Point of Sale Software

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Holidays - who's minding the store?

POS SOFTWARE

Holidays

You are planning a holiday. It going to be a great time.

Fair enough everyone needs to get their batteries recharged and stepping away for a week or two is I think a necessity. If you are like me, you need a week of holidays just to unwind enough to start enjoying the holidays. You start making plans, counting the days 

But hang on a minute...

Have you prepared the shop for your absence? Who is in charge while you are gone? Does everyone know what they are supposed to do while you are gone?

Of most importance to us, do they know how to work the computer system? If they do not, do you have support available while they are gone? 

Test runs

What I recommend is that you do some test runs, organise the shop, take a couple of days off and then see what happens.  

 

 

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Disadvantages of direct bank deposit

POS SOFTWARE

Direct bank deposit

In an effort to reduce banking costs, some people have asked us instead of Zippay can they offer a direct bank account system as cash is slowly declining.

Payment methods Australia

The short answer is *YES*, maybe and no.

The first point is you do not want to create what we call any type of friction if someone wants to pay with a particular payment method then I suggest you give them that option, particularly as it is an easy and cheap option plus it does offer what every business needs to provide a fee-free way to pay.

The problem is that today people want an immediate solution, that is the problem with laybys nowdays too which is on a steep decline. 

A direct bank deposit takes time, while the other methods like PayPal, Credit cards, Afterpay or ZipPay are instant.

 

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Australia's best shopping days

POS SOFTWARE

Retail sales

 

Anyone in retail here in Australia these are the most important based on marketing surveys in descending order

  • Boxing day
  • The day before Christmas
  • The day after Christmas
  • The Saturday before Mother's Day
  • The day before Father's day
  • Valentine’s Day (if you handle these products)
  • Black Friday, seems that we are rapidly adopting this date 
  • Easter Monday
  • Easter Saturday
Source: ShopperTrak data {link removed}

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Information and the growing importance of 1%

POS SOFTWARE

What is driving retail today is information. A few days ago, I talked of the 1% rule. Let me show you another example. 

Taking from the ATO benchmark study they give what I consider the best benchmarking figures for typical businesses in Australia today, so I picked a stationery shop just because it is something most of us can quickly get our head around.

Putting in typical figures for their figures, I made this chart.

ATO benchmark figures for a typical stationery shop

So here what I am saying is that on the first column So on 150,000 turnover a business from the chart would have about 78% expenses leaving it with about $33,000 profit and I did the same on the other rows.

Okay now let us say that these businesses make a 1% improvement, so they sell 1% more and they reduce expenses by 1%. What do you think the effect will be? I think you are going to be surprised.

Stationery shop with a 1% improvement

Look at 1% did?

What is clear is that you do not need much to do dramatically better. All you need is 1% better.

So how do you get 1%? 

  • Information, here are some ideas in no order
  • Speed up the queues by making your point of sale faster by increasing your POS sale scanning.
  • Find out your best sellers and move them into your best selling locations.
  • Better and more accurate buying.
  • Getting a better loyalty program going just using a simple customer birthday marketing offer helps a lot.
  • Monitor your theft rate
  • Speed up your computer processing by getting your suppliers to automate 
  • Controlling your debtors better.

All this is available from your computer system now.

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Day light savings tomorrow

POS SOFTWARE

Daylight saving time adjustment has come again. 

Although today most computers automatically adjust the time some for some reason miss this update so check tomorrow that our computers' clocks have the correct time. Last time we had a client in Queensland which should not have adjusted but did as the location was wrongly set to NSW time. So even if you are in say Western Australia which does not change it is a good idea to check.  

Based on experience over the next few days, the number one support issue we will have is that some of the times in the POS system will be one hour off.

 

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Christmas is coming

POS SOFTWARE

It is October now, and already we can start to see that retailers are getting ready for the holiday season. 

As the economy is doing well now and the public mood seems positive, this looks like it will be a good Christmas. 

Christmas trends over 5 years measured in 2018

Measured interest using Data Source: Google Trends (www.google.com/trends).

As you can see the public interest has not changed over the last 4 years.

It certainly now the time to start planning your stock ordering, so you need to estimate your stock requirements which is something our point of sale software can help you do. You also need to start looking at roistering again something our point of sale can help you with all this. I will be talking about all of these soon.

Before we go any further

You need to check is all your POS system ready for Christmas?  

So let’s get to work

If you are planning to bring in some of the old POS computers “out of the closet” to accommodate the rush period, tested it to make sure it works? If it has been in the closet for a year, who knows what state they are in now?

Here are some other points

Have you checked that you have all the cables to connect to this equipment?

Do you have a connection into your network where you need it?

Can this equipment be linked into your system, it been a year since it is been used?

Now try it now to see if it all works if you plug it in?

The closer it gets to Christmas, the harder it gets to repair in time.

Here’s the kicker

What is going to happen if you have extra staff and the computer register does not work over Christmas? I have seen this happen all too often. 

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Stock that is not performing

POS SOFTWARE

Do you have some slow-moving stock items?

Maybe you can cut back on their space to make more room for your profitable products?

I suggest that we do this in two stages. 

To begin with

Firstly let us find the items that are the slow movers

Go to Register reports > Stock > Slow moving Stock lines

 

Now call it up here

As you can see I am looking at the stationery department over a twelve month period for anything that I have sold less than $100 and am now stocking something.

Now out pops a report in this case of 81 pages of detailed information of all the items that match this condition in this case, we have almost $80,000 worth of worthless stock.

Now check them out, pull out what you do not want to keep and put in your sales area.

Once you’ve got this done

I suggest that you do a report of your top selling stock items and at those items that are selling well. A rule of thumb in retail is double the space of an item increases its sales by 50%. So the idea here is we are going to replace the marginal items with those that sell well.

Go to Register reports

Now select "Top N Stock Sales for a Given Period."

Now the following comes up.

Now put an appropriate period the default here of a day is not enough for this but I just wanted a quick report for illustration.

Out comes a report with the top sellers

Now, these products need to be checked that you have the right display for each of these products.

Note anything, not on this list you also need to look at as they are marginal..

The bottom line is this

You do not want to pay to a landlord for the space to stock items that do not sell.

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Try Selling fewer products

POS SOFTWARE

Consider this a consumer is expected to go through all these products to find the one that they want!. Is it any wonder that many experts say that modern retail today is confusing the consumer as it is giving them too many options. If you look through your POS software products, it is probably confusing to you also.

But here’s the extra problem  

Each product you have has to be displayed, and if you have two or three similar products for basically the same potential market you need more display room, and you have more tied-up capital in stock. 

Don’t worry. There’s a solution.  

Reduce the range for that product mix and put in place products for with a new market for example instead of having five different hair brushes have two hair brushes, some clips, headbands etc.

To do this what you need to do is determine your poor selling items and consider whether to discontinue them intending to replacing them with other things. Because you want to buy more of a particular product, you may be able to buy better, plus you are freeing up capital tied up in low selling stock items. 

It’s easier than you think


Go to Register reports

 

Now select "Top N Stock Sales for a Given Period"

Now the following comes up.

I will select a day, for example, but you usually would put in a year, now select a department

 

Out comes a report with the top sellers

Now, everything on this list needs to be marked, everything *NOT* on this list consider *CULLING*

Now you’re set!  

What I suggest is that every month you move a few items to a more prominent position,  cull a few items and replace them with new test products. A buyer at Coles told me that at any time he wants about 12 new items in his department. I suggest using this figure as a benchmark.

 

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BUSINESS REPORTS WITH POINT OF SALE SOFTWARE

What point that often I find stunning is the comparison of when I talk to the chiefs in large organisations compared to owners of small businesses (SMB). The leaders know less, much less but what they do know is relevant and essential to the problem at hand. The owner of an SMB, often does not know anything. The owner has all the details in their head, the pixels that they know little of the big picture.

I do not believe that retail business has ever had access to such a wealth of information as they do today.

A conversation might start, what is your top seller? The owner often gives a blank stare, well we sell a lot of this and that what is the top seller, it could be.... Yet the information is available in their POS system here.

Register sales report point of sale

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EACH STOCK ITEM HAS ITS OWN TREND

If you are seeing that you need to discount a lot to sell stock you are overstocked, it is a sure sign that you need to do something. As a punt what is happening is that you are overordering on some items and probably underordering on others. What often we see in retail is that our memory is by definition the past and the memory remembers old top sellers but what we need is the top sellers today. Here is how to identify what is selling well now to check that you have enough stock for tomorrow and it is very easy in our point of sale system.

Go to Register reports

Register reports POINT OF SALE

Select the "Top N Stock Sales for a Given Period"

Top Stock Items Point of sale

 

Now out pops the following.

 

Now select a day, as it is an old database I put in an old date. Usually, you would put in yesterday or today, just make sure you get close to a full day of trading.

 

Top Stock Items reporting

 

Now you get a report with the top sellers now

 

Keep track of top selling items

 

 

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EFTPOS/credit a tip

POS SOFTWARE

 

If anyone is paying by EFTPOS/credit card in your shop make sure that you get a photo of the customer. It may help.

What has happened to one of my clients is that last month as they were doing a credit transaction from a potential customer. The shopping assistant noticed that was doing the sale it looked suspicious, the amount was very high, the person had just grabbed a few items without thinking, was acting funny and seemed to be moving to try to avoid the cameras. So he told the person to wait for a second as he needs authorisation from the bank, which he did not need but it just did not look right. The person immediately ran out of the store leaving the card behind. The card turned out to be stolen.

 

Discount vouchers

POS SOFTWARE

There are some Gift Cards / Vouchers that are excluded from the new changes. Note the part I have put a red box on.

I would think that our discount vouchers are part of our customer loyalty program. Our suggested customer loyalty program does collect names and email addresses and other details so it is a fact that a customer loyalty program exists.

Also, most of our clients do not use it all the time so for most, it is a temporary marketing promotion. However, if you run it all the time, I suggest that you frequently change the details eg frequently change the percentage and so the amounts so that it is not a *permanent* promotion eg Mothers Day season special X% off, St Patricks season special Y% off, etc.

Following discussions, we have had with several people, we are currently changing our software. This will be released in an emergency patch going out tonight that will allow you to make changes to make it clear to your clients that these vouchers are part of your customer loyalty program. Details will go out in our newsletter shortly.

 

Zippay

POS SOFTWARE

Is now available in our system.

This is because in the last year, "buy now and pay later" payment type has just taken off in retail. Just walk through any shopping centre now and you will see shops displaying signs for AfterPay and ZipPay which by far are the largest players in this market. As most customers who use such cards tend to have both, I think it is important that all retailers should have at least one of these payment types on offer.

The big advantage to the retailer with ZipPay compared to Afterpay is the costs. ZipPay is almost half the cost, the cost is about 2% to 4%. Since it takes only a short time to get it, a person could literally walk into your shop, get a zippay in a minute and you can get confirmation the payment is accepted and then you get paid by 4 pm that day at no risk to yourself.

Note it cost nothing to get it and if you do not use it, it cost nothing and it does open up a large market.

As far as the public is concerned here is the graph of public interest in ZipPay according to google trends in the last 12 months in Australia. As you can see it has grown by 3 times. The recent drop is because the Christmas period is over.

If you want it integrated into your point of sale software let us know.

 

 

 

Christmas preparations

POS SOFTWARE

Well, it is October, and if the world moves as in previous years, many of my clients will do a major part of their trade this year in the next two months. So it is time to start thinking of what to adorn your shop for the holiday season. Please do not leave it too late. Furthermore, among your many other tasks, you will need now to start planning your stock ordering. This is something our point of sale can help you with. You will also need to look into your staff levels again something our point of sale can help you with all this; I be talking about these soon including monitoring with shadow marketing.

Overall, the economy now is moving forward but only marginally.

This is what it looks like now on 4 Oct 2017.

 

The way it looked a year ago in Oct 2016, when it was better

Still it is in the black, and the world economy is continuing to only slowly recover, even so it would be nice if we got some decent exports going.

There are signs that do appear to show that the yearly growing interest in Christmas trend is continuing up. You can see that this year 2017 is higher than 2016, which is higher than 2015. The public mood seems positive.


 

Measured interest using Data Source: Google Trends (www.google.com/trends)."

Last year, what I noticed after an analysis of the selling season for Christmas was that in recent years, it has gotten longer. If this continues and I cannot see why it would not, we can expect a Christmas season from mid-December to late January about a 6-7-week period.

Also now, it is important to check that all the equipment you propose to use over the Christmas period is working? This is particularly true of some of the old POS machines that people bring out of the cupboard at present. Please check them to make sure it all works? Furthermore, check the cables. Equally important that your Internet connections are where you need it? I suggest you try it all out now.

Believe me, you do not want anything not working over the coming season. If something goes wrong now, it will not be good for the shop and it may cost, for example computer engineers are often on holidays and those left are on double rates.

Instant Flash sales

POS SOFTWARE

Flash sales is a sale offered with very little notice for a short time, and it is extremely easy to set up on our point of sale software.

It can be an extremely effective way to quickly unload extra stock. For example, a sandwich bar, has at 2:00pm excess sandwitches. Rather then chuck them, it turns a negative into a positive by suddenly offering a great buy on sandwitches.Another example I have seen is a shop that suffered a fire needed to clearout most of the items in the shop because who wants the stock that been partly burnt and full of smoke. While the shoppers could see the shop had suffered a fire, they grabbed the bargains.

Properly used flash sales can be a great opportunity promote the shop.

This is also where it pays to have a functional VIP loyalty program as flash sale can be promoted with a personalised email offer. This way, you are as well rewarding the loyalty of those people that shop in your shop.

* A flash sale should be simple. You are not on a flash sale going to get much interest in buy six coffees, and the next is free.
* It should be of short duration. Its purpose is to get rid of limited excess stock.
* Your offer should stand out. If its not much of an offer what is the point of it?
* Promote as much as possible with signs, Facebook and your VIP loyalty program
* Be unexpected, you do not want to be too predictable, for example, if people learn that your sandwiches at 2:00pm are very cheaper, many full paying customers will delay their purchase until after 2:00pm

 

 

A review of Loyalty programs in Australia today

POS SOFTWARE

The latest copy of the most highly regarded review of Australian loyalty programs is now out. If you do not want to pay for it, I suggest that you grab a copy of the executive summary which is free and well worth a read for a retailer.

Overall what it shows is that loyalty marketing is fast growing in Australia in acceptance. Far as some have suggested that Australians are getting tired of it, the reality is that it is growing at a massive rate.

 

 

Today the average Australian is more involved is retail loyalty programs then ever before (5% up), and the number that they are active membership has grown by 10% from 2016 to 2017.

 

Not only that but most Australians now accept the need for loyalty programs.

 

At 64%, its almost something that is required by a modern business.

I think once you read this report, you will see that a modern shop should have a proper loyalty program, not just a simple but what ends out as a very expensive discount voucher system that so many use.

Our users are very lucky as our point of sale software has an extensive loyalty program system inbuilt which can handle one shop or hundreds of shops several large chains such as Nextra and Lucky Charm use it exclusively for there loyalty programs.

While you are reading this report, what I also do suggest that you grab a copy here which is also well worth a read too.

 

 

 

 

Bulk buying

POS SOFTWARE

A successful retail business depends greatly on having the right product, at the right price, at the right time. Ideally, they want to have the threshold inventory quantity which is the minimum amount of stock required because of our point of sale software, our clients can track stock levels. Threshold levels can be monitored and stock orders implemented.

However, sometimes, what happens is for some reason suppliers offer our retailers special prices for bulk orders. Sometimes they are once off, but sometimes they are ongoing offers. A typical offer here maybe be "Buy a pallet load and the price is reduced by X%"

 

 

 

Now our POS system can help you monitor these bulk offers.

If you go to the stock system.

 

 

 

Now in maintenance, under suppliers, you can set these bulk quantities by a range of different criteria. See in green the Bulk discount offer, I referred to. What is a very idea to put for these items the offers from several different to suppliers to allow you to determine the best price for these bulk buys?

If you do such bulk purchases, then I do suggest going through this part of our system.

Stock classification and control

POS SOFTWARE

The ability to control your stock, in our point of sale software is considered particularly strong. So this week's webinar is taking you through some tips and tricks for controlling your stock dissections, departments, family and classes.

If you have any questions about your stock control while watching you can ask them via the comments here or on the video.

The webinar is now available.

What point of sale should we sell to the creatures of Halloween

POS SOFTWARE

Looking at google trends it does appear that there is a growing interest in Halloween by the Australian consumer.

 

This is a graph of October over the last four years, blue=2013, red=2014, yellow=2015, green=2016. As you can see its going up, I think it's because more schools now are making special activities for Halloween.

So while talking to our clients about how to get the reports to show them how to find the sales they did over this period last year, to find out possible good sellers for this holiday, which often tends to be sweets, treat bags, Halloween dolls, masks and capes, I started thinking about what sort of POS software could we offer some of the creatures of this night in their shops.

 

 

Dracula would need a good stock ordering and stocktake system to keep his bloodstock in order in his shop. We have plenty of pharmacists, so I am sure we would have little trouble in getting his stock system right.

Frankenstein certainly has an image problem, no-one wants to come near him, so he would require our email and SMS marketing system to attract people to come into his shop. We have what is considered the best VIP system in our market space, so he would have little problems in getting it going.

The Mummy wants time with this beautiful girl, so he needs a decent roistering system, so he can make sure he is in the shop when she is scheduled.

The Invisible Man could use a focus automatic ordering system because he is always losing his bandages, and he needs to keep spare bandages in stock.

And Zombies needs a retail traffic analysis report, so they can be there when the shop is busy.

PS If you are wondering who that picture is, it's actually me, done with an android app, The Walking Dead Dead Yourself which lets you take fun pictures of yourself as a zombie.

Retail Purchasing: Ordering in POS Software

POS SOFTWARE

The reality is that many suppliers do not offer EDI invoicing even though EDI invoicing saves you a lot of time. The problem is increased if you order frequently to save resources, but the problem is the increase in management costs in controlling a large number of orders.



Our system provides a solution to this problem by giving you an automated stock control system which can run either manually with its replenish or Min/Max systems or the completely automatic focus ordering system. It also creates an electronic order that can be printed, faxed or sent by email. It can then create an EDI file that when the goods arrive can like any other EDI invoice be adjusted and imported after you check the supply when the stock arrives. There is no need to enter all that stock anymore. This will save you considerable time and resources.



If the fully automatic ordering system is adopted what the point-of-sale system will do is consider the ordering cycle (designed to reduce carry costs), the purchasing cost and lowest order quantities to produce the maximum profit for the minimum outlay in your store. This is unique to our system unlike the many manual systems out there, which end out in getting you to place orders that are larger than your immediate needs so tending to increase purchasing costs and produce overstock, which requires discounts on sales to get rid of extra stock.



Overall it releases resources, which allows you to respond to unexpected market opportunities. This will also reduce the number of stockouts on many items and its associated costs leading to increases in your clients' satisfaction.

 

If you want to learn more, please contact us, as only we offer at present focus ordering in our marketplace.