Business software and the Cloud

by habiba_abudu | June 12, 2019 9:25 pm

By Rachel Pritz

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In today’s fast-paced business world, pool and spa professionals are constantly looking for ways to stay ahead of the competition, especially against big-box retailers. Business software is central to the success of any pool trade. The right software can provide the necessary tools and information to remain profitable and retain market share.

To determine if one’s business needs new software and if the company’s information should be maintained on an in-house server, industry professionals should ask themselves a few questions. For example, does the cost of one’s current business software/manual system exceed the price of purchasing new software? Is one dissatisfied with their current software solution? What is the cost of owning an in-house server versus hosting on the Cloud? If the answer to any of these questions is “yes,” it is time to delve deeper and define the current ‘cost’ of one’s systems to determine if there is a better option available that will maximize profits and ensure the business stays ahead of competition.

The cost of doing nothing

Assessing the actual cost of one’s current business software system is the best way to determine if it is time to switch to new software. One can start by asking, “What is the cost of doing nothing?” In other words, what does it cost the business to operate with manual systems or inefficient software?

Most pool and spa businesses generate more than 80 per cent of their revenue in less than six months of a year. In this trade, time is money. One should not spend valuable time on paperwork or manual software entries. With several software options and price points on the market, it is important to consider the true ‘opportunity cost’ of the way one handles their business.

Opportunity costs

When employees are hand-writing tickets at the counter, one may not immediately assess a significant cost with regards to the stationery being used. In reality, however, it is important to factor in the time it takes to accomplish these tasks by hand rather than using a computerized system with a barcode scanner and integrated credit card reader. Since employees are paid by the hour, the real question is, what is the opportunity cost of writing invoices or tracking inventories manually? Rather than spending 30 minutes an hour with manual systems, staff members could spend this time helping customers, selling more products, and building customer loyalty. Instead of paying employees to perform manual tasks, companies should pay them to generate revenue. Time-consuming tasks, especially during the busy summer season, invariably lead to lost sales opportunities.

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Also, manual or semi-manual systems can make it difficult to react quickly to market opportunities. Whether these prospects come from a slow-moving inventory or the marketplace (competitor that goes out of business or an algae outbreak)—having easily accessible, up-to-the-minute information is key to capitalizing on these opportunities. For example, the most current inventory data allows one to quickly react to market changes or set up a sale for slow-moving items. Industry professionals often use Excel spreadsheets and enter data by hand. However, spreadsheets can be time consuming and can complicate things further. Not to mention, performing repetitive tasks and applying formulas make unintentional errors commonplace. One can imagine how a single transposed number can wreak havoc on a spreadsheet, causing hours of extra work—valuable time one cannot afford to waste during the peak summer season. Also, the information in a spreadsheet may not be the most recent, making it difficult for professionals to make smart business decisions such as reducing inventory or locating a part on a service truck to sell to a customer.

Selecting a software solution

If one plans to expand their business, they need to ask themselves if their current processes and procedures support their business growth without negatively impacting their staff and customers.  Implementing new software may help reduce or eliminate stressors that are currently inhibiting business development.

Overall, streamlining processes and procedures can also save time and money, allowing a business owner to quickly recoup the initial investment and improve their operations at the same time.

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For example, pool and spa professionals often realize their service departments offer many untapped revenue streams. These departments are a good place to start considering new software options. There are many software apps for service technicians depending on the size and scope of the business. Some solutions allow techs to accept payments while on the job, plan their schedule for the day, review notes, look at the customer’s equipment profile, send before-and-after pictures to clients after the job is done, and much more. This type of solution is beneficial for retailers who have service departments. Also, there are several app products on the market that meet the needs of professionals working in the field. From entry-level Global Positioning System (GPS) tracking apps that monitor a service vehicle’s mileage, speed, and location to water-testing apps that check pool/spa water and instruct technicians on what chemicals to add.

Ensuring a quick return on software investment

To ensure a speedy return on investment, one must delve into and learn everything about the software and use all its features. Finding a company that offers live training to help set up and run the software is key.

One should start evaluating options by asking other pool and spa businesses about their software providers. Trade shows, distributor open houses, and buying group meetings are good opportunities to investigate solutions used by industry professionals.

Once a few options have been identified, one can go ahead and make a list of must-have features to ensure the new software solution can accommodate their needs. Remember to inquire about the cost of training and support services to install and run the software and its maintenance charges.

Prior to researching solutions, it is important business owners and professionals consider what they currently have and what they are looking for in a new system. Implementing new software can improve efficiency, accuracy, and save company expenses in the long run. Today, there are many programs that can manage all business processes from sales to purchasing. One must look for an option that can collect data in a system and provide accessibility anywhere, anytime.

When considering the cost of purchasing new software, one should not be intimidated by its price.  As mentioned earlier, all business owners realize they are missing revenue opportunities in multiple areas of their trade. Rather than focusing on the software’s price, one should prepare a list of areas where one could generate more revenue if employees had 20 additional hours a week to follow up on sales leads, make additional service calls, or attend to customers in the store. Then check with the software provider if the solution will help capitalize on these missed opportunities.

For example, many software solutions offer built-in features that will immediately generate revenue. The ‘related items’ feature prompts a sales associate to ask their customers if they wish to buy items that supplement their purchase. For example, a ladder mat with every ladder, an additional scoop to measure diatomaceous earth (DE) with bags of DE, a scum mitt with a wall cleaner, a clarifier with floc, hose clamps with filter hoses, etc. Imagine the impact if for six months a year the staff up-sold items with a $5 profit to 15 customers a day—one could increase their profit by more than $13,000.

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Many software providers offer route optimization features that allow service companies to lower fuel usage and reduce maintenance costs. Business owners have also found optimizing their service routes enabled them to perform more jobs in a day, generating additional business.

For employees, a new software solution can eliminate printing, stuffing, and stamping accounts receivable (AR) invoices. With a new program in place, invoices can be e-mailed in bulk or credit cards can be kept on file for batch processing.

A simple ‘back-of-the-envelope’ equation can help determine the break-even point for purchasing new business software. Overall, streamlining processes and procedures can also save time and money, allowing a business owner to quickly recoup the initial investment and improve their operations at the same time.

Should one move to the Cloud?

An important decision to make is if one wants to host their business operations ‘in-house’ or on ‘the Cloud.’ Selecting the right server solution is critical. The choice one makes depends on their information technology (IT) resources and business goals. While it may sound simple to run the business in the Cloud or on a local server, there are three important things to consider:

Expense

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In-house servers require a significant upfront investment in hardware and IT services for installation and implementation. A dedicated server is a physical computer that is purchased and installed at a particular location just for the company’s use. One may think of it as a house—one owns it, does not share it with anyone, and is responsible for its maintenance. Similar to a house, the initial cost of a physical server is higher, but once purchased, it belongs to the buyer. The server can then be expanded, modified, and managed to match the needs of the business. The downside is one is also responsible for the server’s maintenance. In addition, accessing data from outside one’s network must be done through remote software.

On the other hand, a Cloud solution does not require any upfront, onsite hardware expenses; however, the server requires business owners to pay an ongoing monthly fee to host their data.

A Cloud server is a shared virtual network environment that is managed by a hosting provider. It can be compared to living in an apartment complex—one does not have the keys to another’s unit (in this case data), but shares the building with other residents (different companies). The landlord can be seen as the hosting provider, and one is under contract to lease the space that houses their data.

There are many advantages of a Cloud-based server.

• Data can be accessed from anywhere through a smart device;
• The lessee (one who rents the server space) is not responsible for any updates or IT support;
• Initial costs are less than purchasing a physical server; and
• If anything bad happens to one’s business, their data will be safe.

The downside is one has restricted control over their data bank; the server must be shared with other people and data security is not under their control.

Control

An in-house server provides physical control to access one’s data and manage backups. Also, there is no third party that has access to one’s company information. The Cloud hosts one’s services and controls access to their data. In some cases, this causes problems, especially when a business chooses to discontinue their services. However, on the upside, a Cloud solution offers unlimited storage without the need to upgrade hardware.

Access

A Cloud server requires a constant and stable internet connection for uninterrupted usage. If the internet is down, data cannot be accessed. The internet is usually not required for an in-house server. Processing power must also be considered.

Continuing the home analogy, the water heater in one’s home is their sole property. Hot water (or processing power) is readily available and quickly replenished. With a virtual server, the water heater is shared among all the residents of that server. If a company needs more hot water on a particular day, the available resources are diminished and the service will be lukewarm at best. One option to offset this sharing system is to pay an additional cost for priority on such resources.

The environment a business runs in depends on the solution that best meets their needs. Regardless of whether it is a traditional server or a virtual one, both need to have backups in place. Hardware can fail no matter how one chooses to host their files.

Conclusion

Industry professionals can certainly generate more revenue, increase productivity, and enhance profitability by streamlining daily service operations. One can begin by asking themselves these questions: Would the business save money if it had a software solution that automatically optimized service routes? Could the software make it easier to track inventory on service vehicles? Also, warranties play an important role. If one knows they are probably leaving money on the table because their software systems are not integrated or because only part of their business is automated with separate manual systems that do not provide up-to-the-minute information, then it is perhaps time to quantify the amount of missed revenue opportunities and assess the true costs of one’s current business software system.

[6]Rachael Pritz has been active in the pool industry for more than 20 years, which has provided her with an all-encompassing expertise in the trade. She worked at a local pool store while pursuing her master’s degree at the University of Pittsburgh, Pa. With her technical skills and industry knowledge, she joined the launch of RB Retail & Service Solutions in Pittsburgh in 2003. She can be reached via e-mail at rachael@rbcontrolsystems.com.

Source URL: https://www.poolspamarketing.com/trade/features/business-software-and-the-cloud/

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