Business Proposal For Kpos: Tqid Nepal Pvt. LTD

Reduce costly inventory overheads
Make better buying decisions

Point-of-sale (POS) is the heart of
Easy accounting
any retail business. All aspects of
Speed up your checkout lines
your operation purchasing and
Increase customer service levels
inventory
control,
customer
Use the system-generated customer
service, accounts receivable, and
Information to process direct marketing
so on come together at your
Campaigns
point of sale.
Increase traffic in store
Reduce the time spent on Back Office and
Inventory functions
Tighten up on security
Employee tracking
Real-time Reports
Improve Customer Satisfaction
Manage Using Remote Access
Easily Scalable
Efficient transaction processing
Track promotions and special offers
Improve Operational Efficiency
Improve Customer Services
KPOS
Business Proposal for

KPOS
TQID Nepal PVT. LTD.
Confedential. Copyright 2013 TQID | ALWA @TQID.COM
Contents
1. Introduction
.
2. Understanding the Retail
Market 4
2.1. What is
Retail?.................................................................................................
........................
2.2. The Supply Chain
5
2.3. Retailors Stretch Their POS System Investment
3. Factor preventing Continued Use of Old POS Systems
4. Benefits of
POS
11
4.1. What is a retailer to do?
4.2. Top 5 Business Reasons to Migrate to Cloud Based POS
12
5. Comparison of different types of POS in market
13
6. Features of KPOS
18
6.1. The Client Database

.
6.2. Sales Features
23
23
.
24
6.3. Inventory Control / Purchase Order
6.4. Invoicing
24
Confidential | Copyright 2013 TQID Nepal PVT LTD
25
1
6.5. Reports
6.6. Convenience Features
25
...
6.7. Security Features
25
.. 26
7. Cost for Developing KPOS
7.1. Pre-launch Investment
26
..
7.2. Post-launch Expenses (Monthly)
26
7.3. Total Investment
27
.. 27
8. Return of Investment
.
8.1. Software Subscription charges
8.2. Hardware Devices
28
29
30
9. Investment Distribution Plan
33
Figures and Tables

Figures
1. Figure 1. Flow diagram of Supply Chain
2. Figure 2. Comparison of different types of POS in

market.
6
18
Tables
1. Table No. 1 Benefits of POS over mechanical cash registers
11
2. Table No. 2 Comparison of legacy and current POS
System..
13
3. Table No. 3 Pre-launch investment for
TQID.
4. Table No. 4 Pre-launch Investment for
26
business.
5. Table No. 5 Post-launch
27
Expenses.
6. Table No. 6 Total Investment..
.
7. Table No. 7 Cost table for different Hardware
27
27
devices.
30
8. Table No. 8 Monthly Revenue.
.
9. Table No.9 Investment Distribution
31
Plan.. 33
10.
Table No.10 Expenses VS Revenue Chart
.
35
Graphs
1. Graph No. 1 Investment Breakdown
28
2. Graph No. 2 Predicted New Customers per month
.
31
3. Graph No. 3 No. of Customers per month
.
32
4. Graph No. 4 Revenue generated per month
32
1. Introduction:
Point-of-sale (POS) is the heart of any retail business. All aspects of
your operation, purchasing and inventory control, customer service, accounts
receivable, and so on come together at your point of sale.
To stay competitive in a fast-changing, cost-conscious marketplace,
retailers need solutions that maximize their business agility, and the legacy
POS systems that are still in use fall far short of that goal. These systems,
increasingly costly, are inflexible of giving retailers the information and
power they need to respond to market twists and turns. Retailers running the
legacy POS platform are very limited in their choice of hardware and
applications. Retailers are not able to take advantage of the cost savings
associated with competition that a Cloud based POS system provides. These
legacy POS systems were great systems of their time, but the platform
limitations have today become a serious hindrance. As a result, retailers are
not able to achieve their business objectives and are spending increasingly
more money to maintain their systems.
The primary function of point-of-sale is to make transactions, easy to
manage without sacrificing quick, efficient service or customer data. Point-ofsale also helps maintain inventory control. The point of-sale application
provides maximum efficiency, with all retail transactions conducted from a
single screen. The software will minimize the keystrokes required to ring up a
sale, handle items returned by a customer, or do a payout from the cash
drawer. Fewer keystrokes mean fewer input errors and less waiting for your
customers, which translates into a higher degree of customer satisfaction
and greater efficiency in your business operations.
A cloud based POS system has more benefit over the desktop based
POS system because it adds functionality that user can access their
information from anywhere connecting through internet. Most of the POS
system are developed targeting the huge retail stores, mega marts and big
shopping destinations. Unlike the traditional POS system, a cloud based POS
system also provides the modules feasible for small as well as huge retail
houses.
2. Understanding the Retail Market:

The retail industry is one of the most competitive markets today that
pushes retailers to continuously create new and innovate methods of
retaining customers interests and patronage. Companies are in a position
where they need to address a variety of internal and external challenges in
order to adapt to the market accordingly. These various challenges have
been identified as having an impact on revenue, market share, and
competitiveness, which all result in any companys success.
Before understanding the concept of retail, let us first go through few
terminologies.
Market - Any system or place where parties are engaged in
exchange of either goods or services is called as market. The
parties are often called as buyers and sellers. The seller offers his
goods or services to the buyer who in return purchases it in
exchange of money.
Goods - Tangible (things which can be seen and touched) physical
products which are transferred from a seller to the buyer
(consumer) to fulfill the latters need are called as goods.
2.1 What is Retail?

Retail involves the sale of goods from a single point (malls,
markets, department stores etc.) directly to the consumer in small
quantities. In a laymans language, retailing is nothing but transaction of
goods between the seller and the end user as a single unit (piece) or in small
quantities to satisfy the needs of the individual and for his direct
consumption.
Let us understand the concept with the help of an example.
Tim wanted to purchase a mobile handset. He went to the nearby store and
purchased one for himself.
In the above case, Tim is the buyer who went to a fixed location (in this case
the nearby store). He purchased a mobile handset (Quantity - One) to be
used by him. An example of retail.
The store from where Tim purchased the handset must have shown him
several options for him to select one according to his budget and need.
From where do you think the store owner (also called the retailer) purchased
all the handsets?
Here the manufacturers and the wholesalers come into the picture.
The retailers purchase goods in bulk quantities (huge numbers) to be sold to
the end-users either directly from the manufacturers or through a wholesaler.
2.2 The Supply chain

A supply chain consists of all parties involved, directly or indirectly, in
fulfilling a customer request. The supply chain not only includes the
manufacturer and suppliers, but also transporters, warehouses, retailers, and
customers themselves. Within each organization, such as manufacturer, the
supply chain includes all functions involved in receiving and filling a
customer request. These functions include, but are not limited to, new
product development, marketing, operations, distribution, finance, and
customer service.
Consider a customer walking into a Wal-Mart store to purchase
detergent. The supply chain begins with the customer and their need for
detergent. The next stage of this supply chain is the Wal-Mart retail store
that the customer visits. Wal-Mart stocks its shelves using inventory that
may have been supplied from a finished-goods warehouse that Wal-Mart
manages or from a distributor using trucks supplied by a third party. The
distributor in turn is stocked by the manufacturer (say Procter & Gamble
[P&G] in this case). The P&G manufacturing plant receives raw material from
a variety of suppliers who may themselves have been supplied by lower tier
suppliers. For example, packaging material may come from Tenneco
packaging while Tenneco receives raw materials to manufacture the
packaging from other suppliers.
A supply chain is dynamic and involves the constant flow of
information, product, and funds between different stages. In our example,
Wal-Mart provides the product, as well as pricing and availability information,
to the customer. The customer transfers a fund to Wal-Mart. Wal-Mart
conveys point-of-sales data as well as replenishment order via trucks back to
the store. Wal-Mart transfers funds to the distributor after the replenishment.
The distributor also provides pricing information and sends delivery
schedules to Wal-Mart. Similar information, material, and fund flows take
place across the entire supply chain.
In another example, when a customer purchases online from Dell
Computer, the supply chain includes, among others, the customer, Dells
Web site that takes the customers order, the Dell assembly plant, and all of
Dells suppliers and their suppliers. The Web site provides the customer with
information regarding pricing, product variety, and product availability.
Having made a product choice, the customer enters the site to check the
status of the order. Stages further up the supply chain use customer order
information to fill the order. That process involves an additional flow of
information, product, and funds between various stages of the supply chain.
These examples illustrate that the customer is an integral part of the
supply chain. The primary purpose from the existence of any supply chain is
to satisfy customer needs, in the process generating profits for itself. Supply
chain activities begin with a customer order and end when a satisfied
customer has paid for his or her purchase. The term supply chain conjures up
images of product or supply moving from suppliers to manufacturers to
distributors to retailers to customers along a chain. It is important to
visualize information, funds, and product flows along both directions of this
chain. The term supply chain may also imply that only one player is involved
at each stage. In reality, a manufacturer may receive material from several
suppliers and then supply several distributors. Thus, most supply chains are
actually networks. It may be more accurate to use the term supply network
or supply web to describe the structure of most supply chains.
A typical supply chain may involve a variety of stages. These supply
chain stages include:
Customers
Retailers
Wholesalers/Distributors
Manufacturers
Component/Raw material suppliers
Each stage need not be presented in a supply chain. The appropriate
design of the supply chain will depend on both the customers needs and the
roles of the stages involved. In some cases, such as Dell, a manufacturer
may fill customer orders directly. Dell builds-to-order; that is, a customer
order initiates manufacturing at Dell. Dell does not have a retailer,
wholesaler, or distributor in its supply chain. In other cases, such as the mail
order company L.L. Bean, manufacturers do not respond to customer orders
directly. In this case, L.L. Bean maintains an inventory or product from which
they fill customer orders. Compared to the Dell supply chain, the L.L. Bean
supply chain contains an extra stage (the retailer, L.L. Bean itself) between
the customer and the manufacturer. In the case of other retail stores, the
supply chain may also contain a wholesaler or distributor between the store
and the manufacturer.
Fig. 1 Flow diagram of Supply Chain

Suppliers A party that supplies goods or services. A supplier may
be distinguished from a contractor or subcontractor, who commonly
adds specialized input to deliverables. Also called Vendor. Supplier
supplies the raw materials to the Manufactures.
Manufacturers Manufacturers are the ones who are involved in
production of goods with the help of machines, labor and raw
materials. A manufacturer produces the product.
Wholesaler The wholesaler is the one who purchases the goods
from the manufacturers and sells to the retailers in large numbers
but at a lower price. A wholesaler never sells goods directly to the
end users. Wholesaler distributes the product.
Retailer Retailers are those who sell the products in small
quantities to the end users as per their requirement and need.
Retailer sells the product.
Customers
consumes products (goods or services)
choose between different products
consume the product.
A party that receives or

and
has
the ability to
and suppliers. Customers
The end user goes to the retailer to buy the goods (products) in small
quantities to satisfy his needs and demands. The complete process is also
called as Shopping.
2.3 Retailers Stretch Their POS Systems Investments

Typically retailers refresh (replace) their store systems every five or so
years. This includes a hardware and software refresh. A few years ago, based
on the beginning of this economic slowdown, retailers started keeping their
systems longer and extending the replacement cycle. Some replacements
occurred in the 2006 to 2007 time period. However, when the current
dramatic recession occurred most retailers deferred any systems
replacements.
They were able to do so due to the quality of the systems that they
had previously implemented. IBM, for example, is the market leader in point
of sale equipment with its SurePOS point of sale hardware offerings. The
IBM POS systems are retail hardened and built for long life. IBM has even
patented retail dirt to be used in testing of the POS hardware to ensure it
lasts in the store environment. Due to this quality, IBM POS last a long time
and have a high resale value. Retailers are able to get extended life out of
the units. Some retailers have utilized IBM POS systems for over 15 years.
The challenge of older IBM POS systems is that they often run the DOS
operating system and are not powerful enough to run todays rich Point of
Sale software applications. As a result capabilities to implement new features
that help increase sales and improve customer service are not possible. So
although the hardware has lasted a long time, the technology under the
covers of the old POS systems is not current with the processors and memory
needed to run more modern applications.
As long as these older systems meet the business requirements of the
retailer, it appears that extending their life in the stores is a sound economic
decision. However, there are hidden costs and other factors to consider.
3. Factors Preventing Continued Use of Old POS Systems

Retail systems providers have attempted to assist retailers who try to
extend their systems but have often reached limits due to the technology or
obsolete software applications that run on these older systems.
Some factors facing retailers that result in the necessity to replace the
systems are:
Compliance Deadlines All merchants that accept credit cards must

implement point of sale payment applications that are PA DSS
validated to support the VISA mandate by July 2010. These older
systems with software applications that are no longer supported (and
therefore not PA DSS validated) in most cases cannot support this
requirement. To achieve the deadline and avoid fines that will be
imposed by failure to comply, retailers need to initiate the replacement
of their old systems immediately.
Protection of Sensitive Customer Data news headlines have

provided ample examples of the cost of breaches of sensitive credit
card data of retail customers. The costs to the businesses have been in
the millions of dollars in addition to significant damage to the retailers
reputation and customer loyalty. In conjunction with PCI DSS
Compliance standards, newer systems are needed to adequately
protect sensitive customer data.
Point of Sale is Mission Critical one retail systems professional

recently said that retailers could operate their stores from a cigar box if
necessary and therefore do not see the value in point of sale systems.
Quite to the contrary, point of sale systems are mission critical
elements of a retailers business and should be viewed as necessary as
store leases, fixtures, and merchandise to the success of the business.
If the retailer attempts to justify the point of sale systems replacement
solely by a return on investment (ROI) calculation, they are missing key
strategic considerations that are important to the overall success of
their retail business.
Hidden cost of hardware failures and maintenance costs

although there are high quality systems in the stores, as these systems
are utilized for excessively long periods of time, the failure rate
increases over time. Receipt printers, for example, are one of the
hardest worked components of the system and are subject to failure.
IBM has great Mean Time Between Failures (MTBF) statistics. However,
the hardware does not last forever. Component failure results in lost
time in the stores and interruption of customer service. In addition, the
annual maintenance cost of older hardware is expensive. At times the
warranty of new systems can make a good contribution to the
purchase price through the savings achieved on annual hardware
maintenance expenses.
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Limitation of old hardware and software In addition to speeds

and capabilities of the newer hardware, the capability of the newer
systems to run todays generation of point of sale software applications
cannot be overstated in its value to contribute to the success of the
retailer. Beyond the mandates of PCI Compliance that are forcing a
change, the retailer can benefit from a whole host of new features and
applications. For example, specialty retailers carefully hone their
business concepts to present their brands, stores, etc. in a concise way
to attract their customers. They want to provide the best customer
experience, build loyalty, and ensure repeat business. POS systems
can be a barrier to the programs that the retailer wants to implement
to insure the best experience for their customers or an asset. Older
systems unfortunately cannot match new systems in this area.
Customer expectations consumers during this recession are

extremely value conscious. They expect to be presented with value, to
be serviced quickly and reliably, and for the retailer to have state of
the art systems to support them. Retailers fight hard in a very
competitive market to capture their share of the consumers limited
dollar. Consumers know what good point of sale systems can provide
from their experience shopping in a variety of stores. If a retailer does
not have a current system, it can impact the consumer and result in
lost business. All the hard work, marketing, merchandising, and store
sales personnel efforts come down to the point where the consumer
faces the point of sale system to complete the transaction. This is the
make or break point for customer satisfaction.
Centralized Database A centralized DBM has several advantages

over such stand-alone systems:
Reduced redundancy good planning can allow duplicate or

similar data stored in different files for different applications to
be combined and stored only once.
Improved availability information may be made available to

any application program through the use of the DBM
Reduced inconsistency if the same data is stored in more than

one place, then updating in one place and not everywhere can
lead to inconsistencies in the database.
11
Enforced data security authorization to use information can be

centralized.
For the purpose of Retail management, the issue of improved

availability is particularly important. Most application programs create
and own particular datafiles in the sense that information is difficult to obtain
directly for other applications. Common problems in attempting to transfer
data between such special purpose files are missing data items, unusable
formats, and unknown formats.
As an example, suppose that the Purchasing Department keeps records of
equipment rental costs on each project underway. This data is arranged so
that payment of invoices can be handled expeditiously and project accounts
are properly debited. The records are arranged by individual suppliers for this
purpose. These records might not be particularly useful for the purpose of
preparing cost estimates since:
Some suppliers might not exist in the historical record.
Finding the lowest cost supplier for particular pieces of equipment

would be exceedingly tedious since every record would have to be read
to find the desired piece of equipment and the cost.
No direct way of abstracting the equipment codes and prices might

exist.
An alternative arrangement might be to separately record equipment rental

costs in
(1) Purchasing Department Records,
(2) Cost Estimating Division, and
(3) Company warehouse.
While these multiple databases might each be designed for the individual
use, they represent considerable redundancy and could easily result in
inconsistencies as prices change over time. With a centralized database,
desired views for each of these three users could be developed from a single
database of equipment costs.
Lack of Analytics Today, point-of-sale solutions offer a great way to

monitor sales transactions, as well as manage other aspects of a retail
business. However, many solutions lack the capacity to provide
analytical information on retailers sales opportunity. By measuring inConfidential | Copyright 2013 TQID Nepal PVT LTD
12
store traffic data, retailers can monitor purchasing conversion rates

and enact operational adjustments to help make the business more
profitable. As an Example, Lets Consider By integrating both traffic
collection data and transactional sales data within the POS solution,
retailers would gain greater visibility into their stores conversion rates
or the rate at which store customers make an in-store purchase.
Retailers could then use these metrics to gain better knowledge of the
customers entering the store. With this insight, retailers would have
better information at their disposal to make decisions on how to
improve conversion rates, streamline operations and boost profits.
Doesnt address new problems and technical advancements

introduced in last decade Social media advertising has taken a
boost in the last decade; increasing awareness about a product
through social media has become a major part of advertisement. Easy
integration of new coupons/loyalty and rewards programs introduced at
a fast rate. Mobilization of terminal which includes mobile POS card
readers and payment using online payment gateways has increased in
last decade. Legacy system has not been able to address these types
of changes.
4. Benefits of POS
Here are just a few benefits of POS over mechanical cash
registers.
Inventory Control
Invoicing and
Receiving
Interface And GUI
Accounting Reports
Enforced accuracy
Integrated CC
handling
General Ledger
Accounts
Payable Accounts
POS
System
Cash
Registers
YES
NO
YES
YES
YES
YES
NO
NO
Limited
NO
YES
Limited
YES
YES
Limited
NO
13
Receivable
Tax consultants
Reporting
Analytics
Customer Data
YES
YES
YES
YES
YES
NO
NO
NO
NO
NO
Table No. 1. Benefits of POS over mechanical cash registers
4.1 What is a retailer to do?

Due to the recession, retailers have better options than ever before in
replacing their point of sale systems. Although retailers do not realize it, now
is the best time to replace their systems.
Some key reasons that this is true are:
Manufacturers and software companies are hungry for

business the recession has affected the demand for new point of
sale systems so manufacturers and software companies are eager for
new business and willing to make deals. There has been consolidation
in the retail systems software space over the last few years. However,
the market remains highly competitive with many companies such as
Sale Point that specialize in certain market segments, provide value
based solutions, and earn great customer satisfaction ratings. These
companies will assist the retailer in reviewing options and obtaining
the best deal possible.
New features and functionality can increase revenues

Centralized returns, customer loyalty, centralized customer marketing,
gift card programs, fast centralized credit authorization and other
features found in todays software can result in reduced costs and
increased revenues for the retailer.
Enhanced integration can improve overall business in the past

point of sale applications running in the stores were information silos of
limited data that was batched overnight to corporate retail systems.
Now with high speed internet connections to the stores, point of sale
applications provide an integrated system for the retailer that allows
14
them to perform real time functions to support their sales and

operations.
Adjust to the new level of consumer demand inventory

management has always been a key driver of point of sale transaction
tracking. Now more than ever, having rapid and reliable data on
inventory movement in the stores is critical to adjusting to a consumer
demand that has changed during the recession from the demand that
the retailer had experienced before. Quick and responsive systems are
keys to not having inventory tied up that is not moving and must be
marked down. Multi-Channel retailing and integration of e-Commerce
and brick and mortar stores can be handled by the newer systems.
4.2 Top 5 Business Reasons to Migrate to Cloud Based POS

Retailers typically stay with their POS systems for years because of the
costs involved in upgrading their entire infrastructure. The constraints
retailers are facing today because of these systems and the vision they have
for the future are show in the chart below.
Todays Constraints
multiple,
systems
The Vision
fragmented
proprietary data
data integrity
user isolation
inflexible to change
industry leverage
data management
consistent user interfaces
interoperability assurances
highly
maneuverable
reduce operating costs
meet and exceed customer

expectations
flexible,
Table No. 2 Comparison of legacy and current POS System
15
Todays constraints with the other POS are prohibiting retailers from
achieving their future vision. Seamless communication across the enterprise
is difficult to achieve. With data stored in a proprietary file system on the
operating system, access to information is limited. The only way to read the
data is by using a proprietary API. This proprietary format limits the ability
for near real-time access to data and other business intelligence activities at
the store level.
User isolation is another constraint of the existing POS. The user
interfaces are typically text-based and more difficult to use. This makes the
employees job much more difficult than with graphical user interfaces. As a
result, a greater level of training is necessary. In an industry where
employee turnover is high to begin with, anything that can help reduce
training costs is critical.
Probably one of the biggest constraints is the inflexibility to change.
The operating system is tied to the hardware. You are limited to a single
vendors innovation and delivery.
The end result is that your retail
organization cannot quickly change with the marketplace.
Retailers have a vision for the future where these constraints are lifted.
That future vision, as shown from a technology perspective in the chart
above, can best be summarized into five business objectives:
Improve Business Agility
Improve Operational Efficiency
Have Better Access to Information
Control Hardware, Software, and Labor Costs
Improve Customer Service
In this section, we will take a look at these five business objectives in

more detail and will show how migrating to cloud based POS system will
allow retailers to meet each of these objectives. With the roadblocks of
proprietary systems out of the way, retailers will then be in a much better
position to increase sales and market share through improved customer
service, while lowering their expenses through reduced system acquisition
costs, lower life-cycle maintenance costs, and higher employee proficiency .
1. Improve Business Agility
16
Businesses must have the ability to quickly adapt to changing business

needs. It can be very costly to invest in a solution today that will not grow
with your business needs. If the platform retailer chooses doesnt allow
them to quickly adapt to those changing conditions, then they will face
numerous roadblocks along the way that can become quite a hindrance.
To retailers and other businesses, having CHOICE in selecting hardware
and software is critical. They need the ability to take advantage of best-ofbreed applications that provide the best functionality for the best price.
Improving service offerings is critical for retailers to stay competitive in
todays fast paced environment.
With legacy systems, business agility is limited for three reasons:

1. Lack of technological innovation,
2. Non-adherence to industry standards, and
3. Lack of migration path.
With cloud based POS systems, on the other hand, your business
agility is greatly improved.
2. Improve Operational Efficiency

Many retailers are capitalizing on their recognized brand name and the
consumers emphasis on convenience to expand into other areas of retail
under the same (probably enlarged) roof or through other channels such as
the Internet. One example is the number of supermarkets that now boast
video rental, pharmacy, and dry-cleaning departments. Another example of
the blurring boundaries is the emergence of the super retailers, which sell
into virtually every sector of retail.
As stores grow in size and available services, the ability to improve
operational efficiency is crucial.
System integration and increased
functionality are two important aspects of improving operational efficiency.
3. Have Better Access to Information
Retailers are also finding they need better access to information. As
the retail environment has grown more complex, managers have to take an
increasing number of factors into account in making their decisions. This
means that information of all kinds (customer, trading, product, supplier,
17
availability, and so on) must be easily available to the managers that need it,
wherever they are.
This is where Cloud based POS systems shine. Business solutions
based on cloud allow retailers to make more informed, timely decisions to
quickly and profitably respond to changing customers needs.
By
empowering employees with this business intelligence at the store level,
they will have fast access to a whole new world of information that can be
leveraged to positively affect business operations in new and creative ways.
Global retailer Marks & Spencer has recognized the benefits of moving
data quickly through their enterprise. They implemented a solution based on
BizTalk Server 2000, XML, and the ActiveStore Sales Transaction RBI that
allows data to move to their data center in near real-time. By implementing
this system, Marks & Spencer is expected to realize a 4% increase in revenue
growth and a 10% reduction in accounting and inventory costs, for a total
business value of $17 million (U.S.).
Another important aspect of data analysis is reporting requirements.
With cloud based POS systems and relational databases, report generation is
much simpler. You can take advantage of powerful data analysis software to
quickly dissect the information needed to run your organization. A question
that sometimes comes up about relational databases is whether they will be
able to operate quickly at point-of-sale. The answer is yes. Not only can you
gain the benefits that relational databases offer, but you can do so without
having to sacrifice performance. The hardware and software available today
for POS systems are well equipped to provide timely responses at cash
registers that interact with relational databases.
4. Control Hardware, Software, and Labor Costs

Controlling operating costs has been a top-of-mind issue for retailers
since the industry was born. Hardware, software, and labor costs all have a
significant role in impacting the bottom line of their enterprise. Retailers
using proprietary POS systems today are finding the need to investigate
other alternatives because the ongoing operating costs are becoming quite
expensive for them to bear.
With POS systems, retailers have an immense number of individuals
qualified and interested in using solutions. They are easier to hire, train, and
retain. By solving the labour problem, retailers can keep their labour costs
and ultimately retailers overall operating costs under control.
More
importantly, retailers speed to market is improved in delivery IT support for
business objectives.
18
Another reason that POS systems can potentially help you lower
operating costs is because of the streamlined operational efficiency
discussed earlier. With a common look and feel across various applications,
employees, such as the sales clerks, are more productive no matter what
department they are assigned to on any given day. This decreases training
costs and costs associated with lower productivity.
With user interfaces that are easier to work with for employees, they
are also likely to be happier because their work is easier to accomplish. In an
industry where employee turnover is high already, anything that can be done
to make the employees job more productive and manageable can only help
in lowering the high turnover rate. All of these have a positive impact in
controlling operating costs within the enterprise.
For example, NCRs popular DynaKey solution helps retailers reduce
training by as much as 60% and increase productivity by as much as 20%.
DynaKey provides retailers with an intuitive user interface. Touch screen
systems with graphical user interfaces have also been shown to reduce
training when compared to keyboard-only systems.
In our software we will come up with very unique GUI design, which will
be designed in such a way that even the novice user can adapt the system
very easily and in less time duration. This will allow us to reduce the
training cost by 75%.
By migrating to a POS systems environment, retailers can control their
hardware and software costs by having the freedom to choose from multiple
vendors. This allows their development staff to make use of powerful
development tools on open systems that allow quicker development and
implementation of new solutions. As a result, retailers can lower your labour
and training costs by implementing more intuitive interfaces for their
employees.
5. Improve Customer Service
Customers are more aware of their power and are not afraid to ask for
what they want. Retailers must earn their customers business over and
over by providing excellent service, competitive prices, and attractive
incentives. Retailers need to be able to anticipate merchandise trends, and
to make the shopping experience convenient for the customer. At the same
time, retailers have the opportunity to collect more kinds of information
about consumers and their spending habits. Retailers who have the ability to
mine the information they need and react to it quickly can offer targeted
promotions and enjoy increased revenue opportunities. POS systems can be
the solution to this problem that retailers have been looking for.
19
Improving customer service is a natural result of achieving the other

business objectives weve discussed so far. For example, when you have the
ability to analyze information better, you have the ability to determine what
your customers want. If they come into the store and you are out of what
they need, then they are going to leave unhappy.
When retailers operation runs smoother and their associates are
happier, they treat customers better. If they are able to perform their job
easier, the customers will receive better service and will have a more
pleasant experience. Retailers never want to make their customer feel
frustrated and like they are a burden. They want to make it easy and
efficient for them to move through the lines and they will be happy to return.
Productive employees mean less waiting in lines for customers. Improving
operational efficiency is a key step to helping customers receive the service
they deserve.
With POS systems, retailers can provide their customer with a richer
environment, such as streaming media for promotions and news items. They
also can make use of smart cards and other features to improve the
shopping experience. Having the business agility to change according to
customer demands is critical. Retail organizations that are able to adapt the
quickest in todays fast changing marketplace are most likely to win the
hearts of the customers. Retailers who do not have the agility to change
with the market will find themselves losing to their competitors.
Another facet of improving customer service is controlling your
operating costs. If retailers control their operating costs, then they are able
to pass more savings along to the customer. If they have to spend less
money in labour, hardware, software, and training, then they have more of a
margin to provide customers with great deals that will keep them coming
back over and over again.
5. Comparison of different types of POS in market

Getcube
Leaf POS
Quickbook
Lightspee
Square
20
POS
POS
d POS
POS
Devices Used
iPad
iPhone
Cash Drawers
Recepit Printer
Barcode Reader
Card Processors
on iOS Devices
HandHeld Devices
Mac
Reporting
Sales
Cash
Labour/Employee
Use of Analytics
Cloud Based
Management
Encryption
Uses
Retail Stores
Resturaunts/Foodi
ng
Data
Syncronization
Price(1 user)
2.5% per
Swipe
$ 150/
month
$1,599.95
$1,899
$275 /
month
Highlighted
Features
Highlighted
Features
Highlighte
d Features
Highlighte
d Feature
Highlighte
d Feature
Interactive
Receipts
Mobile
Sync to
capture
mobile
payments
Integrated
Ecommerce
Wallet
Getcube
payment
system
Automatic
Bank
Deposits
Social Media
Integration
Easily
Available API
Register
21
Figure No. 2 Comparison of different types of POS in market
The following list is a representative sample of POS Software

Suppliers.
22
23
24
25
6. Features of KPOS:
The point of sale screen has the following features:
Easy to learn - You do not have to send your staff out for
expensive training.
Easy to use - Requires minimum keystrokes and the mouse is

never required (but you can use it if you want).
Flexible - Handles any combination of discounts, taxes, returns,

credits and sale specials in one easy transaction.
Automatic - Applies automatic discounts or preferred price

levels to special customers.
Rewarding - Helps your staff to practice suggestion selling and

tracks their sales commissions.
Accommodating - If something is not in stock you can send a

customer order to the purchase order system.
Secure - You control who can see the profit margins and stock
counts.
Customer-oriented - Lets you reward your best customers with

a bonus points program.
Versatile - Prints sales slips, price quotes, packing slips and

account invoices.
Up To Date - Works with all the current retail devices including

bar code and credit card readers, customer display, cash drawer,
barcoded scales, a two-color receipt printer and runs on any
network.
6.1 The Client Database

A client database contains your customer's names, addresses and
purchase histories. It keeps useful information about each customer that can
help you with marketing and sales management. Some features of the client
database are:
26
Fast - Lets you find a customer fast using a name, phone

number, or a point-and-shoot pick list.
Informative - Shows you who bought what, when, for how

much, how they paid, and who sold it to them.
Complete - Lets you keep notes on individual customers and

even a photo if you wish.
Accurate - Creates accurately targeted mailing lists for special

promotions or even product recalls.
Attracting a new customer costs much more than keeping an old one.
Mailings can be targeted using any aspect of the customer's purchase history
which generates a much larger response than non-targeted mailings. There
are many ways you can use the system's customer data to increase sales
volume. In addition to the purchase history client database can also include
memos for recording of any key information about a customer.
6.2 Sales Features
Works with touch screens based systems

Time Based Discount Rules (Buy X Get Y for Z%, Mix and Match,
etc.)
Recurring billing with card on file (great for club management
and service
Businesses)
VAT for countries that support a Value Added Tax
Open multiple sales screens
Line item consolidation
Consolidated item listing
Serial number tracking
Layaways
Credit card processing options. Use one of our integrated
processors to get
the lowest rates. Or use your own.
Split payment media. Handle all those Visa gift cards being used
for payment.
Sales Manager. Allows you to view, reprint receipts, change,
copy and void
sales. View saved sales, open orders (deposits), layaways, gift
certificates and
27
daily sales totals.
6.3 Inventory Control / Purchase Orders

Good inventory control means balancing the expectations of your
customers and your bankers, so you must avoid being either under stocked
or overstocked. Here are some inventory control features:
Flexible - Auto-generate purchase orders using a variety of

calculation methods.
Current - Get up-to-the-minute reports for sales, inventory, low

stock, over stock, and on-order items.
Precise - Read data from a portable stock counting device.
In Control - Do on-screen preview and editing of purchase

orders.
Fine Tuned - Consider base stock, re-order points, re-order

quantities and sales performance when calculating orders.
Focused - Limit any report to selected items, suppliers or

departments.
The inventory system includes a wide selection of processes from

receiving & transferring stock to importing & exporting stock data. The
system also uses the internet to transmit inventory adds & changes, sales
logs and stock levels between stores or to and from head office.
6.4 Invoicing
The built-in invoicing system has:
Fast payment and reprinting options.
Client oriented displays - its always easy to pull up all Jane Doe's
invoices.
28
Monthly statements and late charges.
Option to open the invoice database in MS-Excel.
A screen for reviewing any client's invoices.
6.5 Reports
Well-designed reports can reveal some surprises about the nature of
your business. Examples include:
A selection of weekly, monthly and quarterly sales reports

including top sellers.
A selection of inventory reports including overstock, under stock,

audit and shrinkage.
Options to focus any report on selected items, suppliers,

department or code range.
History of daily sales and POS totals.
Option to subtotal reports by department.
Catalogue style output with product description, stock numbers,

and prices.
Export of sales data to a spreadsheet program for further

analysis.
6.6 Convenience Features

The goal of POS system is to let you concentrate on your sales and
customers, not on your computer. The convenience features are:
Extensive use of pick lists for finding items, invoices or clients

(including client lookup by name, company phone number or
customer number).
Support for multiple inventory files - and stock transfers between

stores.
Sales tracking by product, department and client.
29
Comparative sales histories.
Price quotes that can be recalled and processed as sales.
Import inventory from other databases.
Store all data in a common file format for access by other

programs.
Stock code duplication check.
POS screen can display the all-time total spent by a client.
6.7 Security Features

Security refers to two different things:
1 - The ability to limit access to information or program functions. This is
used to make sure that staff cannot make unauthorized transactions or see
confidential information. Each employee is assigned a Username and
password to determine their access level.
Some of the features are:
Username determine the functions a person can use.
All sales transactions are logged with the date, time and name of
the sales person.
Optional requirement for a manager's password before the

system will void a sale.
A training mode, in which all POS functions can be used but no

data is saved.
2 - The ability to roll back (restore) your data to a previously saved version.
This is used to undo the results of serious errors. For example, say you delete
twenty invoices and then discover that they were the wrong twenty.
Everyone who works with computers has days like that (bar none). An easy
way
out
can
avoid
big
headaches.
The rollback features are:
30
Selective roll back - the user can choose sales, inventory, and
client or invoice data.
Selective or batch backup - back up selected files or do them all

in a at once.
Automatic warning if your disk space runs low.
7. Costs for Developing KPOS:

7.1 Pre-launch Investment
For TQID
RnD
Software Development
Hardware Cost
Total
Amount
$2,000.00
$70,000.00
$3,000.00
$75,000.00
Table No. 3. Pre-launch Investment

for TQID
For business
Market Survey/Initial Lead collection
Business Registration & legal
formalities
Amount
$10,000.00
Total
$15,000.00
$5,000.00
Table No. 4. Pre-launch Investment for business
7.2 Post- launch Expenses (Monthly):

Amount
$250.00
$1,000.00
Cloud hosting
Support & Development
Employment Expenses
(2
Employee)
Marketing Expenses
Misc. Expenses (Administrative)
$2,000.00
$1,000.00
$1,000.00
Total
$5,250.00
31
Table No. 5. Post-launch Expenses
Market and Employee Expenses is directly proportional to No. of sales
7.3 Total investment:

This table includes cost for pre-launch Investment (both TQID and
business) and Post launch Expenses for at least 4 month
Amount
Pre-launch Investment
For TQID
For business
$75,000.00
$15,000.00
Post- launch Expenses

Working Capital for 6 months (6 X 5250)
Total
$31,500.00
$121,500.00
Table No. 6. Total Investment
32
Investment Breakdown
Legal Formalities and Incorporation Costs; 26%
Suggested Marketing Budget; 4%
Pre-launch Investment; 62%

System Development Cost; 8%
Graph No.1 Investment Breakdown
8. Return of Investment:
Most POS systems are sold by vendors who are able to implement the
complete system: software installation, programming, hardware setup,
maintenance, and even employee training and merchant services. Many
businesses experience sticker shock after learning that POS software,
compatible hardware, and programming costs can run upwards of $10,000.
It is important to remember that a POS system is an investment- in most
cases you really do get what you pay for.
A good POS system will make your employees more efficient (saving on
payroll), make record keeping easier (saving on administrative costs), and
make your customers happier (resulting in more sales). Conversely, a
cheaper but poorly implemented or poorly customized POS system will
actually cost your business money. Many businesses have made the mistake
33
of purchasing a one-size-fits all system only to find out how difficult it is to

program, and end up not using the system at all. If your system is confusing,
it might cost employee time and resources. Systems that are not accurate
can result in record keeping mistakes, which can be disastrous if you are ever
audited or if you file an error-ridden tax return. All of these theoretical costs
are important to consider in addition to the sticker price of the system.
Some other important costs to consider:
Equipment- At minimum, POS systems require a separate computer on
which to run the system, which will usually cost less than $1,000.
Keyboards, scanners, and equipment for credit card processing. All vary in
cost depending on the model and number purchased.
Maintenance and service- Some vendors provide maintenance or
warranties as part of the initial purchase. Pre-paying for maintenance or
purchasing a warranty is a good way to save on these peripheral costs.
Employee training- No matter what system you implement, youll have to
spend time and money training your employees. A vendor can offer these
services will be able to help employees understand how to use the system
efficiently.
Compatibility with existing merchant services: Most POS systems allow
credit card processing at the POS terminal, and can be linked to an existing
merchant account. There may be costs associated with switching to a
different account provider if the POS system you wish to use is not
compatible with your current system.
8.1 Software Subscription charges:

This can be categorized into 2 Categories:
1. Monthly Subscription, and
2. Yearly Subscription
1. Monthly Subscription:
In this type of subscription, you can charge your customer on
monthly basis. Currently POS software in market ranges from $50 $200.
You can charge your client $150
2. Yearly Subscription:
34
In this type of subscription, you can charge your customer in

yearly basis. Currently POS software in Market ranges from $1000 $2500.
You can charge your client $1500
As per the above Table No.5 where we have discussed about Employee
expenses (i.e. 2 employees), if these employees can generate at least 5
sales per month.
2 Employees = 10 sales
As per the above table No. where we have discussed about Marketing
Expenses ($1000= 1000 clicks in Google AdSense). Even if 100 clicks
generates 1 sales then,
1000 clicks will generate 10 sales.
So total no of sales will be 20.
Income in that month will be (20 X $150) = $3000
8.2 Hardware Devices:
You can sell compatible hardware component of your software to your

client. Below table represents the Current market value of hardware:
Devices
Credit Card Reader
Receipt Printer
Bar Code Scanner
PIN Pad with
Integrated Card
Pole Display
Electronic Cash
Register
Credit Card Reader for
iPhone and iPad
Current Market
Value
$50 - $75
$200 - $300
$200 - $300
$300 - $400
$ 200 - &400
$300 - $400
$200 - $300
Table No. 7. Cost table for different Hardware devices
All Data and Time Frame in the below Table Is Post Launch and will
depend on actual date of launch
35
Month
Predicted
New
Customers
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
7
13
20
8
15
7
20
19
15
14
9
14
11
17
10
16
20
9
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Custome
r
Attrition
Total
Customer
s
Net
Increase
In
Revenue
2
2
3
3
1
2
1
3
2
1
3
1
1
2
1
1
3
7
18
36
41
53
59
77
95
107
119
127
138
148
164
172
187
206
212
$1,050.00
$1,650.00
$2,700.00
$750.00
$1,800.00
$900.00
$2,700.00
$2,700.00
$1,800.00
$1,800.00
$1,200.00
$1,650.00
$1,500.00
$2,400.00
$1,200.00
$2,250.00
$2,850.00
$900.00
Cumulative
Monthly
Revenue
$1,050.00
$2,700.00
$5,400.00
$6,150.00
$7,950.00
$8,850.00
$11,550.00
$14,250.00
$16,050.00
$17,850.00
$19,050.00
$20,700.00
$22,200.00
$24,600.00
$25,800.00
$28,050.00
$30,900.00
$31,800.00
Table No. 8. Monthly Revenue
Predicted New Customers

25
20
15
10
5
0
36
Graph No. 2. Predicted New Customers per month
250
200
150
Total No. of Customer
100
50
Graph No. 3. No. of customers per month
37
Chart Title
35000
30000
25000
20000
Monthly Revenue in USD
15000
10000
5000
0
Graph No. 4. Revenue generated per month
9. Investment Distribution Plan

In this section we will see the investment distributed over some time
period. Below table will give the clear picture of your investment over 18
months for developing the software, marketing and legal formalities for
business.
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
1
2
3
4
5
6
7
8
9
10
RnD and documentation by TQID

Contract signing
Amount
$2,000.00
$20,000.00
Hardware Purchase for TQID

Milestone 1
$3,000.00
$8,750.00
Milestone 2
$8,750.00
38
Month 11
Month 12
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Milestone 3
Marketing
Legal Formalities and Incorporation
(Flexible)
Marketing
Marketing
Marketing
Milestone 4
Marketing
Post Launch Expenses Month1
Remaining Amount of TQID
$8,750.00
$2,000.00
$5,000.00
$2,000.00
$2,000.00
$2,000.00
$8,750.00
$2,000.00
$5,250.00
$5,250.00
$15,000.00
$5,250.00
$5,250.00
Table No. 9. Investment Distribution Plan
Expenses vs. Revenue Summary for 36 months

Time
Period
Descriptio
n
Month 2
Month 3
Month 5
Month 6
Month 7
Month
Month
Month
Month
8
9
10
11
Cash Out
(Expenses Revenue
)
$
2,000.00
$
20,000.00
Month 1
Month 4
Cash Out
(Investme
nt)
$
System
3,000.00
Design and
$
Development 8,750.00
$
8,750.00
Incremental
Development
39
Month 12
Month 13
and Testing
System Beta
Launch
Month 14
Month 15
Month 16
Month 17
Testing /
Marketing
/Ramp Up
Period
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
Month 25
Month 26
Month 27
Month 28
Month 29
Month 30
Month 31
Month 32
Month 33
System
starts
revenue
generation
10,750.00
$
2,000.00
$
2,000.00
$
7,000.00
$
10,750.00
$
5,250.00
$
5,250.00
$
20,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
1,050.00
$
2,700.00
$
5,400.00
$
6,150.00
$
7,950.00
$
8,850.00
$
11,550.00
$
14,250.00
$
16,050.00
$
17,850.00
$
19,050.00
$
20,700.00
$
22,200.00
$
24,600.00
$
25,800.00
40
Month 34
Month 35
Month 36
Total
$
111,000.00
Grand Total Cash Out

Grand Total Cash In
Basic Monthly Profit @ End of 3 year
Cycle
$
5,250.00
$
5,250.00
$
5,250.00
$
89,250.00
$
28,050.00
$
30,900.00
$
31,800.00
$
294,900.00
$
$
200,250.00
294,900.00
26,550.00
Table No. 10. Expenses V/S Revenue Chart
41

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Reduce costly inventory overheads

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Confedential. Copyright 2013 TQID | ALWA @TQID.COM

3. Factor preventing Continued Use of Old POS Systems

4.2. Top 5 Business Reasons to Migrate to Cloud Based POS

5. Comparison of different types of POS in market

6.1. The Client Database

Confidential | Copyright 2013 TQID Nepal PVT LTD

6.6. Convenience Features

7.1. Pre-launch Investment

7.3. Total Investment

8.2. Hardware Devices

Figures and Tables

2. Figure 2. Comparison of different types of POS in

Confidential | Copyright 2013 TQID Nepal PVT LTD

Confidential | Copyright 2013 TQID Nepal PVT LTD

4. Graph No. 4 Revenue generated per month

2. Understanding the Retail Market:

2.1 What is Retail?

Confidential | Copyright 2013 TQID Nepal PVT LTD

2.2 The Supply chain

Fig. 1 Flow diagram of Supply Chain

A party that receives or

2.3 Retailers Stretch Their POS Systems Investments

3. Factors Preventing Continued Use of Old POS Systems

Confidential | Copyright 2013 TQID Nepal PVT LTD

Compliance Deadlines All merchants that accept credit cards must

Protection of Sensitive Customer Data news headlines have

Point of Sale is Mission Critical one retail systems professional

Hidden cost of hardware failures and maintenance costs

Limitation of old hardware and software In addition to speeds

Customer expectations consumers during this recession are

Centralized Database A centralized DBM has several advantages

Reduced redundancy good planning can allow duplicate or

Improved availability information may be made available to

Reduced inconsistency if the same data is stored in more than

Confidential | Copyright 2013 TQID Nepal PVT LTD

Enforced data security authorization to use information can be

For the purpose of Retail management, the issue of improved

Some suppliers might not exist in the historical record.

Finding the lowest cost supplier for particular pieces of equipment

No direct way of abstracting the equipment codes and prices might

An alternative arrangement might be to separately record equipment rental

Lack of Analytics Today, point-of-sale solutions offer a great way to

store traffic data, retailers can monitor purchasing conversion rates

Doesnt address new problems and technical advancements

Confidential | Copyright 2013 TQID Nepal PVT LTD

Table No. 1. Benefits of POS over mechanical cash registers

4.1 What is a retailer to do?

Manufacturers and software companies are hungry for

New features and functionality can increase revenues

Enhanced integration can improve overall business in the past

them to perform real time functions to support their sales and

Adjust to the new level of consumer demand inventory

4.2 Top 5 Business Reasons to Migrate to Cloud Based POS

consistent user interfaces

reduce operating costs

meet and exceed customer

Table No. 2 Comparison of legacy and current POS System

Confidential | Copyright 2013 TQID Nepal PVT LTD