TALKING SHOP: POS CONSIDERATIONS

[MattBrady]

by Vaneta Rogers

During the holiday season, the scans and beeps in retail stores seem like second nature. But those high-tech systems aren't as common in comic book shops, most of which ring their sales up by hand on cash registers.

Diamond Comic Distributors, the largest distributor of comic books, is hoping to change that. The company announced earlier this year that it is developing ComicSuite, an add-on package for one of the most widely used "Point of Sale" systems, Microsoft's Retail Management System.

This has a lot of comics retailers considering the benefits and costs of owning a POS system. Ever since Diamond started talking to customers about ComicSuite -- and began testing the system with a beta group of seven retailers -- the idea of owning a POS system has been a hot topic on retailing message boards and at industry summits.

For this month's Talking Shop, we spoke to a group of retailers about their thoughts on owning a POS system, what they think of Diamond's move into the market, and why customers should care.

"POS is an idea whose time came over 10 years ago, and yet it seems to be the hot topic in comics retailing today," said Paul Stock, owner of Librarie Astro in Montreal, Canada. "It really isn't. Many, many retailers have their own systems, and more have been coming on-line as systems improve and the complexity of the business increases. The drive to POS, the buzz about it, I would say comes primarily from an entity who's invested a lot of money in being an RMS partner."

Shawn Demumbrum, co-owner of SpazDog Comics in Phoenix, Ariz., agrees that POS systems have been around for a long time, although he thinks it's about time that more systems are available specifically for the comics retailing business. "If I were running a restaurant, I could have hundreds of POS systems to choose from, but our industry has been lagging," he said.

"I can't tell you how many retailers report that a POS system is in their future goals. Having a packaged solution can only be a good thing. Meanwhile, cigar box manufacturers are still protesting the comic industry move to cash registers."

Demumbrum wasn't the only one who pointed out that moving from cash registers to a POS system is similar to the move by retailers from use of a cigar box for their money to a cash register that would electronically keep track of sales.

"Making the transition from cigar box to cash register was not only expensive, but actually took longer to ring up customers. Yet, it was essential," said John Robinson, co-owner of Graham Crackers Comics Ltd. in Naperville, Ill. "It's ridiculous and laughable when you come across comic stores that don't have cash registers to ring up their customers. The same is going to be true for the frightened few that don't make the transition to POS system in the next few years."

Most retailers we surveyed who did not have a POS system were planning to get one, but were just waiting for their business to grow to the right size. After all, implementing the system takes quite a bit of time and money, so it's not usually something stores hurry to do.

For example, Jun Goeku, owner of The Comic Bug in Manhattan Beach, Calif., said he intends to have POS in the near future, but is waiting for the right one. "When we bought the store, it did not have a system in place. We plan on getting a system in the next two years and have been researching them," Goeku said.

"We will be purchasing one within the first half of '08," said Todd Harlan, operations manager at Heroes Aren't Hard to Find in Charlotte, N.C. "A POS with the right functions should greatly increase efficiency in ordering product, expenditure of man hours and time, thereby saving overhead costs and increasing profitability, which is necessary for a business to grow."

Dean Phillips, owner of Krypton Comics, said he also doesn't have a POS system, but intends to get one. "I feel every day without one, I am losing ground," he said. "Just the receipts alone are worth the price. You can print coupons or sale information right there for every customer to see."

Stock of Librarie Astro said he doesn't use a POS system, mainly because the UPC data from publishers and Diamond isn't reliable yet. "We've been computerized since 1988, but have never felt the need for [POS]," Stock said. "I actually looked at the possibilities back in the mid '90s, primarily for inventory control, but abandoned the research when I realized that system maintenance would take far more time than 'punched in by title' inventory control. There may come a day when my opinion will change, but as long as I keep hearing of constant and significant errors in publisher and Diamond UPC data, I'll wait."

Retailers said that for customers, the difference between shopping at a comic shop with a POS system and one without shouldn't be that noticeable, but will make a difference in the overall efficiency of the store. "Any store running POS should be a better and stronger store for it, which can't help but benefit consumers," said Brian Hibbs, owner of Comix Experience in San Francisco.

Robinson of Graham Crackers Comics said customers would only notice a POS system in two ways: When it takes longer to ring them up, and when they look at or use their receipts. "All the details are there. Did they really buy Iron Fist #14 from you? Was it on sale at the time? Who rang them up?" Robinson explained. "No more generic ring-ups like DC Comic $2.99. Don't have their receipt with them? No problem. When did you come in? Last Friday? I can look up the details without a problem."

"An active POS system indicates a more professional store, as far as I'm concerned," said Cliff Biggers, owner of Dr. No's Comics & Games Superstore in Marietta, Ga. "Don't get me wrong. The same information can be gathered and maintained without a POS system. But the vast majority of stores that have no POS systems also do very little in the way of inventory management, sales tracking or valid record-keeping."

Gathering this type of information is the main benefit of a POS system for comic shops. Not only does it help with keeping track of inventory, but it assists in ordering, which is one of the most difficult and time-consuming tasks for shop owners.

"Since the POS system is also a computer, it is the hub of my business," said Demumbrum of SpazDog Comics. "I can look up the latest release date for Halo Uprising #3 while ringing up a customer. I can check the historical sales data while completing my monthly orders and weekly reorders. I can pull up reports for state and city taxes while filling out the forms. I can look up the availability of a comic book in my inventory and check for Diamond availability at the same time. It's the Swiss pocket knife of the retail industry."

"It is making reordering and data analysis a breeze. Just a few simple clicks and you have an order to upload to any supplier," said Hibbs of Comix Experience, who uses the Moby POS system at hi store.

Yet with the benefits also come challenges, including the time it adds to the overall process.

"POS systems help us to maintain inventory, to effectively track sales, to predict customer trends, and to maintain accurate records," said Biggers of Dr. No's. "The biggest challenge, of course, is getting the data into the computer initially, and maintaining valid information in spite of the tendency of some publishers and distributors to make that job as difficult as possible by changing title structures, varying numbering system, and shipping books under names other than the ones by which they were solicited."

Robinson of Graham Crackers said he also runs into problems with the way publishers and distributors maintain their POS information.

"We're able to keep better track of our inventory, provide more detailed receipts for customers, keep a better and more accurate eye on shrinkage," said Robinson, who uses Microsoft's RMS at some of the company's stores. "Largest challenge is TIME, TIME TIME. Takes bloody forever to get all the items entered into the systems, lots and lots of publishers don't provide barcodes ahead of time so you end up having to try and enter inventory into the system at 'zero hour.' Some publishers sometimes use the same barcode twice making it fairly worthless to the retailer. This mostly seems to be on accident, but is a headache nonetheless. Some variant covers have a different barcode, others do not. Sucks. No consistency in the industry. Surprised?"

Although there are POS systems available that have been tweaked to work for comic book stores, Diamond's system will interface directly with their ordering system, which retailers use for the vast majority of their ordering. This ability to work directly with Diamond is a huge benefit of the system. However, retailers voiced several concerns about ComicSuite.

"I’m aware of the ComicSuite system and am interested in seeing what it’s capable of," said Harlan of Heroes Aren't Hard to Find. "However, the idea of Diamond providing tech support gives me pause, even before taking into account that it will cost 50 dollars an hour."

"A software called Moby looks very good," said Phillips of Krypton Comics, who has been researching POS systems for a future purchase. "If Diamond doesn't hurry up and get their product out, I will go with Moby. I have been waiting over a year with deadline after deadline missed by Diamond."

Other retailers pointed out that ComicSuite has a disadvantage because it will only work with Windows, since it relies upon Microsoft's system.

"It's a positive move forward, but since it only functions on that archaic Windows platform and is totally Mac-unfriendly, it does us no good," said Biggers, whose Dr. No's store uses a POS developed in Filemaker. "We're a Mac shop, and will continue to work with superior computers, thanks!"

Demumbrum of SpazDog said he also uses a Mac-based POS system. "Macs have always been stable computers with quality components. I didn't want the computer to be the Achilles' heal of my business," he said. "There were a lot of POS's built for restaurants specifically and some generic POS's that could be customized. In the end, I assembled the POS myself after lots of research. Now that I'm in the business, I've found out about Moby, but the investment in a POS is so high that I'm not likely to change soon."

Hibbs of Comix Experience said that retailers should consider ComicSuite, but should also look at other options. "I think that anything that moves POS towards more stores is a great thing, though I do hope that stores explore all of their range of options, and don't just choose Diamond's system because it is from Diamond (and no other reason)," he said.

Stock of Librarie Astro agreed. "It strikes me that Diamond's coming in a little late to the party. Comic shop oriented systems have been around for several years now, and at a much lesser cost. Diamond's system will probably appeal to those who believe the world begins and ends in Renton, though," Stock said. "By all means, looks at Diamond's RMS tie-in, but also consider fine programs like Star Clipper's Moby, and the Hijinx system developed by Dan Shahin, even the 'grandaddy' of them all, Mel Thompson's Comtrac. These are systems that have been developed over several years and have been pretty thoroughly debugged. They're also systems that, in the case of Hijinx and Moby, have been developed by shop owners themselves, who aren't just consulting with retailers, they're actually using what they've developed, day in and day out. The theoretical is fine, but nothing beats hands-on experience."

Yet all the retailers appreciated the fact that Diamond is not only adding to the options available to comic shops, but is spurring other retailers into modernizing and moving their businesses forward with a POS system. "It is expensive. It does create more work for you, the retailer. It does take longer to ring up a customer," said Robinson of Graham Crackers. "The world changes, and you need to change with it to continue to survive and thrive. But the bottom line is that it will benefit your store and your customer if you use it properly."

[NormanB258]

The finest service I ever received from a comic shop was a mid-sized store, who used an old-fashioned cash register but maintained separate, detailed customer profiles on a computer.

It would be interesting to see just how much of a benefit this would be for retailers. I don't think it's universally needed as Diamond would like some of us to believe.

[JusticeLeaguer]

When I opened my shop 3 years ago I realized that to run it properly and have better inventory control I would need a POS system in place. It is not only very handy for looking up your inventory, but the system I use (Retail ICE) also has complete customer as well as financial history in it. There is nothing better than being able to tell a customer if they have already purchased a book or not, which has led to several add on sales (by knowing for sure through me they don't already have it). It also helps if I may have made a mistake on their file and missed an issue, or better yet it will tell me if they picked up the 1st issue of a new series and I wanted to check that to put #2 aside for them just in case. Having this kind of data available at the touch of a button is without a doubt the greatest thing I did in helping me to ensure my job as a competent retailer. Yes it is tough to have to input the data for any new product on a weekly basis, but the ease of being able to scan and go that same inventory for the rest of it's stay at your store is too valuable to comprehend. For the retailers out there that are not using it, invest the time and help grow and streamline your business! To those looking to just start up a shop, get on it now it will make your life so much easier in the long run.

Rob Zedic
Myths, Legends & Heroes
Ottawa,Canada
www.mythslegendsandheroes.com

[KyleCowstar]

Hahaha...POS system. That's hilarious.

[bluedevil2002]

Couldn't they have come up with a better acronym?

[Dalarsco2]

Anyone who works in retail can tell you that acronym is accurate. They can be a great thing, but like any computer program there is always something that makes you want to kick the program's ass.

[Bender-braü]

Okay the title "TALKING SHOP: POS CONSIDERATIONS" makes much more sense once you read the article. I only clicked on it because I wanted to know what pieces of s#@t Newsarama thought I should consider. LOL!

Well, live and learn.

[rchilton]

anyone else get turned off from shopping at the mac-zealot stores? I'm glad the industry is moving quicker to POS, I think there'll be quite an impact when the numbers are able to be more visible to store owners.

[waterdragon]

How exactly would back-issues factor into the system of inventory upkeep let alone the bootleg DVDs that some comic retail stores have?

[Pol Manning]

I'm not a retailer, but I would think that volume of business (and thus, improved productivity / accuracy / reduction in man-hours) would be the driver of moving to a POS system, rather than simply doing it simply for technology peer pressure "entering the 21st Century" and what not.

Originally Posted by KyleCowstar

Hahaha...POS system. That's hilarious.

Originally Posted by bluedevil2002

Couldn't they have come up with a better acronym?

Originally Posted by Bender-braü

I only clicked on it because I wanted to know what pieces of s#@t Newsarama thought I should consider. LOL!

Sounds like you guys haven't had much retail experience. Lucky you! The acronym has been around for decades, despite the fact that teenagers tend to giggle at the term much like they do BS - Bachelor of Science.

[Thacher]

So here's a question to the retailers who do have POS systems: When do you get the barcodes from the publishers? Do they come in a separate system or do they arrive with your regular Diamond order? What is exactly involved in entering barcodes into the system, and how long of a process is it?

[Brian Hibbs]

Originally Posted by Thacher

So here's a question to the retailers who do have POS systems: When do you get the barcodes from the publishers? Do they come in a separate system or do they arrive with your regular Diamond order? What is exactly involved in entering barcodes into the system, and how long of a process is it?

Entering barcodes is "automatic" when you import your invoice into your POS system.

Except when publishers don't provide them to Diamond ahead of time, or give them the wrong set.

-B

[clyfft]

Originally Posted by rchilton

anyone else get turned off from shopping at the mac-zealot stores? I'm glad the industry is moving quicker to POS, I think there'll be quite an impact when the numbers are able to be more visible to store owners.

I've been in the mac-zealot store in Marietta, GA and the attitude the guy has in print (in this article) is exactly the same as the one he has in real life. My daughter and I went in to the store and we were never even spoken to until I went up to the cash register to pay (and then not a lot was said).

[dedagda]

I've been using Counterpoint for over 8 years now to manage inventory and register sales. Its not perfect. But coming from an IS background, why wouldn't I use a system to sell and track everything.

I cannot imagine a world with out a POS.

I can tell you what I have on hand. I can tell you what a customer has purchased. I can tell you which DVDs are rented. I can restock comics and toys the next day without lists. I can tell you how many copies of Ultimate Spider-man I sold in the month of June 2003 and what my gross profit was for that month within keystrokes.

A POS is a must have item for a comic shop.

[Thacher]

Originally Posted by Brian Hibbs

Entering barcodes is "automatic" when you import your invoice into your POS system.

Except when publishers don't provide them to Diamond ahead of time, or give them the wrong set.

-B

That's good information to know. I'm going to investigate Moby for my store, as I'd like to move toward a POS at some point in the relatively near future.

[JusticeLeaguer]

Originally Posted by Brian Hibbs

Entering barcodes is "automatic" when you import your invoice into your POS system.

Except when publishers don't provide them to Diamond ahead of time, or give them the wrong set.

-B

It may be automatic for Diamond's new POS retail system, but I have to scan them all in manually the first time I receive them (entering barcode, vendor, cost, publisher, category, retail price and quantity). After that the data is in the system (for sales and any re-orders), and all I have to do is enter the barcode and it recognizes it from my previous entry. I am glad however that Diamond is going to ensure all publishers actually use UPC codes in 2008, it sucks when the indy publishers don't have them and you have to look them up manually to sell them!

Rob Zedic
Myths, Legends & Heroes
Ottawa,Canada

www.mythslegendsandheroes.com

[innocentboy]

interesting ...

if any of you have a link to one of these comic retailer message boards, feel free to email the link to innocentboy@songofsongsthecomicbook.com

know it might not be a board you want us independants discovering, but sure there's a lot to learn on them still.

[Brian Hibbs]

Originally Posted by JusticeLeaguer

It may be automatic for Diamond's new POS retail system, but I have to scan them all in manually the first time I receive them (entering barcode, vendor, cost, publisher, category, retail price and quantity).

I use MOBY, actually, not DIamond's system.

Diamond offers an "extended format" electronic invoice (you have to specifically ask for it to be enabled for your account) which includes all of that data, especially the barcodes.

Now, of course, if you're smart you're *reconfirming* all of that data before you actually sell a single book, but any reasonable POS solution specifically for comic shops is going to make it trivial to import the data in the first place and to not have RETYPE any of it, just visually spotcheck it...

-B

[Brian Hibbs]

Originally Posted by innocentboy

interesting ...

if any of you have a link to one of these comic retailer message boards, feel free to email the link to innocentboy@songofsongsthecomicbook.com

know it might not be a board you want us independants discovering, but sure there's a lot to learn on them still.

www.thecbia.com


-B

[innocentboy]

Originally Posted by Brian Hibbs

www.thecbia.com


-B

thanks Mr. Brian Hibbs. checking the link out now.

[innocentboy]

are there any others retailer message boards?

[Evil Gnik]

So Diamond has over three thousand retailers as customers and only 7 of them Beta tested their POS system???? Thats less then 1% of their customers.

We use Retail Ice at my shop and haven't really had a problem with it......and that was free.

Shawn
Evil Squirrel Comics
Chicago, IL