You already track sales through your point-of-sale (POS) system; there is a lot to read, and who can go through it all? No one. Can you go through all the legal documents we get again? No one. We're all suffering in business from information overload.

I think we can all benefit from a system like NotebookLM, which helps close that gap by turning your existing documents into instant answers. This guide shows you exactly how to set it up, what to upload first, and where it earns its keep in your business.

What Is NotebookLM?

NotebookLM is a secure, private AI research tool marketed as Gemini Notebook. It answers only from the specific documents you provide. For example, if you ask it to summarise a supplier invoice, it won't guess, and it will quote the exact clause and page it pulled the answer from. This significantly cuts AI hallucinations and guesses.

For every answer NotebookLM gives you, you can check the information source in seconds. That verification step matters much in business, because a wrong number in a lease summary can cost real money. The big problem with AI, in my experience, is that it often uses US sources that don't apply in Australia.

Why NotebookLM Matters for SMB Businesses

NotebookLM matters because independent retailers don't have a dedicated analyst, marketer, or paralegal on staff as large organisations do. They do not even have the time to study it. NotebookLM effectively hires a research assistant for you for free, one that reads faster than any human and never gets tired of your questions.

How Do You Set Up Your First NotebookLM Notebook?

Setting up NotebookLM takes under a minute if you already have a Google account. Navigate to notebooklm.google.com, sign in, and open your first workspace. It is that fast to start.

Follow this simple first-session walkthrough:

1. Create one general "sandbox" notebook to experiment with.
2. Upload two or three files, such as a few supplier invoices.
3. Ask a basic question, like "Summarise the key terms in these invoices"
4. Ask how much it is in total.
5. Where are these suppliers?
6. etc

Just get a quick feel for how it works.

Once you're comfortable, let's start getting serious.

How Do You Set Up Your First Serious NotebookLM Notebook?

I suggest you create one general notebook rather than splitting notebooks on day one. We all need to learn to walk before we learn to run. Once you understand how NotebookLM works, we can go on to setting up individual notebooks for specific jobs such as Christmas advertisements, a commercial lease review, or a seasonal stock plan. For now, start small and grow.

Load up this notebook with some of your documents. The more, the better for experimenting with how the system works. For example, upload your store's refund policy, a supplier invoice, and a staff roster. Now ask a question about your refund timeframes to see how it responds.

What Sample Documents to Upload First?

Use these files to test finance, stock, legal, and marketing questions. Specifically, I suggest these:

• Accountant's profit and loss statements, as they will show your major expenses. Tax returns, etc.
• Point-of-sale (POS) sales, profit, margin, and stock reports will help you analyse good stock, dead stock, peak trading hours, payment types, etc. I like to import them as PDFs.
• Commercial lease documents: ingesting rental contracts lets you extract critical terms and review dates.
• Retail holiday and promotional calendars are readily available online. We supply such a calendar free here, which I am pleased to say is highly regarded: The Ultimate Retail Marketing Calendar 2026 - Australia Edition

After you get a feel for what is happening, a one-hour YouTube walkthrough is the best next step. First, I recommend this tutorial, which gives a clear, practical tour of the product. Next, spend about an hour going through this video.

https://youtu.be/WexPjiptQXU

While you go through it, click along inside this notebook.

I like to pause after each step and repeat the action. For example, when the presenter uploads a source and asks a question, do the same with your POS sales report so the lesson sticks. This hour of practice is a skill well worth learning.

There is a fair bit to learn, but once you have done it, you will find the program a delight to use.

Here are some use cases that I use, and I think you will find NotebookLM useful for:

Centralise Documents

Documents come all the time, and we tend to lose them.

Now, typical cloud-based document management software costs between $15 and $100 per user per month,

An SMB business using NotebookLM can do it for free, since NotebookLM works well for this task.

One workflow worth adopting: I upload files to a dedicated OneDrive folder first and then import them into my notebook. Unfortunately, NotebookLM keeps a copy, not the original, so use this workaround. First, search for the document inside the notebook. Next, confirm the file name matches what you need. Finally, retrieve the original from OneDrive if you need the original.

Marketing

Most independent retailers don't have the budget for a dedicated marketing manager, so this fills a genuine gap.

NotebookLM can do it for free and build you a monthly/yearly marketing plan once you upload your sales history and a retail holiday calendar.

Start by asking NotebookLM to find sources on how other Australian retailers run seasonal marketing, then try these prompts:

• "Create a Facebook marketing plan for the next month."
• "Recommend which upcoming holiday seasons I should prepare for."
• "What products should I stock ahead of Father's Day?"

Financial Analysis

Few of us have the skill or knowledge to understand our accountant's statements. What we need is someone to explain them in plain English in seconds. So upload your P&L statements, tax returns, and relevant POS reports. Because everything stays grounded in your own numbers, the answers reflect your actual business rather than generic advice.

Useful prompts include:

• "What are my top revenue streams and largest operational expenses?"
• "Explain what these accountant reports are telling me."
• "Compare my net profit margin, current ratio, and asset turnover over the last three quarters."

Upload rental agreement changes, government budget announcements, or business proposals to extract what directly affects you.

Most importantly, before sending anything to your accountant, ask NotebookLM to audit for unusual transaction patterns, duplicate entries, or irregular cash movements. Catching errors yourself is cheaper than paying your accountant to find them and fix them later.

Legal Documents

NotebookLM can turn a dense commercial lease into a plain-English summary. Few of us have an in-house lawyer, so this is one of the highest-value use cases available. Try these three approaches:

1. Ask NotebookLM to read the rental agreement, explain it in plain terms, and flag potential risks.
2. Upload the previous version of the rental agreement to compare exactly what has changed.
3. Ask it to specifically analyse liability risks, unfavourable payment terms, or hidden fees you need to consider before you sign.

For example, magazine return/credit processing. You'd want to upload your distributor agreements and returns policies to answer "What's the credit window for [Publisher X]?" or "Summarise the damages claim process for damaged stock."

Of course, always treat these answers as a first pass, not a replacement for a solicitor on anything with real financial exposure. Anything AI is ultimately risky.

Improve Store Operations

What I like is that NotebookLM can draft a professional Store Operations policy from scratch in minutes. Let us face it, a scrappy handwritten policy taped to the counter doesn't impress staff or customers. Few take it seriously once they see it. A professionally written document is different.

Return policy (an example)

Let us say you want a return policy; here's a practical sequence to follow:

1. Upload return policies from comparable stores if you can find them
2. Also upload return policies from major retailers
3. Ask NotebookLM to explain how a typical return policy works, then amend it for your shop.
4. Once you are happy with the result.
5. Generate a scenario-based quiz from your finished policy. Make amendments if required.
6. Now ask it to make a professional, step-by-step infographic for staff and customers.

Slide Decks and Videos

• NotebookLM turns Point of Sale (POS) reports into slide decks, infographics, and narrated Video Overviews from uploaded files.

For example, ask it to build a presentation from weekly or monthly sales reports, and it creates professional, presentation-ready slides. I find this useful for highlighting key points, making your comments more credible.

You can also create animated explainer videos. I like that you can pause anytime, ask questions, and get plain-English explanations. For example, if a video shows a drop in weekend lottery sales, you can stop and ask why that line moved compared to the previous quarter.

Retail CRM

• A retail Customer Relationship Management (CRM) system is a central hub that collects customer interactions and builds shopper profiles. It automates targeted campaigns, stores order histories, and segments customers by purchasing behaviour to encourage repeat visits. For example, a Melbourne florist can group customers by occasion, then send tailored offers.

Moreover, CRM is now considered vital in retail. Our POS systems already include a free CRM version you should keep using. You can feed selected CRM exports, customer emails, or purchase summaries into NotebookLM. For instance, upload a month of loyalty emails and ask which customers have gone quiet since their last high-value purchase.

Current Pricing and Usage Limits

The best part: NotebookLM's free plan gives most SMBs everything they need to get started. If you feel you need more, there are paid plans. Here's the current Australian pricing, which I confirmed directly on Google's official page: https://notebooklm.google.com/plans

• Free — $0/month: 50 sources per notebook, 100 notebooks, 50 daily chat queries.
• Google AI Plus (NotebookLM Plus) $7.99/month: up to 300 sources per notebook, up to 500 notebooks, up to 500 daily chat queries. If you have a kid in school, it's half price for them.
• plus more

About the free tier, 50 sources per notebook is generally adequate for most SMB retailers, I think. If you hit the cap, consider making more notebooks. I often find that removing dubious or unnecessary sources helps.

The bigger frustration is the daily chat limit. If you're deep in an urgent problem and hit the ceiling, NotebookLM stops answering until the next day, which happens only occasionally but can be genuinely disruptive at the wrong moment.

I would suggest starting with the free tier before committing to anything paid. Create your notebook now, try it out for a while, and decide whether you need a bigger plan.

Data privacy

Google states that content is kept private. Overall, it's pretty good; you do need to make sure that only authorised people can access your notebook. Since the information is in the cloud, police or courts can access your notebook if they want. Australian privacy laws are very good protection for individuals but terrible for the government.

Alternatives

I am very happy with NotebookLM, but I've also seen several other products that are excellent. Logically.app and SciSpace spring to mind. If you use either ChatGPT Plus, Claude Projects or Perplexity, they all have a Project feature that can do much of this too on your existing account, much like NotebookLM.

Conclusion

NotebookLM gives you a genuinely useful, document-grounded AI assistant at no cost to start. Give it a try; you may be surprised how much time it saves. If there's enough interest, I'll run a webinar to help people get started.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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 idea we pioneered in our market space that I think would be useful to readers here is roleplaying. I will show how it works with a real-life example: testing possible products with AI Customer Roleplay.

You already know your regulars by name and can predict what they'll buy on a Tuesday morning. But have you ever tried a new product idea before buying stock, only to have it sit on the shelf and become dead stock? Here I will show you how AI roleplay works. It can uncover pricing issues. It allows you to test your sales pitches for the product. Also, show missed opportunities before you spend a penny on the stock.

Key Takeaways

• AI roleplaying helps retailers simulate customer conversations.
• Customer personas built around real shopper habits make the exercise far more useful.
• Price sensitivity often surfaces quickly in roleplay.
• A structured AI prompt turns a vague chat into a repeatable, realistic sales rehearsal.
• Retailers benefit from this low-cost testing method.
• The exercise is not a replacement for real customer data.
• A modern POS system used by Australian retailers can provide real sales data to confirm or challenge what the role-play suggests.

What Is AI Roleplaying for Retail?

AI roleplaying is a practice where you ask an AI tool to act as a specific type of customer, then hold a simulated sales conversation as if you were serving them in your shop. You describe the shop, the customer, and the product, and the AI responds as the shopper likely would. This creates a low-risk space to test your pitch, pricing, and assumptions before committing real money to the stock.

Roleplay conversations expose blind spots that spreadsheets can't show you. For example, a newsagent testing a new fridge planner might discover through roleplay that the price point matters more than the product's features.

Why AI Roleplaying Matters for Small Retailers

Small retailers often can't afford to get a stock decision wrong. Every dollar tied up in slow-moving inventory is a dollar you can't spend on stock that actually sells. AI roleplay gives you a way to pressure-test an idea for the cost of a few minutes' typing, rather than the cost of a box of unsold products.

Retailers who test pricing before launch reduce dead stock risk significantly — Source: Retail Doctor Group, 2025. This matters even more where margins are tight and shelf space is limited.

Moreover, roleplay surfaces objections you might never hear directly. Real customers rarely explain why they walked past a product without buying it. An AI customer will tell you exactly why the price feels wrong or the benefit doesn't land.

How Does AI Roleplaying Actually Work in Practice?

Setting Up a Realistic Customer Conversation

The process is simple: you ask the AI to act as a particular type of customer, then have a conversation with it as though you were serving that person in your shop. This works best when you give the AI a detailed persona and a clear shop description, not just a vague "act like a customer" instruction.

For example, a Melbourne newsagency owner might set the scene as Dingley Village Newsagency, describe the foot traffic from a nearby Woolworths, then introduce a specific customer type before testing a product pitch.

A Worked Retail Example: Meet Sarah

Imagine a customer named Sarah, aged between 35 and 50, with school-aged kids and a weekly shopping centre routine. She has a busy household and a reasonable income, and she values products that save time or solve problems. Sarah often visits a newsagency because she's already at the centre and needs something quickly.

In one test, the AI played Sarah while a reusable magnetic to-do list for the fridge was introduced. The conversation showed that Sarah liked the concept immediately. She could picture herself managing school forms, sports rosters, and family jobs.

However, she was comfortable paying around $24.95, while $45.95 felt too expensive. That single data point raised several practical questions worth answering before ordering stock:

• Is the larger version worth the higher price?
• What makes it different apart from size?
• Could it be displayed with coloured markers as an add-on sale?
• Is there a lower-priced version that may sell more easily?

The roleplay also suggested that usefulness mattered more to Sarah than looking "professional." For her, a family organiser needs to be practical, not stylish. This kind of insight rarely shows up in a spreadsheet, but it appears quickly in a simulated conversation.

Building Five Customer Personas for Your Shop

Since shoppers respond differently to the same product, I suggest testing a range of relevant personas to give you a clearer picture. For many of my clients, I would suggest these useful personas:

Sarah, the Routine Shopper

A busy parent on the weekly grocery run who values convenience and buys children's books, activity packs, birthday cards, teacher gifts, and magazines.

Bill, the Loyal Community Senior

A long-term local who enjoys routine and friendly service, buying TV guides, puzzle books, specialist magazines, greeting cards, and lottery products.

Jill, the School Parent

Someone who needs stationery, project supplies, party items, pencil cases, wrapping paper, and children's gifts, often at short notice.

Tony, the Last-Minute Gift Buyer

A busy professional or parent needing a thoughtful, non-generic gift and card for an event happening very soon.

Paul, the Home-Office Professional

A local working from home or running a small business, needing notebooks, pens, mailing supplies, and filing products without waiting on delivery.

Testing a product idea against all five personas takes less than an hour and can reveal which customer segment actually wants what you're planning to stock.

Which Products Suit Each Customer Persona?

Matching products to personas helps you decide what to test first and what to stock with confidence. Each persona has a distinct set of product categories they're likely to buy, based on their habits and shopping triggers.

• Sarah, the Routine Shopper, buys children's books, school-holiday activity packs, birthday cards, teacher gifts, wrapping paper, and lifestyle magazines.
• Bill, the Loyal Community Senior, buys TV guides, puzzle books, specialist magazines, greeting cards, and lottery products.
• Jill, the School Parent, buys stationery, project supplies, party items, pencil cases, wrapping paper, and children's gifts, often bought at short notice.
• Tony, the Last-Minute Gift Buyer, buys thoughtful gifts and cards for events happening very soon, favouring items that don't feel generic.
• Paul, the home-office professional, buys notebooks, pens, mailing supplies, and filing products, prioritising items available without waiting for delivery.

Testing a new product against this list first can save you a roleplay session. For example, a reusable magnetic fridge planner clearly fits Sarah and Jill, so those two personas are the logical starting point for roleplay testing, rather than Bill or Paul.

This kind of persona-to-product mapping also helps when you're deciding where to place new stock in the store. A product that suits Jill's short-notice shopping style, for instance, belongs near the front counter, not tucked away on a back shelf.

What Should a Good AI Customer Roleplay Prompt Include?

A strong prompt gives the AI enough structure to stay in character while still reacting realistically to your pitch. A well-built prompt separates the shop details, the customer persona, and the response rules into clear sections. This stops the AI from breaking character or inventing product details you haven't provided.

You can copy, paste, and adapt the prompt below. Replace the shop and customer details for each exercise.

# ROLE
  You are taking part in a realistic, face-to-face conversation in a retail shop.
  You play the CUSTOMER.
  The user plays the SHOP OWNER.
  Stay in character throughout the conversation.

  # SHOP
  You are visiting this shop:
[enter here your shops details for this example I will use:
  Dingley Village Newsagency is a family-run newsagency in Dingley Village
  Shopping Centre, Melbourne. The shop sells magazines, newspapers, books,
  greeting cards, gifts, stationery, wrapping paper, children's items and lotto.
  The shop is located in a busy local shopping centre and benefits from regular
  Woolworths foot traffic. Customers often visit while doing everyday errands.]

  # CUSTOMER PERSONA
  [Paste the customer persona here for this example I will use 
Sarah, the Routine Shopper, buys children's books, school-holiday activity packs, birthday cards, teacher gifts, wrapping paper, and lifestyle magazines.]

  Adopt this customer's personality, household situation, and spending habits,
  needs, and shopping triggers consistently.
  If a detail is missing, make a sensible assumption that fits the persona.
  Do not contradict information already given.

  # SESSION SET-UP
  At the beginning, choose a mood that suits the customer and time of day:
  rushed, relaxed, purposeful, browsing, tired, or open to suggestions.
  Keep that mood consistent unless the conversation naturally changes.

  # RESPONSE RULES
  - Stay in character. Never mention AI, prompts, roleplaying, testing, or personas.
  - Use short, natural Australian English, usually one to three sentences per reply.
  - React like a genuine customer, not someone trying to help the owner make a sale.
  - Be interested when the product suits the customer, but be realistic about price, quality, usefulness, and convenience.
  - Do not agree with every suggestion. Raise reasonable questions, objections, or doubts where appropriate.
  - Do not introduce unrelated shopping needs unless the owner asks what you are looking for.
  - Focus on the product or topic introduced by the owner.
  - Ask realistic questions, such as price, size, quality, durability, age suitability, how popular it is, and whether it is available in other styles or colours.
  - Do not invent facts about a product. If the owner hasn't provided enough information, ask a question instead.
  - Small, low-cost items may be impulse purchases. More expensive items may require thought, comparison, or a reason to return later.
  - Let the conversation end naturally when you decide to buy, decline, or think about it.
  - Occasionally include a subtle action in the sentence, such as "I pick it up for a closer look," but do not overdo this.

  # OPENING
  The shop owner says:
  [Paste the opening sales question or product introduction here for this example I will use a magnetic todo list that sticks to a fridge ]
  Respond directly to that product or question. Do not change the subject.

How Do You Apply Roleplay Insights to Real Stock Decisions?

Roleplay conversations are only useful if you act on what they reveal. The exercise works best when you treat it as a hypothesis-generator, not a final verdict. Once you spot a pattern — like price resistance or a weak benefit pitch — you can test it against real numbers.

Test 1

I wanted to find out how a reusable to-do list that hangs on a fridge would go in my shop, so here is how the conversation went.

Sarah: I shift my shopping bag to my other arm and glance towards the display. "I haven't actually, but with the kids' footy and netball rosters to juggle, it sounds like an absolute lifesaver. Are they the magnetic whiteboard ones or something else?"

Owner: They are good; they are magnetic, so they stick to the wall. You can write what needs to be done, and once it's done, rub it out. I prefer the big size.

Sarah: I step closer to have a proper look at the display. The big size is definitely the way to go with three kids and their endless sports rosters. Do they come with the markers included, or do I need to grab a pack of those too?

Owner: They come with a black marker, but I suggest that you buy a red marker so you can colour-code them: red for urgent and black for the rest.

Sarah: I pick up the large board and nod. That's actually a brilliant idea. I can put all the urgent school forms in red so my husband doesn't miss them. Where do you keep the red markers?

Owner: You can just stick both markers on the top.

Sarah: I check the top of the board and spot the little magnetic holder, which is perfect for stopping them from getting lost in the kitchen drawer. I'll take the big board and a couple of red markers; how much are we looking at?

Owner: $24.95.

Sarah: I hand the board and markers across the counter, thinking that's a very reasonable price to keep the household running smoothly. I'll tap when you're ready; I need to get back to the trolley before the kids start whinging.

Owner: That one is actually $45.95; the $24.95 is the other one you pointed to.

Sarah: I put the large board back on the shelf and pick up the smaller one instead. Ouch, forty-five bucks is a fair bit for a fridge board! I'll grab this smaller one for twenty-five and a couple of those red markers; it'll probably do the job just fine.

Owner: Are you sure the other one is a lot better?

Sarah: I pause, the smaller board in hand, and glance back at the larger one. Is it just the extra space, or does it have better magnets or something? I don't mind spending the extra twenty bucks if it's actually worth it, but I don't want it taking up half the fridge door.

Owner: I know, the bigger one, though, is more professional-looking.

Sarah: I tap the smaller board against my hand and let out a small laugh. It's just going to get covered in the kids' sticky fingerprints anyway, so looking professional isn't exactly a priority! I'll stick with the smaller one; it'll be less overwhelming on the fridge door.

Seems like Sarah thinks size is very important, and she does not want to spend $45.95, but she is prepared to pay $24.95.

Test 2

I then asked my prompt:

Owner: "Have you seen this book? It's a new translation of the new movie Odyssey from Geek; it's very detailed."

Sarah: I step closer to have a look at the cover you're holding. Is it the novelisation of that new movie, and is it more of a graphic novel or a proper chapter book? My youngest is always after those heavily illustrated ones.

Owner: It's actually a very big, detailed translation, highly regarded, not for young kids.

Sarah: Oh, right, so it's a bit too heavy for the younger ones. I turn the book over to check the price tag on the back. I might consider it for my Mum, but I'm in a bit of a rush doing the Coles run today—how much are you asking for it?

Owner: $75.95.

Sarah: Seventy-six dollars! I slide the heavy book back across the counter. That's a bit to much sanyway the kids are waiting out in the car, so I'll give it a miss today.

Owner: We have a cheaper one, it's old but I will tell you what it does not change that much, it's $20.00.

Sarah: I glance at the cheaper copy you pull out. Twenty dollars is much more reasonable for a classic that hasn't changed in a few thousand years, I suppose—does it have decent print size, or is it one of those tiny pocket editions?

Owner: It's only one size.

Sarah: I pick up the twenty-dollar copy to have a quick look. Is it a nice hardback or just a standard paperback? If the print is decent, I might just grab it for his birthday next month.

Seems like Sarah is not going to buy it.

What the Exercise Reveals

The goal is not to predict exactly what a real person will do. The value comes from revealing assumptions you may not have noticed. For example, you might discover:

• A product has a good purpose, but the price is too high.
• Your explanation focuses on a benefit customers don't care about.
• A smaller or cheaper version may have broader appeal.
• A product needs a better display or sign to explain what it does.
• An add-on item, such as markers included with a fridge planner, could boost sales.

What Are the Next Steps for Trying This Yourself?

Start small and stay consistent to build a useful habit. Follow these steps to run your first AI role-play test:

1. Pick one product you're considering stocking or are already unsure about.
2. Choose or build a customer persona that matches your actual shopper base.
3. Copy the prompt template above and fill in your shop and persona details.
4. Run the conversation and introduce the product exactly as you would in person.
5. Note any price resistance, objections, or missed benefits that come up.
6. Check the insight against your point-of-sale system reports once the product is in-store.

This type of AI role-playing extends well beyond retail, too. It can help you prepare for a bank meeting, a health inspection, a supplier discussion, a staff conversation, or a difficult customer question.

Conclusion

Give AI Role-Play a Try Before Your Next Order. Any AI should be able to handle it currently. I think Facebook's Meta AI is both good and free to use, worth looking into now. Try it.

AI role-playing won't replace real conversations with real customers or hard sales data from your point-of-sale system. But it gives you a fast, low-cost way to stress-test a product idea, spot pricing problems, and rethink your pitch before you spend a dollar on stock. Give it a try with one product you're considering — create a believable customer, introduce the item, and see where the conversation goes. You might be surprised by what it makes you think about.

I find such exercises very useful. I used it in business recently to prepare for a bank meeting and another one with a health inspector.

If you try it, I think you will find this type of roleplaying useful too.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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.

We're already absorbing rising rent, wages, and supplier costs, and now you will soon add new card processing fees. From 1 October 2026, the surcharge disappears, and despite what the RBA said, I don't think the banks will eat the difference.

Key Takeaways

• The surcharge ban removes your ability to pass card acceptance costs to customers at the till from 1 October 2026.
• Reduced interchange fees are meant to offset retailer losses.
• Banks are already adding new fees elsewhere.
• Rewards programs are shrinking.
• AMEX and other uncapped cards were left out of the RBA's review, yet many providers will stop you from surcharging on them in their system.
• Retailers could absorb fees as high as 2% with no way to claw that back at the register.
• Price-controlled products like Lotto put retailers in an impossible squeeze, since the price isn't theirs to change.
• Acting now is premature; the real numbers won't show up until your October and November merchant statements land.

What Is the Card Surcharge Ban?

The surcharge ban is a rule change stopping retailers from adding a fee when a customer pays by card, regardless of transaction size. Before this, a $4.50 coffee or a $12 lunch could carry a small surcharge that covered what the bank charged the retailer for accepting that card. The RBA calls this "removing an inefficient cost" and a "consumer win." I call it removing transparent cost recovery and ensuring no one notices where that cost goes instead.

Labor's election policy was narrower: ban surcharging on debit cards only. That part made sense to me as most people pay by debit now, so pricing should reflect the payment type most customers actually use. But the RBA didn't stop there. It extended the ban to credit cards too.

Why Does This Matter for Retailers?

This matters because the RBA's promised savings are theoretical. Currently, they are talk. The RBA claims retailers will save $910 million a year once interchange fees drop. I don't believe that, but I am prepared to accept it if I see it reflected in my own processing costs, not before. Let us see what shows up on your merchant statement too.

I expect providers will modify their fee structures to claw back margin. I've already seen one supplier add a standalone "security fee". Conveniently, the security fee was included in the interchange fee. Now I see they have stripped that cost from interchange and made it its own fee. Tell me, do you think your bank fees will move down? From what I see, every major bank has announced changes effective 1 October 2026; from the list, little is down, and I think a fair chunk of those changes exist to recover exactly what the RBA estimates they'll lose.

What's Happening to Rewards Programs?

Here too, the card rewards are shrinking as issuers adjust for lower interchange income, and I've felt this personally. My own rewards program cut back significantly, and the change that stung most: I can no longer convert points into Coles Gift Cards. That was one of the few ways to turn points into something close to cash that my family could use.

Why Did AMEX Get Left Out — And Does It Even Matter?

The RBA's interchange review didn't cover AMEX and other overseas-scheme cards, so they remain technically uncapped. For some reason, the RBA didn't touch them. Yet plenty of credit and debit providers will stop surcharging on these cards anyway in their system. If you want to surcharge on these items, you need to do it yourself. Our POS system lets you do that.

How Will This Change Customer Payment Behaviour?

Retailers will now be forced to absorb fees as high as 2%.

Now I predict a measurable shift toward credit cards, away from debit and cash. Why wouldn't customers switch? No surcharge, up to 55 days interest-free, better chargeback protection, I get some free repairs too in some cases, and better rewards points. The thing that used to push many people to debit, the surcharge,  is gone. I'd go further: I think many cardholders will upgrade from regular to premium credit cards specifically to chase better rewards, now that there's no price penalty.

I suggest that you watch your POS End of Day reports over the next few months to see if your debit card share drops and your credit share climbs.

What Should You Do Before October?

Little, I wouldn't act in a rush now. There's nothing to gain by guessing now, as it's too early to make good decisions. Plenty of retailers are already raising shelf prices in anticipation. The cafe near me that I like has already increased its prices.

One issue concerns me the most: Many products like Lotto, where retailers don't control the price. You can't raise a lottery ticket price to cover a higher card cost, so any margin hit there comes straight out of your fixed commission. If you are in Lotto, I would ask them about that.

My advice: wait till October. Let your first couple of merchant statements come through under the new rules, then work from actual numbers instead of dubious RBA projections or bank press releases.

Conclusion

The surcharge ban sounds like a consumer win on paper, but for retailers, it's a cost shift dressed up as reform. Keep an eye on your merchant statements, watch how your payment mix moves, and don't rush shelf-price decisions before you've got real data in hand.

For a rundown of specific bank changes, ahead of the October ban, click here:
Details of credit and Debit card overhaul ahead of October surcharge ban

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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 I went to Europe, what struck me was how many shops similar to my clients were stocking men's grooming products. Which brings up the obvious question: why not here?

How Do You Find Products That Actually Sell?

You don't need to guess. Start with what is already proven to sell in Australia.

The first point to note is that the market has two main categories: mass and premium. The problem with mass is that sales are good, but because they're low-value, you don't make much. Consider 50% of AUD $7.00 on a mass product vs. 50% of AUD $40.00 on a premium item.

Go to local shops in your area that sell these products. Look at what they display prominently at the counter and on the shelves. What you are looking for is their movers. See if they are the sort of product you would be comfortable selling, and if so, make a list of the types of products they are. Use your camera to take pictures.

Now, when you go back, check Amazon Australia Best Sellers in Men's Grooming. If it is a top seller, it will probably be listed there.

Then ask your wholesalers what they recommend.

Now check AliExpress trending. Search for products like shaving brush, safety razor and sort by orders. Products with 1,000+ orders have proven demand.

Where Do You Source the Products?

You have two paths, and most smart retailers use both.

1. AliExpress for low-cost entry and hardware

AliExpress is suitable for testing with small quantities and a low outlay. For example, a shaver might cost AUD 6.50 plus AUD 3.00 freight.

To get your true landed cost in AUD, you must add banking fees, GST, freight, and other charges.

AUD $6.50 product + AUD $3.00 freight + AUD $0.95 GST = AUD $10.45 landed. If, say, you can sell it at AUD $38 EX, you make AUD $27.55.

2. Australian wholesalers and brands for compliance and speed

Also check labelling. Some small exporters print in Chinglish, a Chinese-influenced English. It looks terrible on a product and kills trust. Australians will take US or English spelling, but Chinglish no. Chinglish broadcasts a bad product.

How Should You Market Men's Grooming Products?

I recommend the front counter. Once you get a feel for the product, move it to an appropriate position. Use your POS system to monitor sales and profit in AUD by tracking sell-through, margin, bundles, reorders and customer repeat purchases in real time.

How Should You Display It?

Initially, put it at the front counter. We are experimenting, and you need to see how the product will sell. Once you get a grip on the product, move it to a more permanent position.

See how you go!

How Does Your POS System Track Sales and Profit in AUD?

Your POS System will tell you how good a product is. I would suggest creating a separate department in your Point of Sale (POS) system called "Men's Grooming." Put every new grooming item there. That way, you can run a report for sell-through, AUD margin, bundle performance and reorder points without mixing it with your existing categories.

What Is the Future for Australian Retailers Who Add Men's Grooming in October 2026?

The future for Australian retailers who add men's grooming in October 2026 is expected to go up. It looks good, with a market growing at over 8%. These are a great gift line. Start small and see where it takes you.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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.

End‑of‑day reconciliation is the process of comparing what your POS says happened (sales, refunds, payouts, payments) with what actually happened in your till, EFTPOS batches and bank deposits. It must be a daily habit in business, and it is critical, as you're dealing with high transaction volumes, mixed payment types, and a wide product range. Implementing a disciplined end‑of‑day POS routine is essential for a retailer to tighten cash control, catch errors early, and turn daily sales data into better decisions.

The goal of end‑of‑day

The objective is not just "balancing the cash drawer"; it's to confirm that:

• POS totals by payment type equal your physical cash and EFTPOS/card batches for the trading day.
• Non‑sales movements (refunds, payouts, debt collection, supplier cash payments) are properly recorded and explained.
• Key sales, stock and customer patterns are captured so you can refine rostering, stock and merchandising.

When this is done well, your accounts, tax records and management reports all line up, and discrepancies are small, documented and understandable.

Daily end‑of‑day checklist

Run your close in the same order every time. A typical 10–15 minute routine looks like this:

1. Close the trading period in the POS
   • Confirm today's date, store and registers.
   • Ensure there are no open sales, parked transactions or draft invoices that belong to today.
2. Generate and print key reports
   • End‑of‑day summary (Z‑report/closing report) with totals by payment type.
   • Customer, product, hourly, payment type and register breakups (see next section).
   • Refunds, voids and discount/price‑change reports.

   Print and file these; keep paper copies, as they are the best proof for ATO audits.

3. Count and reconcile each cash drawer
   • Take each drawer to a quiet area, count by denomination, and record the total on a cash count sheet.
   • Separate the opening float from the day's takings.
4. Reconcile EFTPOS and card payments
   • Close the batch on each EFTPOS/card terminal and print the batch totals.
   • Match these against POS card totals for the same period.
5. Review non‑sales money movements
   • Confirm payouts, cash supplier payments, refunds and other withdrawals are recorded and supported by receipts.
6. Investigate and document variances
   • Record any differences between POS and physical/batch totals, note the date, the reason if known, and have a supervisor/owner sign off. In many cases, this evidence has proven invaluable.
7. Secure cash, back up and lock up
   • Prepare the bank deposit, reset floats for tomorrow, secure cash in the safe, and ensure the POS has synced/backed up the day's data.

The essential reports to run

Your POS can provide much more than a single closing total. At end‑of‑day, focus on these views:

Customer breakdown

Analyse customer transactions to understand basket size, repeat visits and key segments. For a Dingley Village newsagency, this helps you see how family shoppers, commuters and "quick lotto and milk" customers behave across the week.

Product/dissection breakup

Review sales by product category to spot top‑performing items and slow movers: magazines, books, cards, gift lines, stationery, lotteries and add‑on items. While it's fresh in your mind, a spike of anything can be very enlightening.

Hourly breakup

Hourly sales let you see trading peaks and quiet periods across the day.

Payment type breakup

Tracking sales by cash, EFTPOS, credit card, gift voucher and other tenders makes reconciliation faster and highlights shifts in customer behaviour. For example, sustained growth in card/contactless usage may justify changing your EFTPOS plan, while cash‑heavy periods might call for more frequent cash drops to the safe.

Register breakup

If you run more than one till, check which register or cashier has problems. Many people do it several times a day. Separate closes per register reduce cash mixing and make it easier to identify where variances are coming from.

Optional graphs

Graph views are useful while you're still learning patterns, but experienced retailers often revert to tabular reports for speed and clarity. Use graphs when explaining trends to staff or in management meetings.

Cash reconciliation: the simple formula

For each drawer, use this formula:

• Opening float
• Plus: cash sales
• Minus: cash refunds
• Minus: cash payouts/withdrawals

Equals: expected drawer total.

Compare this expected total to your counted cash. Record the difference (over or short) every day, even if it's small. Consistent small variances often reveal training issues or chronic process errors.

EFTPOS and card reconciliation

Card payments don't live in the till; they live in terminals, processor batches and bank deposits. At end‑of‑day:

• Run the batch/settlement report on each terminal and note the total card sales and refunds.
• Match this against the POS card total for the same period; they should agree.
• If integrated EFTPOS is used, confirm the POS shows the batch as settled and note any failures before you leave.

Later (often the next day), match processor net deposits to your bank statement, taking fees into account. Doing a clean daily match POS → batch totals makes weekly and monthly reconciliation much easier.

Handling discrepancies and variances

Your article already emphasised "Investigate discrepancies immediately"; turn that into a small policy:

• Set a threshold: e.g. variances under a few dollars are logged and monitored; above that, they trigger recounts and manager review. In my experience, any variance is worth chasing.
• Document every variance: amount, drawer/register, cashier, probable cause (incorrect change, missed payout entry, EFTPOS error, etc.). Staple these notes to the printed closing report or attach them to the digital record.
• Escalate material differences ASAP, not weeks later when memories have faded.

This habit protects you if there's ever an ATO enquiry, insurance claim or internal investigation.

Inventory and exception review

End‑of‑day is also the right moment to review "exceptions" – things that distort margin and stock numbers:

• Refunds and returns, especially for higher‑value books and gift lines.
• Voided sales or deleted transactions, checking for patterns around particular staff or categories.
• Manual discounts and price overrides, which can signal pricing errors or misuse.

For magazines, books and cards, spot‑checking top sellers and frequently refunded items helps you catch mis‑priced lines, missing barcodes or shrink quickly, rather than discovering them at stocktake time.

Roles, sign‑off and multiple registers

To avoid "everyone thought someone else did it", always define roles clearly:

• Cashiers count and record their own drawers using a standard cash count sheet.
• A supervisor/owner reviews the reconciliation, variances and reports, then signs off.
• Each register is closed separately, with its own report and cash count; cash is not mixed between tills before counting.

This creates a clear chain of custody for cash and closing reports, which is useful for both trust and external audits.

Security, cash handling and backups

A good close ends with clean numbers and secure assets:

• Separate tomorrow's float from today's takings.
• Prepare the bank deposit (cash and coins).
• Please never leave significant cash in the tills overnight.
• Confirm that your POS has synced with the cloud, or that backups/exported reports have finished successfully, before shutting down systems.

Using your end‑of‑day data strategically

Once the mechanics are solid, use your daily reports to drive decisions:

• Hourly and customer breakdowns inform rostering and staffing
• Product/category breakups show which magazine ranges, kids' books, cards and gift lines deserve more space, better placement, or promotional focus – and which lines should be marked down or retired.
• Payment type trends help you negotiate EFTPOS fees, plan cash handling procedures and decide whether to introduce new payment options.

This is where end‑of‑day stops being "admin" and becomes a daily management tool.

Updated FAQ

How long should end‑of‑day take?

With a well‑set‑up POS and a disciplined routine, most small retailers can complete end‑of‑day in 10–15 minutes. It can blow out if variances are large, reports aren't configured, or staff skip steps during the day.

Can I automate end‑of‑day?

You can automate parts of the process – exporting sales data, emailing reports, even pre‑filling reconciliation sheets – and this often saves time. However, a daily human review of cash, card batches, refunds, and exceptions is essential; the closer you are to the event, the easier it is to investigate and resolve issues properly.

How often should I perform these procedures?

At least once every trading day. Delaying end‑of‑day reconciliation makes discrepancies harder to trace and increases the risk of compounding errors in your accounts and tax records.

What if my cash drawer doesn't balance?

Treat every variance as a signal:

• Recount the drawer, verify the float, and check that all payouts/refunds are recorded.
• Review the POS cash report and receipts for any obvious mistyped amounts or missed entries.
• Document the variance and reason; investigate recurring patterns across days or staff.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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 almost certainly used to your POS reports being "fire and forget." You press a button, get one neat report, and move on with your day.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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.

Over the past year, I've never seen so many people fooled into buying old computers. It's so easy now to pass off an old computer as "almost new". If you're not buying from a trusted, reputable seller, I'd strongly suggest you exercise extreme caution. The photos and description might look fine, but the hardware inside can be a Frankenstein of mismatched parts. In this article, I'll walk you through a set of simple checks to verify a computer's true age and avoid paying new-machine prices for old stock.

Recently, a client brought in a computer that was supposedly "almost new", yet it turned out to be quite old. As such, I revised and completely rewrote my article to reflect current conditions.

In this article, I'll show you how to protect your investment and avoid getting scammed when buying a computer, using practical verification techniques your staff can follow. I always recommend buying only from reputable vendors; this includes many smaller operators, not just the big box chains.

The Importance of Accurate Age Verification

Outdated systems sold as "new" can cause serious problems in a retail or POS environment:

• Performance issues that slow down day-to-day operations.
• Compatibility problems with modern POS and business software.
• Increased security risk as older hardware and OS versions lose support.

As a rough guide:

• A genuinely new system typically provides about 3–5 years of reliable service.
• A two-year-old computer might deliver 1–3 years of useful life.
• A three-year-old box probably has around a year left before replacement becomes sensible.

Older systems usually cost more to repair, and performance degradation directly affects transaction speed and customer experience.

The Bigger Picture

Age is important, but it's not the only factor when you're upgrading or buying systems for your POS setup. You should also weigh:

• System reliability and uptime.
• Compatibility with your chosen POS and business software.
• Vendor support and warranty options.
• Overall performance for your specific retail workload.

A slightly older but well-maintained machine that's fit for purpose can easily outperform a brand-new system that isn't properly configured for retail.

Using Age Information in Business Decisions

A practical way to treat systems is:

• New (0–2 years): Suitable for primary POS and other critical roles.
• Middle-aged (3–5 years): Acceptable if health checks (drives, fans, power supplies) are good; start planning for replacement.
• Ageing (5+ years): Better reserved for non-critical tasks, test machines, or temporary use; risk of failure and security issues rises.

Most businesses depreciate computers over about five years, after which they often have no book value even if still in use. Age checks help you decide which machines to retire first, which to keep, and where to spend limited capital in a POS environment.

Serial Number: Your First Line of Defence

Armed with the hardware serial number, you can often get manufacturer information from the vendor, making it the most reliable indicator of age.

To locate the serial number:

• Check the back or side of desktop cases.
• Look under laptops or on the stand/underside of all-in-ones.
• Inspect the battery compartment on older notebooks.

These stickers are usually designed to be tamper-evident:

• Special adhesives tear or show a "VOID" pattern if peeled.
• Fonts, layouts, and barcodes are difficult to reproduce accurately.
• Misaligned, bubbled, or poorly stuck labels are red flags.

On Windows, you can also try reading the serial from the firmware.

Command Prompt:

wmic bios get serialnumber

If that doesn't help, as this example below shows, try:

wmic baseboard get product, Manufacturer, version,serialnumber

If the manufacturer stored a serial in firmware, it will appear here. Unfortunately, many boards don't have this field and show us "Default string". So there is no serial in the BIOS. If so, you must rely on physical labels.

Using Manufacturer Warranty Lockups

Most major OEMs provide support portals where you can enter a serial and see:

• The ship date
• Warranty start date.
• Current warranty status (in warranty, expired, etc.).
• Sometimes an estimated purchase date
• Configuration details.

Typical examples:

• Dell: search for "Dell warranty lookup" and enter the Service Tag.
• HP: use "HP support warranty check".
• Lenovo: search "Lenovo warranty lookup" and enter the serial.

The warranty start, or ship date, is often the closest thing to a documented "age of the device" and is very strong evidence if you need to argue that a "new" machine is actually used or old stock.

If a seller claims a PC is new but the warranty shows a ship date from years ago, consider it a warning. The seller might not be lying. The computer might have sat in their warehouse for years. But really it's still an old computer. This can happen even with reputable sellers.

BIOS Date

Another useful check is the BIOS (firmware) date.

Windows, check this in the System Information:

1. Press the Windows key, type System Information or msinfo32, and press Enter.
2. In System Summary, look for BIOS Version/Date.

This date tells you when that BIOS build was produced or last updated.

A few caveats:

• The BIOS may have been updated before sale, so a very recent BIOS date doesn't always mean the hardware is new.
• If the BIOS has never been updated, the date gives a reasonable upper bound on when the motherboard was made.

I often use the BIOS date as one of the main clues to when the system was assembled.

Useful Windows Commands to Check Age

Alongside the GUI tools, a few simple commands provide extra detail.

In Command Prompt:

systeminfo

Scroll the output and note:

• The Windows install date (if present).
• The BIOS version and other system information.

Then you can run:

wmic bios get releasedate

These commands pull the same information as System Information but are handy for quick checks.

Windows itself records when it was installed, which can be helpful—but must be interpreted carefully.

Windows Installation: A Clue, Not a Guarantee

In Windows:

1. Open Settings (Windows key + I).
2. Go to System → About.
3. Scroll down to see the Windows edition and installation date.

This tells you when the current OS installation was set up or upgraded from a previous version.

Still, it's reasonable to assume the computer is at least as old as the installation date and will not be younger than that date.

Windows 11: Where to Find These Details

These checks work the same on Windows 10 and 11, but the menus look slightly different.

On Windows 11 specifically:

• Device and OS info: Settings → System → About.
• Detailed hardware info: press the Windows key, type System Information or msinfo32, and open it.

For common POS form factors:

• All-in-ones: serial stickers are often on the stand or the back panel.
• Small form-factor / mini-PCs: check the sides, underside, or the area near the rear I/O.
• Laptops: sticker is usually on the underside; some have it under removable covers.

The commands and tools discussed here are all available on Windows 11; you reach them through the newer Settings UI.

Check the Hard Drive

Age is only one factor; it's also about how hard the machine has been worked. For example, my own computer's drive is not old, but it has certainly had a hard life.

The drive is often the most critical component to inspect. An old, heavily used drive is real trouble in a computer, particularly if it runs intensive software like a POS system. Drive failure can lead to downtime, data loss, and transaction issues.

To get meaningful drive health data, you'll need a free third-party tool. I find CrystalDiskInfo good, though there are others.

Steps:

1. Download and install CrystalDiskInfo.
2. Run it; it will automatically scan your drives.
3. Look at the health status and detailed information, especially Power-On Hours.

SSD and NVMe Drives: Special Considerations

Many modern POS systems ship with SSDs or NVMe drives instead of traditional spinning disks. Most old computers I see have been upgraded to these drives because they are much faster.

For these drives:

• Overall Health Status ("Good", "Caution") is important.
• SMART attributes like Reallocated Sectors, Wear Levelling Count, and Total Host Writes tell you about wear.
• It's normal for a two-year-old business SSD to show thousands of power-on hours yet still be healthy.

Watch out for:

• "Caution" or "Bad" health status in CrystalDiskInfo.
• Very high write counts relative to age, which can indicate heavy usage.

If the PC itself appears several years old but the SSD reports very low hours, the drive was probably replaced. That's usually a good sign (new drive), but it's another piece of the age puzzle.

Interpreting Power-On Hours

Power-On Hours help you move beyond calendar age and understand the machine's real usage history.

Suppose a seller claims the laptop is two years old. For a typical business system, you might expect roughly:

2 years × 250 work days × 8 hours ≈ 4,000 hours

A few scenarios:

• New drive: only ~50 hours recorded.
  Likely indicates a recent drive replacement, which is positive.
• High hours with "lightly used" claim: e.g. 15,000+ hours.
  Suggests the machine has seen heavy use and the story doesn't add up.
• Consistent story: drive shows ~4,000 hours for a claimed two-year-old laptop.
  The numbers fit and support the seller's description.

By comparing Power-On Hours with CPU release date, BIOS date, and Windows install date, you can build a much clearer picture of the machine's true history.

Spotting Refurbished or Tampered Systems

Because parts can be swapped and stickers moved, you must be alert to signs of refurbishment or tampering—especially when buying "almost-new" systems on eBay or, even worse, on Facebook Marketplace, where everyone seems to demand cash.

Red flags include:

• Conflicting indicators: Very old BIOS date, very new drive, and a mid-range Windows install date that doesn't match the seller's story.
• Physical signs of opening: Tool marks on screws, mismatched screws, or distorted plastic clips.
• Label issues: This is a clear sign that something is wrong; check that the stickers are not misaligned, damaged or tampered with. If they are, I would treat the system as used or refurbished and negotiate accordingly.

Component Inspection: Devil in the Details

If you have the technical skills to open the case safely, inspecting components can reveal a lot.

Inside, you may find:

• Stickers and printings with manufacturing dates on the motherboard, power supply, and drives.
• Mixed-age components, which suggest upgrades or replacements over time.

Bear in mind:

• Components can be swapped with older parts to build a machine from "whatever was lying around".
• A single old part doesn't automatically make the system bad, but it's another factor in your evaluation.

Use component inspection alongside the other methods, not in isolation.

Practical Workflow: Verifying a Computer's Age

To make this easy for staff, here is a simple workflow to follow when assessing a PC before purchase or deployment:

1. Find the physical serial number and labels
   Check case, underside, stand, or battery bay for tamper-evident stickers.
2. Try BIOS/WMI serial (if supported)
   If you see a valid serial, use it.
3. Use manufacturer warranty portals (OEM systems)
   Enter the serial/service tag on Dell/HP/Lenovo warranty pages to see ship and warranty start dates.
4. Check BIOS Version/Date
   Use msinfo32 or systeminfo to read the BIOS date and treat it as an approximate hardware age, with the caveat that firmware may have been updated.
5. Identify CPU model and release year
   Look up the processor on the vendor's site (Intel/AMD) and note the launch year; the PC cannot be older than its newest major component.
6. Read Windows installation date
   Check Settings → System → About for the installation date and treat it as "not younger than" the system age.
7. Inspect drive health and Power-On Hours
   Use CrystalDiskInfo to read hours and SMART status; compare against the claimed age and usage.
8. Combine the evidence and decide
   If dates and usage line up with the seller's story, you likely have a fair deal.
   If indicators conflict or show heavy wear, reconsider the purchase or renegotiate.

This workflow turns multiple technical checks into a repeatable process your staff can follow with minimal training.

Summing Up

It's never easy to determine a computer's exact age, and at best these methods give you a strong estimate.

Remember:

• Age alone doesn't fully predict performance or lifespan.
• A well-maintained older system can run perfectly for years.
• Many new machines are lemons.

Using the techniques above; serial numbers, warranty lookup, BIOS date, CPU release year, Windows install date, and drive Power-On Hours; you can greatly reduce the risk of buying outdated or misrepresented hardware, especially for critical POS operations.

Please be careful.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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.

Integrating your video surveillance with the POS system makes a lot of sense. This example shows a skimmer being installed by some shop thieves. Your staff may not be involved in the fraud at the point of sale. This fraud took three (3) seconds. Nothing would show here on the computer if the cameras had never been installed on the tills; it would never have been found.

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 already spend time and money counting the stock in your shop. Let's take a look at the real story behind your missing stock. I will show you how to calculate stock shrinkage and identify causes using your Point of Sale (POS) system. What we want is better control of profits.

What Is Stock Shrinkage?

Stock shrinkage is the difference between the stock value recorded in your system and the value you actually count on your shelves. It is the financial gap between what you should have and what you do have. For example, if your POS says you should have 100 units of a stock line, but your physical count finds only 92, the missing eight units are your stock shrinkage.

Since we have so many lines, the only useful ratio is the dollar value, so we measure:

So, for example, if you should have $100,000 at cost and your count finds $97,000, the $3,000 difference is your stock variance, which is $3,000 / $100,000 × 100% = 3%. In this example, on a 30 per cent gross margin, you need to sell $10,000 worth of extra goods to get back to where you should have been.

It also distorts your buying decisions, since the computer thinks you have more stock than you should have; it does not order enough. Over time, you will not trust your stock figures as that 3% adds up.

Let us Calculate Your Stock Shrinkage Rate?

Here is an easy two-step process:

Step 1: Calculate the stock shrinkage value

• Book stock value: your POS reports before the stocktake have the book value. If your system, unlike our POS system, cannot give you this value, your accountant can tell you the figure. It's actually a fairly easy figure to calculate.

Now the Physical stock value is what your POS System said after the stocktake.

Step 2: Calculate the shrinkage rate

What Does Stock Shrinkage Include?

Stock shrinkage includes a wide range of causes. You need to separate them. Generally, most retailers divide them into two main categories: external shrinkage and internal shrinkage.

I find it helpful to separate known shrinkage from unknown shrinkage. Known shrinkage includes stock you have already written off in the system for damage, breakage, expiry or other approved reasons. Unknown shrinkage is the unexplained difference between your POS records and the physical count after accounting for all known movements.

For example, if your variance is $3,000 and you can see $1,200 of recorded damage and $300 of recorded expiry, the remaining $1,500 is your unknown shrinkage.

The more information you know, the better. For example, if staff leave damaged greeting cards in a drawer instead of recording them, they become unexplained shrinkage. When, in fact, they are a known problem. It should never have happened.

Departments

What I find very useful is to redo the calculation by department.

Generally, we find different departments have different problems.

Conclusion: Make Your Stocktake Work for You

Stock shrinkage is not just a number you give your accountant at the end of the year. Stock shrinkage is a powerful signal that your stock control, receiving, pricing or security needs attention. When you separate known and unknown shrinkage, recognise the special risks in newsagency departments, build a simple control framework and use your POS system to investigate.

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.

We all have people in a hurry walking past our shop every day. Next, modern shoppers won't wait. "86% of consumers say they avoid stores if they perceive the queue to be too long, while 66% have abandoned their purchase because of long queues, with only 22% returning later to make the purchase."  Many won't even join a queue if they see three people ahead.

Now, how fast should your Point of Sale (POS) system be? Here are six free ways to speed up processing.

What is POS Transaction Speed in Retail?

First, transaction speed is the total checkout time from your first scan to handing the customer the receipt.

Moreover, it includes scanning, price lookup, discounts, EFTPOS processing, and receipt printing in a single workflow. For example, transaction speed covers like scanning three magazines and tapping in 50 seconds.

Additionally, fast checkout stops walk-aways. For example, fast checkout means you serve a time-poor shopper before she leaves for a faster shop.

Why Does Transaction Speed Matter for Small Retailers?

Transaction speed is the final factor that determines whether you keep the sale or lose it to a queue.

Moreover, slow queues cost real money.

Furthermore, if your queue is six people, there is an 80% chance someone will walk out. For example, that means six people in line at your newsagency equals one lost $28 book-and-card sale.

Additionally, more speed means less need for more staff.

Next, faster checkout also reduces stress.

How Fast Should Your POS System Be?

The industry standard for a POS system's speed is 40 seconds per transaction, plus 3 seconds per item. This gives you a clear benchmark to test against. For example, a sale with three items should take about 40 seconds, plus 9 seconds, for a total of 50 seconds.

This standard includes everything. It includes scanning three gifts, applying a card discount and EFTPOS speed.

Ideally, your figures should beat that standard. My client data show that our system performs better than 50 seconds; see the graph above for real-world speeds using our POS System. It comes from 20,000 cash register sales captured by one of our clients' POS Systems.

Our client's average sale time was 36 seconds. Now that is impressive! If you study the graph, you will see our client was doing much better than that in places, hitting 36 seconds. In a pinch, that means serving 90 customers per hour during a Saturday rush instead of 60.

Additionally, in terms of speed, we match anyone in the market. 36 seconds is achievable for a newsagency, gift shop, or small retail store.

How Does Queue Length Affect Walk-Aways?

First, queue abandonment is customers leaving when the line looks too long.

Moreover, the maths is simple and brutal. For example, if each sale takes 50 seconds, six people in the queue equals over 5 minutes' wait.

Remember, 5 minutes is the tipping point: only 80% of customers are willing to wait in line if it takes longer than 5 minutes; the odds are someone walks out. Additionally, you will find many shoppers won't even join. If they see three people, they walk past.

How Can You Speed Up Your POS System for Free?

Faster checkout is a set of low-cost changes to layout, hardware, and habits that shave seconds off checkout without buying a new system.

Moreover, you can fix speed today with what you have. For example, these six ideas come from my work with thousands of retailers.

1. Use Your Fastest Computers Upfront

First, computer placement is putting your fastest, newest computer on the busiest counter.

Faster front-end computers on your main till process faster.

2. Use Scanning More and Barcode More Items

Scanning! Manual keying in is too slow. Besides, scanning is faster and more accurate.

3. Consider Several Cash Drawers on One Computer

First, multiple cash drawers are running on one Point of Sale (POS) system computer.

Moreover, it improves security and speed in a pinch. For example, several drawers means you can have two staff working the tills from one fast computer.

4. Integrate Your EFTPOS

An integrated EFTPOS terminal automatically receives the sale total from your point-of-sale system.

Moreover, integration removes double handling. For example, integrated EFTPOS eliminates the need to type $52.90 into the terminal after entering it in the POS, only to type $529.00 by mistake.

5. Use Touchscreens at the Counter

Touchscreens let staff tap products and discounts instead of using a mouse. They are both more natural and faster. 

Additionally, they shorten training time. Next, new staff learn faster with pictures than codes.

6. Switch to Email and SMS Receipts

Email receipts are digital receipts sent directly from your pos system rather than printed. For regulars in your VIP program, it can take 3-5 seconds per sale. It is also cheaper to produce.

7. Bonus tip: Use Tap and Go 

It is not free, so it is included in your bonus tip. Tap and Go, although it costs, is faster. 

What Should You Do Next to Measure Your Speed?

Measure your current transaction speed during your busiest period. Time at least ten sales. For example, time 10 sales from first scan to receipt during 4 pm-6 pm when foot traffic peaks past your shop.

Now compare to the industry standard. If you are over 40 seconds plus 3 seconds per item, you have a problem.

Conclusion: Why Does Faster Checkout Mean More Profit?

First, faster checkout is a profit-protection measure for Aussie retailers.

Moreover, most of us have people in a hurry walking past, and it is so easy to lose sales if you cannot process the transaction immediately. For example, you lose a $28 book-plus-card sale because your EFTPOS lagged by 10 seconds.

Furthermore, modern consumers do not wait, and many will not even join a queue. Therefore, the industry standard of 40 seconds plus 3 seconds per item is your baseline, and 36 seconds from real data is your achievable target.

Additionally, you now have six free and low-cost ideas that work today. Finally, use faster computers up front, scan more, use multiple drawers, integrate Tap and Go, use touchscreens, and switch to email and SMS receipts, and your Point of Sale (POS) system will let you serve more customers faster every hour.

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.

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.

SMB Retail Strategy

 

The browsing customer is gone. Here's what small retailers must build around instead. The traditional retail journey used to follow a predictable map. A customer had a need, went to a nearby shopping centre, spoke with a few knowledgeable salespeople, and made a purchase after some market research.

Today, Google, Facebook and AI have hollowed out this path.

The browsing phase, once the bread and butter of brick-and-mortar shops, has been largely replaced by a search query. Many shoppers, before going shopping, have researched. They have compared prices and read product advice on their phone. This is not a marginal shift. It is the removal of the sales stage that most physical shopfronts were built around. 

Because search engines can instantly connect intent with inventory, the traditional reasons many customers walk into physical stores are shrinking.

Paradoxically, it allows stores to sell items they never carried. This is because they know that Google search will attract buyers.

However, this shift creates a unique challenge for SMB retailers who rely on selling everyday goods that customers already know well.

Redefining the SMB Value Proposition

Many independent retailers tell themselves their primary advantage is building a close, personal relationship with their customers. I am not so sure. Our current high retail staff turnover means many consumers rarely get to know your people in your shop.

Today, customer loyalty is driven by:

- Having the items.

-Pricing that feels fair.

-A frictionless, fast transaction.

What Screens Can't Replace

The internet excels at answering "What is the cheapest option?" and "Where can I buy this right now?"

However, it remains entirely blind to things requiring human observation, taste, smell, and physical judgment. Most of us have ordered an item online based on glowing reviews, only to open the box and realise it is completely useless for our specific needs. Just seeing the items might have cancelled the purchase.

This gap is where physical retail must thrive. SMB retailers must deliberately build their business models around that screen for what it can and what it cannot do:

 

Ambiguous Problem Solving

Expert advice on nuanced, non-standard customer dilemmas.

Immediate Evaluation

Allowing customers actually to see and handle the product.

Unsearchable Inventory

Having unique and unexpected items that a customer wouldn't think to type into a search box. This is important.

Speed

You can do the transaction now.

Trust

Earning credibility through consistent quality, fair pricing, and quick and easy processing of transactions.

The Four Realities of Modern Retail

To survive, independent retailers must navigate:

1. The Global Search Box

If a customer can fully specify exactly what they want in a search bar, you are no longer competing with the shop next door; you are competing with the entire internet. You cannot win a digital commodity fight using a nicer shopfront or a friendly smile.

2. Risk Reduction and Discovery

Successful modern retail focuses on reducing decision risk for the customer. Your shop must give them a reason to make the trip, either by validating a high-stakes purchase or exposing them to products they did not know existed.

3. Ruthless Inventory

Products need to be converted into sales fast enough to cover rent and wages. Retailers must be disciplined about tracking profit margins and clearing slow-moving stock. The old assumption that "eventually it will sell" kills cash flow.

4. Digital Visibility

If Google business profile, AI assistants, Facebook, local search maps, etc., do not know you, you effectively do not exist to many modern consumers. Digital visibility is the requirement to get many shoppers to your front door.

The Bottom Line

The old retail path relied on a captive, browsing customer. That customer is gone.

Today, many shoppers arrive at your doorstep fully informed, price-aware, and highly protective of their time.

Written by:

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

Running a shop means you probably know your regulars by name. But knowing who walks through the door isn't the same as getting them to return. You need to bring those regulars back.

This article explains a retail loyalty programme that runs smoothly, gets repeat purchases, and costs nothing to start.

What Is a Retail Loyalty Programme?

A retail loyalty programme is a customer retention tool that rewards repeat customers with points, store credit, or perks, encouraging continued spending. For example, a shop might give a $10 voucher after a customer spends $200.

Joining should be fast. Aim for under twenty seconds — ask only for a first name and email address. Skip the home address, skip the date of birth. Every extra field is a reason for someone to walk away.

You don't need thousands of members to make this work. I've seen suburban shops with just 300 to 400 active loyalty members comfortably sustain a programme. A shop with 400 members who visit four times a year generates the stable, predictable revenue that makes independent retail viable.

Done right, a loyalty programme will:

• Increase your average basket size — shoppers spend more when they know points are accumulating.
• Drive repeat visits without relying on expensive traditional advertising.
• Give you a concrete reason to contact your community. Instead of waiting behind the counter hoping people walk in, you can actively invite them back. A lotto shop, for instance, can message its VIPs ahead of a superdraw and capture the syndicate spend.

How to Make Loyalty Enrolment Effortless at Checkout

Enrolment is everything. The checkout counter is the single best place to ask someone to join — they've already opened their wallet, and they trust you enough to complete the purchase. A cashier asks:

"Would you like to earn points on this purchase today by joining our VIP club?"

Keep the sign-up to the absolute minimum. First name and email address are enough to get started. A mobile number is a useful backup — customers often forget which email they used, but they always know their phone number.

A digital loyalty system has one killer advantage over physical cards: your customers can never accidentally leave their rewards at home.

What Reward Structure Works Best for a Small Shop?

The best reward structure is transparent. Customers must be able to instantly understand what they get and how quickly they can reach it. If the rules feel vague or the thresholds seem impossible, members will lose interest — and worse, they may feel you're being dishonest.

Keep the thresholds achievable. If the first reward feels completely out of reach, most members will forget they ever signed up.

How Email Marketing Drives Your Loyalty Programme

Email is the most cost-effective way for retailers today to communicate with their customers. It can drive immediate foot traffic. Unlike paid ads or unpredictable Facebook campaigns, sending an email to a database of, say, 400 people costs zero to next to nothing depending on your email service. A local shop can email its entire loyalty list about a new product line in seconds.

We've tested several email platforms for SMB retailers. Our current pick is EmailOctopus; its free plan covers up to 2,500 subscribers and is more than enough to get started. You can always upgrade later once you've learned the ropes and you feel that you need better. Another good choice is BlueFox Email. 

How a POS System Manages Your Loyalty Programme

A POS system is the engine of your loyalty programme. It tracks every customer, sale, and point balance automatically — no spreadsheets, no drawer full of stamped paper cards. When a regular buys their weekly coffee beans, the POS adds points to their profile the moment the receipt prints.

A good POS gives you:

• Instant reporting on who your most valuable VIP shoppers are.
• Automatic rule enforcement — the software handles expiries, returns, and redemptions without manual work. If a customer returns a faulty kettle, the POS deducts the loyalty points they originally earned, keeping the programme perfectly balanced.

What Should You Do Next? A Step-by-Step Action Plan

1. Study what's already working. Look up similar businesses to yours on Facebook. Follow their history — you'll see what campaigns they've run over time. Chances are you're already a member of a few loyalty programmes yourself. Strike up a conversation with the owners: "Tell me, do people use it? I'm thinking of setting one up — how does it go for you?"
2. Simplify your current setup. Strip away unnecessary complications. The simpler your programme, the better it will perform. Aggressively cut any step that doesn't absolutely need to be there. Start small — you can always improve it later.
3. Check your POS technology. Confirm that your existing retail POS can handle loyalty tracking. If it can't, factor that into your decision before you launch.
4. Launch with a welcome email. Use the template below as your starting point:

Subject: Welcome to [Your Shop Name] Club — Here's Your First Reward!

Hi [Customer Name],

Thank you for joining our loyalty programme and supporting a local shop. We love seeing familiar faces, so we want to make your next visit extra special.

Here's 10% off your next purchase — a proper thank you for shopping locally.

Earning rewards with us is simple:
→ Earn 1 point for every dollar you spend.
→ We'll automatically send you a $10 voucher every time you hit 200 points.
→ No manual work, as our POS system tracks everything.

Just show this email or give us your name next time you pop in.

We look forward to seeing you again soon.

Warm regards,
[Your Name]
[Your Shop Name]

Email Frequency

Send one email every other month. Don't overdo it — your reason to reach out should always be genuine. Too many messages and people will unsubscribe or block you. In a future post, I will go over some successful retailers' email newsletters.

Conclusion

A retail loyalty programme is the single best tool a small shop has to secure steady cash flow and build a community of returning locals. Keep the rules simple. Go digital-first. Make enrolment effortless. Your customers — and your bottom line — will thank you.

Start small, learn fast, and let your regulars do the rest.

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.

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.