is one of the most important aspects to consider. Today’s customers will look to pay in a variety of ways and a lack of options at your kiosk could turn them away. At a minimum, you will want a system that can process magstrip and EMV chip cards. However, many systems will also accept other methods like Google Wallet or Apple Pay. If your business also utilizes gift cards, you’ll want to make sure that your kiosks are set up to accept those as well.
This is somewhat more of a niche item but, for convenience stores or quick-service cafes, it can be a life-saver. Having a scanner that hooks up to your kiosk directly can allow customers to purchase self-serve or ready-made items by ringing them up themselves and paying for them in a matter of seconds.
Kitchen Display System Support
If you’re operating a larger full-service restaurant with a busy kitchen, having your kiosk directly sync to your KDS is a necessity. This will allow your cooks to see exactly when the orders were placed and they can view any special instructions or modifications that customers put in themselves. It also eliminates a potentially time-consuming step for your employees who would otherwise have to take down the order and then go to a separate station to send it to the kitchen.
To increase the the efficiency of your restaurant, kiosks can alert customers that their orders are ready either on an individual screen or by sending a text or email directly to a mobile device if wait times are longer. This is also a useful way to gather customer information for future marketing campaigns.
It’s a simple feature but one that can make a huge impact to your business’s bottom line. Simply being given a prompt to add gratuity is proven to increase profits across the board and is a simple, non-intrusive way to, we’ll say gently nudge, customers to reward your employees for their exemplary service.
Surprising Ways Your Restaurant Can Benefit From A Self-Ordering Kiosk Set-Up
Reduce Labor Costs
Obviously kiosks, either at the table or standing alone, can do a lot of the work that would otherwise fall to employees. Not only can this reduce the sheer number of employees you might need, it can also improve the efficiency of your employees on hand by taking some of the busy work off their plate. Kiosks can also mitigate against issues like unexpected rushes or having an employee who calls in sick at the last minute.
Increase Check Sizes
It’s easy to program in modifiers and prompts within a kiosk that will walk customers through up-sells and add-ons. This can be done in an intuitive fashion and in a way that doesn’t come across as pushy and customers feel as if they have more onus in their decisions.
Increase Overall Efficiency
While the addition of kiosks may seem impersonal, it can dramatically streamline your operations. With customers given the ability to send their orders at their own time, it eliminates those common occurrences where a server has to come back because a table hasn’t made its decision yet or stalls at one particular group of customers who take a long time to complete an order. Servers also don’t need to then make a separate trip to another station to fire an order to the kitchen. Instead, your employees can focus on making sure customers have everything they need.
Increase Order Accuracy
Along these same lines, having customers inputting their orders directly obviously eliminates the potential for server errors and will increase the likelihood that food comes out exactly to a customer’s specifications. This makes for an overall happier experience for customers who are then more likely to leave a hefty tip.
Disadvantages & Concerns When Using Restaurant Kiosks
Many restaurants pride themselves on their customer service and hands-on approach to their customers. Cutting back on the amount of face-time your hand-picked employees get with these customers might be seen as damaging to a restaurant’s brand.
If you end up with a kiosk system that isn’t extremely intuitive or has an interface that customers struggle with even slightly, it could defeat the kiosk’s purpose entirely. Having a server or other employee that is having to routinely walk customers through the ordering process can instantly eliminate any cost-saving benefits the kiosk could provide.
While the world in general seems to be trending toward automation more and more, there is still a large part of the populace that might be turned off by using kiosks to order as opposed to speaking to a human employee. A recent poll from Upserve found that 78% of customers said they would be less likely to frequent a restaurant that utilized self-serve kiosks. No doubt this current trend will take some getting used to for some customers.
While we’ve already discussed how kiosks may help your restaurant cut down on labor costs in the long term, you’ll likely need to do some math up front to determine if the investment is going to be worth it. In short, kiosks aren’t exactly cheap and, if not utilized correctly, they could end up being more trouble than they’re worth.
The 5 Best Kiosk POS Systems For Restaurants & How To Afford Them
Now let’s get to our bread and butter… telling you which point of sale systems might be the bet for you if you’re in the market for self-serving kiosks. The following systems are all among our favorites at Merchant Maverick and excel when it comes to providing kiosk functionality.
TouchBistro is a hybrid system best-suited for small to mid-sized restaurants and other food-service businesses. In many ways, TouchBistro has always been on the cutting edge of POS technology with strong mobile ordering functionality and a sleek designed catered specifically to make the lives of servers easy. It also was early on the scene with an automated kiosk system.
TouchBistro’s system comes with customizable branding and an easy-to-use interface that can feature pictures and descriptions of your restaurant’s products. The kiosk supports all types of payments, including Apple Pay and Android Pay and syncs with TouchBistro’s Kitchen Display System as well for restaurants. As you would guess, the kiosk also walks customers through add-ons and combos and lays out prices and options in an easily digestible format.
Toast is an excellent POS company that is Android based and prides itself on usability and its outstanding customer service. The all-in-one system is ideal for pretty much any type of food-service establishment and has one of the better tableside ordering systems in the industry. The system is feature-rich but does charge extra for some of its services like loyalty and online ordering.
Toast’s kiosk system feature’s Toast’s trademark simple interface and offers convenient order notifications directly to phone or email, eliminating the need for buzzers. Like TouchBistro, you can also customize your screen, displaying your menu items. Toast comes with a convenient scanner integration as well for establishments with quick scan and go items and Toast kiosk also syncs directly to a KDS.
Upserve is a cloud-based system that can handle any-sized food service establishment. Upserve features extensive menu building. It has a robust feature set, including strong inventory management and reporting and a simple, customizable interface. It also has strong tableside ordering functionality and a convenient Upserve Live function that allows managers to check on sales in real time from anywhere on an iPhone.
Upserve makes Bite Kiosk available and come with a unique algorithm that takes user data to help predict future customer behavior, allowing it to make suggestions and up-sell items automatically. It integrates seamlessly with Upserve, allowing for easy menu and pricing updates. It also syncs with Upserve’s loyalty program and, when purchasing, there are discounts for orders of 10 or more units.
Revel is an extremely robust hybrid system that can fit with nearly any sized restaurant or retail establishment. The iOS based system has an extremely generous back end with inventory that can handle more than 500,000 SKUs and a wide variety of reports. It offers a wide variety of ordering options and has its own delivery management system plus a impressive array of integrations.
Revel also is available with an intuitive kiosk mode. You can easily sync your loyalty program to the kiosk, allowing customers to easily look up past orders or simply make a repeat order. It also comes with the ability to take gift cards as payment. Orders are directly sent to Revel’s KDS. The interface also make it easy to browse menu items or retail inventory.
Lightspeed Restaurant is a cloud-based system designed specifically for small to mid-sized establishments but with the capacity to handle larger businesses as well. Lightspeed has a slick interface and syncs with things like mobile ordering and ecommerce plus an excellent employee management system. It also offers a convenient pricing structure, making sure you aren’t charged for features you aren’t using.
Lightspeed makes it easy to switch on its kiosk mode and conveniently walks customers through the ordering process with potential ares for up-selling and modifiers. The menu automatically syncs up with kiosk mode, making changes simple. You can also create your own payment methods, allowing customers to either pay up front or wait until after their meal.
How Small Businesses Can Afford to Invest In Kiosk POS Systems
Whether you’re interested in large, standalone kiosks or individual table kiosks, the cost can add up quickly. There are a few payment options and most companies will allow you to lease their hardware which can bring down the initial price. However, the long-term cost of leasing these systems is almost never a good idea. Buying the hardware outright ultimately saves you money but that still doesn’t solve the problem of needing cash initially when things might be tight. Fortunately, you have some options.
As a small business owner, you have some flexibility when it comes to receiving a loan. You can apply for an alternative small business loan, which can provide you with cash quickly and can be a good option if you have less than stellar credit or aren’t bringing in much money. These loans can get you the cash you need but can also have somewhat high interest rates.
There are other small business loans that you can look into as well each with slightly different terms. Loans for fledgling restaurateurs are sometimes difficult to land as the industry is viewed as risky. However, if you have a well-designed business plan, the right documents in order, and a good sense of your finances, you can dramatically increase your chances at approval. And, if you’ve run the numbers correctly and can bring down your costs by implementing kiosks, you may be able to pay off the loan quickly.
Are You Ready To Make The Jump To A Restaurant Kiosk POS System?
So hopefully you have a good sense of what kiosk systems are and what potential benefits they could provide for your business. If used properly, self-ordering systems can dramatically bring down your labor costs, increase efficiency and keep your customers happy by speeding up orders and cutting down on errors. It’s also a trend that may become the norm in the restaurant industry sooner than later.
However, that doesn’t mean that there aren’t inherent risks in making that switch. Upfront costs need to be a heavy consideration along with your customer base and your restaurant’s brand. If you rely heavily on your servers for their unique brand of customer service or have a clientele that may be wary of a more automated ordering process, it may not be worth the risk.
As a final thought, keep in mind that, if don’t immediately have the cash on hand to purchase a handful of self-ordering kiosks, you have options there as well with numerous small business loans that may be at your disposal. As with anything, do your research, crunch your numbers, and don’t hesitate to ask questions when making this important decision.
The post Why You Should Consider A Self-Ordering Kiosk For Your Restaurant (Plus The 5 Best Kiosk POS Systems & How You Can Afford Them) appeared first on Merchant Maverick.