Retail analytics refers to utilising sales, stock, and customer data from your POS to inform better decisions that drive revenue and profit growth. A modern POS system enables these insights to be obtained faster and more easily. When you utilise your POS data effectively, you can identify what sells, where margins are generated, and how customers shop, allowing you to adjust stock, prices, and promotions with confidence.

A quick Father’s Day check in your POS System.

Father’s Day is a good example because it is seasonal, has known gift trends, and gives you a clean way to compare this year with last year in your POS. In 2025, Australians were expected to spend hundreds of millions of dollars on gifts, with fewer shoppers but higher average spending, so category mix and margin mattered significantly. I use its Sales Comparison report to see how the shop performed this week versus last week, and then against the week of Father's Day last year to get a sense of seasonality.

Go to Register reports

Now select Sales register > Sales comparison

​

Choose dates that match.

Like-for-like dates provide fair comparisons, so start with “last 7 days” versus “previous 7 days” to see how Father’s Day week performed. Next, compare the Father’s Day period this year to the same period last year to remove the effects of weekends and holiday timing that can skew the numbers. 

So we want this year's date 1/9/25 to 7/9/25 vs 26/8/24 to 1/9/24 

If you want a steadier view, use a four‑week block this year versus the same four‑week block last year to smooth out spikes.

The key numbers to check

Begin with the summary view of the Sales Comparison report, then focus on Quantity, Net Sales, COGS, Gross Profit dollars, and Gross Profit percent to see what drove results. Sort by gross profit dollars to find the categories that did the most work for your margin, then look at gross profit percent to check if discounting cut into your margin. These fields are standard in POS reports and give you a fast read on where to dig deeper if something looks off.

A simple Father’s Day read‑out

Run the Sales Comparison summary for the last 7 days versus the previous 7 days, then scan profit dollars and profit percentage by category to identify areas for further investigation. If one department jumps out, open the detail view for that department to find the SKUs that drove the change and check if discounting or price changes were involved. Re‑run the comparison against last year’s matched period and, if needed, over a four‑week window to confirm if the change is genuine and not just a one‑week spike. Balance your read-out with the known Father’s Day categories in Australia to guide replenishment and any follow-up promotions after the event.

Make sense of what changed.

If profit dollars rose while units fell, the result may stem from higher prices, a better mix, or both. Therefore, examine the items that grew and determine if this trend can be sustained without harming demand. If units rose but gross profit percent fell, promotion depth may be too high, so review discount rules and try bundles or value adds that keep margin healthy. If traffic looked strong but sales were flat, the issue may be conversion or merchandising, so check busy hours and staff coverage in the POS to plan rosters and training.

Avoid common traps

Do not compare random calendar months without adjusting for the number of weekends or the exact timing of Father’s Day, because this can mislead your decisions. Always start with matched weeks or matched four-week blocks, then drill down only when the summary shows a significant swing that requires an explanation.

Make it a habit.

It's an outstanding report, and I suggest that you use it often, as it makes it easy to spot trends early and act. I recommend it for Christmas, back‑to‑school, Mother’s Day, and local events.

Your next step

Open Reports, run the Sales Comparison for the last 7 days versus the previous 7 days. Check profit dollars and profit percentage first, then drill into any category that has moved significantly in either direction. Re‑run against last year’s matched period and, if helpful, as a four‑week comparison to confirm the pattern is real and not a one‑off. Save this setup as a preset, schedule it weekly, and keep using the same columns so your review stays under a minute and your team knows exactly what to act on.

Written by:

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

On 8 September 1983, POS Solutions began in my St Kilda flat bedroom with a simple premise: I could write something to help retailers run their businesses better. As a young programmer with ambitious plans, I transformed my bedroom into my workspace. As soon as the company grew, my business partner Zac, a computer engineer, joined. Our headquarters grew to the living room, creating an environment where innovation thrived alongside determination.

The Foundation of Sustainable Growth

Our move from a flat in St Kilda to several offices nationwide has been driven by two core principles that still guide us today. These weren't just business strategies but fundamental beliefs about how technology companies should support their clients in an industry where reliability and backing are vital.

Research and Development Excellence

Investment in research and development has become the foundation of our strategy. It allows us to deliver software solutions that reliably address real-world retail challenges. We focused on developing features that retailers can use. We concentrated on addressing practical issues. This approach listens to retailer feedback, understands challenges, and turns insights into software updates.

Support as a Professional

Customer support, we recognised at the start that any point-of-sale software is useless without good support.

Gratitude

To all who have been part of our story — the employees who bring expertise and passion, our customers who trust us with their business, our industry partners who have helped us grow, and those reading this who have followed our progress — we sincerely thank 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.

They say a picture is worth a thousand words. In today's business world, with smartphones, it is easy to take photos that can be shared and communicate more effectively than words alone. Today, people expect good quality photos. What is happening is that they glance at your picture on Facebook/Instagram. If it's not a clear, well-lit product photo, it makes it easier for them to see, and they move on to the next one. You only have a second today.

Here are some of the key ways to leverage your smartphone camera in business for visual communication:

Examples of communicating visually today

• Often, we attach photos to emails when describing an issue or product to provide visual context.
• Use the camera to photograph signed contracts or other documents for digital transmission quickly.
• Showing the product we are selling.
• A visual catalogue for our e-commerce site
• Pictures of the shop to showcase our business on social media
• Photograph equipment, buildings, products, and other relevant items to report issues that need addressing.

Tips for Taking Good Business Photos with Your Smartphone

• Activate gridlines in your camera app to help frame and level your shots.
• Take multiple photos and move around to get different angles and perspectives. You can delete the bad ones later! I, as a rule, take about 20. 
• Shine a light on it before photographing products or other objects. Sunlight is best as it's more natural. 
• If possible, put it on a small table so the light falls across the product from the side. Then place a sheet of white card on the opposite side of the product to bounce light back in and gently fill the darker side. It both keeps the photo clean without needing a flash and reduces the harsh shadows. 
• Hold the phone steady because a steady shot looks sharper.
• Move the object, if possible, rather than the camera.
• You want three angles ideally.
• Turn off the flash to avoid overexposure and glare.
• Take many photos,   it costs nothing to take a picture, so take a heap and delete the bad ones.
• Don't strive for perfection - smartphone photos don't need to be works of art to serve your business needs!

While smartphone cameras have limitations, they can produce more than good enough visuals for everyday business needs. Following a few basic best practices goes a long way.

Don't let the quest for perfect photos stop you from visually communicating to improve your operations and marketing.

“Your first 10,000 photographs are your worst.” Henri Cartier-Bresson

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.

Windows 10 support has now ended. If your computer is running Windows 10, it will work; however, you will no longer get Microsoft technical support. This matters because it will be easier to hack. If you like, you can pay for Microsoft Extended Security Updates (ESU).

First step: check each PC

Start by checking if your computer can upgrade to Windows 11 using Microsoft's PC Health Check tool. It will also explain the details if it fails. For more information, see here.

What to do now

Run PC Health Check on every computer

If the PC is good

Suppose the device passes PC Health. We suggest scheduling an upgrade to Windows 11, which moves you to a supported, secure platform with ongoing updates. Please perform this upgrade outside your trading hours to prevent downtime.

If your computer fails

If a device fails the check, we recommend that you either enrol it in Windows 10 ESU, which means you will get Microsoft's support, but you have to pay for it, or replace the computer. Running a computer without Microsoft support is not recommended.

Recommended device standards

Currently, we recommend that your minimum computer now be an i5‑class CPU or equivalent, 8 GB RAM and a 256 GB SSD for standard computers and your main computer have 16 GB RAM for back‑office. Ensure that whatever you get has sufficient USB ports for scanners, printers, and other devices.

FAQ

Q: Will Windows 10 stop working?

A: No, it keeps running. There will be no further free security updates, bug fixes, or Microsoft support, and the risk increases over time if you continue to use it.

Q: Is there a paid security option?

A: Yes, ESU adds security updates after the end of support

Q: What is the last Windows 10 version?

A: Version 22H2.

Q: How do I check Windows 11 readiness?

A: Use Microsoft's PC Health Check

Q: What is the Windows 11 basic computer?

A: Windows 11 needs at least a 64‑bit CPU, 4 GB RAM, 64 GB storage, UEFI with Secure Boot, and TPM 2.0. We suggest a bit more to give you a smoother 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.

Shoplifting poses a serious threat to Australian retailers. Recent research has highlighted a rising perception of crime across communities. Today, Australians increasingly see crime as a growing problem. Sixty-six per cent now agree it's growing in their areas, which is the highest level in a decade.

This perception has increased by 15% over the past four years, which aligns with the complex data showing a 12% national rise in theft incidents from 2021 to 2024. I have discussed this here before, highlighting how shoplifting has increased significantly since the COVID-19 pandemic.

Part of the reason is that attitudes have changed. Many no longer view theft as wrong. They often blame stores for weak security. If a shop seems vulnerable, they reason it's the business's fault. Additionally, it has been fueled by growing economic desperation since COVID, and Australian living standards have experienced a significant decline, with the sharpest fall in real household disposable incomes in decades, which is pushing some towards theft.

It is a reality today that I have spoken with retailers throughout Australia. They all share stories of thieves now being bolder.

The Real Impact on Your Retail Business

Say an SMB shop with $700,000 in annual sales and a 30% margin. Shrinkage from theft at 1.5% to 2% would cut profits by 4%. In low-margin sectors like newsagencies, this could destroy a business entirely. I've advised retailers who have been hit even harder by this. I have seen shops where we discovered inventory gaps of thousands over a few months.

Shrinkage affects more than finances. It leads to stockouts, as computerised controls no longer work, so we see frustrated customers who go elsewhere. That alone can destroy a shop's goodwill.

If not addressed early, thieves grow bolder. They learn your weaknesses and will return to exploit them.

Measure the problem with facts

Firstly, determine the size of the problem. Your accountant can assist you here, or if you prefer, you can do it yourself, as it's not particularly difficult.

Look at the year 2023/24 and write the stock on hand at the start of the 2024/25 year, say $X

Now, look at the stocktake of your shop that you conducted at the end of the 2024/25 year, say $Y.

Now, take from your financial report in 2024/25 the sales figure $S, and the purchase figures $P

Now, estimate your margin. You will need a gut feel for this.

Now your (Theoretical Stock on hand) = (Stock at the start of the financial year = $X) + (Purchases in the financial year = $P) - (Sales this financial year = $S) *(1-Margin%)

The (Missing stock) = (Theoretical Stock on hand) - (Stock value now from the stock take $Y)

If you want to compare your figure with others the formula = 1 - (Missing stock)/(Theoretical Stock on hand)

I have seen many at this stage go white.

Finally, follow these steps to calculate Theoretical Sales at Retail.

Formula: Theoretical Sales = ((Stock at the start of the financial year = $X) + (Purchases in the financial year = $P) - (Stock value now from the stock take= $Y)) / (1 - Margin%)

It provides the theoretical basis by treating all missing stock as if it had been sold.

Now, calculate the Difference (Actual Sales - Theoretical Sales), which gives us the revenue lost to shoplifting.

Working example with numbers

Assume

Stock at the start of the financial year = $100,000 Purchases in the financial year = $200,000 Sales in the financial year = $250,000 Stock take figure at the end of the year = $90,000 Margin% = 40%

Example with these hypothetical numbers

Theoretical Stock = $100,000 + $200,000 - $250,000 × (1 - 0.4) = $300,000 - $150,000 = $150,000

Missing Stock = $150,000 - $90,000 = $60,000 (at cost)

Theoretical Sales = ($100,000 + $200,000 - $90,000) / (1 - 0.4) = $210,000 / 0.6 ≈ $350,000

Difference = $250,000 - $350,000 = -$100,000

This analysis does not reveal how much stock was lost (generally external) or how much money was stolen from you (almost always internal). Although it is a reality, it tends to be a combination of both so we can say here that somewhere between $60,000 of stock is missing and $100,000 in money. Most analysist here would simply halve the difference and say you have lost $30,000 in stock and $50,000 in stolen money. 

Effective Prevention

Mapping theft hot spots

I would firstly suggest that you map out the blind spots and risky areas in your shop. I have discussed this with detailed instructions point by point here.

What it does is map theft hot spots to your shop layout. What you are looking for are the danger areas in your shop; this visual method is a quick method to improve your design. Knowing where the stuff disappears can give you a good idea of whether the problem is internal or external.

In practice, simple changes can also be effective, such as improving lighting or adjusting staff positions, which cost little and yield significant results.

One client, after doing this, found that their end-of-aisle displays were targets. They moved the camera there, which helped to cut their losses almost immediately.

Employee Theft: A Hidden Threat

Internal theft hurts deeply. It's often subtle, accumulating over time. Many staff today see it as a perk. Our POS tracks user actions and audit trails. It identifies anomalies. A client uncovered years of losses this way. Address it early. Combine with staff training for accountability. Protect your business while supporting your team.

One idea is to have a camera pointing at the tills, allowing for visual monitoring of what goes in and out. Review this footage and compare your sales audit figures to ensure they match one another. You may be surprised by what you find. I had one client who did this and discovered that one employee was taking money, putting it in the till without ringing it up, and later taking it out. I like what he told the police after he was reported: "I took the money but did not steal it."

Conclusion

Shoplifting is estimated to cost $9 billion a year; it's the largest crime by value in Australia. Shoplifting incidents have nearly doubled from 2022 to 2024, as accurately measured through stock analysis and theoretical sales calculations. Quantify the losses and understand your current position.

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.

There are some key changes to the privacy laws that will affect us all.

The Small Business Exemption Is Ending

For years, businesses with an annual turnover under $3 million were usually exempt from privacy laws. The exemption is about to end.

Soon, every business will be required to comply with Australian Privacy Laws. What it means is that if you record a person's email for receipts or a phone number for deliveries, it constitutes personal information. It must be protected. Whether the person was brought to you or not is not relevant. It is your business that has collected this information on that person.

Penalties are higher

The government is significantly increasing fines for privacy breaches. It's worth noting that legal costs will add even more to the overall expense.

Direct Lawsuits May Become Possible

Currently, customers must first complain to the Office of the Australian Information Commissioner. The proposed changes would let customers sue businesses directly for privacy breaches. It creates a higher financial risk if you mismanage data.

International Customer Complications

I have previously inquired numerous times without receiving a proper response: if your customer is an overseas citizen, we need to consider the legal regulations of their home country. Many countries also have privacy laws.

Considering these changes, let's take some practical steps to safeguard your retail business and ensure our compliance.

Practical Steps for your business

It is crucial that you:

Review what personal information you collect. Only gather what you actually need. If you do not need it, do not collect it. Then store all your information securely. If possible, use encryption, many backyp systems provide such a service. Delete any information you no longer need. This may be tough, as generally, all Australian businesses are required to retain business records for a minimum of seven years. I have clients who are required to retain certain information for 30 years.

Train your staff on privacy basics. Everyone should understand that customer data is confidential and protected.

Check who has access to your customer information and remove unnecessary people.

Handling Customer Privacy Complaints

If a customers complain about their privacy:

Step 1: Respond Immediately

It's a customer, and you want their goodwill, so send an immediate response.

Send a response, like: "We're sorry for any frustration this has caused. We're taking this matter seriously and are investigating now." This shows professionalism without admitting legal fault. If you admit fault here, your insurance policy may be voided. You may also be seen as admitting to a criminal act.

Step 2: Investigate Thoroughly

Review any records you have. Consult with your staff if relevant. Document everything you find.

Don't delete data immediately, as you might need it to resolve the complaint properly. I had one newsagency where the customer demanded to be present when his information was destroyed.

Keep detailed notes of your investigation process.

Step 3: Seek Expert Advice When Needed

If the complaint feels severe, don't guess. Seek external advice. Contact your industry association, a legal expert, or the OAIC for guidance. Be sure to note that you have documented this and note what instructions they provided.

Step 4: Provide a Clear Resolution

You must respond within 30 days. Do not be late. In your response, offer them a solution and apologise for the obvious distress this has caused your customer. It may involve correcting or deleting information. With me, it would be deleting it.

If customers are still unhappy with your solution, well, you must notify them about their right to file a complaint with the Office of the Australian Information Commissioner.

Preparing Your Business

It's essential to remember that customer data privacy extends beyond simply complying with the law. If customers think their information isn't safe, I doubt they'll stay with you.

This article provides general guidance and should not be considered legal advice. Consult privacy professionals for specific situations.

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 computer running your Point of Sale (POS) system is the heart of your retail operation. It's the engine driving sales, managing inventory, and providing the information hub. As a retail systems expert, I've seen many business owners choose hardware-based solutions too often, often driven by aesthetics, only to face issues with reliability and cost down the line. Many have to choose between the modern aesthetics of an all-in-one and the robust reliability of a tower PC. But what if you didn't have to compromise? Savvy SMB retailers benefit from a strategic hardware setup that offers long-term value and a sleek, customer-facing look.

Reliability is Non-Negotiable

In retail, uptime is money. Every moment your POS system is down results in lost sales, wasted time, and damage to your reputation. The primary benefit of a tower's design is that it is fundamentally more reliable and far easier to repair than its compact counterparts. It makes it a clear winner for minimising downtime.

Imagine a power supply fails. A technician can quickly replace it in a tower PC, reducing downtime and costs. Your business can be working almost immediately. A slick case where all components are integrated, the same failure often requires shipping the entire machine to a service centre, leaving you without a POS terminal for days.

The tower case's spacious interior makes cleaning easier. Better airflow and layout reduce dust buildup.

This modular advantage extends to peripherals. A broken monitor or faulty keyboard can be replaced instantly by anyone on your team, without needing a service call.

Physical security is another key advantage. The computer itself can be securely placed under a table, protected from spills, damage, or theft. It leaves only the less expensive monitor and peripherals exposed.

Furthermore, the airflow in a tower case is improved, which reduces overheating, a significant cause of computer problems. Retail environments often work computers hard.

A Smarter Investment for Growth

As your business grows and software evolves, your hardware will need upgrades. Today, for example, we often add more RAM and storage. Tower PCS make these upgrades easy and cost-effective, while sealed all-in-one or laptop systems usually require full replacements.

The Smart Retailer's Setup: A Hybrid Hardware Strategy

We've established here that for core reliability, repairability, and long-term value, a tower PC is the superior choice for your primary server or back-office computer. However, at the customer-facing checkout counter, aesthetics and a clean, modern look are crucial for brand perception. Here is where a strategic, hybrid approach provides the perfect solution. We recommend using a robust tower PC, preferably one that is not visible to customers, such as in the back office, to serve as the central hub of your operation. For the obvious front counters, a sleek all-in-one POS terminal provides the modern aesthetic retailers desire.

This setup gives you the best of both worlds:

Reliability

Your primary business data and operations run on a stable, cool, and easily serviceable tower.

Front-Counter Aesthetics

Your customers experience a clean, modern, and professional checkout.

By separating these roles, you isolate risk. A failure at a single front-counter terminal won't bring down your entire operation, and your most critical hardware is protected.

Your Foundation for Success

The proper retail POS hardware is more than just a computer; it's a strategic setup balancing performance and presentation. This foundation is complete when paired with powerful, intuitive software.

Our experts offer a free consultation to design a customised POS solution tailored to your needs and budget.

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.

Father's Day remains a key event on the retail calendar for retailers. What we are seeing now is that consumer behaviour is shifting. The latest 2025 analysis confirms the trend we have observed for some time, that while fewer people are buying gifts, those who do are spending significantly more. For retailers, success now depends on targeting premium spenders who value quality and value, rather than high-volume sales, to ensure a profitable Father's Day. What we are looking at now is 4.7 million shoppers.

Recent data shows changes in popular gift categories. The leading gift categories are now alcohol/food (17%), clothing/shoes (14%), and grooming items (7%). I noticed our advice in 2024 to stock male grooming products is now strongly supported by this new data.

To identify and cater to these high-value shoppers effectively, your most potent tool is already at your disposal: your POS system.

Use your POS Data

Your POS system is more than a cash register; with us, it's an information hub. It maintains a precise record of sales from previous years, providing a reliable basis for your sales and stock planning.

Identify Proven Winners with Sales Analytics

Start by running a "Top Stock Sales" report in your POS system. Set the date range from August 22, 2024, to September 3, 2024, to cover the peak Father's Day shopping period from last year. I've added a few days here because there are always late buyers. This report gives you a list of your best-selling products. These are your proven sellers.

Don't forget to check inventory levels now. Running out of stock now will cost you. So check your stock, which is easy to do in your POS System.

Analyse Customer Trends for Smarter Stocking

Use your bundle sales report to use a cross-selling technique. If a product sells well with another product, put them together. There is no problem in putting a good seller in two different positions in your shop.

Create an Appealing and Seamless Shopping Experience

The in-store experience for committed buyers must be seamless and consistent. Once you've identified your bestsellers, effective merchandising is crucial. Since many purchases are driven by impulse, a clear, persuasive, and curated display now is highly effective.

Make a nice stand

Create a dedicated display in a high-traffic area of your store, using that stand, and set up a specific section with a sign that reads 'Top Sellers'. If you have the older signs 'Customer Favourites', you will find that they do not resonate well today. Stock your data-proven bestsellers here. This concept employs social proof in marketing. Using it will significantly boost the chances of making a high-value sale.

Brighten the display to draw eyes, and keep paths clear so shoppers can easily reach items.

Ready to Maximise Your Father's Day Sales?

The 2025 Father's Day season is about data-driven retail. You need to consider the shift towards fewer, higher-spending shoppers.

Written by:

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

Now people are looking at using Artificial Intelligence (AI) to improve their business. We have seen firsthand here how such AI tools can be used. I was reading a recent survey of social media (advertisers) managers by Metricool here, and I immediately saw another use of how these AI tools can be used.

Survey Insights on AI Usage

Metricool did a deep analysis, and what struck me was just how many of these people 96% were using AI to create advertisements. 72.6% doing so daily. Interestingly, half of them rely on free versions of tools such as ChatGPT, Google Gemini, or Perplexity. So what they do is available to any retailer.

The first point that stands out is the efficiency gain. Nearly 79% of respondents say AI saves them significant time. Another 77.9% value AI most for generating ideas to promote products, followed by 72.5% who use it for writing content. When it comes to quality, the survey shows promising results. Of those who compared AI-generated material to traditional content, 59% found it on par, 33% deemed it better, and only 8% said it was worse. As professionals in marketing, our standards are high, so imagine how this could elevate our efforts, as we are not professional copywriters. For SMB businesses, this means producing tailored ads quickly, without outsourcing or spending hours.

Real-World Retail Example: Father's Day Campaign

Let's explore how this plays out for SMB retailers. Say you're preparing for Father's Day. You could prompt an AI tool just as I did here. Note, I use Perplexity, which we offered our readers here at a significantly discounted rate a while ago. It has a space set up for a fictional newsagency.

I liked the last idea, so I asked the AI to write a Facebook post.

Now I did like it but thought maybe I should ask for a few other ideas so I asked

I did like the post 1 idea the best, but it was a bit short so I went 

This all took under a minute to generate. If I was to post it to Facebook, I would add a quick photo from my your mobile and then I would have a decent Facebook post advertising my shop.

Practical Tips for Getting Started

Start simple

Choose a free AI tool, I like Perplexity, but Google Gemini or ChatGPT, all are also excellent.

Now experiment, like using your POS System reports to find your top ten selling products. Now ask AI to generate a Facebook post for the shop to market one of these products.

Edit your Facebook post

I find it good to ask for a few different ideas, and feel free to contribute.  

Post your Facebook post

Remember to add a photo.

Monitor results.

Track your results.

Looking Ahead: Empower Your Business

Embracing AI in advertising helps SMB retailers to compete.

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 survey below offers interesting insights from a 2025 report on Australian coffee trends. It shows that even with our rising living costs and increased green coffee bean prices, quality remains the most important. Coffee sellers must focus on taste. They must create a great customer experience. They must make wise pricing choices.

Key Takeaways

Coffee sellers need to succeed in 2025 to:

• Prioritise coffee quality
• Adjust pricing responsibly
• Manage milk alternative surcharges carefully, ideally including costs in base prices.
• Remember, coffee is a daily treat; customers aren’t ready to give up.
• Utilise your POS System for loyalty, inventory, and pricing to maximise your coffee sales.

Why Taste Dominates Coffee Trends in 2025

For Australians, taste remains the top priority when choosing where to buy coffee. The survey states that 73% of respondents state taste and quality as the most critical point. They need to focus on:

• Top-quality beans
• Having the right equipment
• Training staff on how to brew the coffee correctly.

After taste, pricing is the most important factor shaping purchasing decisions and plays a significant role in consumers' decision-making.

After understanding the importance of taste, it’s equally valuable to grasp customer expectations around pricing to balance quality with affordability.

Managing Coffee Prices in Australia: Expectations and Opportunities

Most customers report being comfortable in paying up to $5.50 for a small flat white, but anything over $6.65 is viewed as too expensive. Interestingly, regional differences by state are pretty minor.

As many cafes underprice their coffee compared to these expectations, it suggests an opportunity for many to raise prices strategically without losing demand. Your POS System is ideal to test variations and monitor its sales impacts in real time.

Beyond pricing, other factors like milk choices and surcharges are shaping customer loyalty in essential ways.

Navigating Milk Alternatives and Surcharges

Surcharges everywhere have become a problem, and in coffee, too. I have seen some studies that suggest it's best to raise all coffee prices by 15 cents for a cup and eliminate the 50-cent surcharge for alternatives like oat or almond milk. However, this survey indicates that 86% find that if you levy a surcharge of 50 cents or less, it is seen as reasonable. What is troubling is that about one-third believe that there should be no surcharge.

Despite additional costs, coffee remains an affordable luxury.

Coffee as an Affordable Luxury: Understanding the Treat Factor

Coffee is considered a daily treat by about 40% of Australians today. Despite our economic pressures, 84% plan to spend the same or more on coffee in 2025.

Consider using your POS system’s free CRM to create loyalty programs that reward frequent buyers with points, reinforcing the treat mentality. With its real-time tracking of your customer habits, it allows you to offer personalised recommendations.

Market Growth Opportunities

Coffee market punches above its weight. It is over $10 billion a year. This is larger than bread, newspapers, and books. This reflects Australia's coffee obsession. We have over 20,000 cafes.

Coffee is often seen as a daily essential or a luxury rather than just a beverage.

Conclusion

Start implementing these strategies today to stay ahead in Australia’s thriving coffee market.

This article draws from the Seven Miles Coffee Roasters and Lightspeed Research survey, attached here.

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 is a popular Customer Modelling System for Australian Retailers. It is built on the behavioural customer types. It categorises shoppers by their motivations and actions in your store, rather than broad traits like age or income.

Segmentation

In your shop, customers can be divided into five key groups based on their behaviour.

You look at the person, categorise them into the relevant group, and then adjust your approach to them based on this segmentation.

The figures below come from a study we did with sensors attached to our POS System.

Casual/Wandering Customers

They make up 30-40% of foot traffic in Australian stores, but their conversion rates are low. Still, they offer untapped potential for satisfaction. Yet these customers represent untapped potential customer satisfaction. I have noticed that just talking to them helps.

Repeat or loyal customers

These are the lifeblood of your retail businesses. Generally they make up about 8-20% of your visitors, but they spend big often 67% more per transaction and what is better they return frequently. They are providing you with stable cash flow.

It is the group that loyalty programs attack as 70% of consumers are influenced by retailer loyalty programs. 35% readily admit it makes them visit more often while 19% state it influences them to spend more.

Exact-need customers

These people know precisely what they want and want quick service. Today they represent about 20-30% of your traffic. COVID turned many customers into this category but since then their numbers have dropped.

If you have what they want they drive moderate but reliable sales. Delays can send them to competitors, so focus on streamlined processes. From my experience, if you see these people in your shop, and you tend to know them by just looking what works well is to ask them direct questions like "What specifications do you need?" or "What price do you have?". Don't waste time up selling initially. They have done their research. Once they commit to a purchase, you can always try to sell them more, e.g. if they want a book by a particular author, once they agree to buy your book, you can always suggest a another similar book.

If these people are a major part of your business, you need fast lanes to cut down lead times. Such efficiency can differentiate your business.

Sale/Discount Customers

These are the bargain hunters, who are on the hunt for good deals. They comprising about 10-20% of traffic. Your POS System can help a lot here to get them into your shop, use flash sales and set up a clearance section in your shop. More here on this. What makes this work well is that this section can be in the worst part of the shop as these people will go there.

If you use them strategically you can move much slow/dead stock.

Trigger/Impulse Customers

These customers act on spontaneous urges, and can add 40% much to your bottom line despite being 10-15% of traffic. If you have interesting gifts you can display on an eye-catching displays, you can make a real winner here.

Now that we've covered the five customer types, let's explore how to put this segmentation into practice in your daily operations.

Implementing segmentation.

Once you are used to this method, it shines in its simplicity as you do not need to worry about demographic models, age or income.

Determining your cash and EFTPOS payment breakup involves reviewing the mix of payment methods your customers use, such as cash, debit cards, and credit cards. We are going to do it directly from your point-of-sale (POS) system. 

This matters now so much as in the current climate, with RBA discussions focusing on making payments fairer for consumers while claiming to protect merchants, knowing your payment mix will help you forecast potential impacts. In my view, their proposals will encourage customers to drop lower-fee methods like cash and debit, and push the consumer to premium credit cards with high fees. 

Go to the main menu and select "End of day."

Click where it has a green arrow.

Now, in your Options menu, marked in a green square, tick everything. You will not be sorry if you get too much.

The part of the report you are looking for is the Sales Payment Breakup below.

Pick an appropriate period, generally the last year. Running it a few times with slightly different dates as you may get a better value with different dates. One caveat here is that cash receipts are going up slightly now.

Also while you are there, I suggest checking some of the other great information there such as hourly breakups, to understand peak times for specific payment methods. If your mornings see more cash sales from quick coffee runs, while evenings lean towards cards for larger purchases, you can tailor promotions accordingly. In my experience, retailers who dive into these details often uncover trends that lead to smarter decisions, like staffing adjustments or targeted discounts. 

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 have had over two decades of experience helping SMB businesses with retail ecommerce in Australia. Over time, I've seen how the correct e-commerce setup can make sales. Here are some key questions that many retailers face.

Firstly, setting up an e-commerce shop involves choosing the right tools that complement your physical retail operations. It's about creating a seamless experience where online and in-shop sales work together. What I suggest is a well-integrated setup that opens new revenue streams. I will try to break it down, highlighting how the right approach can address these pain points and position your business for success.

Key Steps

Define a Niche and your Target Audience

You need to identify products that sell online, considering your customers' demographics.

Choose an E-commerce Platform

Select a tool based on your needs.

Build Your Online Store

It must work for you.

Market Your Products

You need a marketing strategy to reach your customers. What works for SMB retailers is to use their existing customers. 

Manage Your Store and Customers

Monitor your performance.

Understanding the E-Commerce Landscape

I believe that in today's retail landscape, e-commerce is vital for remaining competitive. Currently, many Australian retailers are seeing online sales making about 18% of their total revenue, according to recent industry reports. Shoppers now want the convenience of browsing and purchasing at their convenience. For SMB retailers, this creates an opportunity to grow beyond their local foot traffic without the huge upfront costs that expanding their shop space would require.

Do it yourself vs Professional.

Many retailers are drawn to DIY setups because platforms promise simplicity. You log in, pick a template, add products, and launch. It sounds straightforward, especially if you're somewhat tech-savvy. I've never seen owners successfully make a success of such a basic site, but this hands-on method can build your skills and teach you a great deal. If you do it yourself, the time commitment is substantial. Many platforms advertise quick launches. I find that they look cheap, adding custom features on them is difficult, the payment gateways are expensive, and they are generally slow and have limited products. Few people want to spend on such cheap-looking sites. A professional who knows what he is doing typically needs to complete a setup in two weeks to six months. If it's your first time, expect it to take much longer to see any positive results. Your knowledge gaps can compound this. What I found hard at first was tweaking configurations on a host computer; I was unfamiliar with the process and was learning on the fly. Another point often missed is that e-commerce involves proper security setups that are vital to comply with both Australian data privacy laws and to prevent fraud. Overlook these, and you could face bank disputes or legal issues. Developers bring years of experience here; they know many of the pitfalls, and have insurance that might cover you.

Another point is that design talent is significant. Not everyone has that talent. Knowledge is necessary, but it's not enough. A site that turns visitors into buyers needs a layout with appealing visuals.

While you are working it out, it will cost you. People who get to try your site are looking for a professional experience. It's unfair, but they are comparing your site to sites they are used to, such as major sites like Coles, Bunnings, and Amazon. If your site is slow, they will not wait; if it looks amateurish, they will assume your products are too, and they'll move on. Once they move on, they rarely come back.

That said, doing it yourself isn't without merit. You avoid setup fees and gain valuable experience. It would be an ideal experience for your kid who needs internet experience.

Given these hurdles, bringing in experts is the more intelligent choice. Professionals can handle the heavy lifting, delivering a site that's functional, secure, and good from day one. As I stated, if on day one it looks poor, the odds are you have lost them for good. Once your site is up, they will teach you how to use it. You will, however, need ongoing tweaks. This isn't a one-off transaction; it's a partnership that evolves with your needs.

Experts also provide insights into industry trends. They can advise on features. One point is that mobile responsiveness is crucial since over 70% of online shopping in Australia occurs on mobiles. This helps ensure your site gets more traffic.

Once you've chosen professional help, selecting the right platform becomes essential. I'll share my experience with three well-known options I know: WooCommerce, nopCommerce, and Shopify. Each has strengths tailored to different SMB requirements.

ecommerce platform Australia

Choosing a platform is like selecting the foundation for your online shop.

WooCommerce

This is both affordable and flexible, but messy. It is very cost-effective, making it ideal for SMB retailers. It allows you to have a high-quality site without breaking the bank. It starts free, but in practice, you will need extras. The cost of these extras is generally reasonable. What I appreciate is its good SEO. It helps people find your e-commerce site, which is crucial for online businesses. Its customisation is robust. I see the bugs get patched quickly.

However, it does require you to learn a lot. You need to manage as well a WordPress site. From my experience, it's best for retailers who are willing to learn.

nopCommerce

If I had to recommend one platform for most SMBs, it'd be nopCommerce. It's a flagship product with rich built-in features. As of 2025, it's free to use, with community-driven updates keeping it current. It can be adapted extensively without high costs. Well worth it if you ask me, the slightly higher price of WooCommerce.

Shopify

Shopify's popularity stems from its ease of use. You can build a nice-looking site quickly, it's perfect for dipping your toes into e-commerce. It is designed for a small business online shop. Its basic plans start at $39 per month, with higher tiers adding features like advanced reporting. It has a lot of plugins.

On the flip side, it's a more expensive system, with fees that quickly add up.

Many start here and then switch later to something else.

POS Integration

Now, let's talk integration. Without it, you're duplicating efforts; you need to update your stock and sales online, and then in your POS System. Integrating your e-commerce platform with a POS system like ours synchronises everything in real time. Sales data flows seamlessly, updating inventory across channels. For example, imagine a customer buys online from your e-commerce site. With integration, your POS System reflects the sale instantly. It notifies your staff of the details without confusion. New stock comes into the shop; it goes directly into your e-commerce shop.

Your POS System reports work, giving you accurate top-selling products, peak times, and customer behaviours. This drives efficiency gains and strategic advantages, ultimately boosting profits.

Your Next Steps

Ready to transform your retail operations? You can contact me for a chat.

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.

Mini (small) computers use compact enclosures that we build for point-of-sale (POS) systems, where a much smaller footprint is required. What they do is enable you to run a fully functional POS system without sacrificing valuable counter area.

Standard computers dominate prime real estate on the counter that could be better used for displaying products. These computers solve this by fitting seamlessly into tight spots, such as under counters. It makes the counter look professional.

They weigh less than five kilograms, making them very portable. So they are much easier to move. This is especially useful if you frequently do store rearrangements.

If you are looking at the aesthetic, they have significantly improved. The dull, outdated designs are gone. I like the new modern metallic styling. It looks very professional.

As a unit, they integrate well with our POS system. We build them to support key POS equipment such as barcode scanners, receipt printers, and card readers.

Of course, while these small computers offer many compelling advantages, it's essential to consider some potential drawbacks.

Problems

Cost

One important factor is the cost. Because of the precision engineering required for miniaturisation, they usually have a higher price, often 20% to 50% more than standard options.

Heat

When components are packed tightly into a smaller space, airflow becomes restricted, causing higher temperatures. As the fans need to be smaller, they spin faster. This often results in increased noise levels. As a result, we tend to opt for less powerful processors.

Performance

They excel in everyday POS operations. I would not recommend them for computers that need raw power.

Upgradeability

It is often limited due to its compact internals. They have fewer expansion slots and restricted space. Adding additional components is challenging. Generally, we cannot upgrade them if something is required.

Cleaning

The tight layout makes it harder to do dusting.

Repairs

They are slightly more difficult. The big problem here is finding parts that fit.

Overall

Despite some drawbacks, we are selling more of these smaller computers, as many retailers today have space constraints.

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.

Yesterday, I discussed the report that you can quickly get for doing price checks on products in your area. Now I will review the options for getting the report. As I discussed yesterday here, suppliers present you with many products, but it's hard to know the real retail price and your item's margin, so Australian retailers are using free AI tools that automate price checks. These tools help you quickly compare prices, avoid idle stock, and maximise margins without manual searches, saving time and boosting profits. The problem is that manually checking prices via search engines is time-consuming.

In comparison, a simple Google Shopping search works for a single product. If, for example, I want to check 40 products and it takes me a minute or so to do one, I am looking at an hour of work. This is why, when you have many items to check, that's where AI can help, as it offers a quicker way to get real-time insights. Not only that, but it provides a deep analysis and local relevance. This allows you to get real figures so you can improve customer satisfaction and boost your bottom line.

In our test, we focused on free AI systems to keep things accessible for small operators. We limited evaluations to no-cost options, ensuring recommendations fit tight budgets. By the end, you'll have clear guidance on which AI tool might suit your needs.

Our Evaluation Approach

Using the scoring system below, we tested six free AI tools with a query.

"What price is Monopoly Indiana Jones Edition in Keysborough, Victoria, Australia?"

As usual, we used a Structured Scoring System.

To fairly assess these AI tools, we adopted a 100-point scoring system based on key criteria essential for retailers.

The categories include:

• Accuracy (30 points): How closely the AI's price data matches verified market values. Google Shopping was used as a benchmark here.
• Relevance and Personalisation (20 points): Most of our clients are local, so we gave points to their location and business context.
• Completeness and Depth (20 points): Coverage of options, variations, and caveats.
• Helpfulness and User-Friendliness (15 points): Actionable advice and ease of use.
• Clarity and Structure (10 points): Organisation and readability. Who has the time to work out things? If it can be read and absorbed quickly, the better.
• Ethical Handling (5 points): Did it state any limitations in its analysis?

This system ensures objectivity, much like how a POS analyses sales data to recommend stock levels. We evaluated six popular AIs: Deepseek, Qwen, Claude, Grok, Gemini Google, and ChatGPT. Let's dive into the results, highlighting how each could enhance your shop.

Here's how each performed, starting with the lowest scorers.

Claude

Summary: Lacking Specifics

We failed it as it did not give prices. We are testing for prices, and it provided none.

We liked that it openly admitted it can't fetch real-time prices and provided some helpful information. However, if you are looking at price checking, forget it.

Deepseek

Summary: Solid Local Focus with Room for Precision

Deepseek performed respectably, scoring 75 out of 100. It provided price ranges of $40–$60 for standard editions and $70–$100 for collectors, which are somewhat realistic but slightly overestimate everyday values. What surprised us was that it excelled in local relevance by suggesting stores like Parkmore Shopping Centre in Keysborough, complete with contact tips.

The tool's structure, with bullet points and headings, makes it user-friendly. We liked that it urged you to check current prices. Overall, Deepseek offers a good starting point for SMB retailers seeking local insights without complexity.

Grok

Summary: Comprehensive with Accurate Ranges

Grok earned 80 points, delivering prices from $28–$108 across retailers, with both notes on shipping and local checks. It was personalised to Keysborough by mentioning Parkmore, though it leaned more national in focus.

While its structure had minor issues, Grok's actionable advice, such as visiting stores, makes it practical. It included helpful links without overpromising.

Qwen

Summary: Good Online Depth

With a score of 84, Qwen stands out for its balanced approach. It quoted realistic online prices of $35–$60, and we liked that it stated the local unavailability in the local shopping centre, Keysborough. A detail critical to retailers in pricing.

Qwen's clear lists and engaging tone add to its appeal.

Gemini Google

Summary: A Top Performer

Because it has access to Google shopping information, it impressed us with its retail prices, ranging from $17.50 to $80. It was heavily tailored to Keysborough locations like Parkmore. Its local focus and structure, which included tables, make it highly user-friendly.

ChatGPT

Summary: Depth and Helpfulness in Equal Measure

ChatGPT scored 90; it ticked most of the boxes: an image to confirm that you have the right product, detailed tables with prices $17.50–$73.95, strong local tie-ins, and noted caveats. Its completeness, including delivery tips, makes it a standout for comprehensive analysis.

Based on these scores, here's what stood out overall.

Overall Insights and Recommendations

Although all AI tools handled ethics well by admitting limitations, we liked that Deepseek and Gemini, in particular, urged real-time verification. Never assume that AI is correct.

Gemini (Google) and ChatGPT are good choices; they both excel in depth and relevance.

Practical Tips for Implementing AI in Your POS

1) Embracing AI for price checking positions your store for success.

2) To get started, I suggest that you choose Google Gemini or ChatGPT.

3) Test some products from your shop. I suggest starting with your top sellers and then some dead stock.

4) Get a feel of the reports.

5) Make a trip to the local shops to check the accuracy.

Start today!

Written by:

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

Using AI to set pricing decisions can help you determine prices and stay competitive. If the price is too high, your customers walk away; if it's too low, you're selling too cheaply. For many retailers, finding that ideal point is tricky in a marketplace that can change their prices overnight. I have discussed this issue earlier here as well.

In today’s market, you should trust your gut to assess how your pricing compares. Free AI tools can provide quick, localised insights into what your competitors are charging. Knowing this, it is easier to set prices without taking up too much time.

Let’s go through an example.

The Challenge: Knowing the True Retail Price

Imagine running a shop in Keysborough and considering stocking Monopoly: Indiana Jones Edition. Your supplier gives it a great rap, tells you a wholesale cost, quotes a retail price, but how do you confirm their retail price and determine if it's as good a seller as they claim?

Traditionally, you’d go to a local shopping centre and look around—that's maybe an hour of work, plus how can you leave the shop for an hour over one product? Or you might hit Google Shopping, search for the product name, and scan the listings there. That’s easy enough for one product. But say you’re reviewing 40 items — suddenly you’re looking at an hour or more of work, clicking through results, checking conditions, and making sure you’re comparing the same SKU.

The fact is that doing it manually is time-consuming and prone to human error.

Where AI Changes the Game

This is where AI-powered price comparison tools like ChatGPT can revolutionise the problem by instantly scanning multiple retailers, comparing their prices, identifying their promotions, and localising them for your specific location.

For example, I picked a game as a sample, "Monopoly: Indiana Jones Edition".

So I ran a query in ChatGPT "What price is Monopoly Indiana Jones Edition in Keysborough, Victoria, Australia?"

in Keysborough through ChatGPT’s data tools. In a matter of seconds, I received a summary that:

• Confirmed the correct product with an image reference (avoiding costly mix-ups). Green square
• Highlighted a typical local retail range: $65–$70, with a benchmark example from Toyworld at $69.99. Purple square
• Flagged that JB Hi-Fi had a special promotion potentially lower than the market average — perhaps even below your wholesale cost. Maybe you can get it cheaper. Black square
• Noted that in many cases the product was marked as “on order” rather than available for immediate purchase. This makes me suspicious that it's such a great seller.

So I decided to check for availability.

Why This Matters to Your Pricing Strategy

Beyond just pricing, understanding competitor promotions can dictate your sales tactics.

Setting a Competitive Yet Profitable Price

Knowing the local going rate means you can confidently set your price within the $65–$70 band without underpricing or scaring buyers off. If the market is consistent at that range, you’re on safe ground.

Tracking Competitor Promotions

If a competitor runs a temporary promotion, you need to decide whether to run your offers, maintain your current strategy, or drop the product.

Managing Availability to Your Advantage

If many competitors have the product “on order” only, as you can see here, you can leverage this scarcity.

Saving Time

Instead of spending hours doing manual searches, you are getting instant results.

From Price Insights to Actionable Retail Decisions

Here’s where a modern POS system ties it all together. AI pricing insights are powerful on their own, but when integrated into your POS, start by checking your top-selling items or dead stock, and see whether you are competing on price or convenience. Doing this will give you AI-driven price insights.

Bringing It Back to Your Store

Smart pricing is not about being the cheapest, but also about understanding your place in the market to stay competitive.

AI-powered retail price optimisation solutions now integrate, process, and analyse data from across the organisation in near real-time. This level of visibility and control provides retailers with the rapid insights needed to make smart pricing decisions.

Tomorrow, I will discuss the AI tools in detail for doing these price comparisons.

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.

Rising debit and credit merchant fees are escalating costs for Australian businesses and consumers, with RBA data revealing steady increases since the COVID-19 pandemic.

As I've stated before, the current system is anti-competitive, inefficient, and unfair. This proposal will exacerbate it. Now I support debit as a default payment method, which is Labor policy, but this extends far beyond.

The RBA's figures paint a tough picture of the surcharge ban. Click here for their latest statistics. They assume competition and fee reductions will help SMBs absorb costs. But my analysis shows the RBA's figures show they are rising instead.

Fairness in Payment Defaults.

A key issue is fairness: Cash as the default equalises acquirer fees for all businesses, regardless of size. Switching to debit disadvantages smaller ones, as large organisations negotiate lower rates.

Card Type Fee Breakdown

Let's start with the facts. The RBA expanded its merchant fee reporting in December 2024, giving us a clearer view of payment costs. By June 2025, check the table  C3 Average Merchant Fees. It highlights increases in fees across the board. These are major blips, and part of a broader trend that's been going on since the COVID pandemic. Now I have gone over these figures, and this is what I can see.

Eftpos

These fees rose 10% in just six months, hitting 0.44% of transaction value. That's mainly due to merchant service fees climbing from 0.37% to 0.41%, while other charges like terminal fees stayed flat at 0.03% to 0.04%. Historically, Eftpos fees have fluctuated, but since December 2022, they've jumped from 0.26% to 0.44%, a 69% increase overall, which looks pretty high.

MasterCard and VISA

Debit fees went from 0.57% to 0.59%, and credit fees from 0.95% to 0.97%. Visa fees are a little better, but still up their debit fees now are 0.54%, and interestingly, their credit rate is held at 0.87%.

Other cards

It's no wonder that so many people do not accept American Express, as its credit fees are 1.35%, and Diners Club is even worse at 1.70%.

International transactions

Now these would hurt as Visa credit international fees are 12.6% from 2.47% in December 2023 to 2.78% by June 2025. If your store attracts tourists, these hikes will hurt.

This challenges the assumptions behind the proposed surcharge ban; interchange fees are only one of several fees, and these fees are going up. This is a big disconnect between policy and reality.

Given these rising fees and the RBA's disconnect from reality, here are practical steps to optimise your operations.

Practical Tips to Optimise Your Operations

Your POS collects transaction details, letting you analyse fee patterns. Compare them to RBA benchmarks. Review the figures, and if they are higher, take them to your providers. There is nothing wrong with you asking them, "My fees are above the 0.41% Eftpos average, why can't we adjust?" I've helped retailers save thousands this way.

Review your international cards. Many have, after doing this, either introduced a bigger surcharge or refused to accept them.

Support cash.

If you are in online sales, check your fees.

(This article draws from the latest RBA data as of June 2025)

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.

Solving Problems and Streamlining Your Store

An innovative approach for retailers is examining challenges from the opposite perspective. We all face numerous challenges each day, from managing inventory and controlling shrinkage to enhancing the customer experience. One innovative approach that I recommend you try is inversion thinking. This method involves examining problems from the opposite perspective. Inversion thinking reverses traditional problem-solving by asking, 'What could make this issue worse?"

This type of questioning can often reveal ideas. For example, if your goal is to increase customer visits, you might begin by identifying ideas that deter customers. Let us have poor signage, untidy displays, or slow service. Addressing these issues directly results in practical enhancements like clearer layouts, well-organised stock, and efficient checkout processes. I have used it for years for brainstorming.

Let's explore how this approach helps tackle common retail challenges.

Practical Applications

SMB retailers often face many issues. Applying inversion thinking to these areas helps clarify what changes can yield substantial improvements.

Shoplifting

Today, this is a disaster. Instead of asking how to prevent theft, consider how to make theft worse. We make more blind spots in the shop, disengaged staff, etc. This reversal points clearly to effective countermeasures, such as installing bright lighting, carefully positioning security cameras, decluttering to improve visibility, and training staff to engage customers proactively.

Rostering

Similarly, managing staff rostering. Consider what would worsen rostering, e.g. lack of communication, last-minute changes, etc. You have some more ideas here.

Product display

The display of products is better, considering how poorly the merchandise is presented. We could address issues such as increased clutter, poor lighting, and inadequate signage. Again, here we have some ideas.

With these examples in mind, let's explore how you can apply inversion thinking to your retail challenges.

Implementing Inversion Thinking in Your Store

It is too easy. Give yourself some privacy, get a sheet of paper. Start with a specific challenge in your business.

Look at the sales report from your POS System. Look at the top-selling item and say to yourself, "How can I reduce sales for that item?"

Now list your ideas, put them in a worse position, bad lighting etc. Once you finish, reverse each for actionable ideas for you to consider.

Conclusion

Inversion thinking is a fantastic way to solve problems.

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.

Just something to think about

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.