Today, many shops are losing customers because shoppers now look online before shopping. What you need to do is review your local online presence. Then fix the biggest issues, and make your shop easier to find.

Key Takeaways Box

• Conducting a local online audit to show you what customers see when they search for you.
• Use private or incognito search. This is as it provides a clearer view of what customers see.
• An incorrect business name, address, or phone number will confuse shoppers and search engines.
• A Google Business Profile helps your shop appear in Google Search and Google Maps.
• An incorrect location can lead customers to the wrong shop, so you should test directions yourself.
• Some simple tricks can help Google and shoppers know what you sell.

What Is a Local Web Presence Audit?

A local web presence audit is a simple check of how your shop appears online. For example, a customer might search for "lotto near me", "dog food <suburb>", or "magazines <suburb>" before deciding where to shop.

Next, this audit looks beyond your website. For example, it also checks your Google Business Profile, business name, address, phone number, social pages, map pin, and how your shop appears in search results.

Also, this kind of audit is not hard. For example, you can do it in less than half an hour with a phone, a computer, and a simple checklist.

Fact: wrong details lose sales.

Why Local Web Presence Matters

A local web presence matters because many shoppers often search first and visit second. For example, if they need a card, magazine, gift, or stationery item quickly, they usually look online before they leave home.

Next, local SEO works best when your business details are clear and consistent across the web. For example, if your shop name is one thing on Google and another thing on Facebook, search engines can get mixed signals.

Also, your online details shape trust. For example, if something looks wrong, for example, your address looks wrong, many customers will choose another shop.

Clear local data builds trust.

Search for Your Shop Like a Real Customer

On a paper list note:

1. Your business type, e.g. newsagency, pet shop, chemist, etc.
2. Top three products you sell
3. Name of your shop
4. Phone number of your shop

Searching like a real customer means using the same words and search habits a shopper would. Since I mainly use Chrome, I tend to use Edge in private mode for this work, but in truth, Chrome in incognito mode works well too. This helps reduce the effect of my online usage.

You need to do the Local Web Presence Audit in four stages:

1. With your computer using Google
2. With your computer using Bing
3. With your smartphone, using Google
4. With your smartphone, using Bing

Smartphone results can differ from computer results, and it's about 50/50 which shoppers will use.

For each stage:

Put your business type into the search and add your suburb, e.g., "gift shop <your suburb>" or "Flower shop near me", etc.

Check what you see, note whether your shop shows up, and whether what the search says about you is correct.

Now search for the top three products you sell, e.g. you may say "lotto near me", "dog food near me", "butcher <your suburb>".

Check what you see, note whether your shop shows up, and whether what the search says about you is correct.

After that, search your exact business name on its own. For example, this shows whether your main listing is easy to find and whether old pages, old addresses, or other shops appear instead. Check spelling, punctuation, and the trading name. For example, if one listing says "Smith's Newsagency" and another says "Smiths News & Gifts", you may be making it harder for search engines to connect the dots.

How Do I Check My Google Business Profile and Map Pin?

In my experience, most problems stem from errors in your Google Business Profile. Your Google Business Profile is one of the most important local listings you have because it helps your business appear in Google Search and Google Maps. For example, when someone searches for a nearby shop, the map result often shapes the visit before the website does. I have discussed how to set it up and fix it here.

https://www.possolutions.com.au/blog/boost-your-shop-sales-with-google-business-profile

A modern business needs to have this right. Fix any errors straight away. For example, if the pin is off, move it to your real front door and check that the address matches what appears on your website.

A map pin can make or break a visit.

Finally, also important to look at your business category and photos. For example, good categories and fresh shopfront photos help customers understand what you sell before they visit. Use your POS system's sales reports to make sure that all your major stock items are listed.

How Do I Review My Facebook and Social Media Pages?

Your social media pages should support your local search presence and help shoppers trust your shop. For example, when someone searches your business name, a good Facebook page can confirm that your store is active and real.

Next, ensure your business details match across all platforms. For example, your Facebook page, Instagram bio, and website should all show the same name, address, phone number, and web link.

Then, look at your last ten posts. For example, if the page has been quiet for six months, it may make shoppers think the business is not active.

Also, post what people buy. For example, show new stock, seasonal products, popular gifts, school supplies, card displays, or shopfront photos.

After that, make your posts useful. For example, short posts like "New puzzle books in store now" or "Mother's Day cards now available" can turn a search into a visit.

Finally, check your contact buttons. For example, a customer should be able to call, message, or get directions with one tap.

How Do I Check My Competitors Online?

Checking your competitors online helps you see what local shoppers see first and what people are looking for now. For example, if three nearby shops appear before you for the same product search, you need to know why.

Next, search the same phrases and note who shows up. For example, look at their Google listings, photos, reviews, website pages, and social media activity.

Then, look for patterns. For example, they may use clearer category names, better shopfront photos, or better local wording than you do.

Also, copy the structure, but not the wording. If it's working for them, it can work for you too.

Conclusion

A local web audit is a simple way to make your shop easier to find. When shoppers search online, they need to see the right name, the right products, and the right location without confusion.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

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What I said a few days ago, looking at the RBA's 2026 surcharge reform, was that “the big banks... are certainly winners,” even though many said it looked negative for their fee income so disputed my claim. Here are some interesting charts of Bank Shares over the past few days. The RBA decision was announced on 31 March, and all the big banks’ share prices have been up since then. Check them out here, the RBA decision was on 31st March. Can anyone name any major reason for these price rises in this period other than the RBA decision?

Key takeaways

• The RBA’s March 2026 conclusions paper confirmed a ban on surcharges from 1 October 2026.
• The same package also includes lower interchange fees and stronger transparency rules.
• The announcement looked negative for bank fee income on the surface.
• Major bank shares still rose after the RBA announcement.
• That market move suggests investors may have expected a worse outcome.
• Retailers still need to prepare for the loss of visible card surcharges at checkout.
• POS reporting and merchant fee review will matter more once the ban starts.

What is the 2026 RBA surcharge ban?

The 2026 RBA surcharge ban is a payments reform that ends card surcharges on debit and credit card transactions from 1 October 2026, while also lowering some interchange fee caps and improving fee transparency. The RBA set out that direction in its March 2026 conclusions paper after consultation.

First, this was not just a loose discussion. It was the RBA’s final public position at that stage, and the market treated it as a concrete policy decision. A retailer that once added a 1.5 percent surcharge at the terminal will need to remove that charge and rethink how it recovers payment costs.

Why did bank shares rise?

Bank shares rose because the market likely saw the final package as less damaging than feared. When investors hear a reform that could cut fee income, they do not only ask whether it is negative; they also ask whether it is better or worse than what they had already priced in.

Next, that matters a lot. If traders expected a harsher crackdown on bank and payments revenue, then a more limited package can still push shares higher. In other words, a “bad” policy can still lift shares if it was not as bad as the market feared.

Why did the reaction look odd?

The reaction looked odd because the announcement clearly affected fee income, yet the bank sector still went up after the news. The investors did not read the reform as a disaster.

Moreover, this is where the story gets interesting. If the RBA’s package had really threatened bank earnings in a major way, you would expect a much clearer negative market response. Instead, the share price move implies investors either expected worse or believed the effect would be manageable.

What does the share move mean?

The share move may mean investors thought the banks could absorb the change. It may also mean the reform leaves the wider card system intact, which protects transaction volumes even if some fee settings are trimmed.

For example, a bank can lose some surcharge-related or interchange-related income and still look strong if card use remains high. That is why the market can treat the reform as a short-term negative but a longer-term non-event, or even a mild positive.

Why this matters for retailers

Retailers should not confuse a bank-share rally with a win for merchants. The fact that shares rose does not mean the reform automatically helps small shops.

Instead, the practical issue is that retailers lose a visible way to recover card costs. A shop that used to show a card surcharge at checkout will need another way to protect margin, whether through pricing, fee negotiation, or tighter cost control.

What changes at the checkout

The biggest change for retailers is the checkout experience. The surcharge line disappears, but the underlying payment cost does not.

That means retailers need to understand the full cost of taking cards, not just the visible fee passed to the customer. A POS system that shows payment-type sales, average transaction value, and card-cost impact becomes much more useful once surcharging is no longer available.

How to prepare

Retailers should review their merchant statements, terminal fees, and POS reports now. The goal is to know exactly what card acceptance costs before the October 2026 deadline.

Next steps

Clearly, we have questions about the RBA’s rationale for its decision, but the immediate point for retailers is that the stock market is not your main problem here. Your real issue is how to manage payment costs when you can no longer add a visible surcharge at checkout. The RBA decision should reduce bank fees, help alleviate some of the fee differences faced by small and large retailers, and provide greater transparency into bank fees.

Retailers should take four steps before 1 October 2026:

1. Review current merchant fees and terminal charges.
2. Check POS reporting for payment-method visibility.
3. Revisit pricing to make sure margins still hold.
4. Talk to payment providers about lower-cost alternatives or better fee transparency.

Prepare your shop for the 2026 RBA surcharge ban

Update:

Update:
Since the article first went live, it has become a hot topic. Several have questioned the link between the 2026 RBA surcharge ban and the rise in bank shares. That is a fair point, and it is worth explaining the facts in plain terms.

First, it is true that Suncorp’s share price fell during this period, which at first glance seems to contradict the idea that the RBA decision helped banks. But Suncorp is no longer a normal bank for most investors. Suncorp Group sold Suncorp Bank to ANZ in 2024, took the money, and later returned cash to shareholders. Today, the listed company is more of an insurance business than a bank, so its share move does not tell us much about investors saw the surcharge ban. 

Second, the good share reaction was not just in banks. Payment companies listed on the ASX, such as Tyro and SMP, also rose after the announcement.

Third, that the banks’ shares rose because of the better profit numbers they announced back in February and the interest‑rate move in March. That is true, they did rise, but here the timing is a problem. We are now in April, and those profit updates and the March rate move happened earlier. If those were the reasons, you would expect the share price lift to show up in February and March, not now in April. Instead, the rise lines up most closely with the announcement of the 2026 surcharge ban. Also you need to explain why investors reacted the same way to non‑bank companies in Debit and Credit Crads. Payments players like Tyro and SMP saw their shares rise too, even though they do not benefit from the same upside from bank‑style profits or rate changes.

Third, investors liked that the surcharge ban applies to both debit and credit card transactions from 1 October 2026. When the extra checkout fee disappears for both, customers have the same price whether they use debit or credit. That will make people more likely to use credit cards, because the “extra cost” they used to see is gone. This is what we stated in our submission here. More credit card use means higher fees. The investors would also have liked the bank's comments that new fees will need to be created or some fees will need to be increased to cover the loss.

All of this does not weaken the article’s original point. It just sharpens it. The investors see the final package as positive and manageable rather than a big hit.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The Australian greeting cards market is projected to grow steadily, with revenue expected to rise towards 2033. Historically, many shops let sales reps dictate their greeting card inventory, partly to save time and because it was lazy. However, relying on these reps means you are likely missing out on profits. The big killer here is the hidden dead stock that eats up valuable floor space. Ultimately, it's only by taking control of your card stock data that you will discover exactly how to change your card stands into a highly profitable department. 

Key Takeaways

• POS reports instantly identify dead and slow-moving greeting cards, reducing wasted stock.
• Digital stock-takes prevent over-ordering and free up valuable backroom storage space.
• Premium boutique cards offer a distinct competitive advantage over local mass-market supermarkets.
• Cross-merchandising strategies place complementary cards near relevant gifts and books.
• Customer loyalty programs track annual buying events to predict seasonal card demand.
• Sales data mapping places high-value items in premium, eye-level shop locations.

The Point of Sale (POS) System Information Hub

A Point of Sale (POS) system is a digital hardware-and-software combo that processes transactions, tracks inventory, and records customer data. It acts as your shop's info hub, recording purchases in real time. For example, buying a $7.95 birthday card instantly updates stock and revenue.

Furthermore, modern software platforms do much more than ring up sales at the front counter. They provide deep, actionable perceptions of consumer behaviour and specific product performance. For instance, a shop owner can pull a quick report showing which premium cards sell best now. Our retail integration empowers shop owners to make profitable decisions.

Consequently, you no longer have to guess what your local customers actually want to buy. By replacing intuition with hard numbers, you can confidently tell your suppliers exactly which items sell on your shelf space.

How Does Greeting Card Management Increase Retail Profits?

Greeting card management involves curating, tracking, and positioning paper inventory to minimise dead stock and maximise retail profit margins. Historically, the greeting card department has been one of the fastest areas in a shop to show financial improvement when closely monitored. For instance, I have seen figures where a high-profit wedding card, simply by moving to an eye-level shelf, instantly doubles its weekly sales velocity.

Unfortunately, too many leave these critical management functions entirely up to external sales representatives. These reps are notorious for making stocking decisions partly based on their company's needs rather than on your shop. For example, a rep might fill your premium spinner with a slow-moving card simply because their warehouse desperately needs to clear it out.

How Does a POS System Manage Inventory for Greeting Cards?

Automated inventory management involves continuously recording every retail sale, return, and supplier delivery to maintain real-time stock accuracy. Specifically, the software flags exactly which items are selling and which ones are collecting dust. For example, if you order five Mother's Day cards, the system will show exactly how many remain unsold by Monday morning.

Additionally, maintaining accurate inventory levels helps prevent costly retail shrinkage and overstocking. It is incredibly common to find heavy boxes of unsold cards sitting in a back room, tying up your precious capital. Yet the rep is ordering more stock for you. Use what you have first!

Identifying Slow-Moving Stock

You need to find the specific products that require dead stock reduction to save your net profitability. You can achieve this quickly by navigating to the reports section in your software and selecting the 'Stock Slow and Dead' reports.

Finally, the resulting detailed report will likely shock you with the total monetary value of your stagnant stock. Armed with this knowledge, you can confidently instruct your reps to permanently remove these duds. For instance, you can hand the rep a printed list of 50 under-performing SKUs that need to be credited and removed today.

How Can Retailers Compete with Supermarkets?

Supermarket competition is the ongoing retail challenge of retaining local customers when large grocery chains sell similar mass-market products. It's hard, as a busy customer buying milk at Woolworths, to avoid grabbing a generic $3 card out of sheer convenience.

Instead, your principal advantage lies in offering premium items. For instance, stocking a beautiful range of handmade, letterpress birthday cards will draw shoppers specifically into your store. Premium products attract high-value local shoppers.

Consequently, you must use your Point of Sale (POS) system to track these high-end ranges rigorously.

What Are the Best Cross-Merchandising Strategies for Retailers?

Cross-merchandising is the physical retail practice of displaying complementary products together to increase the overall size of the customer basket. Because your shop likely focuses on gifts and books, this creates a massive opportunity for impulse purchases. For example, placing a small spinner of baby shower cards right next to your children's book section guarantees overlapping sales.

Furthermore, analysing your basket data will reveal exactly which items are frequently purchased together. Your software can easily highlight these hidden customer buying habits that you might otherwise miss. For instance, a companion analysis report will show that premium anniversary cards are almost always bought alongside your gift stand.

Therefore, you should immediately break your cards out of their isolated, traditional department. Moving a selection of tasteful sympathy cards next to your floral or premium candle displays will noticeably boost your daily transaction value.

How Do Retailers Target Local Demographics?

Market targeting is the analytical process of adjusting your inventory to align perfectly with the income and lifestyle of your local community. Typically, if your local area consists of family-oriented residents with above-average incomes, your product range should reflect their specific wants. For example, an affluent neighbourhood will happily buy a $15 elaborate pop-up card for a child's first birthday.

Furthermore, you can try luxury price points without worrying about alienating your main customers. Your sales data will quickly show the highest price your customers are willing to pay. For instance, testing a small batch of expensive, gold-foil wedding cards will quickly reveal if your market supports premium pricing.

Additionally, you should run category reports to closely monitor important life-cycle events in your community. Make sure your stock always matches your community's social calendars.

How Can Retailers Use POS Data to Boost Customer Loyalty?

Customer loyalty integration involves the strategic connection of specific customer purchase histories directly to their store rewards profiles. Luckily, you already have a steady local customer base, which is your most valuable asset. For example, when a regular customer buys a card, their profile automatically records the transaction date and the particular occasion.

Consequently, tracking this deep data allows you to utilise customer retention analytics to forecast seasonal demand with incredible accuracy.

What Tools Optimise Store Layouts for Better Sales?

Retail mapping tools are specialised reporting features within a point-of-sale system that determine the most profitable physical locations for your products. Essentially, your absolute best-selling cards must be displayed in the most prominent, high-traffic spots on your stand. For example, placing top-selling humorous birthday cards directly at eye-level instantly guarantees higher daily turnover. Calculated positioning maximises overall retail profitability.

Details on how to do this with our system can be found here on how to create a useful planogram.

Next, you can directly compare your current greeting card sales data to past periods to test any layout changes. If you move your sympathy cards to a lower shelf, a quick comparative report will show if sales dropped over the following month.

What Are the Ensuring Steps for Retail Business Owners?

Actionable inventory control is the immediate implementation of software tools to halt bad ordering habits and boost shop profits. First, you must set up a regular, non-negotiable schedule to review your card sales and stock information. For example, using only fifteen minutes every Tuesday morning to run a slow-moving stock report will keep your inventory incredibly lean.

Additionally, you must have a firm, professional conversation with your card company representatives today. Stop relying on their intuition and firmly dictate that they only restock high-performing categories based on your actual data. For instance, you can safely refuse a delivery of generic blank cards if your system clearly shows you already have a six-month supply. Consistent monitoring guarantees long-term retail success.

Conclusion: Maximise Greeting Card Sales Today

A comprehensive POS system is an undeniable requirement for managing a highly lucrative and well-organised greeting card department. Ultimately, using your software's accurate sales data analysis transforms a confused, rep-managed stand into a highly profitable, controlled retail zone. For example, simply identifying and removing your bottom 10% of performing cards instantly frees up cash flow for much better products.

FAQ

Q: How do I quickly find and eliminate dead cardstock that's taking up space?
A: Run a POS report to identify unselling SKUs, then give the list to your rep for credit and removal.

Q: What is Dead Stock?
A: Dead stock is inventory that has not sold within its expected timeframe.

Q: What is planogram?
A: A planogram is a store layout guide that shows where products should be placed to maximise sales.

Q: What is Cross-merchandising?
A: Cross-merchandising is the practice of displaying complementary products together to increase basket size.

Q: How do I stop sales reps from dumping unwanted cardstock?
A: Use your POS data to specify restocks and decline unnecessary deliveries.

Q: How can my shop survive when customers grab cheap cards from Woolworths?
A: Stock premium, high-quality cards like handmade or letterpress to attract shoppers seeking better options.

Q: What should I do if my card spinner is full of duds that won't sell?
A: Remove the bottom 10% of best-performing cards identified via your POS, replace them with high-value items at eye level.

Q: How does a POS system track my individual greeting card sales?
A: When scanned, the system deducts the card from inventory and records the sale in real time.

Q: Where is the most profitable place to put my best-selling cards?
A: Use POS maps to position top cards at high-traffic, eye-level spots for higher turnover.

Q: How do I cross-merchandise cards with other items to boost basket size?
A: Use companion analysis to place related cards near complementary products.

Q: Will my community pay more for premium or luxury cards?
A: Test by introducing expensive cards and assess sales to determine pricing limits.

Q: How can I use my loyalty program to sell more cards?
A: Connect purchase histories to customer profiles for targeted stocking around milestones.

Q: What is the best weekly routine for managing greeting card inventory?
A: Spend 15 minutes weekly on reports, sales review, and layout or order planning.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

I received a lot of questions yesterday on my article on the RBA ban, not surprisingly, as we did submit a paper.

Rather than make a new post, I decided to add the questions people were asking to yesterday's article to clear up any questions this article raised. Go to the FAQ section to read up on them here.

If people like this I may switch to this format, let me know.

The RBA has officially decided to ban card surcharges in its RBA conclusion paper here. This means that come October 2026, you will no longer be allowed to charge a surcharge for Debit and Credit Card purchases. However, you will still be able to offer a cash discount.

Key Takeaways

• The surcharge ban is a new federal rule starting in October 2026 that prevents retailers from charging extra checkout fees.
• Many will, as a result, see their Profit margins shrink on fixed-price goods, e.g., magazines, lotto, etc
• Interchange fee caps will drop, helping lower the wholesale cost you pay banks for card processing.
• Cash discounts are still completely legal and offer a smart way to avoid card fees.
• POS software gives you the power to update prices in bulk and track your exact margins in real-time.
• Premium cards, the RBA claims that the fee gap between debit and credit cards will be reduced.
• The RBA has asked for clearer transparency rules on hidden bank fees.
• You can still reject American Express

What is the 2026 RBA Surcharge Ban?

The 2026 RBA Surcharge Ban is a federal rule that takes effect in October 2026 and prevents Australian retailers from adding surcharges to card payments at checkout. This new rule forces business owners to pay the full cost of card processing out of pocket. For example, if a customer buys a $10 notebook with a rewards credit card, you cannot add a 1.5% fee to cover the extra credit fees charged by the bank.

Next, the RBA mandated a reduction in one of the bank fees (interchange fees) to help businesses cope. Interchange fees and scheme fees are the hidden wholesale costs that your bank and the card networks charge you to process every electronic transaction. When a customer taps their card, the payment network takes a tiny slice of the sale before the money hits your account. For instance, Visa and MasterCard charge a fee just to use their global networks to verify that the customer has enough money. This should reduce some of the fees merchants are charged.

Also, by forcing banks to publish these fees, the RBA hopes to increase competition. If you know exactly what your bank charges compared to other banks, you can negotiate a much better deal for your store.

Did the RBA Fix the Gap Between Small and Large Merchants?

The RBA claims to close the gap between small and large merchants by strictly limiting the maximum interchange fees banks can charge. You will need to actively check your merchant statements to ensure your bank actually passes these savings down to your account. Do not assume your bank will automatically lower your bill.

The problem of Premium Credit Cards

These cards affect your margins by imposing significantly higher processing costs. Soon, you will no longer be able to recover via a checkout surcharge. RBA thinks that lowering interchange fees will help here, which it will, but only to a limited extent. I am sure merchants will end up having to keep paying for the lavish rewards programs attached to platinum travel cards. For instance, processing a basic debit card might cost you 10 cents, but processing a premium platinum card now costs you over a dollar for the same sale. If a customer tries to pay with a premium Visa or MasterCard, and your terminal can accept them, you must also accept their premium cards, even though they carry higher fees. Mind you, in reality, often you do not know until the transaction has gone through whether it is one of these cards.

American Express

You have complete control over whether you accept American Express. If you feel their rates are too high to match the new 2026 realities, you are entirely within your rights to put up a 'No Amex' sign and turn it off on your POS system.

Will the Surcharge Ban Cause Retail Price Inflation?

The surcharge ban will cause retail price inflation because shops must raise the cost of their goods to absorb the banking fees, which everyone agrees on. The RBA optimistically estimated that this policy would have only a tiny, 0.1%, one-off inflationary effect across the whole economy. We will see whether they are right.

How to Manage Fixed-Price Inventory

These are items where the merchant cannot change the fees. Products such as lottery tickets, newspapers, and phone credit do not offer flexibility for recovering absorbed bank fees. For example, if a magazine publisher prints a strict $9.95 price on the cover, you must swallow the card processing fee entirely. This needs to be addressed ASAP, as the solution proposed of keeping a fixed price item like a magazine at $9.95 but raising the price of a greeting card from $5.00 to $5.50 to balance your overall shop profit, is not workable in the current economic environment.

Why Are Cash Discounts the Best Alternative to Surcharging?

This is the only solution; cash discounts are completely legal price reductions offered to customers who choose to pay with physical notes and coins instead of cards. While the RBA banned card penalties, it openly supports offering price breaks to cash-paying customers. For example, you can price a hardcover book at $20 on the shelf, but program your till to give a 1% discount for cash. Our POS System can be set to do this automatically. Many customers will appreciate the savings. If you are going to do this, put a big sign up so everyone knows.

Automating Real-Time Margin Calculations

When new items, like gifts, come into the shop, you now need to factor in a percentage for bank fees into your pricing. Again, your POS System should be able to handle this automatically.

What Steps Should Retailers Take now?

Retailers must actively audit their current banking costs and overhaul their store pricing strategies long before the October deadline. Do not wait until the last minute. Follow these three steps to protect your store:

Call your bank: Contact your merchant facility provider today and demand a clear breakdown of your current fees. For instance, ask your bank exactly what percentage you pay for standard debit versus premium rewards credit cards. You need to know your baseline costs.

Audit your inventory: Review your stock to identify which high-margin items can safely handle a small price increase. For example, find your best-selling toys or gifts and plan a small price bump.

Fixed price items: You need to review these now. Ask your suppliers what they plan to do about your margins on these items.

FAQ
 

Q: What's the current status on the RBA banning card surcharges? Is it actually happening?
A: Yes, this is Labor policy and is almost certainly going to come into effect.

Q: Will cafes and shops just jack up the price of everything to cover the ban?
A: Yes, you will likely see the cost of card processing baked into the everyday sticker price of items, similar to GST. Some shops may adopt a discount-for-cash policy.

Q: Why don't they just cap the merchant fees as they do in Europe?
A: Good question, I think that is what they should have done. What many lobbied heavily for in Australia was a more targeted fix, of banning surcharges only on debit cards or low-value transactions, as New Zealand did. This was unfortunately rejected.

Q: Are weekend and public holiday surcharges getting banned too?
A: No, the RBA's proposed ban only targets payment processing surcharges, the 1% to 2% fee applied when tapping your card. Weekend and public holiday surcharges are legally separate and designed specifically to cover mandated penalty rates for hospitality and retail staff.

Q: Does the ban apply to both credit and debit cards, or just EFTPOS?
A: The changes aim to eliminate surcharges across all major networks, meaning it would apply to Eftpos, Visa, and Mastercard debit and credit transactions. The ultimate goal is to mandate that the price you see on the shelf or menu is the exact total you pay at the till, regardless of your card type.

Q: How are small businesses supposed to absorb these costs without going under?
A: You can ask your customers to support your local shops by selecting the Savings account, which routes the payment through the cheaper Eftpos network rather than Visa or Mastercard.

Q: Who actually benefits from this? Won't the banks, Visa and Mastercard just keep making billions?
A: Well, the big banks, Visa and MasterCard are certainly winners, but to be fair, consumers will benefit from transparent, upfront pricing. 

Q: Why am I being charged a percentage fee for tapping when the technology costs the same?
A: A good question, as it costs as much to process a $1 transaction as a $100 transaction.

Q: Is this just a push to make us a cashless society?
A: I think so. 

Q: If a shop is still charging me a tap fee right now, are they breaking the rules?
A: No, it is still entirely legal for merchants to charge a card surcharge, provided it is not excessive and only covers their exact cost of acceptance. The ban only starts in October.  This gives retailers a transition period to adjust their pricing models and negotiate new merchant terminal rates with their banks.

Q: How are we supposed to absorb the high costs of premium credit cards without going under?
A: People are expecting a price rise as the actual cost of processing payments has not disappeared; most businesses will have to put these bank fees into their standard shelf prices.

Q: Why do big retailers like Coles and Woolworths get away without surcharging, but we get slammed?

A: Large retailers indeed process an enormous volume of transactions, so giving them the leverage to negotiate significantly lower merchant fees with the banks and card networks than smaller retailers who lack this bargaining power, but what I have noticed is that most of these retailers have quietly given up surcharging a while ago.

Q: Is the government doing anything to lower the actual merchant fees we pay to the banks?
A: Yes. Alongside the surcharge ban, the RBA is requiring banks to disclose previously hidden fees and is enforcing strict reductions on interchange fees. The RBA estimates that 90% of smaller businesses will be better off under the lowered wholesale caps, though most of us remain deeply sceptical.

Q: What happens if we just keep our surcharges active after October 2026?
A: Once the ban comes into full effect, applying a card surcharge will be a breach of consumer law. Non-compliant retailers will likely find that this is a matter for the courts.I would not suggest doing this.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Key Takeaways

• Regulators actively target temporary price spikes deliberately designed to generate fake future sales.
• Retailers must ensure promotional discounts compare against genuine historical baseline prices held for a sustained period.
• Independent stores risk devastating reputational damage if local customers feel misled by manipulated ticketed pricing.
• Supplier cost increases require immediate, permanent adjustments to your standard shelf price rather than deceptive promotional tags.
• A robust point-of-sale system automatically logs the exact duration an item remains at a specific price to prove compliance.

I have been following the ACCC vs Coles case, which is a major legal proceeding examining whether the supermarket's "Down Down" promotional pricing deliberately misled everyday consumers. Closing statements for the ACCC and Coles are here.

Specifically, the ACCC alleges that Coles temporarily spiked prices on hundreds of products purely to establish an artificially high baseline for an upcoming discount campaign. For example, say a gift shop suddenly raises the price of a book from $10 to $14 for three weeks, and then heavily promotes a "massive discount" back down to $11.

I find some of Coles' arguments about the challenges posed by fluctuating prices and inflation fair and relatable. However, I have my doubts about their logic here in an ACCC's example: an item was sold at a set price for 649 days, raised to a higher price for 28 days, and then "discounted" to a price still higher than the original price. Would an ordinary, reasonable consumer genuinely think that the product was on sale? It strains credulity. Furthermore, the internal planning documents submitted by the ACCC, showing Coles actively planned to take products off "Down Down," spike the price, and return them to "Down Down" four weeks later, seem to me difficult to explain away.

Why This Case Matters

Retail pricing compliance matters because it may legally protect your business from regulatory fines while preserving the essential trust of your local shoppers. Deceptive pricing directly risks destroying your community's goodwill.

Besides, fighting a deceptive pricing allegation is financially impossible for most businesses.

Handling Wholesale Cost Increases

Admittedly, managing genuine wholesale cost increases is a frustrating daily reality for any Australian retail business fighting inflation today. If your wholesale costs for stationery, magazines, or gift lines increase, as they often do due to freight charges, the legally compliant approach is to update the standard undiscounted shelf price immediately. If a supplier raises the wholesale cost of premium dog food by 10%, a pet store owner must immediately raise their standard retail price to protect their profit margin.

Next, you must strictly avoid artificially inflating a price with the predetermined intention of dropping it later to claim a "discount". Trying to soften the blow of inflation by staging a fake sale is legally considered deceptive pricing. A boutique clothing shop cannot raise the price of a dress from $50 to $80 purely to advertise a "30% off" clearance sale two weeks later.

Finally, the law strictly requires that advertised discounts be compared only with the price the item is genuinely sold at for a reasonable, sustained period. Because the exact legal definition of a "reasonable period" remains frustratingly murky, testing your luck with brief price spikes is highly inadvisable. Retailers maintain legal safety by completely avoiding "was/now" tags on items that recently fluctuated in price.

Documenting Pricing Compliance

A point-of-sale (POS) system is comprehensive software that tracks inventory costs, processes transactions, and logs historical pricing data. Instead of manual spreadsheets, it provides a digital record of product prices over time. For example, a retail manager can quickly generate a report showing a wine remained at $20 for six months before a sale. Using a trusted Australian POS system also allows effortless documentation of reasons behind price changes, enabling instant proof to regulators of when, why, and how long a price changed.

Furthermore, keeping your software up to date reduces the risk of human error on the sales floor. When supplier costs fluctuate, updating the central database ensures the correct baseline price instantly syncs to the front-of-house register. A busy cashier will never accidentally sell a garden hose at an outdated, unprofitable price if the system automatically locks in the new baseline.

Next Steps for Retailers

Undeniably, the most crucial next step is to fully audit your current promotional tickets to ensure they reflect a genuine, sustained prior selling price. If you recently spiked a price specifically to accommodate a supplier's recommended retail price. If you have been using "was/now" tags, I suggest you be careful. I am not going to.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Rocket and feather pricing, also called asymmetric price transmission (Wikipedia), happens when suppliers quickly raise delivery fees for reasons like higher oil prices, but are slow to lower them when costs drop. For example, a greeting card supplier's trucking company might add a 10% fuel levy, then rename it as a shipping fee and keep charging it for as long as possible. That’s why I believe these higher prices will stick around, even if the oil crisis ends. It’s unrealistic to expect them to drop soon.

Right now, freight surcharges and mandatory carrier fees are being added to your invoices to cover diesel costs. These charges increase your inventory costs before you even make a sale.

For example, when a distributor ships toys to your shop, they add a trucking fee that raises your costs.

Key Takeaways

• Freight surcharges are extra transport fees that hurt small retail profit margins.
• Point of sale systems track hidden delivery costs on every single stock order.
• Country newsagents face huge risks of running out of stock during fuel shortages.
• Price adjustments act as necessary steps to cover rising wholesale shipping costs.
• Delivery fee audits help you catch billing mistakes before they drain your bank account.
• Click and collect services help you completely avoid paying expensive carrier oil fees.

Why Does Tracking Freight Surcharges Matter for Your Store?

If you ignore rising fuel levies, your retail profit margins will shrink. Australia Post's domestic parcel contract fuel surcharge is set to rise from 4.8% to 12% (Source: Australia Post, 2026). Most small business owners can’t afford to absorb these sudden shipping fees. That’s why you need to include transport costs when setting your shelf prices. For example, if shipping a plush toy costs two dollars more, you should raise the retail price to protect your profit.

I know many retailers choose to absorb these fees, but I recommend reviewing this policy as soon as possible. It introduces a new level of uncertainty into the system, which makes it difficult to set consistent retail prices. Retail pricing strategies require stability to work properly. Fluctuating diesel costs create a chaotic accounting mess. For instance, identical boxes of toys might cost you three different amounts across three consecutive weeks. You may need to review the prices of the existing items in the shop.

How Do Suburban Newsagents and Country Retailers Compare on Supply Chain Risks?

Where your shop is located makes a big difference in how fuel supply pressures affect you. Suburban newsagents usually see smaller but more frequent freight surcharges. Country retailers, on the other hand, face higher delivery fees and a bigger risk of running out of stock.

How Does a Point of Sale (POS) System Manage Retail Inventory Costs?

A POS System tracks every item from wholesale purchase to final customer sale. It can automatically split bulk freight charges across individual items so you see the full cost. For example, your software can divide a $20 freight charge over 100 greeting cards, showing a 20-cent cost per card.

They can also be set to order stock strategically to minimise transport fees. By ordering larger quantities less frequently, you combine multiple delivery fees into a single charge. This is what we have done in our business.

Keep an eye on your prices regularly using your POS system. Next, review your delivery fees to protect your margins. Make sure you’re not covering customer shipping costs yourself. Push click-and-collect services to your local customers instead.

What Are Your Next Steps for Retail Margin Protection?

We’re all in this together. While you can’t control global diesel prices, you can control how your store adapts. Use your tools to ensure your cost data is accurate and margin management is tight. Don’t let hidden supplier fees chip away at your profits.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Running a retail shop or newsagency involves managing foot traffic, staff, and stock, but often overlooks cash flow. The gap between paying suppliers and waiting for sales to convert to cash drains working capital.

Key Takeaways

• Retail cash flow is the critical timing gap between money exiting the business for inventory and returning through customer sales.
• Inventory management requires identifying slow-moving stock that traps working capital and prevents investment in high-value items.
• Credit control policies dictate setting strict limits for customer accounts, regardless of the client's size or government status.
• POS systems automate credit decisions by enforcing warning thresholds and blocking transactions when accounts exceed their limit.
• Cash flow forecasting involves tracking weekly cash inflows and outflows to predict shortfalls before supplier invoices become overdue.

What is Retail Cash Flow?

Fundamentally, retail cash flow is the net balance of cash moving into and out of a retail business at any given time. It represents the actual cash you have on hand to pay the bills, rather than the theoretical profit. It is all too easy for a retailer to show strong profits on paper but have those profits tied up in massive stock orders, leaving the owner still struggling to pay staff wages.

Consequently, understanding this difference is the first step toward budgeting stability. Profit indicates that you are making money, whereas cash flow dictates whether you have the actual funds available when you need them.

Therefore, comprehending this timeline entails careful review of your cash flow management. When you bridge the gap between paying out and getting paid, you instantly reduce the stress of running an independent shop.

Unfortunately, poor cash management is a silent killer in the Australian retail industry, and the problem is not getting better.

• Fact — 80 per cent of Aussie small businesses experience cash flow challenges

What Are the Most Common Cash Flow Problems in Retail?

Usually, the most common cash flow issues in retail are slow-moving stock, overdue customer accounts, and poorly timed supplier payments. These problems don't usually make a loud noise; instead, they gradually choke your working capital over several months.

The Trap of Dead Inventory

Primarily, slow-moving inventory penalises your business twice: it depletes your cash reserves during purchase and paralyses your buying power while sitting unsold. Every item sitting unused on a shelf is, in effect, a stack of five-dollar bills you cannot use to pay your electricity bill. For example, holding onto last year's calendar stock in February is a direct drain on your shop's working capital.

Thankfully, modern reporting tools in your POS System can identify these items. Use your old and dead stock reports at least monthly.

Over-Ordering Without Data

Similarly, buying stock on a gut feeling rather than hard data is a guaranteed way to freeze your cash. Buyers often order heavily into new product lines, hoping for a trend, only to find their customers are not buying them. For example, a client of ours a boutique gift shop ordered a pile of expensive imported candles that looked great at a trade show, only to find their budget-conscious local shoppers completely ignore them.

Another problem occurred when a salesman from a greeting card company helped one of our clients place a large order, but no one checked the existing stock in the storeroom in the back. Piles of cards just sat uselessly there, eating the cash flow.

Use Automatic orders do not kid yourself the computer will win

How Do Overdue Customer Accounts Restrict Retail Cash Flow?

Undeniably, overdue customer accounts restrict retail cash flow by forcing your business to act as an unpaid bank for its clients. Extending credit to local schools, sporting clubs, or corporate offices feels like a great way to secure loyal business, but it comes with immense financial risk. Many of these will eat up your cash flow, leaving you waiting 90 days for their corporate office to settle their monthly invoice. Use credit limits which are easy to setup.

The Myth of the "Safe" Corporate Client

Interestingly, large organisations and government departments are often the worst offenders when it comes to timely payments. While you might assume a massive account is perfectly safe, its size actually makes it harder to collect from due to complex internal bureaucracies. For example, a government agency might have the funds, but their strict accounts payable policies mean your invoice will not be processed for a minimum of 60 days. Threatening legal action rarely works, the employees often do not care and/or there is nothing they can do, they work to organisational policy.

Years ago, I was stunned when I had a cheque from a goverment agency bounce as the bank said they had insufficient funds.

Consequently, you must lay down clear credit limits from day one, rather than allowing a customer to quietly accumulate unmanageable debt. Its easy to set up. 

Introducing Proactive Credit Warning Thresholds

Furthermore, proactive credit management requires catching the problem ASAP. Relying on staff to manually remember who owes what during a busy lunch rush is a recipe for disaster. For example, one of my clients happily hand over $200 worth of stationery to a local school teacher, completely unaware that the school's account was already 45 days overdue.

How Does a POS System Automate Credit and Inventory Tools?

Essentially, a modern Point of Sale (POS) system automates your credit and inventory tools by hard-coding your financial policies promptly into the checkout process. It removes the emotional difficulty of cutting off a loyal customer by letting the computer be the "bad guy." For example, when a customer attempts to charge items to an account that is over its limit, the system simply blocks the transaction and forces the operator to request immediate payment. That is actually the best place to collect a debt, when the customer is standing directly in front of you, wanting more goods.

Assessing Traditional vs. POS-Automated Cash Flow Management

Naturally, making the leap from manual observation to automated POS controls represents a massive operational shift. Here is how automating the areas immediately impacts your cash flow:

• Credit Limits: Relying on staff to guess or check a paper ledger leads to sudden debt accumulation. Conversely, a pos system automatically enforces hard limits, preventing uncontrolled financial exposure.
• Warning Alerts: Traditionally, owners only notice bad debt during an end-of-month review. An automated system manages this by alerting the cashier at the 70% threshold, permitting early intervention before the maximum limit is reached.
• Inventory Reorders: Manual buyers rely on hunches and empty shelves, which frequently ties up cash in dead stock. A modern system uses historical data to suggest precise, data-backed orders.
• Account Increases: Casual approvals at the counter create immense risk. The system requires a formal review process in the back office to ensure credit is only given to proven payers.
• Pricing Strategy: Applying manual markups is often inconsistent. Utilising AI retail pricing algorithms can optimise your margins and automatically maximise the profit per item sold.

Following Steps for Retail Cash Flow Management

You need to transition immediately away from reactive debt collection and emotional inventory purchases. Actionable cash flow management starts with creating boundaries today so you do not have to chase bad money tomorrow. For example, informing all account holders this week that standard terms are moving to 14 days will immediately pull your cash cycle forward.

First, start new accounts with very small limits to test their payment reliability. Let the amount build up only after they have proven they can pay on time, and be certain to review all existing credit limits annually. For example, start a new corporate client on a $200 limit, and only raise it to $500 after three consecutive months of on-time payments.

Additionally, consider whether a customer actually needs an in-house credit account. With the widespread availability of business credit cards and Buy Now Pay Later (BNPL) services, you can often shift the credit risk entirely to a third-party financier. For example, running a high-value transaction through a BNPL provider guarantees you get paid immediately while the customer still gets to pay in instalments.

Stop Guessing and Start Controlling Your Retail Cash Flow

If your existing system cannot automatically block overdue accounts, warn staff at checkout, or identify dead stock that is draining your capital, it is time for an operational upgrade.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.