Negative inventory, also known as negative stock, is when your system shows that item quantities are negative. For SMB retailers, this is a warning sign of serious inventory management issues that need immediate attention. Every instance points to deeper problems in your POS system. If not fixed, this negative stock can quickly lead to significant issues.

Understanding the causes of negative stock is a first step toward resolving these discrepancies.

Understanding negative stock

When your records display negative stock, your stock quantities information is unreliable, making it difficult to make informed business decisions. As a result, staff may lose trust in the POS system and hesitate to rely on its information. If the staff start to realise that your controls are weak, it can be disastrous as it invites staff theft.

Additionally, negative inventory distorts sales, purchasing, and financial reports, making it more difficult to analyse performance.

Beyond data reliability, negative inventory also disrupts key business reports.

Causes of Negative Inventory and How to Prevent Them

Negative stock usually results from a mix of factors. -Delays in processing supplier invoices (leading to sales before stock is entered into the POS System) -Errors in supplier invoices -Staff entering incorrect quantities.

Fortunately, some preventative measures can help minimise these inventory incidents.

Preventing negative inventory starts with robust staff training. Ensure your team understands correct inventory procedures and that you consider accurate data entry essential. Check carefully that suppliers' electronic invoices match the deliveries. Implementing barcode scanning for both receiving and selling stock significantly reduces manual entry errors.

Improve Barcode Scanning Discipline

Negative inventory often occurs when cashiers bypass barcode scanning and manually key in an item, accidentally selecting the wrong product (SKU). The system depletes the stock of the wrong item,driving it negative, while the item that was actually sold remains overstated in the system. We need to strictly enforce barcode scanning at the register. If necessary, require manager approval for cashiers to manually type in SKUs. 

Financial and Customer Service Consequences

Negative stock can have significant financial consequences, as it distorts your KPIs and leads to incorrect calculations of the cost of goods sold (COGS) and profit margins.

Possibly the biggest problem is that it will result in inaccurate GST tax reporting.

From a customer service perspective, negative inventory can lead to lost sales and a poor customer experience, as the computer indicates that you do not have stock when, in fact, you do have the stock the customer is looking for to buy.

Detecting and Correcting Negative Inventory

To address negative inventory, use your POS system to run reports like 'Quantity On Hand' or 'Price Check.' It is easier to do it one department at a time rather than the whole shop at once. Items with negative quantities are clearly shown. Please investigate each case to identify whether the cause is a counting error, data entry mistake, or delayed invoice.

These financial inaccuracies also impact customer service in tangible ways.

Finding the negative stock

Fortunately, we have a quick and easy way to check stock quantities for what you have on hand.
 
Go to reports. There is an option for Quantity On Hand and Price check; click on that.

We exclude items with zero stock. 
 
I suggest doing it by department, so in this example, I picked the dissection (department) tobacco. 
 

Now, in the outcomes report, which lists the details of your item, look at the quantities on hand in the QOH column. You may see items in brackets, as indicated by the green arrow below; these are the negative Stock Discrepancies.

At first, you will find it a lot of work to fix it, but once done, it's relatively quick.

You should frequently check this report for negative stock values, say monthly until the problem is fixed.

Now, audit these negative items to determine what went wrong in your inventory management system.

Inventory Adjustment Best Practices

After completing a stocktake, your inventory figures are at their most accurate. So it is the ideal time to review and correct any discrepancies.

When making inventory adjustments, it is a good idea to determine the reason for each correction. It can reduce the problem in the future.

Real-World Example: The Cost of Negative Inventory

A staff member mistakenly told a customer that the item was out of stock when it was actually in stock. It led to a lost sale for the business. When the staff member saw they had the jumpers, they reported this to the owner. What she found was a negative quantity for a popular jumper. However, upon investigation, they discovered that they had not entered a recent delivery invoice.

Empowering Your Retail Business

With proactive prevention and early detection, negative inventory can be handled by utilising tools like our reports to stay informed about your stock quantities.

Only by understanding the causes can you fix the problem.

Let us know if you have any other questions!

*This article draws on industry best practices and current expert recommendations to help SMB retailers understand and tackle negative inventory.

I would like to thank  mentoring software  for their help with this article.

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.

Recently, I was reading a fascinating book about AI in modern legal practice and realised much of it would apply to retail too. The gap isn't whether they use artificial intelligence; it is understanding where it fails and where human control remains essential. What we need to do is safely use AI as an assistant while protecting our stores from its blind spots.

Key Takeaways

• AI drafting tools can only generate rough, initial versions of marketing content and product descriptions.
• Human reviewers must rigorously check all AI-generated text because the software frequently invents incorrect facts, prices, and legal statements.
• Retailers remain legally and commercially responsible for all their published errors.
• Sensitive customer data and wholesale pricing must never be pasted into public AI platforms without a thorough understanding of the provider's privacy rules.
• Sharing confidential material with an outside AI provider may create contractual, privacy, or legal issues for your business.
• Privacy Act obligations apply strictly to customer information even when you use AI to draft emails or handle complaints.

What Is an AI Drafting Tool?

An AI drafting tool is software that quickly creates a first draft of text for review, correction, and finalisation. Our survey shows our retail clients mainly use AI for advertising, such as drafting Father's Day promotional emails. Here, the AI is not an expert. It is not a decision-maker; you are. It must function solely as a brainstorming helper, aiding in organising ideas and overcoming writer's block, thereby speeding up your workflow.

Why Does Human Oversight in Retail AI Matter?

Crucially, human oversight matters partly because artificial intelligence lacks your real-world commercial context and because it is not factually reliable. You cannot simply trust software to understand the nuanced tone of your local business or the specific legalities of your supplier contracts.

Why Does AI Sound Confident Even When It Is Wrong?

An AI is trained to sound confident. They train it to give you what it thinks you want. If you ask it to describe a new candle brand, it might say it has a 100-hour burn time simply because that phrasing sounds good to it. This is what one of my clients got. The problem was that the candle certainly didn't have a 100-hour burn time, not even close.

I had a client disputing his claim for money owed by a private superannuation fund. The AI prepared a highly formal, legally sound letter threatening to escalate the matter to a small-claims tribunal, if it was not paid. He sent it and was ignored. In frustration as time was running out, he lodged his complaint with the small claims tribunal. The tribunal rejected the action because the AI had completely misunderstood the legal structure of the superannuation fund involved. What the AI had created was polished legal rubbish. When queried later, the AI system admitted it had mucked up the legal positioning. It did not help my client by then. His legal position was worse too as he blamed the wrong person. Just because the AI was smooth and fluent did not prove it was accurate.

Checking the Crucial Details

Inevitably, you must review specific elements whenever AI drafts your seasonal promotional copy or event notices. Specifically, you need to verify rigorously:

• Product names and brand descriptions
• Prices and sale conditions
• Dates, times, and store locations
• Stock availability
• Supplier details
• Store contact information and correct spelling
• Whether the tone sounds like your business

I often ask a second AI system to review the draft for possible errors. This can sometimes identify problems. It's not foolproof, but it often works. Here is the prompt I use, feel free to use it or modify it. I think you will find it useful too. 

What Sensitive Information Should Retailers Hide from AI?

Legally, you should be careful about putting sensitive information into a consumer AI tool.

Specifically, sensitive information could include:

• Customer names, email addresses and phone numbers
• Employee details, payroll information or performance issues
• Supplier contracts, wholesale prices and confidential terms
• Financial figures, margins, forecasts and banking information
• Unpublished business plans and new product strategies
• Legal disputes, personal matters or documents that may be legally sensitive

Privacy and Confidentiality

Sharing confidential material with an AI provider may cause privacy breaches and may also violate agreements. Simply entering it into an AI chat might make it public. Supplier agreements often contain confidentiality clauses. Customer information is covered by the Australian Privacy Act. You carry its strict obligations. The legal consequences will depend on the facts. However, a business should not take unnecessary risks with information that could harm customers, employees, suppliers, or the business itself if disclosed.

Consider Local AI, which I previously looked into for AI for Australian retailers. I will need to do an update soon, as so much of the technology has changed, but the central issue here of privacy remains important.

What Are the Best Next Steps for Retailers Using AI?

Set a clear, simple rule for your entire team that a human approves the final version. 

Review the privacy settings of your AI tools.

Opt out of data-sharing features if you are worried.

Do not use public AI systems with your confidential information.

What Is the Final Word on Keeping AI in Its Lane?

In conclusion, AI serves as an incredibly helpful drafting tool that generates fresh ideas and improves your wording quickly. Modern retailers now use it continuously.

Finally, if you would like to read the legal book that originally prompted these thoughts about AI, please let me know. I can easily get you a copy, and it is not expensive at all!

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.

It's that time of year again. The EOFY rush is over, and now you finally have a moment to breathe. Before you switch off, review how your shop performed last year.

Do not just ask, "Did we make money?" Ask, "Where did the money come from?" And, just as importantly, "Where didn't it?"

Let Us Study the Stock

This One-Minute Report Tells You a Lot

Go to:

Reports → Sales - Stock → Dissection Family Class Period Sales Comparison

Compare the last two financial years:

Please make sure you put the right dates here. 

• From: 1 July 2024 to 30 June 2025
• To: 1 July 2025 to 30 June 2026

   

Select all stock to run the report for everything. I always recommend keeping settings simple for now until you get a handle on this report's complexity. It will give you a clear breakdown by department. Later, you can run more specialised reports.

What to Look For

Do not get lost in the columns. Focus on two figures for each department: quantity and profit.

• Quantity up, profit down: You may be discounting too much, or the margin in that department may be dropping.
• Quantity up, profit up: Good. That department is moving in the right direction. Do not stop there; look further into why it worked.
• Quantity down, profit down: That department needs a closer look.
• Quantity down, profit up: You may be selling fewer items, but you are selling higher-margin items.

What you need is a forward-looking business strategy to drive your business forward. This requires proactive, actionable execution like this on your part.

Unlike so many other POS systems, our system, I am very proud to say, gives you something you can use.

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.

Most SMB retailers aren't using AI for management. Here's how to easily connect your POS system to free AI tools to improve management reporting. We found this out when we recently asked SMB retailers how they use AI, and most said they don't use it at all. This surprised us, since many AI tools are free to try. In today's world, every business should consider using AI.

Key Takeaways

• Our survey found that most SMB retailers do not use AI.
• Cost and time were the main excuses.
• Retailers who do use AI mainly use it for marketing, writing emails, and social posts.
• The people we surveyed felt their current POS system already gives highly reliable data without AI.
• AI can only process management information accurately if you give it enough details.
• You need a Commercial Operations Profile (COP) for management reporting, providing the essential context AI needs to help you.
• Asking an AI to generate a visual dashboard makes complex POS reports incredibly easy to digest.

How Are Retailers Currently Using AI?

Retailers who use AI mostly rely on it for marketing tasks, such as writing social posts, drafting emails, and looking up basic information.

For example, our survey showed that when using AI for marketing, retailers tell the AI what they want, explain their target audience, and ask for help. Since they provide this context, the AI does a good job. Many use ChatGPT to write Facebook posts about things like Mother's Day cards, then make a few tweaks before posting. This saves a lot of time.

However, when it comes to management information, most users are not using AI correctly.

Why Do Most SMB Retailers Avoid AI for Business Management?

Most SMB retailers avoid using AI for business management because they worry about costs and feel their current software is good enough. When we asked how many use AI to better understand their business, very few said yes. Most blamed cost and time. Time is a fair concern, but cost shouldn't be, since many AI tools are free.

Shop owners also skip AI because their POS systems already provide reliable data. Many retailers know their business well and don't see the need for AI. Plus, AI is still new, and everyone is learning as they go. Even data professionals find it hard to keep up with all the changes. But every journey starts with a first step, so now is a good time to begin.

Let us start with the basics.

What Is a Commercial Operations Profile (COP)?

A Commercial Operations Profile (COP) is a brief written summary of your shop's location, target market, and competitors that helps AI or anyone else, for that matter, to understand your business. Even the smartest person does not know anything about your specific business unless you tell them. If, as some do, you paste numbers into an AI chat box, the AI will fail to give you useful management advice because it does not know.

For example, if your Point of Sale (POS) system is reviewing winter sales, the AI analysing these figures needs to know whether you are in sunny Queensland or cold Victoria to give you advice.

This is what a COP is designed to overcome.

Creating a COP is the most important step you can take. Save your COP somewhere easy to find. Our POS system has a spot for it, but you can also keep a text file on your desktop to copy and paste into any AI tool you use.

If you want to use AI  and are unwilling to pay for it, let me know. As long as you have someone very computer-literate on staff, I can give you a free, very good basic AI.

How Do You Use AI for Management Information?

To get management information from AI, give it your Commercial Operations Profile and a detailed report from your POS system. Start by asking the AI to edit the COP template below with your own details until it fits your shop. The more details you include, the better, but this template works well for most retailers.

Fill in the blanks and save your COP. Don't worry if it's not perfect right away—you can always improve it later. Now open your AI tool and paste in your COP. Once the AI has your profile, tell it: "I am pasting in this report. Please analyse it and make a report."

Next, go into your POS System and select a report. Now paste it into your AI.

After the AI creates a report, I like to ask it to generate a visual dashboard for the results. A picture can make the information much easier to understand.

Here's a sample AI financial dashboard for a fictitious newsagency. I use the visual dashboard to quickly grasp the main points, while the text report provides more detail. My clients always find these reports interesting to read.

What Are the Best Pro Tips for Prompting AI?

• Speak plainly. If you have a microphone, use it. Speaking is often faster than typing.
• Ask for a result rather than tell it how to do the task. Say something like "I want a report on …" Let it work out how to do it.
• Never waste time debating with the AI. It is not a person and only works with the information you provide. If the information is wrong, the answer will be too. Don't waste time arguing with AI. If unclear, ask for clarification, like, "Redo in Year 8 Australian English" or "Explain so a busy shop owner can understand."
• Feel free to ask more questions. Do not be embarrassed by asking a stupid question; who cares what an AI thinks of you?

What Are Your Next Steps With AI?

Your next step is to test this with your own store's data right now, without spending a cent. First, spend a few minutes filling out the COP template above and save. Try this out with your own store's data now, without spending any money. Fill out the COP template and save it. Then run a basic sales report and let the AI handle the rest.

Conclusion

Getting management information from your reporting software doesn't have to be confusing. Start by giving the AI a simple business profile. Then, ask for a visual dashboard to make complex reports easy to read. Don't let cost stop you from using free tools and start finding hidden trends in your shop today.

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.

One of the most successful retail sales events in Australia is stocktaking sales. It turns slow-moving stock into cash. Shoppers expect these sales and are on the lookout for bargains. So why not hold a clearance event like many others do?

What is a Stocktake Sale?

A stocktake sale is a special promotion held right after your annual stocktake to move excess, slow-moving, or outdated stock. Retailers across Australia now are using these sales to turn unsellable inventory into cash. As you have just finished your stocktake, you know much of the stock that needs to go and now is the perfect time to run a sale to bring in some extra money for your business.

How Do You Choose Which Stock to Discount?

Use your stocktake results and your Point of Sale (POS) system to decide which items to discount. Only include products that have a clear, data-backed reason to go. For example, if your POS reports show a certain candle brand still sells well at full price, don’t put it on sale. I have discussed this in detail here.

Many retailers also use stocktake sales to clear out discontinued products that suppliers no longer make. These items can leave empty spots in your displays.

When it comes to pricing, keep things simple and clear. Use offers like "Clearance Books from $5" or "Buy Two Reduced Items for a Further 10% Off." A "$10 Bin" will encourage more impulse buys than complicated discounts.

Under the Australian Consumer Law, be careful when using the popular 'was/now' pricing discount method. Currently, most say you can only use it if it was in the Australian Consumer Law, which has rules about 'was/now' pricing. Usually, you can only use this method if the item was sold at a higher price in your shop within the last three months. To be safe, I am suggesting most of my clients to avoid using the 'was/now' pricing and simply say, for example, 'down to $10.' Always clearly display the exact start and finish dates on all your marketing materials. 

Furthermore, if your clearance stock is highly limited, you should add "While Stocks Last" to your signs to increase demand.

In-store signage must be bright, consistent, and strategically placed at eye level to capture your customers' attention. I like a red sign as it means to a consumer stop. I do not like yellow as studies show older people see it as dirty. In any case make sure your in-store signs are bright, consistent, and placed at eye level to catch customers' attention.

Many retailers put signs at the front of their shops to attract passersby.

Now after the sale ends, review your results. Also, you should compare your normal trading period against the sale window by looking at these four vital KPIs:

• Track how many slow-moving items you managed to clear out.
• Count the exact amount of working cash you recovered by selling off those obsolete items.
• Check how much profit you gave up to free up space in your store. Looking at that stock is a clear learning experience.
• Review the display areas you freed up.

Conclusion: Refreshing Your Retail Store for 2026

A well-planned post-stocktake sale is one of the best ways to clear old stock, free up cash, and get your store ready for the new season. If you have not moved now do it now while the stocktake season is still on.

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.

When your Telco goes down, retail shops can’t operate as usual.

Key Takeaways

• Telstra says its higher fees are due to better network reliability.
• Many businesses using Tyro EFTPOS terminals were affected during the 8 July 2026 outage.
• More than 300 Triple Zero calls did not go through during the outage.
• EFTPOS systems with backup connections provide retailers with important protection against outages.

Telstra recently had a major outage. For many retailers, the biggest problem was that their EFTPOS machines stopped working. Tyro, a leading EFTPOS provider, confirmed its network was hit during the disruption.

For a retailer, typically losing EFTPOS access can mean sales drop by half.

Another issue was that many businesses lost the ability to communicate.

Most of us know that Telstra charges more than other telcos. When asked, they usually say it’s because their network is more reliable and covers more areas. For businesses, this can seem worth it because we rely on steady communication. Telstra also said its recent price increases would help pay for better networks.

But after this outage, it’s fair to question whether those reasons still make sense, especially given the high bills and lost sales.

Clearly, Telstra is not infallible despite premium pricing built on the promise of reliability. A quick glance at monitoring services like Downdetector shows localised faults are reported regularly.

Last Wednesday's failure, however, was not a small localised fault. It halted Victoria's V/Line regional trains and disrupted traffic lights across multiple states. Most seriously, Telstra confirmed that over 300 Triple Zero calls were logged but unsuccessful.

I suspect that this failure will cost Telstra heaps.

Action at Renewal Time

When your contract ends, ask around and get quotes from different providers. Don’t just take claims of better reliability at face value; ask what happens if the service fails. Keep in mind that a lower price doesn't always mean better protection, so compare your options carefully.

Some EFTPOS providers we handle include premium backup features which, at no cost to you, allow you to use your EFTPOS terminal when your internet or mobile network goes down. This means that you can still process transactions and avoid missing sales.

The Telstra outage in July 2026 showed that even a claimed premium service can fail without warning. Retailers pay more for peace of mind, but in this case, it often meant a higher bill with no extra protection.

PS POS Solutions once took Telstra to court over overcharging. We won about $40,000.

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 best figures to use for benchmarking are always your own past results, whether from last month, last quarter, or last year. Still, looking at other people’s numbers can help you spot issues you might miss. The ATO’s newsagent benchmarks are the most useful and affordable option for this. The ATO has access to more data and resources than anyone else, and these are the figures they check first if they investigate your business. This guide will explain what these benchmarks are, how the ATO creates them, and how your POS system can help you use both your own data and the ATO’s figures together.

Key Takeaways

• Your own historical trading figures remain the single most reliable benchmark for your specific newsagency.
• ATO benchmarks are recent national averages derived from tax returns and are useful as a secondary point of comparison.
• Use the product mix to determine whether low-margin print sales are supported by higher-margin categories such as gifts and books.
• A POS System helps you track your own figures accurately.
• Your own figures are the real foundation of good decision-making.

What Are ATO Benchmarks?

ATO small business benchmarks are financial ratios derived from the tax returns of thousands of similar businesses across Australia. What is helpful is that the ATO groups this tax return information by turnover and then calculates average ranges for costs like stock purchases, rent, and total expenses, making it relevant to you. ATO Benchmark figures are available on their website.

The latest figures are for the 2023–24 income year and are up to date, but keep in mind they do not reflect real-time trading conditions. Before you use any of this information, I want to be clear about my own view. The most meaningful benchmark is your own data, tracked over time, because it truly reflects your business. Other people’s figures, like the ATO averages, are helpful, but they should only be a second opinion.

Your Figures Are Best

There is solid research behind this. Studies from Australian banks and the US government show that individual businesses often do not follow the same trends as their wider market. For example, while bookshops overall might be struggling, I know many bookshops using our POS system that are actually doing well.

Your own trading history is the most reliable benchmark because it reflects everything unique about your business. No outside average can show your specific lease, your local competitors, or your regular customers’ habits. If your cost of sales has stayed at 52% for three years, that steady number tells you more about your business's health than any national average.

Tracking your own numbers over time shows trends that outside data cannot. For example, if your cost of sales jumps from 50% to 60% in one quarter, that is a much clearer warning than just being a bit outside the ATO range. If you see your rent-to-turnover ratio slowly rising over two years, you have time to renegotiate your lease before it becomes a problem.

However, if you only look at your own numbers, you might miss something important. It can be hard to know if a slow change is normal for your shop or a sign of a problem. That’s why it’s still useful to check other people’s figures, even if they are not your main focus.

Deriving and Using Benchmarks

The ATO works out these figures using tax returns from businesses that are properly listed as newsagencies. They leave out businesses like post office agencies or delivery contractors, so the averages are more accurate for real retail shopfronts.

Other people’s figures are valuable because they let you double-check your own trends. If your numbers seem fine but are far outside the ATO range, that’s a good reason to look more closely.

Calculating Cost of Sales

Cost of sales to turnover means the percentage of your sales that goes toward buying the stock you sell. You work it out by dividing your cost of sales by your turnover, then multiplying by 100. This number does not include rent, wages, or other overheads. For example, if you buy $100,000 of magazines and gifts and sell them for $200,000, your cost of sales ratio is 50%.

For 2023–24, newsagents with sales between $65,000 and $500,000 usually have a cost of sales between 42% and 59%. Those with $500,001 to $1,000,000 in sales are in the 47% to 62% range, and those above $1,000,000 are in the 55% to 81% range. Use these as a reference alongside your own yearly trend. If your cost of sales is always around 58% and the benchmark for your group is 47% to 62%, that steady result is a good sign, even if you are near the top.

You can find your own historical figures in your Point of Sale (POS) system. Run a rolling 12-month report from your POS software and compare it to the ATO ranges to see if you are deviating from your own trend.

Have your cost of sales, rent ratio, or total expenses changed a lot from your usual pattern? A sudden shift is a stronger warning than any comparison. After you have checked your own numbers, use the ATO figures as a second check. If your numbers are above the ATO range, it could be due to unrecorded sales, heavy discounting, supplier price rises, or stock losses. If both your own numbers and the ATO range show a problem, you should look into possible stock losses right away.

Remember, the ATO benchmarks do not prescribe an ideal mix; they reflect what similar businesses to yours report.

If your numbers are below the ATO range, it often means you have higher markups or a more profitable product mix. In my experience, it can also mean some costs were recorded differently than the ATO categories. Check this carefully. It does not mean there is a problem; it might just show you run your business efficiently. A newsagency that stays below the benchmark for years probably has a strong range of high-margin gifts and cards.

Comparing Other Expense Ratios

Total expenses to turnover includes all your business costs, like rent, wages, and utilities. As with cost of sales, compare this to your own history first, then check the ATO range.

Rent to Turnover

Rent is often your biggest fixed cost. Watching your rent ratio over time can reveal lease issues before the ATO comparison does. If your rent is much higher than usual, ask yourself if it is worth it and investigate why it has changed so quickly. Sudden increases flag inefficiency fast.

Why Product Mix Matters

Product mix means how much each category, like print, lottery, cards, stationery, and gifts, contributes to your sales. Watching how your mix changes over the years tells you more about your business’s direction than any outside average. For example, if gifts and cards have grown from 20% to 40% of your sales in three years, that is real progress.

How POS Systems Help

A good Point of Sale (POS) system lets you track your own figures, which is why I think it is more useful day-to-day than any outside benchmark. It records every sale and builds a history you can use as your main comparison tool. By checking your POS dashboard each month, you can spot changes in your cost of sales before they show up on your yearly tax return.

POS also helps you investigate any gap you find against the ATO figures. You can pull reports on gross margin dollars, stock turn, and dead stock by category and supplier to understand exactly what is driving a number. Your POS might reveal that your cards category consistently outperforms your historical average, which is worth expanding on. For more on this, check out our POS reporting guide.

You should begin by getting your own 12-month trends for cost of sales, rent, and total expenses from your POS system and your accountant. This is your main benchmark. Once you understand your own pattern, compare it to the ATO ranges. If you see a gap, that is your cue to look into it further and investigate.

Your Own Numbers First

To sum up, your own figures, tracked over time, are the most important benchmark for your newsagency. The ATO’s latest numbers are still helpful as a second opinion, but they are just a general guide, not a rule made for your business. Use both, rely on your POS system to keep your data accurate, and you will make better decisions than if you use only one source.

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.

You are likely missing out on revenue by ignoring the foot traffic generated by the anchor shop next door. Use the Woolworths Effect to turn someone else's marketing budget into your own advantage.

Key Takeaways

• Anchor stores are the major traffic drivers in your shopping centre.
• The Woolworths Effect provides highly predictable footfall.
• Point-of-sale reporting reveals the effect.
• Complementary merchandise often captures passing shoppers.
• Seasonal planning helps.

What Is the Woolworths Effect?

The Woolworths Effect is the sales boost a retailer experiences when an anchor store attracts more shoppers to the shopping centre. It's a piggyback effect. It delivers customers who are already in a buying mood directly to you, increasing your retail revenue without expensive advertising. *For example, a retailer might spend millions on television ads, so bringing many passing shoppers past your shop. Just a tiny fraction of these passing shoppers can significantly boost your profits.

You monitor their business closely by tracking their promotional calendars and recording exactly when the crowds arrive. Often, you must step outside your own shop and observe what the big store is heavily promoting to the general public.

Your POS System can often show the Woolworth's Effect by clearly showing how your sales change during these promotions.

How Do You Mirror or Complement Supermarket Offers?

Now, when you see such a promotion, try to complement their offers by selling these or related items. Ask yourself what people are coming into that shop for, and what you could sell those same people as well on that shopping mission. For example, if the anchor is pushing cheap back-to-school pencil sets, you must feature higher-quality school diaries and study guides.

Often, a good idea is that instead of competing directly, match their campaigns with smart complementary offers:

• When they sell cheap pencil sets, you feature premium diaries and study guides to help kids get ready for class.
• When they sell discount boxed chocolates, you feature high-quality greeting cards and books for a quick Mother's Day gift.
• When they sell bulk party food and drinks, you feature helium balloons and premium gift wrap for weekend family gatherings.
• **Look at your POS System as it is showing what is selling now well in this promotion.

What Are Your Next Steps?

Your next step is to set up a small in-store display tied perfectly to the anchor's campaign. Try it for just a week or two. For example, place a premium BBQ accessories table at the front of your store when the supermarket pushes summer meats.

Your POS System will show you if it actually worked.

If it did, document this promotion in your diary for next year, as most anchors repeat promotions the following year. Then you can be prepared next year.

Conclusion

The Woolworths Effect proves you can quickly turn your biggest competitor into a source of free foot traffic.

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.

Well, it's that time of year again, the end of the financial year, when we start to look at the books again.

Our POS systems do not require a special backup or a specific time to run EOFY reports. This means you have plenty of flexibility to fit this into your schedule. The only reason to run them immediately is if you want to clean up your books.

Essential Financial Statements

Your accountant will need specific statements to prepare your business accounting and taxes. Be sure to ask them exactly what they need and which date ranges they require. The essential reports generally include:

• Profit and loss statements
• Balance sheets
• Cash flow statements (if you use them)

I suggest printing these in detail so you have the data to support your figures. Do not worry if it seems like too much information; I have never heard an accountant complain about receiving too much detail.

For the tax-savvy, review these reports and look for opportunities to write off any damaged stock or bad debts. Highlighting these items makes it easier to discuss potential tax deductions with your accountant.

Key EOFY System Reports

• Sales reports: These provide the totals of your various revenue streams.
• Stock valuation: Generate this after your stocktake to get a comprehensive picture of your current inventory levels, which is crucial for managing diverse categories such as books, greeting cards, and gifts.
• Accounts receivable (debtors): This highlights your customers' total debts, unpaid invoices, and outstanding balances.
• Accounts payable (creditors): If your software tracks creditors, this shows the total amount of outstanding payments you owe to suppliers or vendors.

System Functions and Webinar Training

Our team has prepared a video from a recent webinar that delves into the intricacies of EOFY reporting with our POS software. From dissecting each report to answering your burning questions, this webinar is a must-watch for understanding how to use helpful system functions.

I think you will find that reviewing these reports will show many insights and give you ideas for your business. If you need any extra help, give us a call!

Of course, if you need more help, give us a call.

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 End of the Financial Year (EOFY) can create timing issues that come back to bite years later—this year, it’s tomorrow.

The Perils of EOFY

Here's the potential snag: some businesses close their books on Tuesday night, while others finalise them the next morning. This creates timing differences, where the same transaction can be recorded in different financial years by different organisations.

This means invoices, credit notes, and payments may not align. Add Australia Post delays or processing delays, and important documents might not appear in your records until after EOFY. As a result, your figures may not match those of your suppliers or customers.

This may become a problem during an ATO audit. The ATO may compare your records with other businesses and ask why the figures differ. Since audits often occur years after the fact, it can be difficult to explain what caused the discrepancy. You end up trying to reconstruct events you barely remember.

We experienced this firsthand. A supplier issued a credit note to us just before EOFY, but we didn’t receive it until a few days later. During an ATO review, that timing difference worked against us, and it ended up costing us. The ATO argued that we should have known about the credit note in the previous financial year.

Taking Control

You can reduce the risk of these issues with a few simple steps:

• Ensure your POS and accounting systems can clearly explain your figures if needed. Putting notes in can be a big help.
• Contact suppliers now if there are large or outstanding amounts.
• Start chasing missing invoices and credit notes.
• If timing cannot be resolved, get written confirmation (email is ideal).
• Where possible, delay closing your EOFY slightly to allow final documents to come in.

One advantage of our POS system is that it allows adjustments after EOFY, so you can continue processing and correcting entries as information arrives.

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.

For SMBs, there is little in the budget of2026/7, which looks like a grab for money.

Key Takeaways

• The 2026/27 financial year for SMB retailers is a cost reset driven by higher wages, 12% super, and tighter cash flow.
• Retail Award wages rise by 4.75% from 1 July 2026.
• The National Minimum Wage increases to $26.44 per hour.
• The Superannuation Guarantee is now payable within 7 days, placing greater pressure on payroll.

How Much Will Wage Rises and 12% Super Cost SMB Retailers in 2026/27?

Award wage increases raise payroll costs and also increase super costs because super is calculated on eligible earnings.

What will really hurt our cash flow is that this super must be paid within 7 days.

Super Calculation Formula Changes

I suggest that you use a computer program or accounting software to calculate superannuation, as the formula is changing.

Conclusion

There are some other changes to the accounting rules, but I suggest you discuss them with an accountant.

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.

EOFY is almost here, 6 days to go, and soon, the best POS hardware deals of the year will be unavailable. If you've been sitting on a slow or ageing checkout setup, this is your window to fix it at a better price.

Key Takeaways

• EOFY supplier discounts on POS hardware are only available until 30 June.
• Retailers who upgrade now can claim the purchase this financial year.
• Limited stock means deals disappear once suppliers close out the month.
• A modern POS system reduces checkout headaches and daily retail friction.

Why Are EOFY POS Deals Available Right Now?

POS Suppliers now want to clear warehouse stock before the financial year closes; they need money now, and they would rather get rid of it than count it. That pressure works in your favour. We've negotiated directly with our technology partners to bring you current POS equipment at sharp EOFY pricing, deals that won't be available soon due to limited stock.

Is It Worth Upgrading Your POS System Before 30 June?

For most retailers, yes. Upgrading before 30 June will allow you to claim the purchase as a business deduction in this financial year. That is a potential double benefit: an upfront discount on the hardware, plus better equipment.

Beyond the financials, if your current setup is slow, unreliable, or causing headaches at checkout, carry that problem into the new financial year.

What POS Hardware Is on Sale?

We have included information about selected POS hardware and upgrade packages in our newsletter. If you have specialised needs we maybe able to help you too. Stock is strictly limited to what our suppliers have on hand, and once it's gone, I doubt we can offer these prices to you again.

Act Before the 30 June Deadline

These deals close when the financial year does. If you've been putting off a hardware upgrade, now is the time to get it sorted.

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.

Readers here already know that the temporary Armaguard bailout that has been keeping Australia's cash-in-transit network afloat expires on 30 June 2026. Less clear is exactly how the incoming new pricing model will affect us after that. 

Key Takeaways

• A cash-in-transit crisis is a severe disruption to Australia's physical cash collection network that threatens to raise retail costs.
• Utility-style pricing will charge businesses based on distance, severely impacting independent retailers across regions.
• Point-of-sale (POS) systems provide the exact tender-mix data needed to forecast your margin exposure.
• Financial auditing of your recent bank statements reveals your current baseline cash expenses before new fees apply.

What Is the Cash Crisis?

Australia's cash-in-transit crisis, spoken about here, is the financial instability threatening the cash infrastructure that collects, transports, and processes cash. Currently, the dominant provider, Armaguard, relies on a temporary bailout to keep its armoured trucks running. Armaguard funding arrangements officially end on 30 June 2026. We now know that new funding models will shift the financial burden directly onto end users, which is confirmed and will soon start. The inevitable cost increases for retailers begin soon.

Why the Cash Crisis Matters

The cash-in-transit crisis matters because it will fundamentally alter the cost of doing business for retailers that accept cash. Major supermarket chains will leverage their massive daily volumes to negotiate better cash contracts, leaving smaller players exposed. Up to now, regardless of size, independent retailers have been able to compete equally with the majors on cash handling.

Furthermore, regional businesses face an extreme risk under the new model. If distance-based pricing takes effect, this will accelerate the current increases in banking charges for manual cash deposits that the industry is quietly seeing.

Tracking Cash With POS Systems

The first point is to get real figures for what you are banking. Review the bank deposit reports in your POS system to see exactly how exposed your business is to cash transactions today. For example, knowing that cash makes up exactly 12% of your weekly revenue gives you the hard data needed to forecast your vulnerability to rising bank fees. Once you have the exact cash figures from your POS reporting, you should approach the bank. Sometimes, the banks can help you restructure your deposit schedules or even waive certain fees. You will not get them unless you approach them proactively.

Conclusion on Cash

We may need to rethink our payment types for our business soon.

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.

A stocktake is one of the most important disciplines in retail. It shows whether your inventory records match what is actually on your shelves, in the back room, and in storage. It can be a big job, but it remains one of the best ways to control stock, test your inventory system, and uncover problems that are costing you money. I have spent a lot of time around stocktakes over the years, and I've seen firsthand how the more organised the business is before the count, the faster and more accurate the stocktake will be.

Why stocktaking matters

Good inventory management matters because bad stock figures hurt businesses. It is also, for most Australian businesses, a strict ATO requirement. 

A good stocktake helps you:

• Find excess stock and dead stock.
• Improve the accuracy of your inventory records.
• Examine your stock.
• Support your stock values for accounting and tax purposes.

Before you start

A successful stocktake begins before stocktake day.

Look for every place where stock is held in your business. Do not just think about shelves. Include drawers, counters, office shelves, back rooms, warehouses, promotional displays, window displays, bargain bins, and any odd storage spots. We find that these forgotten areas often cause the most stocktake errors.

Now, start to tidy the stock. The tidier it is, the easier it will be to count:

• Move stock to the correct area.
• Straighten mixed and messy sections.
• Separate similar-looking items with different barcodes.
• Pull out damaged, unsaleable, or returned stock.
• Put laybys, consignment stock, customer orders, and goods waiting for dispatch into clearly marked holding areas.

Now divide the business into counting sections. Each section should be clearly defined and, as a rule, take 1-2 hours. This makes it easier to keep organised and focused.

Pick a quiet time if possible.

Select your people for the stocktake, make sure they know their role and what they need to do. We have prepared a video to help them here:

First, organise your people. Counting usually works best in teams; two people counting and one person recording is often an effective combination.

Before anyone starts, hold a short staff briefing so everyone understands:

• How the count will be done.
• The counting order to follow.
• How to handle problem stock.
• Be clear about how units are handled. Everyone must know they are counting singles. If a carton is open, tell them to check it properly and not to assume it is full.
• Who is available during the stocktake if there are questions? If each team handles problems differently, your stocktake will quickly become inconsistent.
• Set up a designated problem area. Rather than holding the count up, put problem stock in that area and move on.

Check your equipment

Before the day, test your technology. There is nothing worse than getting everyone ready only to find out something does not work:

• Test your stocktaking software.
• Check scanners, laptops, and PDTs.
• Charge batteries.
• Have chargers ready.
• Make sure everything connects properly to your POS software.

If you can use laptops or PDTs, do it. They save time because staff can move with them around the shop.

Also have the basics ready:

• Pens.
• Clipboards.
• Labels.
• Tape.
• Markers.
• Spare batteries.

Start counting

When the count starts, use one method and stick to it.

I recommend a simple system of counting from left to right and bottom to top. If you want something different, make sure everyone follows the same rule.

Then work through the stocktake in order:

• Count one section completely before moving on.
• Mark finished sections clearly.
• Use place markers to clearly mark counted areas.
• Keep teams in their allocated areas.

It also helps to start with the hardest or messiest sections first, while everyone is fresh.

Count every location where the same item is kept. It is easy to count the shelf and forget the backup stock in a drawer, cupboard, or storeroom.

Handling problem stock as you go

Keep the process moving.

If a team finds a product with a missing barcode, a damaged label, or another issue, do not let it stop the count. Put it into a problem holding area and keep going.

As you count:

• Spot-check completed sections.
• Recount anything that looks wrong.
• Keep unnecessary staff away from the counted areas.
• Keep customers out of completed sections where possible.
• Clearly note where estimates were used.

Some stock always needs extra care:

• Greeting cards in packed pockets.
• Books displayed in multiple places.
• Magazines on shelves, in pockets, and in return areas.
• Gift lines with display stock out front and backup stock in storage.
• Stationery items that look the same but differ in colour, size, or barcode.

Before you finish

Do one final sweep before you sign off.

Walk the whole business and check every area on your stocktake map. Make sure each section has been counted and marked off. This final check often picks up forgotten displays, cupboards, drawers, and odd corners.

A stocktake can take more than one day, and that is fine. What matters is that it is done carefully, consistently, and completely.

Conclusion

A good stocktake is all about preparation, clear rules, and a disciplined counting process. Do that well, and you will end up with better stock figures, better buying information, and fewer surprises.

If I missed something, please let me know.

Happy stocktaking!

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.

EOFY is coming, and we all have excess stock that needs to move. June is your window to do so.

Almost every major retailer is doing it, why not you too?

Key Takeaways

• EOFY is Australia's second-largest retail season, generating $8.8 billion in sales, 11× more than Mother's Day.
• Moving dead stock now beats counting it during your July stocktake.
• Bundling slow-moving items with popular ones protects your margin while clearing volume.
• Your existing customers are your fastest path to a profitable sale.
• Your POS System pinpoints exactly which lines need discounting, no guesswork required.

What Should You Actually Discount?

Run a slow-moving stock report from your POS terminal before you do anything else. You want items that haven't sold in 90 days or more. Those are your prime clearance candidates. For example, seasonal gift lines that missed their window, discontinued colourways, or last year's dated products.

Resist the urge to discount your bestsellers. Deep discounts on fast-moving stock destroy the margin you don't need to sacrifice. Target the dead weight and leave your strong performers at full price.

How Do You Move Stock Fast?

Bundle It

Pair a slow-moving item with something popular at a flat promotional price. The customer perceives great value, and you clear two lines at once. For example, a slow-moving scented candle bundled with a popular greeting card for $15 moves both.

Set Up a Clearance Zone

A clearly marked dump bin or clearance table near the entrance immediately captures impulse buyers. Keep it tidy, clearly priced, and refreshed regularly so it looks intentional rather than neglected.

Spend Thresholds

For your clearance bin, it often works to offer a discount when customers reach a spending threshold. It lifts your average transaction value without requiring heavy markdowns across the board, for example, 10% off for all items, 20% at a $30 spend, 35% off at a $60 spend.

How Do You Capture EOFY Foot Traffic?

Shoppers are already in a buying mindset during June. Your job is to intercept them. Bold, clear window signage with specific dollar savings outperforms vague "sale" messaging every time. For example, "Books from $5" beats "Big EOFY Sale" because it sets a concrete expectation.

If your store sits near an anchor tenant like a supermarket, position your most eye-catching clearance offers where their exit foot traffic naturally passes your storefront.

What Role Does Your POS System Play?

A modern POS system in Australia does the heavy lifting for an EOFY sale. It tells you exactly what to discount, lets you apply bulk pricing changes across entire categories in seconds, and tracks your recovery in real-time throughout June.

Without it, you're guessing. With it, every decision is backed by actual sales data. For example, applying a 50% discount to an entire "Winter Clearance" category takes one click rather than manually repricing 200 individual items.

Our clients are very lucky as they can go to register reports > stock titled "Old Stock on hand by Date last received" and get an instant list.

This will give you a list of your stock by when you received it. Unfortunately, this stock will not improve with age, and it costs you to hold it.

Here are a few thoughts to help you prepare for your EOFY deal.

1. What about bundling some of this with something that sells?
2. Make a bargain bin.
3. Collect some business products together.

Now put them out and put a sign marking them in your shop.

Let me know how it goes. I doubt you will be sorry if you try, but I am sure you will be if you do not try!

Update:  Current figures suggest that End of Financial Year (EOFY) sales will be one of Australia's most significant retail events, but new research suggests this EOFY spending forecast will grow by just 1.9 per cent this year – well below inflation.

https://www.roymorgan.com/findings/10256-arc-roy-morgan-end-of-financia…

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.

Now, at the end of the financial year is coming, we are releasing this video, which provides a complete YouTube tutorial on how to perform a physical stocktake using our POS Software.

We walk you through this essential inventory management system and explain the options and best practices. This video would be useful as a training and reference resource for anyone who needs to perform stock control using POSBrowser. 

It covers the two main approaches—doing the full shop at once or breaking it down into smaller location-based sections. Although both work, we advocate the location-based approach, which we find more efficient. Prepare your plan by dividing the shop into sections. Then, stocktake each section one at a time. This makes the process more manageable and accurate. 

The video demonstrates how to create a new stocktake, correctly scan/count items, and record it. We also cover the necessary settings like "Check Stock Movement" if you are doing it during trading. It shows how to run reports to see discrepancies, cost valuations by department, and more. The reporting capabilities highlighted allow you to analyse and audit your stock position.

The clear explanations and visual demonstrations make it a valuable reference for new and experienced users. I suggest getting your staff to run through it, too.

"The integration between stocktake data and our ordering process has streamlined our operations significantly. We've reduced carrying costs, minimised stock-outs and given us accurate reporting." 

Mastering stocktakes is essential for the success of any retailer.

I suggest using this guide as a staff training tool

Make sure that your staff who will be doing the stocktake run through it too. 
 

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.

Amex was not covered by the RBA's NO Surcharge rule after 1 October. The RBA now gave non-designated card schemes like Amex, Discover and China UnionPay a temporary green light to apply a “no surcharge” rule from 1 October.

After 1 October, you will not be allowed to charge a surcharge on Amex. Many of your payment providers intend to enforce this.

American Express has also stated that it will enforce this ban and is asking your customers to report you if you try to apply it.

This will be a problem as Amex fees are very expensive. 

If you run a lottery outlet, you know that the lottery brings in a lot of foot traffic. Like most agency work, it has pros and cons. On the one hand, it gives you a lot of business, but on the other hand, they have you on the short end of the stick. Today, a shopper who buys a Powerball ticket often grabs a card, a magazine, or a cold drink at the same time.

As it is very important to many of my clients, I listened to the Lottery Corporation Investor Day talk on YouTube , and while listening, I read the INVESTOR DAY PRESENTATION. This presentation filled many of the gaps in the talk.

The talk was a bit vague, but the presentation was good. If you are interested, I suggest looking through the presentation and missing the talk.

Here are my thoughts on what was said.

The most important point was that the lottery recognises the importance of retail (54% of draw lottery sales in 2025), but they also want to use your shop to attract new digital customers. The clear long-term plan strongly favours digital over retail. The company says digital is its main growth engine and will own the customer relationship going forward. For example, a customer might buy their first ticket at your counter, but the lottery wants them to buy all future tickets through its app. If the lottery app is used, your shop loses that sale and, more importantly, the extra impulse sales that go with it.

Also, the profit gap between digital and retail is massive. The lottery's digital operator margin is 20.5 percent, while the retail margin is only 8.2 percent. Clearly, the lottery has a strong financial incentive to move players online, where it can make more profit.

There is little there about industry consultation. The lotto agents will be told what to do and expected to do it. Again, this is a common problem with agency work.

Key Takeaways

• The lottery's 2026 strategy turns retail into a tool to attract new digital customers.
• The lottery says registered customers are worth about 2 times as much as unregistered customers.
• The lottery's digital profit margin is 20.5 percent, while the retail margin is only 8.2 percent.
• The lottery estimates that about 4.3 million unregistered retail lottery customers remain available to convert as of FY25.
• Each 1 percent lift in digital share is worth about $6 million in profit for the lottery.
• Lottery retailer pay is expected to change, but talks with industry groups will take six to twelve months.
• Australian retailers with strong POS data can measure the true basket value of lottery traffic to prepare for new pay talks.

Points

What I did was list the points as they went through it, identify the ones relevant to retailers, and put them in the following order.

Pros

Why the lottery Still Needs Retailers

The lottery still needs the retail network to succeed. The company says retailers remain long-term partners because digital-only rivals cannot copy a massive physical network. For example, a pure online app cannot give customers the friendly face and local trust that your lottery outlet provides every day.

The money is still very real for them from shops today. Retailers and venues earned about $0.7 billion in Australian newsagent lottery commissions in FY25. Those commission payments are paying the rent for many SMB businesses across the country.

Moreover, the lottery's license base is much stronger now. The Victorian lottery license was recently extended to 2068, providing long-term safety across the whole network. A longer license means you can safely spend more money on lotto.

They see the lottery brands build deep trust in the community. The lottery calls its games "permission assets" because they give the company and its retailers the social trust to operate safely. For example, customers trust your shop more because you sell familiar, safe games like Saturday Lotto.

Importantly, retail remains the primary starting point for players. The lottery admits that physical shops provide a highly visible presence in towns and suburbs. A customer driving past your big lottery sign is often reminded to walk in and buy a ticket.

New Tools and Future Plans

The new digital tools will actually help your staff work faster. In-store tools like digital prize claiming and ticket scanning reduce the cash you have to handle. For example, a customer claiming a prize digitally means your staff does not have to count out large amounts of cash from the till.

The lottery admits that the old pay model must evolve. Management openly stated that as retail becomes a place to find new digital customers, the remuneration for lottery retailers needs to change. They know the old pay model does not fit the new job they want you to do. I am dubious here, as this was promised before, and I did not see much progress from that proposal.

The lottery promises to consult with retailers before making major pay changes. The company says the next six to twelve months will involve deep talks with retailer groups. This means you have time to look at your newsagent POS data before the final rules are set.

They promise that highly productive shops could win big in the future. The lottery emphasised "quality over quantity," meaning top shops could become brand ambassadors. For example, if your shop signs up lots of digital players, you might receive special rewards or extra terminal support.

The lottery is still investing in physical games to keep them exciting. The company is planning a Set for Life refresh for September 2026. Fresh games give your regular customers a fun reason to keep coming back to your counter. By refreshing the Everyday Fun games, the lottery hopes to keep sales strong even when jackpots are small. For instance, better instant scratch games can keep your daily traffic steady year-round.

Cons

How Digital Changes Your Shop's Role

The role of your shop they want completely changed. The lottery is explicitly shifting retail from a sales channel to a tool for finding digital customers. They see your job as slowly changing from simply selling tickets to finding new app users for the lottery. This is actually what other online lotteries, such as Lottery Office, once offered retailers. This is now the main engine for the company's future. The lottery says digital is its primary growth engine, meaning the long-term focus is no longer on growing over-the-counter sales. For example, the lottery will spend more money improving its app than it will on improving your terminal.

Once digital, the lottery will own the long-term customer relationship. The lottery says digital will handle customer retention and keep players loyal between draws. If a customer buys their first ticket from you, the lottery will use email and in-app alerts to encourage them to buy their next ticket online.

Finally, registered players are worth more money. Registered lottery customers are worth about 2 times as much as unregistered customers. This is exactly why simple counter sales are no longer the lottery's main goal.

New Tools Push Players Away From the Counter

QR codes can easily shift the relationship away from your shop. QR codes on paper tickets make it very easy for players to register for the lottery. However, scanning that code creates a direct link that lets the customer play on their phone next time, without visiting you.

Digital wallets bypass the shop completely. Digital prize claiming reduces your cash handling, but it also helps customers build online wallets. For example, many customers who claim a $50 prize in their app wallet will likely spend that $50 in the app, not in your shop.

Sign-up rewards are designed to accelerate this digital shift. The lottery is considering retailer rewards to encourage your staff to collect customer details. This effectively asks you to help move your own regular shoppers online.

Greater use of dynamic digital signage takes control away from the retailer. Digital screens aim to reduce the need for printed posters and to clean up the shop. However, this gives the lottery central control over exactly what gets promoted in your shop at any given time.

Your terminal is not guaranteed anymore. The lottery says that having more outlets does not always translate into higher sales, so they are reviewing low-yield shops. If your shop only sells a few tickets a week, you might lose your lottery terminal similarly if you do not drive enough digital sign-ups.

Talks about how retailers get paid are still months away from finishing, yet you are being asked to do the conversion work right now without a final, fair pay deal in place.

The App Replaces the Shop Visit

The digital roadmap is built to keep players in the app. Upgrades like "The Reveal" make checking results on a phone much more fun and exciting. This pulls the habit of checking tickets away from your physical shop scanner.

The Auto Play feature is concerning; it is designed as a recurring revenue engine. This means a player's ticket is automatically purchased each week, so the customer never needs to walk into your shop again to buy one.

Social Play will allow the lottery to run syndicates completely through the mobile app. This pulls large office groups and social play away from the traditional physical counter.

What they are aiming for in the app is the 18- to 34-year-old demographic. This is how the lottery sees these people want to play. It will be a full entertainment destination.

Discussion

The lottery strategy 2026 is not an attack on retail. They see the shop is creating trust, reach, and easy access. At the same time, the lottery desperately wants to own the registered identity and the digital repeat revenue.

If lotteries get twice as much money, then registration is no longer just a harmless administrative task at the till. It is a commercial negotiation about who gets paid for creating long-term value.

Importantly, do not simply reject every new digital tool out of fear. Many of these digital upgrades will genuinely reduce friction and speed up the line during a busy jackpot draw.

Think I missed something important. Have anything to discuss, let me know

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.

If your business currently adds a surcharge to card payments, your window to prepare is closing fast. From 1 October 2026, the Reserve Bank of Australia's ban on surcharging across EFTPOS, Mastercard, and Visa networks will take effect. You will be affected by the government ban, and many of your payment providers will be affected. Some payment providers intend to extend the surcharge ban to include American Express, China UnionPay, and Discover, which goes beyond the official RBA mandate.

Key Takeaways

• The RBA's surcharge ban on EFTPOS, Mastercard, and Visa networks takes effect on 1 October 2026, making surcharging on debit, prepaid, and credit cards illegal.
• EFTPOS providers control terminal settings and merchant agreements so that enforcement will be practical and immediate.
• Every merchant should ask their provider two direct questions now: which cards are covered, whether any surcharging remains, and what the timeline for system changes is.

What Is the RBA Surcharge Ban?

The surcharge ban is a regulatory change, effective 1 October 2026, that prohibits Australian merchants from adding a separate fee to customer transactions made by EFTPOS, Mastercard, or Visa debit and credit cards, as mandated by the Reserve Bank of Australia. Historically, retailers added this surcharge to cover the cost of card acceptance in Australia. After 1 October, the cost of card acceptance for Visa and Credit cards will be paid by you.

How Can EFTPOS Providers Enforce the Surcharge Ban?

They control merchant terms, terminal settings, and payment workflows. It is very much in their interest to enforce this ban. From my discussions with some of them, I have been told that they intend to do this. I would be shocked if any of them do not.

Which Cards Does the Surcharge Ban Actually Cover?

The official RBA surcharge ban applies to domestic EFTPOS, Mastercard, and Visa transactions. However, while the RBA's official surcharge ban covers these networks, some payment providers are extending this internal ban to American Express, China UnionPay, and Discover cards, meaning merchants using their services will lose the ability to surcharge on these cards through their platform, regardless of the law.

What Should Retailers Do Before 1 October 2026?

Ask your payment provider these direct questions before 1 October 2026:

• Which cards will be covered by the surcharge ban on your platform, including those you do handle, such as American Express, China UnionPay, and Discover?
• What changes will be made to my terminal or POS system, and when will you be notified?

I bet you will not get a direct answer, but I do recommend you ask by email so you get a written response.

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've seen how helpful a good planogram can be for SMB stores. Since I've gotten questions about them, I want to share some practical tips on making a planogram.

This can:

• Optimise your shop layout.
• Boost sales.

A planogram shows:

• What products go on the shelves.
• How to arrange your products on shelves.

It makes shopping easier and, hopefully, drives more sales.

Why Planograms Matter for Retail Shops

Planograms are visual representations of your shop's layout, showing where products are placed and how they are arranged. For most of us in retail, nothing beats a planogram for visually showing what's happening in the shop.

A Cautionary Tale

Let me share a quick story. A client of mine wanted a shop fit-out. She told me that as her partner was a carpenter, he made what she wanted. He built it all right. Then she looked at the finished fit-out and said, “This is what I asked for, but not what I wanted.” A planogram could have saved her a lot of disappointment.

Uses of Planograms

• Maximising sales by product placement.
• Improving customer flow.
• Optimising shelf space.
• Enhancing visual merchandising.
• Tracking profit.
• Identifying shoplifting hotspots.
• Analysing the number of sales per area.

I've had clients whose sales have jumped by tweaking their store layout based on a well-crafted planogram.

The Great Debate on Professional Planogram Software

When I started discussing planograms, our competitors all suggested that people use professional packages. Now you can use professional software, and it's pretty reasonable. However, they did not notice that these planograms look nice and are not straightforward to make or use.

Pros and Cons of Professional Software

Professional planograms: you need to learn a lot before using them effectively. In my experience, if you're considering purchasing professional planogram software, I suggest opting for a monthly subscription. These costs are relatively reasonable; you have lost little if the package fails. Here is a decent discussion on this.

Most of us would be better off hiring someone who knows what they are doing rather than buying or renting such software.

Here would be a typical result from a professional planogram.

Here is a manual one.

A diagram of your shop with your best sellers listed as:

• Blue = Good
• Yellow = Moderate to bad
• Red = Very bad
• Blank = Zero

It visually shows the shop's sales, but there is no denying that the professional one looks better. However, I think the manual one is clearer and more useful to most SMB retailers.

Step-by-Step Guide to Making a Planogram

When making a planogram, keep it practical. You do not need to show every minor detail in the shop. What matters is including the information that helps you make decisions. A good question to ask yourself before adding any details is whether this extra information is important to you.

Step 1: Gather Your Tools

You'll need:

• A couple of large sheets of paper.
• Some grid paper.
• Pencil and eraser. A pencil's big advantage is that, unlike a pen, it's easy to rub out mistakes.
• Ruler.
• Triangle right-angle ruler.
• Ruler with shapes (circles, triangles, squares), if possible.
• Tape measure or laser distance meter, or just pace it out.

Pro tip: I prefer a laser distance meter. They're relatively cheap now, and one person can do all the measurements quickly.

Step 2: Measure Your Shop

At a minimum, your planogram should show:

• The front door and counter.
• All walls.
• All fixtures and shelves.
• Aisles and open walkways.
• Power points, pillars, or anything fixed that affects the layout.
• The main product areas or departments.

Now:

1. On grid paper, draw a rough outline of your shop.
2. Measure the largest dimension of your shop.
3. Write down this measurement on the grid paper.
4. Start at the rear of the shop and go around, measuring the outer parts. Write down every measurement.
5. Start at the rear left of the shop and measure key details from left to right.
6. Work your way to the front.
7. Double-check by measuring from front to back.

Step 3: Draw Your Layout

Start with the rough sketch to get a grip on the situation. I find it useful to draft the initial version on scrap paper, work out many of the kinks, and only then start on my actual planogram.

• Check that the measurements make sense.
• Do not kid yourself that it's all correct; assume there is something you have done wrong.

Step 4: Draw Your Final Draft

• Grab the larger paper to draw your shop layout.
• Get the larger measurement, generally the shop length first.
• Use this measurement to make a scale on your paper. Use a decent scale, for example, 1 cm = 1 metre or 2 cm = 1 metre. If you use something like 1.7 cm per metre, you are just asking for a calculation headache; use 2 cm.
• Draw the other measurements.

Pro tip: In my experience, even experts take a few attempts. If you're not doing it a lot, you may need more, and that's perfectly normal.

Step 5: Copy Your Planogram

You now have a floor plan; make many copies. Later, you'll use these for different objectives, and it will save time because all you will need to do next quarter is use this floor plan.

Step 6: Use Your Planogram

Mark on your planogram what you want to measure: dollar sales, unit sales, profit, shoplifting rates, and so on.

Select the appropriate report from your POS software, and divide the products into four groups:

• Blue = Good
• Yellow = Moderate to bad
• Red = Very bad
• Blank = Zero

Then mark the items on the planogram.

Step 7: Review and Refresh Your Planogram

A planogram is not a set-and-forget document. Once it is in use, review it. I know retailers who review it weekly, but I would suggest reviewing it quarterly. This keeps your shelf layout reflecting what customers are buying and how your range is changing.

A practical method is to review it at the start of each quarter: look at the quarter just finished, then look at the coming quarter from last year. This gives you a balanced view of recent and expected performance.

For example, at the start of Q2, run a Q1 report and compare it with last year's Q2. You may need to adjust for your future plans. That makes it easier to see which products need more or less space, and whether your current layout aligns with how customers shop.

What you will find is that you will catch issues that are easy to miss in day-to-day trading, such as slow sellers taking up too much room, fast sellers being underspaced, or seasonal lines staying on display longer than they should. A useful planogram helps you evolve as your shop does.

Conclusion

Your planogram does not have to be perfect. It does not even have to look professional. It simply has to help you see the shop more clearly and make better layout decisions. The worst hand-drawn planogram that you use is better than a polished one that sits ignored.

By taking the time to create a planogram, you're investing in your shop's future.

Happy planogramming!

FAQ

Q: What is the difference between a floor plan and a planogram?
A: A floor plan shows the physical shape of the shop, while a planogram shows how products or categories are arranged in that floor plan.

Q: What is a planogram?
A: A planogram visually represents some of your shop's features.

Q: Why do planograms matter for retail shops?
A: Planograms help people visualise what is happening in the shop. They assist in optimising space, improving customer flow, and maximising sales.

Q: Do I need professional planogram software?
A: Not necessarily.

Q: How do I start creating a planogram?
A: Start with the most significant dimension, usually the shop's length.

Q: What's the best way to measure my shop?
A: A laser distance meter is recommended because it's quick, accurate, and can be operated by one person.

Q: What should I include in the floor plan?
A: The entrance, the counters, walls, fixtures, shelves, aisles, and any fixed features that affect how the space works. I suggest adding the power points too.

Q: Where should best sellers go?
A: It depends. What is very important is that the customer notices them.

Q: How do I tell which parts of the shop are performing well?
A: A simple way is to mark areas by performance, for example, using colours to show strong, average, and weak parts of the shop.

Q: How often should I review my planograms?
A: I find in practice that for most shops, a quarterly review is a practical rhythm because it is frequent enough to catch problems without becoming a burden. In practice, what you find is that your customers do not want frequent changes.

Q: How do I know if the change was good?
A: Use your POS reports.

Q: How many attempts does it usually take to create one?
A: Even experts typically need three attempts: a rough sketch, a detailed version, and a final draft.

Q: What scale should I use when drawing one?
A: Use something that is easy to calculate.

Q: Why should I make many copies?
A: Multiple copies allow you to use the planogram for different objectives and planning purposes.

Q: Can a planogram help prevent layout mistakes?
A: A planogram can help visualise the layout before implementation, potentially avoiding costly mistakes in shop fit-outs.

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.