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

Key takeaways

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

What is the 2026 RBA surcharge ban?

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

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

Why did bank shares rise?

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

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

Why did the reaction look odd?

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

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

What does the share move mean?

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

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

Why this matters for retailers

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

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

What changes at the checkout

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

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

How to prepare

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

Next steps

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

Retailers should take four steps before 1 October 2026:

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

Prepare your shop for the 2026 RBA surcharge ban

Update:

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

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

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

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

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

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

Written by:

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

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

Key Takeaways

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

The Point of Sale (POS) System Information Hub

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

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

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

How Does Greeting Card Management Increase Retail Profits?

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

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

How Does a POS System Manage Inventory for Greeting Cards?

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

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

Identifying Slow-Moving Stock

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

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

How Can Retailers Compete with Supermarkets?

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

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

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

What Are the Best Cross-Merchandising Strategies for Retailers?

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

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

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

How Do Retailers Target Local Demographics?

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

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

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

How Can Retailers Use POS Data to Boost Customer Loyalty?

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

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

What Tools Optimise Store Layouts for Better Sales?

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

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

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

What Are the Ensuring Steps for Retail Business Owners?

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

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

Conclusion: Maximise Greeting Card Sales Today

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

FAQ

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

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

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

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

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

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

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

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

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

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

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

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

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

Written by:

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

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

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

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

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

Key Takeaways

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

What is the 2026 RBA Surcharge Ban?

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

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

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

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

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

The problem of Premium Credit Cards

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

American Express

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

Will the Surcharge Ban Cause Retail Price Inflation?

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

How to Manage Fixed-Price Inventory

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

Why Are Cash Discounts the Best Alternative to Surcharging?

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

Automating Real-Time Margin Calculations

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

What Steps Should Retailers Take now?

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

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

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

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

FAQ
 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Written by:

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

Key Takeaways

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

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

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

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

Why This Case Matters

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

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

Handling Wholesale Cost Increases

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

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

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

Documenting Pricing Compliance

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

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

Next Steps for Retailers

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

Written by:

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

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

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

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

Key Takeaways

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

Why Does Tracking Freight Surcharges Matter for Your Store?

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

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

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

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

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

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

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

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

What Are Your Next Steps for Retail Margin Protection?

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

Written by:

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

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

Key Takeaways

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

What is Retail Cash Flow?

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

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

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

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

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

What Are the Most Common Cash Flow Problems in Retail?

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

The Trap of Dead Inventory

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

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

Over-Ordering Without Data

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

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

Use Automatic orders do not kid yourself the computer will win

How Do Overdue Customer Accounts Restrict Retail Cash Flow?

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

The Myth of the "Safe" Corporate Client

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

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

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

Introducing Proactive Credit Warning Thresholds

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

How Does a POS System Automate Credit and Inventory Tools?

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

Assessing Traditional vs. POS-Automated Cash Flow Management

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

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

Following Steps for Retail Cash Flow Management

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

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

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

Stop Guessing and Start Controlling Your Retail Cash Flow

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

Written by:

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

We’ve just launched a big update to our POS System’s AI reporting: the Commercial Operations Profile (COP). This new feature will make your AI reports much more useful. The COP gives a quick overview of your shop, including your location, traffic patterns, what brings people in, profit categories, customer types, competitors, operational limits, and growth goals. With this, your AI business analyst gets the context it needs to understand your business.

Let me explain. If you printed a POS report and showed it to a bank manager, accountant, or business analyst like me, they could read the numbers, but without knowing what your business does, the figures wouldn’t mean much. For example, selling five dog toys might be insignificant for a supermarket but great for a small kiosk near a train station. The COP adds this context. It turns your POS System’s AI from a simple calculator into a strategic adviser, helping it explain what your numbers mean for your shop, your customers, and your profits.

The Reality of Retail Reporting Today

After years of working with independent Australian retailers, I know what the end of the month looks like. You find a quiet moment, sit in the back office, and open a spreadsheet or POS report. You see what you sold, but the data doesn’t clearly show what you should do next.

Recently, Artificial Intelligence (AI) promised to change all of this. Retailers were told that AI could look at their sales data and magically offer brilliant business advice. However, many who have tried asking the current AI for help have been disappointed. All they got was a textbook answer, typically "run a 50% off storewide sale" or "hire a social media manager." Those answers are useless for most analyses.

Now, why does this happen? Well, the simple answer is: there is no business context. Yes, the AI can summarise numbers, but it cannot explain what they mean. Until now, you had to manually add business context each time you wanted a deeper analysis. If you tried with AI, you had to type out your entire store history to get a good answer.

Our new AI POS reporting software changes everything. You now create a form for your business. You save it in your system, and it acts as your personal space.

Why Your POS System Needs a Commercial Operations Profile (COP)

A good AI retail software needs to understand the physical reality of your store. Here are five reasons why the Commercial Operations Profile turns basic reports into powerful POS business intelligence.

1. It Understands Your Normal Baseline

Raw data lacks context. Let's say a generic AI looks at your sales report. It notices that your "Greeting Card" sales dropped by 15% in February. The AI will immediately flag this as a major business failure and tell you to panic.

However, if your COP states that your store is located in a coastal holiday town, the AI understands the bigger picture. It knows you have a massive transient tourist population in January. Therefore, the AI realises that a drop in February is a normal seasonal baseline return. It is not a crisis. It will tell you that your sales are perfectly on track for the season.

2. It Focuses on Profit, Not Just Foot Traffic

An AI analysing a spreadsheet will naturally focus on the biggest numbers. If selling Lotto makes up 60% of your top-line revenue, an unguided AI will tell you, "Lotto is your most important category. Dedicate more floor space to it."

As an experienced retailer, you know this is terrible advice. The profit margins on Lotto are tiny. The COP explicitly separates your "Footfall Drivers" (what brings people in) from your "Profit Drivers" (what actually pays the rent).

When the AI reads your sales report now, it looks through a profit lens. It will give you actionable advice, like: "Your Lotto traffic was up 10% this week, but your premium gift sales remained flat. You are failing to convert that extra foot traffic."

3. It Highlights Cross-Selling Failures

When you look at basket-size data in your POS dashboard, you need to know what should be happening. This helps you spot what is not happening.

For example, your shop might act as an Amazon or Australia Post parcel collection point. That is a great footfall driver. If your COP lists your target cross-sell as "Parcel pickup + Greeting Card," the AI will specifically scan your transaction report looking for that exact combination.

It can then report back: "Only 2% of parcel customers bought a card this month. The counter-placement strategy is not working. Try moving the card spinner closer to the parcel pickup zone."

4. It Respects Your Operational Limits

Standard retail analytics software assumes you have unlimited resources. If an AI notices that Friday afternoons are your most profitable time, it might suggest, "Double your staff on Friday afternoons to capture more sales."

That is useless advice if you run a small family business. If your COP clearly states your constraints—such as "Owner-operated, no additional staff budget"—the AI adapts its analysis.

Instead of suggesting more staff, it will offer a practical solution: "Since you cannot add staff on Fridays, you must streamline your checkout operations. Pre-bundle your top-selling Friday items to speed up the queue."

5. It Aligns Data with Your Strategic Goals

A modern point-of-sale system captures hundreds of metrics every day. Without direction, the AI does not know which numbers you actually care about right now.

Because the COP includes your "Top 3 Goals" (for example, growing your parcel-to-purchase conversion rate), the AI prioritises that specific metric. It will ignore distracting data points, like a slight dip in newspaper sales, to keep you focused on your main objective.

How to Build Your Commercial Operations Profile

To help you create your COP quickly, we have built a simple questionnaire. To answer it, you do not need to look up exact numbers. A decent estimate is perfectly fine. It does not take long, one of the retailers using our newsagency POS software told me it took him eight minutes to complete the questionnaire.

Please take a few minutes to answer the questions below. I suggest you copy and paste this list into a blank document, then fill it out under each question.

Section 1: Business Identity and Premises

First, we need to establish the physical asset.

• Trading Name: What is the name on your door?
• Full Address: Include your suburb, state, and shopping centre name if applicable.
• Business Structure: How many years have you been in operation? Is it owner-operated or managed?
• Building Type: Select one: Strip shop / Internal shopping centre / Stand-alone building / Kiosk.
• Positioning and Visibility: Are you a corner site, an end-cap, middle of the run, or right next to an entrance?
• Visibility Assets: What draws the eye from the street? Do you have glass frontage, clear counter sightlines, or large window signage?
• Lease Status: What is your tenure? (For example, 3+3 years remaining).

Section 2: Location and Traffic Mechanics

Next, we define how people move around your store.

• Traffic Flow: Is your shop in a "high-flow" path where passing traffic is guaranteed? Or are you a "destination" location where customers must make a specific effort to find you?
• External Anchors: List the top three nearby drivers bringing people to your area. This could be a Woolworths, a train station, a post office, or a popular cafe.
• Immediate Neighbours: Who is immediately to your left, right, and opposite?
• Peak Trading Windows: What are your busiest days of the week and busiest hours of the day?
• Quietest Periods: What days and times are consistently dead?

Section 3: The Revenue Engine

This is the most critical part. We must separate traffic from profit.

• Top Footfall Drivers: List the top three to five items or services that physically bring the most people in. Include them, even if they are low-profit (for example, Lotto, parcels, newspapers, or transport cards).
• Top Profit Drivers: List the top three to five categories that generate your highest gross profit dollars. Think about greeting cards, premium gifts, printer ink, or educational toys.
• Category Trends: Which categories in your store are currently growing, and which are declining?
• Common Cross-Sells: What items do customers frequently buy together? (For example, "Parcel pickup + greeting card").

Section 4: The Customer Base

An AI needs to know exactly who it is talking to.

• Traffic Split: Estimate the percentage of your customers. Are they Regular Locals (%), Passing Transients (%), or Centre Staff (%)?
• Top 3 Customer Personas: For each, detail who they are, what they buy, and when they come in. For example: Persona 1: Elderly locals buying newspapers and Lotto on Saturday mornings.

Section 5: Digital Footprint and Promotions

We need to establish your current marketing baseline.

• Google Business Profile: Do you have one? What is your approximate star rating and review count?
• Social Media: Which platforms do you use, and how often do you post?
• Website/E-commerce: Do you sell online? What platform do you use?
• Customer Database: Do you collect emails or SMS numbers? What is your approximate list size?
• Promo History: What specific promotions, bundles, or loyalty offers have worked well in the past? What failed?

Section 6: Operations, Competition, and Goals

Finally, we set the AI's boundaries.

• Operational Setup: What point of sale system do you use? Are there any major bottlenecks in your inventory processes?
• Constraints: Do you have strict limits regarding staff capacity, marketing budget, or shopping centre rules?
• Local Competitors: List your top two local competitors for your high-margin items. What specific advantage do they have? (For example, "Officeworks beats us on ink range").
• Top 3 Business Goals: What are your primary targets for the next 90 days? (For example, increase average basket size).

The Secret to Great AI COP

Once you have answered these questions, you should not just paste your conversational answers directly into your POS System, as some suggest; there is a much better way to do it. AI programs do not behave as humans do. To get the AI to perform perfectly, the output needs to be in what we software engineers call dense data-point formatting.

This means stripping away all grammar, conversational padding, and full sentences. We present the raw facts as compactly as possible.

Here is a clear example of the difference between human writing and computer formatting:

Narrative Formatting (How humans write and read):

"The store is a stand-alone building located on a busy corner. It gets a lot of foot traffic from the local train station every morning between 7 am and 9 am. Because of this, our biggest seller by volume is newspapers, but we don't make much money on them. We make most of our profit from selling premium Hallmark greeting cards."

This is 57 words. This has a high word count but not much actual data.

Dense Data-Point Formatting (How AI likes to read):

Premises: Stand-alone, corner position.
Key Anchor: Train station.
Peak Traffic: 7:00 am - 9:00 am.
Footfall Driver (High Volume): Newspapers.
Profit Driver (High Margin): Hallmark greeting cards.

This is only 28 words. We have a much lower word count, but we deliver the same information with perfect clarity.

Formatting your COP this way gives you two major advantages.

Memory space

It saves memory space. AI models have a limited working memory. Your COP must be short and sharp. Ideally, it should be between 300 and 500 words. The shorter and denser it is, the more "brainpower" the AI has left actually to analyse your sales reports.

AI hallucinations

This is the most important, as it reduces AI hallucinations. Have you ever noticed your AI making things up or guessing wildly? We call these "hallucinations." This usually happens because the AI gets confused. Strict data-point formatting creates absolute clarity. It forces the AI to stick to the facts you provided.

The Magic Prompt to Generate Your Profile

You do not need to write this type of dense format yourself; in fact, I recommend that you use a free AI tool (like ChatGPT or Gemini) to translate your human answers into computer-friendly data.

Copy the prompt below, paste it into your AI tool, and paste your filled-out questionnaire answers right at the bottom.

Role: Act as a Senior Retail Analyst.
Task: Analyse the provided Business Owner Questionnaire data and generate a highly accurate, concise Commercial Operations Profile (COP).
Formatting Rules: Output must be strictly under 2,000 characters (approx. 300 words). Use dense data-point formatting (e.g., Key: Value). Do not use introductory or concluding paragraphs. Eliminate all conversational filler. Use Markdown headers and bullet points.
Structure: Provide a structured summary of: 1) Business Identity & Premises, 2) Location Mechanics & Traffic, 3) The Revenue Engine (Highlighting the Gap between Footfall vs Profit), 4) Customer Personas & Digital Health, 5) Competitors & Operational Constraints, and 6) Top Growth Opportunities based on their stated goals.

Input Data:
[Paste your completed questionnaire answers here]

What Your Final Profile Will Look Like

When you hit enter, the AI will spit out a beautifully clean profile. Here is a sample of what the final COP looked like in a test store. I created Parkmore Newsagency. Notice how clean and sharp the data is.

Commercial Operations Profile: Parkmore Newsagency

1) Business Identity & Premises

• Trading Name: Parkmore Newsagency
• Address: Parkmore Shopping Centre (internal)
• Structure: 5 years, owner-operated
• Positioning: Middle-of-run, quiet section. Glass frontage is the only visibility asset.
• Lease: 2+3 years remaining

2) Location Mechanics & Traffic

• Flow: Mixed (some passing + destination)
• Anchors: Coles, Woolworths, Post Office
• Neighbours: Left – doctors surgery. Right – discount shop. Opposite – women's dress shop.
• Peak: Saturday mornings
• Quiet: Monday afternoons

3) The Revenue Engine

Gap: High-footfall/low-margin (Lotto, magazines, stationery) vs. high-margin/low-traffic (greeting cards, gifts).

• Footfall drivers: Lotto, magazines, basic stationery.
• Profit drivers: Greeting cards, premium gifts, high-end stationery.
• Trends: Gifts are growing. Magazines are declining.
• Cross-sells: Lotto + gifts. Gifts + greeting cards.

4) Customer Personas & Digital Health

• Traffic Split: 45% regular locals | 50% passing transients | 5% centre staff.
• Personas:
  • Elderly idle walkers (buy Lotto and magazines).
  • 35-year-old mums with kids (doing the weekly grocery shop).
  • 45-year-old women shoppers (looking for quick gifts).
• Digital Health: Google 3 Stars (4 reviews). Facebook 1x/month. No website or customer database.
• Promos: Christmas/Easter only (no proven winners yet).

5) Competitors & Operational Constraints

• Key Rival: Nearby Dollar Store (beats us on card price, but has inferior quality).
• Constraints: Marketing budget is severely limited. Centre management bans coffee sales.
• Operations: Stable POS System, no inventory bottlenecks.

6) Top Growth Opportunities (Tied to Goals)

• Drive gift sales via existing cross-sells (bundle Lotto with gifts).
• Convert the 50% passing transient traffic on Saturday peaks into higher-margin basket sales.
• Target the elderly and mum personas with quality card bundles to avoid a price war with the dollar store.
• Quick digital wins: Boost Google reviews, increase Facebook frequency, and capture emails at the till.

The Final Step: Putting Your Retail Analytics Software to Work

Once you have your clean, dense profile, review it to ensure everything looks correct. If it has errors, you are asking for trouble. Now log into your POS System and paste that final profile directly into our AI reporting settings.

Once your COP is saved, you are ready to go. Run an end-of-month sales report and ask any specific business question.

For example, you can ask: "Based on my profile, why did my profit margin fall this month, and what low-cost actions should I take next week to fix it?"

You can also ask it for daily operational help: "Based on my peak traffic times and staffing constraints, write me an optimal staff roster for next week."

You will be amazed by how incredibly useful, realistic, and profitable the answers become. Once your AI truly understands your retail business, there is no limit to the insights you can discover. It stops being a calculator and starts being a true business partner.

If you are tired of generic advice and want a system that actually helps you grow, you need the right tools. Suppose you want to see exactly how our new AI POS reporting software can transform your business. Let's get your technology working harder, so you can focus on making sales.

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.

Can Artificial Intelligence take part of the headache out of pricing your stock? Answer: It can, but, as with everything, you need to use it carefully.

The Daily Struggle of Setting Prices

In a retail setting, the right retail price for your products is one of your most frustrating tasks. Supplier costs constantly change. You need to stay competitive with others; however, you also need to make enough profit to keep your doors open. Historically, people often have to walk down the street with a half-dozen items in mind to check competitor prices. It's a slow, clunky process.

Because of this, many retailers are excited about the promise of AI retail pricing. As with everything, you need to understand how retail AI technology works in the real world.

What Are AI Price Look-ups Supposed to Do?

When you hear about AI price look-ups, the pitch sounds like a dream come true. You press a button, you select an item, perhaps a popular brand of local honey or a top-selling magazine, and instantly, you get:

Checks your pricing history

It shows you what you charged for this item last year compared to today, helping you track how your prices have grown over time.

Calculates a suggested price

It uses your current wholesale cost to aim for a healthy profit margin. This stops you from accidentally pricing an item below cost.

The AI scans the local market

It gives you a broad view of what other local shops are charging, so you know where your price sits.

This sounds like magic, and it is not true.

Firstly, how AI Actually Thinks

To use AI safely, you must understand how it actually thinks. AI is not a living brain. It's not a tiny person sitting inside your computer.

AI, as a massive pattern-matching machine, reads millions of pages of text on the internet. When you ask it a question, it quickly searches its memory to find words that usually go together. It doesn't know the answer. It just predicts the most likely answer based on what it has read. This is a brilliant skill when you want the AI to write an email for you. It's fantastic at summarising a long lease document. However, this same skill makes it very dangerous when you need precise, factual, live numbers.

The Hidden Danger of the AI Illusion

AI is not a live data feed; it doesn't have a secret camera looking at the shelves of the shop next door. This is what we call the "Live Data Illusion." It's one of the biggest traps for retailers using AI retail pricing today. When you ask an AI tool to check a competitor's price, it scrapes public websites to find numbers and then guesses the price based on historical patterns. The AI is guessing based on what it read on the internet weeks or months ago.

A real-world example

Let's look at a real-world example to show the problem.

I asked an AI tool for the price of fuel in my suburb, Keysborough, Victoria, today. The AI confidently told me the following:

\

Now sounds like a sweet deal, but it's nonsense; no one will sell me petrol at 162.9c/L today.

I actually decided to drive down Springvale Road and look at a few petrol stations, the cheapest on offer I could find is

U91 at 236.9 c/L
U95 is 249.9 c/L
U98 is 259.9 c/L
Diesel 285.9 c/L

As far as the tip, 747 Springvale Road was not the cheapest and was offering U91 at 249.9/L.

Now, why did the AI get it so wrong? Because it reads an old price on a web page. It didn't plug into the live, real-time computer system at the petrol station. Then what the AI did was stitch together these pages it found on the internet and presented them as today's truth.

Now, the same flaw occurs when you check other retail stock prices in your POS system. Now petrol is a well-advertised product; imagine what it's doing to less-advertised prices like chocolates. There are several problems here. A typical problem is that the AI looks at an old web page showing $7.99 for a special Christmas promotion from three months ago. But that promotion is over, and everyone else is back to selling it for $12.99. The other issue is that, unlike petrol, companies actively block AI bots from reading their live prices online. This means AI can't see what these companies are charging today.

When Confident Answers Lead You Astray

Now it can be worse as AI is built to sound confident. Developers designed it to be helpful and polite, but not to say "I'm not sure, you should probably check this yourself." It's very hard to argue with AI because it is so emphatic.

How to Use AI Price Look-ups Safely

So, should you ignore AI price look-ups completely? Absolutely not. They're a powerful and exciting tool when used correctly.

You need to treat the AI like a very smart, but slightly inexperienced, junior assistant. You'd never let a brand-new staff member change all your prices without checking their work first. You must treat AI the same way.

Here are four golden rules for using AI retail pricing tools safely.

Rule 1: Use AI as a Guide, Not an Oracle

Treat any price suggested by AI as a second opinion. It's a helpful hint, not the final word. Never rely on an AI tool for live competitor pricing. You may still need to make a trip to see current prices. If the system suggests a price, pause and think about it. Does it feel right for your specific neighbourhood? Does it make sense for your typical customer? You know your local community better than a computer ever will.

Rule 2: Focus on Broad Patterns, Not Exact Numbers

AI is fantastic at spotting big trends. Instead of asking for an exact price, use the AI to look at the bigger picture.

For example, notice if the AI says prices in a certain category are trending upwards. If the software highlights that greeting cards are generally selling for more this year, that's valuable information. You can use that trend to raise your prices across the board gently.

Rule 3: Always Verify Your Own Data First

Before you change a price, you must cross-check the AI suggestion against your own numbers. Look at your current wholesale cost. Look at your minimum required profit margin.

If the AI suggests dropping a price to $10, ask yourself if you still make money at that price. If the answer is no, ignore the AI. Your software holds your true wholesale costs. Always let your true costs dictate your final decision.

Rule 4: Do Your Own Human Scouting

Nothing beats walking into a competitor's shop and looking at their shelves. You should still run a short, periodic scouting routine.

Pop into nearby stores once a month. See how they display their products. Look at their actual price tags. This real-world check keeps your AI tool honest. It gives you a realistic view of what's truly happening on your street.

The Final Word

The technology is moving incredibly fast. In the next few years, AI tools will get much smarter. They'll become better at understanding live data. They'll integrate even deeper into the retail software you use every day. Today, however, we can only use what we have.

In summary, AI price look-ups are a brilliant addition to your Point of Sale (POS) system, provided you know their limits. They're fantastic for spotting broad trends, catching pricing mistakes, and saving you from tedious spreadsheet work.

However, they're incredibly dangerous if you treat them as a live data dashboard. Always remember the petrol station trap above.

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.

This guide shows you how to track monthly stock sales over the last two years using your POS system's 24-month trend report. You'll learn why two years beats one, how to run the report step-by-step, and how to use the insights to boost your retail profits. Let's dive in and make your data work harder for you.

Why Two Years of Data Beats 12 Months

Your POS system automatically records every sale. But a standard 12-month report often misses the full picture, especially for seasonal items.

Think Easter. Chocolate eggs and decorations sell well in March or April. A 12-month view skips last year's Easter rush entirely. That's why smart retailers and suppliers always check two full years. They compare "this time last year" figures to spot real trends.

Your POS System makes pulling this data simple. Here's exactly how.

Step-by-Step: Run Your POS Stock Sales Report

Well, it's easy to do and will take you a second to find out.

To get started, go to Register Reports > Sales Stock > Stock Sales Details 24 Month Trend.

Now enter the criteria you want, and you will see the report above.

You get a lot of detail: the stock-on-hand figure, two years of history, total sales, etc.

No need for the whole department; filter to a single supplier or product range. It takes seconds.

Turn Data into Real Retail Wins

This report isn't just numbers – it's your secret weapon. Here's how top Australian retailers use it every day:

• Plan stock smarter: Order exactly what sold last Easter, not a guess.
• Talk terms with suppliers: Show "last year we moved 100 units"
• Fix your store layout: Put hot items front and centre during peak months.
• Save cash: Spot slow movers before they tie up your money.

When you line up both years side by side, patterns jump out. You'll see your store's real rhythm.

Why "POS System Australia" Retailers Love This

Australian shops face unique seasons, think Christmas heatwaves or Anzac Day baking. A good POS system in Australia delivers these reports fast. No spreadsheets. No hassle.

Two years of data reveal what one year hides.

Common Mistakes to Avoid

Don't just glance and go. Dig deeper:

• Compare year-on-year growth.
• Check stock-on-hand against trends.
• Filter ruthlessly – too much data overwhelms.

Pro tip: Run this monthly. It's your early warning system for stock-outs or overstock.

Ready to Unlock Your Sales Insights?

Log in to your POS System now. Pull that 24-month report. See what last Easter really taught you.

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.

This report can help you to get helpful insights into the stock that you sell.

We decided to analyse a major retailer's top 40 best-selling pens, pencils, and writing supplies in Australia to see what shopper preferences are now. Interestingly, they had no problem giving us the list or with our distributing it. We offer these insights to help you stock smarter and boost sales, as they give you a clear view of what customers really want now.

The Top Five Best-Sellers Right Now

Here's what topped the list:

1. Bostik Blu Tack 75 g, blue/grey
2. Sharpie Permanent Markers, Fine Point, Black, pack of 2
3. Duramax Super Glue Tube Sticks 3 g, pack of 3
4. Scotch Utility Purpose Masking Tape 24 mm x 55 m (2010)
5. BIC 4 Colours Shine retractable ball pens, medium 1.0 mm, pack of 3

These items blend utility across categories, but we decided to go deeper into the top 40.

Everyday Basics Drive Repeat Sales

We found that shoppers today are prioritising practical tools such as ballpoint pens, gel pens, whiteboard markers, erasers, and correction tape. These everyday items make up most of the top 40.

Interestingly, traditional wooden pencils are hardly seen. People today are choosing convenience over the constant need to sharpen.

Trusted Brands Lead the Pack

A handful of brands rule the list: Sharpie, BIC, Faber-Castell, Staedtler, Zebra, Stabilo, Uni-ball, Prismacolor, Ohuhu, and Shuttle Art. People clearly are looking at brand names.

I suggest that you look at these brands.

Multipacks Boost Basket Value

Nearly every top seller comes as a multipack—2-packs, 3-packs, up to 150-colour sets.

Markers Outsell Traditional Pens

Markers take nearly half the list: permanent markers, highlighters, whiteboard pens, chalk markers, and art markers. Labelling, colouring, and highlighting rival plain writing.

Aussies create as much as they take notes. Visual tools win big as people write less and less. I know anything big, I am using a computer.

Diverse Needs: Work, School, and Art

Breaking the list down, it's clear that the best-selling items appeal to three main shopper groups.

• Office workers want BIC ballpoints, Uni-ball pens, and correction tape.
• Students grab Stabilo highlighters, Zebra Mildliners, and pencil cases.
• Artists choose Prismacolor sets, Ohuhu alcohol markers, and acrylic pens.

Smart Pricing: Impulse Meets Splurge

Most items cost under $15, and for the higher prices, we saw large art sets, not luxury singles. If you want to sell the luxury singles, you need the knowledge and the customers. It's not easy selling a $100 pen today.

Key Retail Strategies

These trends boil down to three truths:

1. Practicality trumps flash.
2. Brands build loyalty.
3. Value packs lift profits.

Use your POS System to Stay Ahead

A Point of Sale (POS) system turns data into action. Only it can tell you what is selling in your shop and confirm what works.

Here's how:

• Daily reports show your top 10 movers.
• Inventory alerts reorder before stockouts.
• Customer trends reveal school season spikes.

Expand to 2026 Trends

Brands sell, and it looks like Art sets are rising now.

Give me a call if you want the full list of 40 items.

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.

Choosing the right Charity (op shop) POS system in Australia is not the same decision as choosing retail software for a regular store. Donors bring stock directly to your door. Every donation arrives as a unique, one-off item. You rely on volunteers who give their time generously but may turn over frequently. We know that we have a lot of charity shops using our system now, community hospitals, Salvos, etc.

All our charity shops face the daily challenge of keeping shop sales and donations clearly separated. What we find is that standard retail POS will frustrate your volunteers and leave your people doing manual corrections at the end of every week. But our purpose-built, tested charity shop POS transforms how you work, making every shift smoother for your entire team.

Let's look at exactly what features you need to run a smarter Charity op shop.

A Note on Hardware Flexibility

Before we dive into the software, remember that hardware flexibility matters. Not every charity shop has the budget for brand-new, top-of-the-line registers. You can have them in our system, but you do not have to.

Make It Simple for Volunteers

Charity Op shops often see high volunteer turnover, so your system must be easy to learn. If the software is complicated, volunteers are more likely to make mistakes. Transactions get voided incorrectly. Prices get entered in the wrong fields. The queue at the counter builds up while someone tries to remember which button to press.

A truly volunteer-friendly POS System like ours uses large, colour-coded buttons for product categories on the main screen. Often, volunteers do not need to search for individual items. They tap the category and enter the price.

Speed

The industry standard is 40 seconds per transaction, plus 3 seconds per item. So if a sale has three items, the time is about 40 seconds plus 9 seconds per item in their basket. Thus, you are looking at about 50 seconds.

Consider this:
80% of customers say they are unwilling to wait for more than 5 minutes in line. So if your queue is six people, there is an 80% chance that someone will walk out.

Retailer needs speed.

I extracted about 20,000 cash register transactions from one of our clients' systems. Here is what the graph above looks like for transaction speeds. As you can see, our average transaction time was 36 seconds per sale. In a pinch, our client was doing much better.

On speed, I am sure we beat almost any POS system on the market.

Handle One-Off Donated Stock With Ease

Here is the inventory challenge that every op shop manager knows well: you do not have supplier barcodes or consistent stock levels. So, how do you manage donated goods inventory management without it becoming a full-time job?

The answer is generic department pricing buttons. Rather than creating an individual product record for every shirt or vase, you set up categories like "Menswear," "Bric-a-Brac," or "Books". Then you have clear, tappable buttons so that when a customer brings that item to the counter, the volunteer taps the category and manually enters the price from the tag. The system records the sale against that department. It's quick.

For items that require specific tracking, our point-of-sale system lets you make in-house barcodes quickly. After you print a label, stick it on the item. Then scan it at the counter like a standard product. It is practical and keeps the checkout fast.

Keep Donations Separate From Your Retail Sales

Many charity op shops accept cash donations directly at the counter. This is highly convenient for your supporters. However, lumping those funds in with your retail sales data creates a major reporting problem. Our reliable POS system for charities in Australia lets you set up a dedicated "Donation" button on the screen. When a supporter donates, the volunteer taps the button and enters the amount. Your POS categorises funds as non-taxable donations instantly.

While processing these donations, your POS should also allow for easy donor capture. Recording a donor's name and email right at the counter lets your charity send automated thank-you messages. This helps you build stronger community relationships and encourages future support.

EFTPOS

We do not lock you into any EFTPOS system; you are free to select whoever you want. Because we have so many EFPTPOS suppliers linked into our system, you can really shop around.

Issue Proper Tax-Deductible Receipts

If your charity holds Deductible Gift Recipient (DGR) status, your supporters are entitled to a tax-deductible receipt for any donation over two dollars. The last thing you want is a supporter asking for a receipt and your volunteer not knowing how to produce one. Our POS software lets you customise your receipt footer. You can easily add your ABN, your DGR status details, and the exact wording required by the Australian Taxation Office (ATO). Then, when a volunteer processes a donation at the counter, the system automatically prints a legally compliant receipt. You can also automatically email it.

Issuing the right receipts is only one part of keeping your financials clean, and connecting your POS to your accounting software handles the rest.

Connect Directly to Your Accounting Software

Manual data entry errors account for a significant share of financial discrepancies in small nonprofits. If your admin team manually re-enters daily totals into your accounting software at the end of every shift, you are wasting valuable time.

Strong charity retail accounting integration changes everything. Our charity op shop POS integrates directly with leading Australian platforms, including Xero and MYOB. At the end of each trading day, your totals automatically sync. Your retail sales, EFTPOS settlements, and cash donations are pushed through to the correct accounts without any double-handling.

Want to see how the sync works? Book a free 15-minute demo. We'll walk you through a live op-shop setup and show you how much time you will save.

Protect Your Data With Manager Controls

Volunteers are wonderful, but accidents happen. A transaction gets deleted accidentally. A discount gets applied that shouldn't have been.

In a charity shop, these errors drain revenue and create compliance issues for you. So we can protect your data with a comprehensive manager permission system. You can lock functions like voids, refunds, or large discounts behind a manager PIN.

Furthermore, the system logs almost every action taken on the POS. This clear audit trail shows exactly who processed a refund or correction.

Handle High-Value Donations and Bids

Occasionally, a generous donor drops off something genuinely valuable, like a piece of vintage jewellery or an antique. These items need a different approach at the checkout.

A flexible POS lets you set up a quote or bid system. Interested customers can register an offer on a high-value item directly through the till.

You should also consider lay-by options for customers who want to pay off a larger purchase over time. This ensures you get the best possible return for your premium donations.

Manage Everyday Discounts and Welfare Pricing

At the other end of the pricing scale, charity op shops also need flexible discount tools to quickly find and move older stock.

Your system should easily handle colour-tag sales. For example, you can set a rule that all items with a green tag are half price this weekend. The POS automatically applies the discount, so the volunteer doesn't have to do the math. You should also be able to process concession pricing for welfare cardholders or "free but tracked" items for emergency relief vouchers. Tracking these giveaways is vital so you can report the full scope of your community impact to your board.

Reports That Work for Charity Shop Managers

End-of-day reporting is essential for running an accountable op shop. A basic till summary is not enough for a charity board. You need clear insights to make confident decisions.

Key Reports Your Charity POS Should Produce:

• Sales by department: See exactly which categories (like homewares or clothing) bring in the most revenue.
• Stock variance: Compare what you processed against what you expected.
• Donation totals: Keep direct donations entirely separate from retail sales.
• EFTPOS reconciliation charity data: Match your card payments perfectly against your bank statements.
• Cash reconciliation: Ensure your cash drawer matches your recorded sales securely.

Scale Across Multiple Stores and Channels

Many Australian charity organisations operate more than one op shop. Managing them with disconnected systems creates massive headaches for area managers.

POS Australia offers true multi-store support. Managers at the head office can see sales and stock data across all stores in one place. Setting up a new store becomes straightforward, and the volunteer training remains the same across all locations.

You should also look for a system with reliable offline capability. If your internet drops out on a Saturday afternoon, your POS must keep working and sync the data later. Additionally, if your charity shop is expanding into e-commerce, consider our online links that let you push your donated items directly to platforms like eBay or Facebook Marketplace from your main system.

What to Look for in a Charity Shop POS: A Quick Checklist

Before you make any software decision, run the system against these core criteria:

• [ ] Simple enough for a first-time volunteer to learn in 15 minutes.
• [ ] Supports category-based pricing for unique donated stock.
• [ ] Automatically separates donation income from retail sales.
• [ ] Produces compliant DGR tax receipts for donors.
• [ ] Integrates seamlessly with Xero or MYOB.
• [ ] Features manager PIN controls and a secure audit trail.
• [ ] Handles bids, lay-bys, and colour-tag discount rules easily.
• [ ] Works offline, so you never miss a weekend sale.

The Right POS Makes Every Shift Easier

A charity shop POS system needs to do more than take payments. It should be simple enough for any volunteer, flexible enough for one-off donated goods, and robust enough to give your managers clear control over every dollar.

The right system saves your team hours of admin time, stops costly till errors, and gives your organisation complete financial clarity. When your operations run smoothly, more of your energy goes exactly where it belongs — toward your mission.

Ready to give your volunteers a POS they'll actually enjoy using? Book a free demo, and we'll show you exactly how it handles donated stock, DGR receipts, and Xero sync in a real charity shop environment — no lock-in, no jargon.

Written by:

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

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Connecting your Point of Sale (POS) system to MYOB can save your retail business hours of admin every week. When the setup is done properly, your sales data flows through cleanly, your reports make more sense, and you spend less time fixing mistakes at night. This guide explains how MYOB POS integration works, how it can work with other accounting systems like Xero, what can go wrong, and the simple checks you can use to keep everything running smoothly. It's been in our POS system for many years, works well, is well-tested, and is free.

How POS and MYOB Work Together

Your POS system and your accounting software serve different purposes.

Your POS system handles the action on the shop floor. It records sales, tracks stock, manages returns, applies discounts, and helps your team serve customers quickly. It is where your daily retail activities take place.

MYOB can sit in the background and record the financial side of that activity. It helps you track revenue, expenses, GST, bank transactions, supplier bills, and your business's overall health. In simple terms, your POS system runs the front of the shop, while MYOB helps you understand the financials behind it.

When the two systems are properly integrated, you do not need to enter the same information twice. That means fewer manual errors and faster reconciliation.

However, automation only helps when the information going in is correct. If the data in your POS system is wrong, the data sent to MYOB will also be wrong. This is the big danger of integration, and the reason many do not like it.

Why So Many Retailers Use MYOB

There is a reason MYOB remains a popular choice for Australian retailers. It has been part of the local business landscape for decades, which means many business owners, bookkeepers, and accountants already know how it works. That matters when you need support and want answers quickly.

For retail businesses, MYOB is also attractive because it can handle important retail tasks without forcing you to bolt on too many extras. If you sell a wide range of products, carry stock, manage GST, etc, it can be a practical fit.

That said, this article is not about claiming MYOB is the only good accounting platform. Many good accounting software programs can help you stay compliant, properly track finances, and make decisions with confidence. The real question is not whether MYOB is the best. The real question is whether it can support how your retail business actually works.

For many Australian retailers, MYOB does that well.

Learn the Basics Before You Integrate

Before you connect your POS system to MYOB, please take time to understand a few basic accounting ideas. You do not need an accounting degree. You do not need to become a bookkeeper. But you do need to understand what the software is doing in the background.

This is where many retailers get stuck. They assume the software will think for them. It will not. It will follow the rules you give it.

If you do not understand the difference between income and liabilities, or how GST works, or why stock adjustments matter, it becomes very hard to spot a problem early. You may still get reports. You may still see tidy dashboards. But you will not know whether the numbers are telling the truth.

I have seen retailers jump into setup too quickly because they want to get moving. That is understandable. Running a shop is busy work. You are thinking about staff, customers, stock, rent, and cash flow simultaneously. Still, a few hours spent learning the basics can save you weeks of clean-up later. YouTube is great for this; it has many good tutorials on the major accounting programs in Australia.

Start with these simple ideas:

• What counts as income?
• What counts as an expense?
• How GST is applied.
• What are assets and liabilities?
• How stock affects your reports.
• What happens when you refund, void, or adjust a sale?

Once you understand those basics, MYOB becomes much easier to use. More importantly, your reports start to mean something. You can look at the figures and understand what your business is actually doing.

Set Your Accounting Rules Before You Start

Once you understand the basics, you can set clear rules on how you want your business to handle its GST, refunds, stock adjustments, supplier invoices, cash movements, owner drawings, etc.

If you do not set these rules early, you can end up with inconsistent entries and a messy accounting system. What you will find is that sometimes people put these transactions one way, and the next month another way. That makes it much harder to produce good historical comparisons, rendering many of your financial reports useless.

Cash or Accrual: Which One Fits Retail?

One of the most important decisions in your accounting setup is whether to use cash or accrual accounting.

This choice affects how your business appears on paper. It also shapes how easy your bookkeeping feels day-to-day.

Accrual accounting

With accrual accounting, you record income when the sale occurs and expenses when the bill is received, even if the money has not yet moved.

Accountants often prefer this method because it provides a more comprehensive picture of profitability over time. It matches income and expenses to the same period, which makes your profit reports more accurate. For example, say you spent $1200 on insurance for the business, in an accrual system, you might have paid it at the start of the financial year, but you actually are spending $100 a month, so January is a $100 expense, February is $100, March is $100, etc.

It's great for profit calculations, but it's a lot more work and much more complex, which creates confusion.

Cash accounting

With cash accounting, you record income when money actually hits your bank account and record expenses when the money leaves it.

This is usually easier to understand. It also gives you a better picture of what is happening in the bank account.

My practical view for small retailers

For many retailers, cash accounting is the better system because it's simpler and more relevant, as it monitors cash flow and keeps your doors open. You can be profitable on paper and still get into trouble if cash is tight. In my experience, wages, rent, suppliers, and stock orders all depend on what is actually available in the bank. I have seen so many businesspeople tell me that I cannot afford this customer because he takes so long to pay.

That said, there is no one-size-fits-all answer; both are very good systems.

What MYOB POS Integration Actually Does

A good MYOB POS integration automatically moves key information from your POS system into your accounting file.

Depending on your setup, that can include:

• Daily sales totals.
• Payment type breakdowns, including cash, cards, and gift vouchers.
• GST collected.
• Department or category sales.
• Refund and return figures.
• Stock-related information.
• End-of-day summaries.

This saves time. Instead of relying on someone to enter numbers into MYOB every day manually, the system handles the transfer for you. That reduces double-handling and lowers the risk of basic entry mistakes.

However, if the POS System data is incorrect, the result will be incorrect too.

For example, if a product has the wrong tax code in the POS system, that problem can flow straight into MYOB. If staff use the wrong department button at the register, your sales reporting may become distorted. If refunds are processed inconsistently, your accounting records will not reflect what happened on the shop floor.

This is why a strong setup and simple controls matter.

The Most Common Setup Mistakes

Retailers often blame the software when integration problems appear. In reality, many of the issues come from setup problems, often due to weak checking routines.

Here are the mistakes I see most often.

1. Poor product mapping

If products, categories, tax codes, or sales accounts are mapped incorrectly, your reports will not make sense. This is one of the fastest ways to create confusion between what your POS says and what MYOB says.

2. Too many people changing settings

If every staff member can edit product records, GST settings, pricing rules, or integration fields, mistakes become almost guaranteed.

3. No test process

Many retailers switch on an integration and trust it immediately. That is wrong. Any update, new product category, or settings change should be tested before you assume the numbers are landing correctly. Nothing can muck up figures quicker than a computer.

4. Weak refund controls

Refunds, voids, and manual overrides are common trouble spots. If these are not handled correctly, your accounts will be incorrect.

5. No daily checking habit

Even the best integration still needs human oversight. A two-minute weekly check can catch issues before they become a month-end disaster, compare:

• Your POS total sales.
• Your EFTPOS or card settlement report.
• Your counted cash.
• Any refunds or adjustments.

If something does not match, deal with it while the matter is still fresh in everyone's mind. Small gaps are easier to solve immediately than three weeks later.

Once a week, review reports for:

• Refunds.
• Voided sales.
• Manual discounts.
• Price overrides.
• Stock adjustments.

These are the areas where errors, training issues, and fraud risks tend to hide. A weekly review keeps you in control without adding much admin.

You do not need a big process manual. You need good habits.

Lock down critical settings.

Only trusted managers should be able to change GST codes, accounting mappings, product categories, and key system settings.

Test before you trust

If you add a new product range, update your POS software, change GST settings, or adjust your account mapping, run a controlled test first. Run sample transactions and confirm they post correctly in MYOB.

Never assume an old setup will still work perfectly after a system change.

A Practical Setup Mindset

The best MYOB POS integration is not always the most advanced one. It is the one your business can understand, manage, and trust.

That means keeping things simple where possible. It means using clear categories, sensible naming conventions, and reports you will actually look at. It also means building a system that works for you.

What Good Integration Feels Like

When your POS system and MYOB are working together properly, several things happen.

First, your daily admin gets faster. You stop re-entering sales data and rely on the system to handle routine tasks.

Second, your numbers become easier to trust. You can compare sales, payments, and bank activity with confidence because your process is consistent.

Third, decision-making improves. You get the information to focus on your financial information.

That is the real goal. Integration is not just about convenience. It is about giving you the information you need to run your shop better.

Frequently Asked Questions

Does every POS system integrate with MYOB?

No. Only some POS platforms have direct integration.

Will integration fix bad bookkeeping?

No. Integration reduces manual work, but it does not replace understanding. If your chart of accounts, GST setup, product mapping, or staff processes are wrong, all you have is rubbish in and rubbish out.

Is cash accounting always best for retail?

Not always. It is often easier and more practical for many retailers, but your final choice should reflect your business model.

How often should I review my setup?

Check your totals daily, review exception reports weekly, and revisit your broader setup any time you add new categories, update software, or change key business processes.

Final Thought

A robust integration between MYOB and your POS system is essential. It can save time and minimise errors.

So you can use MYOB to make informed retail decisions.

Ready to Elevate Your MYOB POS Setup?

If your POS system and MYOB aren't communicating effectively, it's a problem. Don't hesitate to reach out if you need assistance. We’re here to help you succeed.

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're all constantly seeking ways to attract customers. We do not want to spend a fortune on advertising. Birthday marketing is a simple retail tactic that helps you connect with your customers in a personal, relevant way. Instead of sending another generic promotion that gets lost in the noise, you reach out on a customer's special day. If you do not know their birthday, you can use the anniversary of their joining your loyalty program. What you send is a warm message and an offer that gives them a genuine reason to visit your shop again.

Birthday campaigns are widely used because they feel much more thoughtful than standard promotions. They are a highly successful feature in modern marketing platforms. A birthday message stands out because it arrives at a meaningful moment in your customer's life.

Why this works so well

People buy on birthdays

Birthday offers typically have about 25% success with our clients. Here are some figures from Experian

In many ways, this strategy taps into what great retail is all about. Customers want to feel noticed. They want to feel remembered. When they walk into your shop, they want to feel like a regular. A well-run birthday campaign gives you a simple way to create that exact feeling, while also driving repeat visits and sales.

Most promotional messages compete for attention at the most competitive time of the year. Your customers will see so many discount emails, catalogue drops, social media ads, and SMS. A birthday message is completely different because it is unique to the customer, and the timing holds deep meaning for them. Hence, a customer is far more likely to notice it, open it, and remember your business.

You are not inventing an excuse to contact; you are responding to a date that matters to them. When you pair that happy message with a modest reward such as a discount, bonus points, or a gift with purchase, you create an offer that feels generous without costing your business a fortune.

Another massive benefit is consistency. Seasonal campaigns like Christmas or Mother's Day come and go, and as I said, they are incredibly competitive. Birthdays come all year round. This gives you a steady, reliable stream of marketing opportunities.

Birthday or anniversary?

If you can collect a customer's birthday through your loyalty program, that is your best option, as a birthday is inherently personal, so the message feels warmer and much more memorable. It gives you a clear chance to reward the customer in a way that builds deep loyalty and encourages repeat visits. However, let's be realistic. Not every retailer has the customer's birthday on file, and not every customer wants to share that information at checkout. That does not mean you miss the opportunity completely. Use the anniversary of a customer joining your loyalty program or making their first purchase. It works too. I went to the shop a few days ago, and the shopkeeper told me, "You brought it here eight years ago." It got a smile.

Now you do not need a huge database or a complicated corporate marketing team to make this work. You need a date, a friendly message, an easy-to-understand and redeemable offer, and a decent POS System.

How to naturally collect birth dates at the counter

One of the biggest hurdles small retailers face is actually getting the data. Asking a customer for their date of birth can sometimes make your staff feel awkward. The trick is to explain the benefit immediately.

Next time you sign someone up to your loyalty program, try having your staff use a simple script like this:

• "Would you like to join our loyalty program today to earn points on this purchase? We also send you a special gift on your birthday if you'd like to leave your birth month and day with us."

Notice that you do not need their birth year, and with our privacy laws, I would not suggest it. In any case, people are much more comfortable sharing just the day and month. Once they understand that a gift or discount is involved, most customers will hand it over.

Keep it simple

One reason this marketing style is so appealing is that it does not need to be complicated. In fact, simple usually works better in retail. A short email or SMS can be more than enough if the message is personal, the offer is clear, and the timing is right.

This is where your technology steps in. A modern Point of Sale (POS) system can make a massive difference here. A good POS system helps you easily store customer details, track loyalty sign-ups, record their visit history, and connect your sales right back to your marketing campaigns. That turns birthday marketing from a tedious manual task into a smooth, manageable process.

You do not need a flashy graphic design or a massive discount that hurts your margins. Many independent retailers get fantastic results with a straightforward message.

For example:

• Happy Birthday from all of us at the shop!
• Here is a small gift to help you celebrate.
• Enjoy $3.00 off your next purchase this month.
• Show this message in-store to redeem your offer.

That kind of message works beautifully because it is easy to read and easy to act on. Your customer does not have to jump through hoops, print out barcodes, or work out what the offer means. They can walk in, show their phone to your staff, and enjoy the reward.

A practical monthly routine

The easiest way to run birthday marketing in your shop is to make it part of your regular monthly routine. You do not need to think about this every single day. Instead, run once a month. Find an offer that works, and load the details into your POS system.

1. Start of the month: Select your VIP customer list.
2. Pick an offer: Choose one clear, profitable offer.
3. Write your message: Write one friendly message. You can often use the same template

4. Set an expiry date: Always set one. This creates urgency and gives the customer a reason to act now.
5. Send it out: via email or SMS through your marketing platform.
6. Track the results: Use your reporting tools to track who redeemed the offer and what else they bought.
7. Review and refine: Check your results each month to stay close to the numbers and improve your offer as you go.

This process is incredibly easy to manage.

What to send: getting the tone right

Your message should feel warm, human, and local. It should sound exactly like it came from a real person who knows and values the customer, not from a faceless, automated corporate system pushing a quick sale.

A good birthday or anniversary message usually includes four key elements:

• A personal greeting (using their first name).
• A short, warm celebratory line.
• One crystal clear offer.
• Simple instructions for redeeming it.

For example, you might write:

"Hi Sarah, Happy Birthday! We hope you have a wonderful week celebrating. As a small thank you for shopping with us, we'd love to give you 15% off any full-priced item this month. Just show this message at the counter next time you pop in."

That is all you need. It is personal, clear, and gives the customer a compelling reason to come back without making the offer feel overly sales-driven.

Choosing the right offer for your shop

The best birthday offer is usually modest but meaningful. It should feel like a genuine reward to the customer, but it absolutely must protect your profit margin. Offering $2.00 off might work for a local cafe, but for a boutique or hardware store, it won't be enough to drive a dedicated visit.

Here are some other great ideas you might consider offering, depending on your business type:

• Percentage discount: 10% or 15% off a single purchase.
• Bonus points: Double or triple loyalty points for one visit during their birthday month.
• Gift with purchase: A free, low-cost add-on item when they buy something else (e.g., a free pair of socks with a new pair of shoes).
• VIP reward: A slightly larger physical gift for your top-tier, high-spending VIP customers.
• Dollar-value voucher: A $10 or $20 voucher with a minimum spend attached (e.g., "$15 off when you spend $50 or more").

The right option depends entirely on your retail category, your average sale value, and your margins. The key is to make sure the reward feels worthwhile to the customer while remaining sensible for your cash flow.

It also helps to set conditions to protect yourself. For example, you may want the offer to be valid for exactly two weeks, or strictly for the customer's birthday month. You will likely want to exclude sale stock or clearance items. You should definitely limit it to one redemption per customer. Setting clear rules reduces awkward confusion for both your team members and your customers at checkout.

Should you use Email or SMS?

Retailers ask me this all the time. There is no single perfect channel. The best one is the one your specific customers are most likely to notice and use.

Email Marketing:
Email is often the easiest place to start because it is very low-cost and incredibly easy to automate. Many retail businesses use birthday email workflows because they can be scheduled months in advance and sent automatically at exactly the right time without any manual effort from you. If you already collect email addresses through your loyalty program or newsletter sign-up, this can be a highly efficient and profitable option. You also have more space to include nice imagery of your shop or products.

SMS Marketing:
SMS can work exceptionally well if your customers are comfortable receiving text messages from your business. It feels highly immediate, it is very easy to read on the go, and it perfectly suits simple, time-sensitive offers. While sending an SMS costs a bit more than an email, the open rates are massive. People read almost every text they get, usually within minutes. If your offer is strong, SMS can drive foot traffic into your shop that very same day.

Being more clever: The Birthday Sequence

Suppose you send a sequence of birthday messages to improve sales? A short sequence of messages will work even better in practice.

By sending a pre-birthday reminder, the actual birthday message, and a final reminder before the offer expires, you give the customer multiple opportunities to notice and respond.

For an independent retailer, a simple sequence might look like this:

• A few days before: A friendly email teasing the reward. "Your birthday treat is coming soon! Keep an eye on your inbox."
• On the day, or start of the month: The main message containing the actual offer and barcode.
• A few days before expiry: A gentle, final reminder. "Don't forget to treat yourself! Your birthday voucher expires this Friday."

Do not need to overdo it. I recommend pushing it more than three times. You do not want to annoy people.

What to measure to ensure success

One of the biggest advantages of birthday marketing is its measurability. Unlike most advertising, like a newspaper ad, you can track exactly what happens. So you can start small, watch the results, and improve your strategy over time.

To see if your campaign is working, look at simple numbers such as:

• Send rate: How many messages were successfully sent?
• Open rate: How many customers opened or clicked the email (if you used email)?
• Redemption rate: How many customers redeemed the offer? This is the most important KPI.
• Average spend: How much did they spend when they came in?
• Upsell rate: Did they buy more than the offer required? (e.g., They used a $3.00 voucher but spent $80 total).

These basic measures tell you exactly whether the campaign is doing its job. If your redemption rate is low, your offer may not be strong enough. If customers redeem the offer but spend very little else, your offer conditions may need to be revised (like adding a minimum spend). If the response is strong and highly profitable, you should absolutely repeat the format for other milestones, like store anniversaries or VIP nights.

Common mistakes to avoid

Birthday marketing is a simple concept, but a few easily avoidable mistakes can severely weaken your results.

Make sure you avoid these common traps:

• Making the offer too complex: If there are too many terms and conditions, the customer will ignore it.
• Sending the message too late: Sending a birthday discount on the last day of the month gives them no time to visit. It must be sent close to their birthday.
• Forgetting the expiry date: Without urgency, the customer will put it off and forget about it.
• Offering a weak reward: An offer that is too small (like $1 off) won't motivate anyone to leave their house.
• Not telling your staff: Making store staff unaware of the campaign leads to a terrible, confusing customer experience at the counter.
• Sounding like a robot: Sending a generic, stiff message that comes across as cold or overly automated ruins the personal feel.

The best campaigns feel personal, generous, and easy. If the customer reads your message and instantly understands the benefit to them, you are on the right track.

Start with one simple campaign.

If you want to bring more of your loyal customers back into your shop with far less guesswork, right now is a great time to start. Set up one single birthday campaign for this coming month and see how you go.

Written by:

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

If shoplifting feels tougher than it used to, you are probably right as crime statistics are showing. I hear many retailers tell me the same thing. Thieves today seem bolder, and the usual “soft” approaches struggle. In an effort to battle this, AI security is moving into Australian retailers next, after what the Bunnings facial recognition decision signals for our industry.

One important note upfront: we’re not selling AI security systems to because the market isn’t quite there yet at an affordable, plug-and-play level. However, it’s coming, and we are preparing so you’re ready to adopt it when it makes sense for your store.

The real cost of a stolen item

When an item gets stolen, you don’t just lose the shelf price. You lose the profit that pays your rent, wages, power, and supplier bills.

That’s why theft hurts so much in retail. There is no giant buffer in margins today. Every missing item means you have to work harder just to stay even.

There’s also a human cost. Retail crime can feel more aggressive and unpredictable and the law is demanding that you do more.

Why traditional “soft” approaches struggle now

Most retailers already do the basics, like:

• Greeting customers as they enter. I really like the idea of having grandmother greet personally every customer into your shop.
• Keeping the store tidy and easy to see through.
• Using mirrors to reduce blind spots.
• Running CCTV cameras.
• Tagging higher-value items.

These are good practices. They set the tone and they reduce easy opportunities.

However, they have one big weakness: they rely on your team noticing the problem in real time.

Even your best staff can’t watch every aisle while also:

• Serving customers
• Answering questions
• Unpacking stock
• Running the counter
• Handling returns and exchanges

Traditional CCTV often becomes “after the fact” footage. You might confirm what happened later, but the stock is already gone.

So the gap remains: what happens on the shop floor doesn’t always connect to what your business systems record.

What “AI security” usually means (in plain English)

When people say “AI security cameras,” they often mean one of two things:

• Behaviour detection: The system looks for actions linked to theft (like concealment or rapid grabbing) without needing to identify a person.
• Identity detection (facial recognition): The system attempts to match a face to a watchlist of known repeat offenders (high impact, high compliance).

Why AI security isn’t mainstream for small business yet

If you’ve looked at AI security options and felt they’re “not built for my shop,” you’re probably right.

Right now, common blockers for retailers include:

• Upfront costs that are too expensive.
• Complex setup (new hardware, new software, new processes)
• Too many false alerts, which staff quickly ignore
• Unclear privacy obligations and paperwork
• Limited support once the system is installed

That’s exactly why we’re not pushing AI security systems to retailers today.

But the direction is clear. Prices will come down over time, and as products get simpler, and POS integrations improve it will come.

The best thing you can do today: tighten the link between CCTV and your POS

Here’s the “future-proof” move that helps you now and later:

Make your Point of Sale (POS) system the centre of your loss-prevention process.

A modern Point of Sale (POS) system does more than take payments. It holds your product list, pricing, stock movement, and transaction history. That makes it the best place to spot patterns and tighten controls.

When AI security becomes cost effective for businesses, the best results will come from systems that connect video events to POS data. Even today, you can use POS reporting to target your prevention effort instead of guessing.

How your POS helps reduce theft (without any AI)

Find what’s going missing most often

Use your POS to run inventory variance-style checks. You want to identify:

• Products that should be on-hand, but aren’t
• Categories where shrink keeps showing up
• High-value items with unusual stock movement

Even if your stocktake isn’t perfect, patterns usually show up quickly.

Once you know your “hot” products, you can:

• Move them closer to the counter
• Limit how many are displayed at once
• Use locked displays or staff-assisted access for the highest-risk lines

Tighten refunds, voids, and discounts

Not all loss is shoplifting. Some comes from process gaps.

Your POS can help you control:

• Who can apply discounts (and how much)
• Who can process refunds
• When a manager PIN is required
• How you track “no sale” drawer opens

These settings protect you without changing the customer experience.

Use your stock exception reports

• High discount rates at certain times
• Frequent voids on one register
• Refunds without receipts
• Transactions with unusually low basket value during busy periods

Make your existing cameras more useful (without buying new ones)

You don’t need fancy gear to get a quick win. You need the right camera placement and a simple routine.

Camera placement that actually helps

Aim for coverage of:

• Entry and exit (clear face-height view where possible)
• The counter and cash drawer area
• Your top theft “hot spots” (based on POS patterns and empty packaging finds). Here is how you can do it now with your POS System
• Blind corners and back-of-store pockets
• High-value shelves (tight view, not wide and blurry)

A common mistake is too many wide shots and not enough close, usable angles.

A 10-minute weekly routine

Set one time each week (same day, same time) to:

• Review any known incidents
• Check whether hot spots have shifted
• Confirm cameras are recording clearly
• Ensure time and date stamps are correct
• Confirm only the right people can access footage

This tiny habit keeps your CCTV reliable.

Staff safety comes first (and you can still act)

When theft rises, some retailers feel pressure to “do more” on the floor. I understand that feeling. But staff safety must come first.

Train your team on responses that reduce risk:

• Use customer service as the first step (“Can I help you find a size?”)
• Avoid physical contact and blocking exits
• Don’t chase outside the store
• Escalate to a manager when needed
• Call police when there’s a clear threat

You can also support staff confidence by writing a simple, one-page incident plan. Keep it near the counter so nobody has to guess in the moment.

If AI security becomes affordable, what will it look like?

When AI solutions do become small-business friendly, expect features like:

• Real-time alerts to a phone and POS System
• Simple “clips” instead of hours of footage
• Behaviour-based detection
• Heat maps of hot spot zones
• Better reporting that ties incidents to products and times
• POS links to confirm whether a sale happened

This is where the POS connection becomes a game changer. If the system can check whether the item was sold, alerts become more accurate and useful.

What to ask any future AI security provider

When you start seeing these systems marketed to stores, use these questions to protect yourself:

• “Can I use my existing cameras, or do I need new hardware?”
• “How do alerts reach my staff, and who gets them?”
• “How do you reduce false alerts?”
• “What data do you store, for how long, and where?”
• “Can I turn off face identification and use behaviour detection only?”
• “Do you integrate with my POS now, or is it ‘coming soon’?”

Getting your store “POS-ready” for the next wave

Even if you never buy AI security, these steps will pay you back. If you do buy it later, you’ll be in a strong position.

Clean up your product data

• Make sure barcodes match products correctly
• Remove duplicates
• Standardise product names and categories
• Keep pricing consistent

Good data makes reporting trustworthy, and trustworthy reporting drives better decisions.

Improve stock accuracy in small steps

You don’t need perfection. You need progress.

Try:

• Cycle counts on your top 20 shrink lines (weekly or fortnightly)
• Counting one category each week (rotating schedule)
• Recording write-offs properly (damaged, expired, staff use)

The goal is to reduce “mystery loss” by tightening visibility.

Lock down staff permissions

Most modern POS platforms let you control actions by role.

A simple structure works well:

• Team members: sales only, limited discounts
• Supervisors: moderate discounts, exchanges
• Managers/owners: refunds, large discounts, voids, reports

This keeps things fair and reduces risk without blaming anyone.

Where this is heading in Australia

The Bunnings decision shows how quickly the conversation around retail facial recognition and crime prevention is evolving, as long as customer notification and other conditions are met.

At the same time, the privacy scrutiny around facial recognition shows that retailers can face serious consequences if they don’t handle biometric data properly.

That mix of “momentum” and “risk” is exactly why small retailers should prepare carefully, not rush.

Next step: strengthen your POS and loss-prevention basics

You don’t need to wait for AI security systems to arrive for your business before you take action. Start by using your Point of Sale (POS) system to tighten stock control, improve reporting, and identify your highest-risk products and times.

If you want help, book a demo and we’ll show you how a modern POS can support smarter loss prevention today (inventory insights, staff permissions, exception reporting), and keep your store ready for future camera and AI integrations when the market catches up.

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.

Stephen Ferguson's recent article is worth your time because it explains publicly, in plain language, why Australia's digital payments system is fundamentally unfair. With the Reserve Bank of Australia (RBA) now nearing a final decision on merchant card payment costs and surcharging, the timing of this conversation couldn’t be more important.

As someone who supplies and consults for small businesses, I spend a lot of time listening to owners talk about rising costs, shrinking margins, and "death by a thousand fees." I’ve helped my clients save significant amounts on their EFTPOS and credit card fees simply by auditing their systems. Our thoughts on the RBA matter are in our submission here.

What I liked about Ferguson's article is that it puts a spotlight on a problem many retailers can’t easily see from behind the counter: the hidden mechanics of these fees. However, from a supplier's perspective, there are a few points I need to add to the debate.

The Great Rewards Rip-Off

The most glaring issue in our payment system is the deep unfairness of who actually pays for consumer rewards. It is completely unjust that every day, merchants are forced to foot the bill for the luxury benefits enjoyed by premium credit card users.

When a customer taps a high-tier credit card, they earn frequent flyer points, airline lounge passes, and free international travel insurance. But the credit card company does not pay for those perks. You do.

In reality, processing a rewards credit card can be three to five times more expensive than a basic debit transaction. If you are on a "blended" merchant rate, you are actively subsidising these premium costs every time a customer pays with their own money via debit.

I doubt consumers will save much

As the RBA decision looms, you will see big headlines about a surcharge ban "saving consumers," with figures like $1.2 billion a year being thrown around.

Personally, I am highly sceptical that most shoppers will actually feel that in their weekly budget. As I stated in our recent industry submission, these massive processing costs will not just vanish. If merchants are forced to absorb them, those costs will inevitably be passed on to higher shelf prices and greater bank fees elsewhere in the system.

What I’d add to the article

While Ferguson champions Least Cost Routing (LCR), we need to acknowledge that Dynamic LCR is not consistent across banking providers, and that is a massive problem.

The banks use entirely different types of LCR—such as "binary" or "threshold" routing—and these older methods do not deliver the same financial outcome for small businesses as true, real-time Dynamic LCR. Just because one bank states it has "LCR enabled" does not mean it operates the same way as another bank's system. This lack of standardisation desperately needs to be addressed.

Furthermore, we cannot ignore the rapid rise of premium debit cards, like Platinum Visa or Mastercard debit options. These cards offer consumer rewards, but they still only cost merchants around 0.5% to 1% to process. Why should they be lumped into the same high-fee bucket as premium credit cards?

Take Action and Protect Your Margins

I would not suggest waiting around, hoping the RBA or the big banks will voluntarily fix a system that is currently so profitable for them. You need to protect your own margins right now.

I strongly recommend you contact your EFTPOS or credit card provider this week and ask them these three specific questions:

• Am I currently on a blended rate?
• Do you provide true, real-time Dynamic LCR, and is my terminal actively using it?
• Can you provide a monthly report showing the percentage of my eligible debit transactions routed via the lowest-cost network?

Have a read of Ferguson's article when you get a chance, and let me know what you think in the comments below. Have you checked your LCR status recently?

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.

Fresh fruit and vegetables are steady sellers. I like them in a shop, as people buy them in good times and tough times. While your customers might cut back on luxury items, they always need food. Integrating a fruit‑and‑veg point of sale system into your store can bring in steady foot traffic, but fresh produce also puts unexpected pressure on your operations.

Can your current setup handle it? Yes, we have many fruit shops successfully using our Point of Sale (POS) system. However, getting it right requires some planning. In this guide, I’ll walk you through the common challenges of selling fresh produce and show you practical ways to avoid headaches from day one.

Why Produce Changes Your Checkout

Most retailers run a smooth counter because the workflow is simple: scan a barcode, take payment, and print a receipt. But once fresh produce enters your inventory, that simple routine changes.

Here is what happens when you add fruit and veg to your checkout:

• Weight‑based selling: You sell many items by weight rather than per unit. This means your cashier has to take extra steps before they even know the price.
• Manual entry: A lot of loose produce has no standard retail barcode. Your staff must search a screen menu or enter a PLU (Price Look‑Up) code instead of just scanning. (As a workaround, most of our clients slap an in‑house barcode on these products.)
• The multiplier effect: Customers tend to buy several produce lines at once. If a customer buys eight produce items and each one takes 10 seconds longer than a simple barcode scan, that adds an extra 80 seconds to a single sale. Over a busy day, those seconds add up quickly.

These extra steps can affect your queue times, staff training, and overall customer satisfaction.

Choosing Trade‑Approved Scales

If you sell loose produce by weight directly to customers, the scale becomes a legal part of the sale. You must use trade‑approved scales.

In Australia, the National Measurement Institute (NMI) legally requires retailers to use their certified scales when selling by weight. A standard kitchen scale might be accurate, but you can only use it for back‑office use, not for customer transactions.

Furthermore, if you want your scale to talk seamlessly with your POS system in Australia, you need to check compatibility. Not all scales integrate smoothly with our software, so it’s best to chat with us first.

Setting Up an Efficient Counter

Once you have chosen the right scale, your next challenge is fitting it into your existing counter. This gets tricky in smaller shops. Because you must accommodate new hardware alongside your existing registers, you need to carefully measure your counter space. Alternatively, many of our clients find a hanging scale to be a great space‑saving solution.

Before you commit to a layout, do these three quick checks:

1. Measure your usable counter space.
2. Plan the “hand path” (where staff place items, where the bags sit, and where the EFTPOS terminal goes).
3. Decide if customers can see the weight and price clearly without having to lean over the counter.

A clean, logical layout reduces mistakes because your staff won’t need to juggle items awkwardly.

What a Good Setup Looks Like

In a well‑designed checkout:

• Staff places the produce on the scale just once.
• The weight transfers to the POS system, either manually or electronically.
• The cashier selects the item by scanning an in‑house barcode or by tapping a quick key.
• The POS system automatically calculates the final price, and the sale continues smoothly.

Managing PLUs and Barcodes

Produce creates a unique “product data” problem. You are not just selling new items; you are selling items with different identifiers, packaging, and pricing rules. You might even need several codes for the exact same product, which can easily cause errors at the till.

Using PLU Codes Effectively

A PLU is a short code used to quickly identify produce items. Many retail scales and produce workflows rely on PLUs and the scale’s “memory” functions to speed up the checkout.

PLUs work incredibly well, but they depend on you keeping a tidy product list. They also rely on your staff finding the right item quickly while under pressure. If you want PLUs to succeed, I strongly suggest keeping your range tight and manageable.

Barcode Challenges and Solutions

Packaged fresh items often use GS1 DataBar barcodes. These barcodes carry richer information than basic retail barcodes, and GS1 publishes clear guidelines to help you sell fresh foods efficiently. However, if your scanners are older, they might struggle to read these complex barcodes.

Additionally, standard barcodes on fresh produce are sometimes hard to read because the fruit or packaging surface is often curved, uneven, or wet. If you are struggling with supplier barcodes, printing your own in‑house labels is often the most reliable fix.

Handling Waste and Shrink

Beyond checkout efficiency, managing fresh stock is a daily balancing act. Fresh produce is time‑sensitive inventory. It will inevitably create “shrink”—meaning stock you paid for but can’t sell due to bruising, spoilage, or handling errors.

Simple Waste Tracking Tips

You need to give your staff a single, simple method for recording waste, and have them do it daily. Review your stock regularly, pull out the damaged items, and decide what to do with them.

A very popular strategy is to have a dedicated stand for quick‑sell items at markdown prices. This allows you to recover some costs before you have to throw the produce away.

Good markdown habits include:

• Marking down items at the same time each day, usually early in the morning.
• Keeping a short, clear list of eligible items for markdowns.
• Clearly marking the discounted items, for example, by drawing a coloured line on the label.

POS FAQs for Produce Retailers

Here are the most common questions small retailers ask about selling fresh produce through a Point of Sale (POS) system.

Q: Do I need “trade‑approved” scales to sell loose produce by weight?
A: Yes, if you are selling directly to customers. If you are only weighing items in the back office for your own prep, then no.

Q: What’s the difference between trade‑approved and non‑trade‑approved scales?
A: Trade‑approved scales are specifically designed, tested, and legally verified for selling goods to consumers by weight.

Q: We’re weighing items, but staff still have to type numbers into the POS. Is that normal?
A: It is very common. Fully integrated scales exist, but they are more expensive and less commonly used in smaller shops.

Q: We sell loose produce—do we need PLU codes?
A: Yes, using a PLU is the most common and efficient way to sell loose produce when there’s no barcode to scan.

Q: How do we stop staff from selecting the wrong item (e.g., standard tomatoes vs. organic tomatoes)?
A: The best way is to use in‑house barcodes where possible. Otherwise, ensure your POS descriptions are crystal clear. Be very careful with similar‑looking items; use distinct names like “Organic Tomatoes” versus “Truss Tomatoes.”

Q: What should an itemised receipt show for loose produce?
A: The receipt must clearly show the item name, the weight, and the price basis (for example, $4.99 per kg).

Q: Our barcode scanner won’t read the produce stickers from our supplier. What do we do?
A: You will likely need to print and use your own in‑house barcodes for those items.

Q: Should we start by selling pre‑packed items or loose items at the scale?
A: Pre‑packed, barcoded produce is usually the easiest way to start because it keeps your checkout fast. Loose produce offers your customers more flexibility, but it requires trade‑approved scales and a tighter integration with your POS.

Q: How often will we need to update produce prices in the system?
A: Much more frequently than other retail categories. The easiest way to stay on top of it is to set a strict routine—update prices at the same time each day or week—and make one specific staff member accountable for it.

Q: We need to clear old stock at the end of the day. How do markdowns work in a POS?
A: I suggest using markdown pricing rules on the existing item rather than creating a brand‑new “discounted” product in your system. This makes it much easier to keep your sales and inventory reports accurate.

Q: Our counter is tiny. How do we fit the POS, scale, and EFTPOS without creating a mess?
A: Look into hanging scales. They clear up valuable counter space while keeping the weight visible to both the cashier and the customer.

Ready to Streamline Your Produce Sales?

Selling fresh fruit and veg doesn’t have to slow down your checkout. With the right hardware, clear processes, and a smart software setup, you can keep your queues moving and your customers happy.

If you want to know more, reach out to us.

Written by:

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

Running a retail shop in Australia can pose financial challenges that even the most experienced business owners may not anticipate. One of my clients, after spending thousands reorganising the financial structure of their new shop, was told that the costs were not tax-deductible. Actually, they were claimable as Blackhole expenditures, but it was a problem they did not expect. It paid them to get a second opinion from me 

They’re real business capital expenses like legal fees or feasibility studies that don’t produce something you can touch or easily depreciate. Because of that, they can feel like money disappearing into a financial Blackhole.

What is Blackhole expenditure ATO?
Blackhole expenditure refers to specific expenses that are neither tax deductible for a business under the general deduction rules nor otherwise recoverable as the cost of a depreciating asset or CGT asset. Such expenditure may be claimed over a 5-year period if they satisfy certain criteria.

Retailers often miss these costs on their tax returns, since, say, a Point of Sale (POS) system is tangible. A payment for a shop fit-out plan that you never built isn't. Let’s look at why these differences matter and how to manage them effectively.

What Is Blackhole Expenditure?

Under Australian tax law, Blackhole expenditure refers to capital costs that can't be deducted elsewhere and don’t form part of a tangible asset’s value. They’re legitimate and often essential for your business to function or expand, but they don’t fit the usual depreciation or immediate deduction rules.

For example:

• Buying a new display fridge gives you a clear physical asset—easy to account for.
• Paying a lawyer to draft a partnership agreement gives you only paperwork. It’s essential, but it doesn’t create a depreciable asset, so it falls into the Blackhole expenditure category.

Common Blackhole Expenses in Retail

These costs often appear at three stages of a retail business journey:

Store Setup and Legal Fees

Before you even make your first sale, bills start piling up. Business name registrations, legal contract drafting, and trust or company setup costs are classic Blackhole expenditures. Without these, you can’t operate—but they don’t result in a tangible asset.

Failed Expansion or Planning

Sometimes research or consulting leads nowhere. Perhaps you pay a deposit for a shop fit to open a second shop, then cancel the project. You have nothing to show for it. These non-productive outlays are Blackhole costs.

Business Restructuring

As your shop grows, you might transition from a sole trader to a company for liability or tax reasons. The accounting and legal fees involved don’t create an asset, but they do qualify as Blackhole expenditure.

Your Five‑Year Deduction Safety Net

Thankfully, the Australian Taxation Office (ATO) now recognises these situations, as you can sometimes deduct eligible Blackhole expenditure evenly over five years, provided it’s not otherwise deductible.

Example: If you lose a $10,000 deposit on a shop fit above because you cancel the project, you may claim $2,000 each year for the next five years. It’s a slower recovery, but better than nothing.

To qualify, you need to keep detailed records showing the expense was genuinely incurred in running or establishing your business.

Blackhole Costs vs. Tangible Capital Assets

Physical assets, like shelving or POS terminals, generally qualify for faster, depreciation‑based deductions or even instant write‑offs. Blackhole expenses don’t, because there’s nothing physical to depreciate.

If you can reasonably classify a cost under another depreciation rule, you'll usually gain faster tax relief. However, be careful as misclassifying an expense can cause problems. When in doubt, get professional advice.

The Instant Asset Write‑Off Advantage

What we suggest is that if you qualify as an SMB business with an annual turnover below $10 million, you can often take advantage of the $20,000 instant asset write‑off, which is valid through to 30 June 2026. It lets you immediately deduct the full cost of eligible physical assets if you qualify.

Some expenses, such as legal or accounting costs to set up a new business or register with ASIC, may also be immediately deductible if they relate directly to establishing a business, but unfortunately not for a business restructure. Always check this with your accountant before claiming.

Smart Expense Planning for Retailers

Blackhole expenditure often sneaks up when projects don’t go as planned. Before committing large sums, consider how each expense fits into your long‑term strategy. Ask some extra questions:

• Does this create a tangible asset I can depreciate?
• Is there a way to structure this so it qualifies for faster deduction treatment?
• Most importantly, what happens if this project doesn’t go ahead?

Seek Professional Advice

Tax law is detailed, highly qualified and tightly regulated. While this will provide you with a practical overview, you should always seek advice from a qualified tax professional before making claims, something I am not and do not pretend to be.

Key Takeaways

• Blackhole expenditure covers necessary business capital costs that don’t produce tangible assets.
• You can typically deduct these under Section 40‑880, spreading the deduction evenly over five years.
• If your business closes or is sold before the five‑year period ends, you may lose these deductions.
• The $20,000 instant asset write‑off applies to physical depreciating assets, not intangible costs.
• Keep detailed records and plan ahead to minimise wasted spending.
• Always consult a professional before claiming Blackhole deductions.

Written by:

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

If you run a local shop or community business, imagine walking into your store and hearing your very own theme song playing — created in minutes and completely free. Google's Gemini app now lets you generate a theme song with a simple text prompt or even a photo, complete with lyrics and a video image. In this guide, I'll show you how to use it step by step, share ready prompt examples, and explain the rules so you can use the music in-store and on social media.

What is it and why should you care?

It's called Lyria 3, a computer-generated music creator now rolling out in the Gemini app. It quickly creates a music track and lyrics for your song.

For retailers, the value is simple: you can test small bits of branding and marketing without paying an agency or a music band. What I like is that you can make it feel local and personal.

Here's what it can produce right now:

• Text to track: You describe a genre, mood, and scenario, and it creates music and vocals.
• Photo/video to track: You upload an image or video, and Gemini matches the mood with a soundtrack. Note: I haven't had much luck with this in the current Australian release yet; I suspect it's a bit more advanced in the US version, where the documentation comes from.
• A finished file you can download to share, with cover art.

Prompt tip that actually works: Start with “create", "write", or “compose", then add genre + mood + what the song is about.

How to create music step by step

This is the easiest way I found to do it now.

What you'll need:

• A Google account, signed in.
• To be 18+.
• “Keep Activity” turned on.
• A desktop or laptop helps, because the feature is rolling out gradually on mobile and may not appear for everyone yet.

Steps (desktop):

1. Go to https://gemini.google.com on your computer.
2. Click Tools below the text box.
3. Click Create music.
4. (Optional) Upload an image or video for extra context. This may not work yet; it's in the documentation, but it didn't for me.
5. Type a prompt to generate your 30-second track.
6. Download it using the buttons on the track card.

Example prompts you can copy:

“Create an upbeat folk song for a friendly local newsagency: warm community feel, magazines, cards, gifts, and a cheerful chorus.”

“Create a country and western song for our local pet shop: Where Every Pet is Family.”

Ways to use it without overthinking

You don't need a “perfect” song for this to be useful. You just need something that fits the moment and gives customers a reason to smile or share.

Here are practical ways I'd use it for a typical Aussie shop:

• In-store atmosphere: Generate a light seasonal track for school holidays, Easter, or footy finals and play it quietly (where appropriate for your shop and customers).
• Social posts that stand out: A 30-second clip with a custom jingle can outperform yet another still image of “new stock has arrived", because it feels more human and unexpected.
• Local community content: Create a “welcome back to school” tune, or a short “thank you” track after a community fundraiser weekend.

A simple rule: keep it fun, short, and clearly “you".

Newsagency prompts (copy/paste)

Try these exactly as written, then tweak one detail at a time (genre, mood, instruments, or theme).

• “Compose a cinematic theme for a newsagency's new magazine wall reveal: big, uplifting, modern, catchy chorus.”
• “Create a rock ’n’ roll hype track for back-to-school stationery: energetic, family-friendly, fun hook.”
• “Write a warm country song about a friendly local newsagency full of cards, gifts, and books: storytelling style, gentle tempo.”
• “Create an upbeat pop jingle for footy finals: community vibe, quick chorus, big finish.”
• “Write a cheerful birthday song for a loyal customer who loves puzzles and books: sweet, simple lyrics, light acoustic instruments.”

A real example (and what it taught me)

I tested it by feeding it my business story: "POS Solutions company has empowered thousands of small and medium-sized retailers across Australia with reliable, industry-specific Point of Sale software and hardware. Since 1983, we've specialised in retail sectors including newsagencies, pet shops, and pharmacies, helping our clients streamline operations, boost sales, and adapt to an evolving digital landscape."

I experimented with a few different music styles before deciding on “cinematic,” as I like a bold, dramatic sound. I then told it I wanted music and a song by a powerful diva singer. After a few attempts and redos, I then changed the music styles and see what you think. Please let me know which one you liked best.

Digital Dawn

Use your POS system data to write better prompts

Here’s the clever part: on your Point of Sale (POS) system, you already have the best content prompts sitting in your sales history. Your POS data tells you what customers actually buy, and when they buy it, so your marketing can match reality, not guesswork.

Use your POS system to spot patterns, then turn those patterns into short music ideas:

• Father's Day spike: If cards lift then, write a Father’s Day jingle and schedule it for your Facebook page.
• Christmas build-up: If gifts and books surge in December, create a “gift inspiration” song to start the momentum.
• Seasonal magazine demand: If a title sells strongly during footy season, generate a short “finals time” track and post it with the display.

This is the practical link between back-of-house operations and front-of-shop marketing: your POS system tells you what to promote.

Commercial use

For casual in-store use or social posts, you’re generally in low-risk territory — just follow Google’s Terms and policies. Google says the music generation is “designed for original expression” with filters that check outputs against existing content.

Two practical points matter most:

• SynthID watermark: Google embeds an imperceptible digital watermark in tracks to identify them as AI-generated.
• You can verify audio: Upload an audio file to Gemini and ask if it was created or edited by Google AI, and it will check for SynthID. So don't lie and say you wrote it; as people can see Google did, you can, however, say truthfully that you created and edited the idea many times and shaped much of the arrangement and music style.

Ready to try it?

If you don't see “Create Music” yet, it may still be rolling out to you, its really new.

Go to https://gemini.google.com on your computer

Click Tools → Create music,

Test a prompt with something current, revise it a few times to get something you like and post it to Facebook or Instagram.

Then see what your clients think.

Then let me know, as I am very interested in using technology to improve SMBs.

Happy music creation.

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.