Point of Sale Software

How retailers can manage dead stock

POS SOFTWARE

Dead stock in retail management

Dead stock is inventory that hasn't sold within its expected timeframe. For most retail businesses, non-selling inventory is typically classified as slow stock after 6 months, and after 12 months, any inventory that doesn't turn over is officially considered dead stock.

An accountant can then legally put them as a liability on your balance sheet, as it silently drains your profits by tying up valuable capital and retail space.

Too many people I see make the costly mistake of placing dead stock with a significant discount in prime selling locations, hoping for a quick sale to get rid of it. This diminishes the overall shopping experience. It also lets your customers think that you are a discount shop. Let us not make that mistake.

Understanding Dead Stock

Officially, dead stock is merchandise that hasn't sold within 12 months. Still, it can include seasonal items that missed their peak selling period, trend-based products that never worked for you, such as the recent examples of Snow White dolls after the movie flopped, or items that don't sell in your shop.

Financial Burden

Based on our experience, our installers report that about 20% of the stock is dead when our POS system is installed in a shop. That's a lot, considering that 20% of the shop is closed.

Identifying Dead Stock

Modern point-of-sale systems should provide you with tools to identify dead stock, hopefully before it becomes a significant problem. Our POS system can analyse sales data and highlight items that haven't sold within a specified timeframe, enabling you to take proactive action. This technology-driven approach lets you identify potential issues early and implement strategic solutions. I have discussed this here.

Data-Driven Inventory Decisions

With this comprehensive sales data at your fingertips, you can:

  • Set automatic alerts when items haven't sold within a specified timeframe
  • Track sell-through rates by category, supplier, and season, we call that the inventory turnover rate.
  • Analyse which displays and locations generate the highest sales
  • Forecast optimal stock levels based on historical performance
  • Generate markdown recommendations to maximise recovery on slow-moving items

The Psychology of Effective Retail Displays

Understanding why dead stock accumulates is only half the battle; what you have retail merchandising strategies o get rid of it. It involves insight into how customers navigate and interact with your retail space.

It involves creating what retail experts call the "treasure hunt" experience, using this dead stock to draw shoppers progressively deeper into your store and encourage exploration and discovery. Research shows that customers typically spend 15% more time in stores when they are arranged to facilitate this journey of discovery.

Now, suppliers advocate for their products to be displayed together, which makes it easier for them, but this rarely aligns with how customers shop. Shoppers don't typically think, "I need something from supplier X today." Instead, they think, "I need something for my kitchen" or "I'm looking for a birthday gift." Retailers should use theme-based displays as they work directly to their customers' needs and shopping patterns.

Common Mistakes in Dead Stock Display

Retailers' most frequent error is ignoring it.

However placing dead stock in prime selling locations is the next. What is the point of putting stock that does not sell in the best part of the shop? These areas should be reserved for your best-selling, full-margin products.

When you place dead stock in these premium positions:

  • You're using your most valuable retail real estate for your least valuable products
  • You're training customers to look for discounts first
  • You're creating a "discount store" impression that can devalue your entire brand
  • You're reducing the visibility of products that sell well and are reasonably priced.

The next big mistake is creating a large clearance sections that dominate your store's visual landscape. When clearance merchandise takes centre stage, it sends a powerful message to customers that your merchandise isn't worth buying at full price.

Rather than falling into these common traps, implement these proven display strategies that balance clearing dead stock with maintaining your store's visual appeal and professional image.

Strategic Approaches to Dead Stock Display

The Strategic Attention Zone Approach

A more effective solution for displaying dead stock is implementing a strategic attention zone approach. This method involves:

  • Placing clearance merchandise in less-trafficked areas of your store
  • Using attention-grabbing elements (like distinctive signage or lighting) to draw interest
  • It forces people to look at your shop more.

Customers seeking bargains will venture into these less prominent areas to check out potential deals. This approach does not devalue your stock or shop. It preserves your prime selling space for high-margin items while giving dead stock visibility and the opportunity to sell.

Bundling Opportunities

Another effective strategy is bundling dead stock with complementary products that sell well. For example, if a particular item isn't selling, rather than discounting it heavily and placing it in a clearance bin, try bundling it with an item that does sell.

This approach can help you sell items using dead stock sales. I have a customer who took a recipe book that didn't sell and bundled it with a recipe book that did sell, then sold them as a bundle. It worked.

When to Apply Strategic Discounting

While maintaining margins is essential, strategic discounting has its place in managing dead stock. The key is timing and implementation:

  • Implement progressive discounting rather than immediate deep discounts, and slowly work on the discount to find its price.
  • Create time-limited promotions to generate urgency. I only have four left, and we won't get them back once they're gone.

Rotation and Refreshment

Put some of your dead stock in this area. After a while, pull out the items that don't sell and put in new dead stock. People are always looking for something new. Now you have another category of stock items, "the truly dead stock."

Creating a Dedicated Clearance Strategy

About 20% of your stock is dead. You need a deliberate strategy for handling dead stock to maximise recovery while maintaining your store's professional appearance.

The Clearance Calendar

Establish a regular clearance calendar that aligns with your business cycles. This might include:

  • Monthly "refresh" evaluations, where slow-moving items are identified
  • Quarterly deeper clearance events for items that have truly stagnated
  • Seasonal transition periods, where remaining seasonal merchandise is cleared, are the perfect time for the Australian stocktake sale.

The Clearance Zone

Designate a specific area of your store for clearance merchandise. This space should be:

  • Consistent in location, you want the bargain-hunters to know where to look
  • Distinct enough from your main displays to maintain separation, so it does not cheapen your shop.
  • Organised not to look like a jumble sale - Deep in your shop to drag people in.

The key is that this area shouldn't occupy your prime retail space but should still be accessible and professionally presented to shoppers.

Measuring Success with Key Metrics

To evaluate the effectiveness of your clearance strategy, track these key performance indicators (KPIs):

  • Inventory turnover rate before and after implementation
  • Average time to sell dead stock items
  • Recovery percentage on original cost
  • Impact on overall store margins
  • Changes in new inventory sell-through rates

These KPIs provide objective feedback on your strategy's effectiveness and areas for refinement.

Implementing Your Dead Stock Strategy: Action Steps

Take action now, to find your slow and dead stock using our POS reports will only take seconds. 

Audit your stock

Use your POS system to generate reports of items that haven't sold in the past 6 months and stock that hasn't sold in the past 12 months. Calculate the size of the problem.

Examine other shops' clearance areas.

See what works for others. See how they use it.

Create a Dedicated Clearance Zone

Designate an area for clearance items that doesn't dominate your store layout but still provides visibility.

Visual merchandising techniques

Typically, a red sign works well in Australia, for example, here.

Clearance stock sign

Set Review Period

Schedule regular reviews of inventory performance. You want to catch slow-moving items before they become dead.

 

Written by:

Bernard Zimmermann

 

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

 

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Best Free AI for Analysing Your Customers

POS SOFTWARE

AI data processing in retail

 

One of AI's great promises is to take data and produce advanced information. The problem is that today, we have too much information that is hard to process; it's just too much. So, let's see what happens when we take real point-of-sale software data and put this promise to the test.

So, we decided to test the AI's understanding of a typical SMB retail shop from its customer's sales report. Knowing your customers is essential for retail success, and we will check whether an AI customer data analysis can help us make informed decisions about them.

The added question is which free AI tools can perform this task most effectively. Only a few SMB retailers have paid accounts for AI ChatBots, so we decided to restrict our tests to the free version. As you will see, we immediately ran into problems with this during this test.

Okay, let's test that and see.

Our Test

We have already established a comprehensive evaluation process to determine which AI systems deliver the most actionable insights here.

So, we challenged six leading free AI systems to analyse real customer sales performance data from 2023 and 2024.

Each AI system received identical instructions: "Using data from the attached CSV files, analyse and compare sales performance and visit frequency for top customers in an Australian Newsagency between 2023 and 2024. Identify key changes in behaviour for the highest-value customers."

For a fair assessment, we evaluated each system's customer analysis report using nine key performance indicators and scored out of 10:

Evaluation Framework

Quality of Information

How accurate was the data presented about customer behaviour and trends? If it's not correct, it's worse than useless.

Usefulness

Do these insights improve a retail business? We do not need useless information.

Clarity

Was the analysis presented straightforwardly and clearly?

Actionability

Did the report provide clear, implementable recommendations?

Accuracy

Were the calculations and conclusions drawn from the data correct? AI is known for giving wrong results. This is a common problem of AIs.

Adaptability

Did the analysis take into account specific retail contexts and customer demographics?

Depth of Analysis

Did the report go beyond surface-level observations to uncover meaningful patterns?

Creativity

Were there innovative suggestions for addressing the identified changes in customer behaviour?

Customer-Centric Approach

Did the analysis effectively segment customers and provide tailored approaches?

Testing Limitations

Unlike our pricing study, we encountered several practical limitations with free AI access immediately:

Claude and Chatgpt required paid accounts to process our instructions, so they failed the free test. However, as they are very important AI chatbots, we decided to test them with our paid accounts, but they failed immediately.

QWEN would only process our prompt by editing it in the window's notebook, so we had to redo the tests with consolidated data. Doing this with QWEN requires some computer skills, which others do not need. We marked it down for this.

All the other AI systems could process our request without issue using their free tier offerings.

Immediately, we saw that when we analysed the solutions, not all of them offered the same ability.

Results Summary

The performance rankings revealed interesting shifts from our previous pricing analysis:

AI Tool Score (out of 90)
ChatGPT 78
Grok 68
DEEPSEEK 67
QWEN  66 (marked down)
Claude 59 (failed)
Google AI 55

Interestingly, while Google AI topped our previous pricing study, it ranked last for customer analysis.

Detailed Analysis of Each AI Tool

ChatGPT (Score: 78/90)

On the paid version, and I stress the paid-only

Strengths

  • We thought it showed exceptional clarity. The report was well-organised, with sections in a logical progression We liked its innovative customer segmentation framework, which includes categories like "Growth Champions" and "Frequent Shoppers."
  • We all liked its analysis and felt it was comprehensive
  • What we liked was its tailored recommendations for different customer segments

Problems

  • There was nothing we thought was innovative, but it worked by the rules. It ignored the location, that we were in Australia, and the same problem we had in the previous test.

Overall

ChatGPT transformed customer data into strategically actionable segments that you can use in your marketing and sales approaches. It saved time but gave us little originality.

Grok (Score: 68/90)

Since it's now free, this is a brilliant AI. You should be delighted with it.

Strengths

  • We notice that it is outstanding in its accuracy and attention to detail
  • The report was an in-depth and comprehensive analysis
  • We liked its comparative analysis of individual customers
  • It came up with a category, and we liked the emerging high-value customers

Problems

  • We thought that most of the insights were limited in actionability; it's nice to know something, but what is the point of telling us if you cannot use it?
  • Also limited in creative solutions
  • The report sections did not follow a logical order.

Overall

Grok provided an excellent analysis and identified some subtle patterns in customer behaviour. It would be good to investigate why, though you'll need to develop action plans based on its findings.

DEEPSEEK (Score: 67/90)

Strengths

  • Excellent formatting and visual emphasis that make your information accessible
  • We liked that it had specific, implementable recommendations tied to analysis findings.
  • It was accurate in its data presentation, with correctly identified trends
  • Effective customer segmentation approaches

Problems

  • Did not give a detailed customer-by-customer examination
  • Not that good in a specific Australian retail context
  • Recommendations were sound but somewhat conventional

Overall

DEEPSEEK struck a good balance between analytical depth and practical recommendations.

QWEN (Score: 66/90)

Do not underestimate this AI. The only reason it did not win was that it required some advanced computer skills to use. It was not just a simple matter of using it. 

Strengths

  • We liked its brevity, which offered highly actionable recommendations
  • We liked its concise format, clear headings and bullet points
  • It provided good creative thinking in recommendations for improving customer visits
  • We liked its suggestion for improving a loyalty program and bundling.

Problems

Small report: Now, this may not be a problem for you. Some of us liked that it produced a good condensed report. They felt they did not want a book; the quicker it could be said, the better. I disagreed; I wanted to know as much as possible. Let me know your thoughts on this below. We thought it didn't consider that we were talking about retail.

Overall

Many people like QWEN's concise, action-oriented approach, which provides quick and practical guidance without requiring extensive analysis.

Claude (Score: 59/90)

It was a paid version, yet its score was bad. You expect it to be better if you pay, but you don't get what you pay for with AI.

Strengths

  • It provided accurate data analysis throughout
  • We did like its breakdowns of top customers and their performance changes
  • It had clear section headings and a well-organised structure
  • It identified key account growth opportunities
  • It also identified at-risk relationships

Problems

  • Overall, it lacked specific implementation strategies
  • The segmentation of customer types was bad.
  • Again, as with some others, not much is known about Australian retail
  • Report sections varied in detail

Overall

Claude was solid but struggled to translate those insights into tailored, implementable recommendations.

Google AI (Score: 55/90)

Now, Google AI is a good AI. Last time, it came out the best, but here, it's the worst. Google changed the free version because it wants you to switch to the paid version.

Strengths

  • Methodical approach to analysis
  • Accurate calculations
  • We thought that it produced logically sound conclusions
  • It considered many factors

Problems

  • It presented an analysis without any specific recommendations
  • Little creative
  • Minimal segmentation of customer types
  • Limited adaptation to retail

Overall

The free Google AI fell short of providing the strategic interpretation and actionable guidance that retailers need.

Key Findings and Implications for Your Retail Business

Our evaluation revealed several important considerations for using AI:

Different tools excel at different retail tasks

It's all good to analyse, but an ideal AI solution should connect the dots between "what's happening," "why it's happening," and, most importantly, "what to do about it." Not all AI ChatBots are equal.

The significant shift in rankings between our pricing study, where Google AI dominated, and this customer analysis evaluation highlights the critical point that AI is not a one-size-fits-all approach. It also showed that suppliers are moving to a user-paid model.

Usability

Busy retailers need an AI that produces a clear organisation and logical flow.

Practical Recommendations for Australian Retailers

Your specific need

The reality is that different AI systems excel at other tasks. There's no way around it; you need to test which one works better in your circumstances.

Prioritise actionability

Choose AI tools that connect analysis to specific actions you can take. Ask yourself: "What can I do tomorrow based on this information?" If the answer isn't clear, the tool may not be right for your needs.

Provide detailed context

We tested with more specific information about a business, location, and customer base. We did get better results, but that's outside of this test. I would include such information if I were doing it in a shop. Don't assume the AI knows your business environment; even if it does, it can use it.

Verify findings

We found that AI made errors and provided advice that didn't align with business reality. Always check.

Continue with a focused question.

These reports should be considered the start of your analysis. To get more insights, I would ask specific questions about the customer, the segments, loyalty patterns, or purchase frequency. For example, "Which customers decreased their visit frequency in the last quarter?" will yield more actionable results than "Analyse my customers."

Integrating AI Insights with Your POS System

For retailers using our POS systems, connecting AI analysis has tremendous potential. Exporting customer sales data in formats your AI can analyse is easy; you can do this in the report section. I will discuss this in a future post.

The Future of AI

This evaluation demonstrates that AI tools have already reached impressive capabilities. Using them, you can get free access to dedicated data analysts. They offer you access to sophisticated insights previously available only to large organisations.

My thoughts

While it's free, I recommend looking at Grok, our winner.

 

 

Written by:

Bernard Zimmermann

 

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

 

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EFTPOS survey closing on Wednesday

POS SOFTWARE

Person filing out a survey

We're amazed by the overwhelming response to our EFTPOS survey. Although more responses are still coming in, we need to close the study on Wednesday. If you wish to participate, please do so immediately, as this is your last chance.

We will need to analyse the collected information, and due to the high volume of responses, this process will take some time. However, we are working to complete the analysis quickly, as we aim to have the findings ready before the upcoming elections. We believe the results could help inform and frame the public debate, which was the primary reason we were tasked with conducting this survey.

The processed information will be shared with relevant authorities and used to support decision-making in this area.

Thank you to everyone who participated.
 

 

Written by:

Bernard Zimmermann

 

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

 

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ANZAC Day 2025

POS SOFTWARE

ANZAC Day 2025

Our office is closed on ANZAC Day to honour those who have sacrificed for us. 

May their memory be for a blessing

Support Availability:

Our after-hours support team remains fully operational today, 24/7. 

Like many, I will be observing the day with my family today. Please direct your matters through the support channels unless urgent. I will be personally available again on Saturday.

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Body-worn cameras will transform your retail security

POS SOFTWARE

Body camera in retail shops

 

I was listening to a discussion on retail security in the UK. What stunned me was the discussion on the growing use of body-worn cameras. These are becoming standard security tools in retail there. Australian retailers will begin to explore their full potential here. These cameras present a promising solution for improving retail security, loss prevention, and staff safety.

In a survey in the United Kingdom, 60% of retailers have adopted or reported testing these cameras. Although I have no figures for the UK, retailers have reported a 37–45% reduction in violent incidents after introducing these cameras in the United States. According to a 2024 Motorola Solutions survey in the US, more than half of global retail workers feel safer equipped with these cameras. It all sounds pretty positive.

Why I Think that Body-Worn Cameras Matter for Australian Retailers

Deterrence

The visible presence of cameras reduces and discourages aggression. For example, UK supermarkets saw a 20% drop in aggressive incidents after adopting these cameras. It creates a safer work environment.

Evidence Management

They produce a high-definition video from a staff perspective, which provides reliable evidence for resolving disputes and improving incident resolution and loss prevention outcomes.

De-escalating Conflicts

It has been found that they generate a psychological deterrent, as being recorded has led to a dramatic reduction in assaults in the UK.

Supporting Accountability

Video evidence protects staff from false accusations and customer complaint investigations.

Improving Operational Efficiency

I can see many advantages.

The faster incident resolution would streamline the investigation of discrepancies, customer complaints, and workplace incidents.

We have investigated integrating these cameras into our point-of-sale system. This promises to link your transaction data with video evidence so you can view each incident comprehensively from the staff's view.

The cameras required

After some searching, I found them selling for $30, but I would not recommend them for several reasons. Looking at them, one can see clearly that not all such cameras are equal.

I noticed in the UK talk that the retailers discussed several types, all of which were of good quality. Not surprisingly, the right choice for a body-worn camera in your retail environment can make a significant difference to staff safety, loss prevention, and operational efficiency.

I put together some critical features and practical considerations for Australian retailers that I can see.

Key Features in cameras in a Retail Setting

Video and Audio Quality

Clear footage is critical for incident review, evidence management, and staff protection. I would suggest:

  • Minimum 1080p high-definition video resolution to ensure faces and actions are easily identifiable.
  • A wide-angle lens to capture a broader field of view is especially useful in busy shop environments.
  • High-quality microphones to record conversations accurately, supporting dispute resolution and compliance.
  • Date and time stamping??? The courts want accurate, tamper-proof date and time stamps, but the problem in my experience is that time drift and daylight saving can be a real pain to use in practice. I leave this to your judgement.

Battery Life

Your staff work many long hours.

  • Aim for at least 12 hours of battery life per charge to cover a full shift.
  • I noticed some models had quick-swap batteries, which would give added flexibility, and I recommend.
  • You need spare batteries.

Ease of Use

Since your staff is probably not a photographic expert in a shop, you need intuitive technology.

  • One-touch recording ensures staff can activate the camera quickly, even under stress.
  • Visual and vibration indicators confirm when recording is in progress. As it's visual, your customers know it's recording, and as it vibrates, your staff do too. This reduces uncertainty.

Discreet and wearable

  • As no one likes Big Brother, you need something that intimidates customers as little as possible.
  • Easy to wear with many different outfits.
  • Wireless upload, so if anything happens, you have a record.

Storage Capacity

Fortunately, retail incidents are infrequent, but when they occur, you will need substantial documentation

  • Look for at least 32GB internal storage or higher.
  • Loop recording means you do not have to reset it continuously because the oldest footage is overwritten.

Low-light and Night Vision Capability

Shops often have poorly lit areas. Cameras with low-light or infrared capability capture critical details regardless of lighting conditions.

Durability

Retail environments are terrible environments for electronics. People drop them, dust is often around, and, as we have discovered with our other POS equipment, people love to drop coffee over the equipment.

These cameras in a retail setting require more rigorous legal compliance than regular fixed cameras. This is due to their ability to record private conversations and sensitive interactions, which triggers stricter privacy, consent, and data protection requirements under Australian law. You should discuss this with someone who knows more about these things than I do. Please consult for legal advice to comply with federal and state laws, as requirements vary. In Tasmania, for example, if you are recording sound, you must notify people somehow.

I would only use cameras with encryption and allow only senior staff access to the information. Make a clear policy of deleting the information after 30–90 days unless required for an investigation; if the camera is set to loop recording, as I suggested earlier, this would happen automatically.

Return on Investment

My understanding is that this is very good.

UK retailers claim to recoup their investment within 6–8 months through lower theft rates. Interestingly, they also claimed it minimises the risk and costs of wrongful dismissal claims and workers' compensation disputes.

Future Outlook: 2025–2030

When I asked our suppliers, they told me that the security industry forecasts that Australia's market for such cameras will grow by 23% annually by 2030.

Practical Steps for Retailers Considering Body-Worn Cameras

If you are considering such cameras for your retail business, I suggest:

- Buy a cheap one and try it out. There is no point in getting an expensive one and finding it unsuitable. Cheap ones start from $40.

- Try it first and see how you go.

- Then get your staff to try it.

- Review 

 

Further reading

Here  are links that I think you will find helpful on this subject

Can cameras save our shop workers from attack?

Why retailers are turning to body-worn cameras for loss prevention.

Body-Worn Cameras for Retail and Shopping Centres

Tackling the retail crime epidemic with technology – Are body-worn cameras the answer?

Will Body Cameras Scare Shoplifters?

 

 

 

 

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

 

 

Written by:

Bernard Zimmermann

 

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

 

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Consider supporting Cash-Out Day 2025

POS SOFTWARE

Cash-out Day 2025

Cash Out Day is tomorrow, 22 April 2025. It is a practical reminder that many Australians value cash as a payment. As digital transactions have surged, the movement to keep some money viable has gained real traction. Last year's Cash Out Day drove a 6.2% spike in ATM withdrawals and up to 14% increases in some shopping centres. Most people felt there was no need to withdraw cash unless they went to a place like a shopping centre where they could spend it.

It showed that many Australians still value access to cash.

Supporting Cash Out Day is not just about being opposed to technology (a Luddite); it's about ensuring that cash as a payment method is necessary for our community now.

The Evolving Role of Cash in Australian Retail

Cash usage in Australia has declined sharply. It now represents 13% of consumer transactions, down from 70% in 2007. This shift has created a crisis for cash as the infrastructure needed to support it becomes less viable, e.g. nearly half of all bank branches have closed since 2011, ATM numbers have dropped by over a quarter since 2016, and Armaguard has been struggling due to the dramatic decline in cash usage across Australia. It has been creating a potential crisis, according to the ACCC, for the estimated "one in four Australians who would face genuine hardship or major inconvenience without access to cash."

Does Cash Acceptance Still Matter for Your Business

Customer

The ACCC stated, "Cash is the preferred payment method for approximately 1.5 million adult Australians, who rely on it for over 80% of their transactions." By accepting cash, you ensure your business is accessible to these customers, too.

Financial Benefits

Often forgotten is that Cash payments offer immediate settlement. They eliminate the settlement periods associated with electronic transactions and avoid the processing fees that come with card payments. These fees average around 1.5% per transaction for SMB retailers. These fees are also unfair as they affect SMB retailers more than large retailers.

Additionally, cash provides operational resilience. Digital payment systems experience outages. I had a customer who lost over $8,500 when his EFTPOS went down for most of the day. Australia does not yet have the infrastructure to support a cashless society.

EFTPOS down use cash

Regulatory Developments

The Australian Government has stated it recognises the importance of cash, but no one has seen it do much. Their recent proposal to force businesses to remove EFTPOS surcharges is unfair as it stands as they have not answered who is supposed to pay this cost. I doubt the goverment intends to pay it.

Practical Steps to Support Cash Out Day 2025

If you want to support Cash Out Day 2025 actively. Here are practical actions you can take to demonstrate your cash commitment:

Take some money out of an ATM

It is what the organisers want, and it indeed is, as you can see that this statistic has been widely quoted. Simply go and take some money out of an ATM. 

Then tell your friends to do the same.

Display Window Signage

Put a sign on your shopfront stating "Keep Cash" or "Cash Welcome Here." This simple gesture signals that you value cash.

Sign and Share the Petition

The Cash Welcome campaign's petition has gathered over 200,000 signatures advocating for guaranteed cash access and acceptance.

 

Cash-out petition 2025

Click here if you want to sign.

Create In-Store Promotions

Consider offering a small discount or bonus item for cash purchases on Cash Out Day. After all, many people will have more cash tomorrow and are looking for where to spend it.

The Future of Cash in Australia: Strategic Balance

While digital payments will continue to grow, I feel, and I hope you do, that cash will remain a vital part of the Australian economy for the foreseeable future.

Written by:

 

Bernard Zimmermann

 

 

 

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

 

 

 

 

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Why using a Fridge Thermometer is smart!

POS SOFTWARE

Fridge thermometer advantages

A simple fridge thermometer can deliver substantial benefits to your business. I had a client who got a free fridge thermometer, tested it out, and instantly reduced their energy costs by adjusting the fridge. They would also have saved by minimising food waste and extending the life of the fridge by working it less. A fridge thermometer is a low-cost, high-impact tool for retailers focused on energy savings and retail food safety.

What Is a Fridge Thermometer?

A refrigerator thermometer that accurately reads your refrigerator’s internal temperature is needed. Most fridges use a numerical setting (1 to 7), but you need temperature, which makes it impossible to check.

How a Fridge Thermometer Saves You Money and Reduces Food Waste

Energy Savings

In many shops, the fridge is the largest energy user. When it runs cold, it uses more electricity, increasing operating costs and ruining the food. Conversely, running hot causes food to deteriorate too quickly.

Most retail fridges need to be at 3°C to 5°C, and freezers need to be at -15°C to -18°C. You cannot verify this without a fridge thermometer.

The problem is that commercial fridges will increase a shop's costs with frequent door openings, hot environments, and poor maintenance. A small commercial fridge uses about 500 kWh, and a larger one can be up to 17,000 kWh. At about 40 cents a kWh, that currently works to between $200 and $6,800 a year, and we all know that electricity costs are rising..

Raising the fridge's temperature by a degree reduced its energy consumption by 5% without impacting the business. This is a first-level approximation of about $60/year in savings.

Fridges Life

Fridges that operate above their ideal temperature range will increase wear and tear on the compressors and seals. The cost of repairs is often the most expensive cost of the fridges.

Low-Cost

After a net search, I found affordable fridge thermometers for only $3.16, $5.65 and $2.99 (see the red arrows above). The potential savings in reduced energy bills would offset this investment in the first month in the above shop.

Please ensure the thermometer you pick is designed specifically for your desired temperatures.

Digital models are easy to read at a glance, but analogue versions are simple and require no batteries.

I do not know if you need an alarm, but I did notice that some digital thermometers include alarms that notify you if temperatures move outside the safe range. If you do, this could be a valuable feature.

How to Use a Fridge Thermometer for Best Results

I would test it first, put it next to an existing Thermometer, leave it for a few hours, and make sure it is getting a good result.

You can find a position below the top shelf and towards the front or near the door because that is where you need to review the most. If you intend to monitor continuously, you need the place to be visible and at eye level, making checks straightforward. Now you can stick it into the fridge, leave it overnight and see the result the next day.

If the temperature exceeds 5°C, lower the fridge setting. If it falls below 3°C, increase the setting to save energy.

If food safety compliance laws are essential to you, you may need to note the temperatures.

 

Frequently Asked Questions

Q: What’s the best temperature for my fridge and freezer?
A: Fridge: 3°C to 5°C
Freezer: -15°C to -18°C

 

Bonus Tip for the fridge

Regular Maintenance, such as cleaning the door seals, checking for ice build-up, cleaning coils, and periodically defrosting freezers, will save you money.

 

Written by:

Bernard Zimmermann

 

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

 

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Help shape the Future of EFTPOS Integration

POS SOFTWARE

Get ready to shape the future of EFTPOS integration

Today, EFTPOS payment plays a key role in retail! We need to hear your thoughts on what you need with FTPOS.

If you're a customer running our POS System, we need your feedback to help us create EFTPOS solutions tailored to your needs, making your business even more successful!

Understanding EFTPOS Integration

EFTPOS integration creates a direct communication pathway between your Point of Sale (POS) and payment systems. This seamless connection eliminates redundant data entry, reduces handling time, and reduces mistakes.

Why Your Input on EFTPOS Integration Matters

Implementing any EFTPOS integration is a significant investment for our team and your business. This goes beyond simply connecting a terminal—it involves creating systems that complement your workflow and work with the new system requirements errors. Each is a few months' work.

Prioritising Your Business Requirements

We want your priority for cost considerations, system reliability, support quality, contract flexibility, and feature availability. What factors are most critical for your business currently?

How Your Feedback Will Shape Our Development

Your survey responses will directly influence our approach to future EFTPOS integrations and determine which payment solutions we prioritise for development. It isn't merely a data collection exercise—your input will guide concrete improvements to our EFTPOS offerings for Australian retailers.

All responses remain confidential and will be used exclusively for service improvement.

Survey Completion Time

One minute!!!

We've designed the survey to take approximately one minute to complete.

Appreciation for Your Contribution

Your feedback will shape EFTPOS solutions that enhance efficiency, accuracy, and profitability for Australian businesses.

Thank you for partnering with us to create effective payment solutions.

 

Written by:

Bernard Zimmermann

 

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

 

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Boost Your Easter Sales: Strategies for Retailers

POS SOFTWARE

Let's talk Easter. It's almost here; frankly, too many shops leave money on the table during this peak trading period. It's a shame if you look at the splurge forecast's potential for Easter this year. Potential doesn't pay the bills. Making the most of Easter isn't about luck; it's about smart, decisive action based on facts, not guesswork. Do something to capture your share of the Easter spend!

The Easter Spending Reality: Know the Numbers, Then Act

Before we talk about strategy, could we clarify the fact? The Australian Retailers Association (ARA) and Roy Morgan have laid out the landscape for Easter 2025.

"According to data from the ARA and Roy Morgan, 6.2 million Australians are planning to use the Easter break for DIY projects around the home. Nationwide spending for this sector is projected to increase 27 per cent year-on-year to $6.7 billion."

While shoppers might be watching their wallets overall, they plan to spend. Your job is to align your shop with where the money is going.

Everyone is talking about the fact that Easter goods will be dearer in 2025 than last year. We can't do anything about it, but please be ready to answer people if it comes up. I doubt it will be hard to explain as they know about this problem unless they live under a rock.

Figures show that, on average, shoppers will have to spend about 9.5% more on their Easter chocolates than on Easter 2024. Interestingly, Darrell Lea, the brand of many of my customers in the market, has no price from what I could see.

Common Easter Retailing Mistakes (And How You'll Avoid Them)

Based on my experience working with countless retailers, here are the critical errors I see businesses make year after year during Easter. Avoid these, and you're already ahead of the pack.

Mistake 1: Ignoring the Data & using gut feel

Too many retailers rely on gut feelings and/or memory without checking the facts. That's just lazy. Do some research, particularly on food and chocolates. Your stocking decisions must reflect this reality.

Action

Dive into your Point of Sale (POS) system. Run reports like "Top Selling Items" or "Sales by Category" for last year's Easter period (use the two weeks leading up to Easter Sunday). See what is sold in your shop! Don't guess, but know!

Action

Use this data and the 2025 spending forecasts to place your orders. Look at proven sellers in the key categories (treats, DIY). Don't forget small items like themed decorations, small gifts and greeting cards. Put them where they will be noticed.

Mistake 2: Being Invisible

Potential customers will walk past your shop if people cannot see your Easter product. For Easter, they need an immediate, compelling reason to enter. Weak window signage or your generic display won't cut it. You must grab attention and scream to the world, "Easter products here!"

Action

Use bold, clear signage in windows and throughout the store. Announce your Easter specials, highlight key product categories (Easter treats, DIY supplies), and make your unique selling points obvious.

Mistake 3: Running Uninspired Promotions

Slapping a simple "10% off" sign-up is unimaginative and often erodes your margin. Customers are bombarded with discounts; yours must be more innovative and engaging to drive sales and increase basket size.

Action

Create an Easter Bundle.

Most of you have a loyalty program; use it!

Mistake 5: Flying Blind Without Your POS Data

It loops back to Mistake 1 above, but it deserves its point because it's fundamental. Your POS system isn't just for taking payments; it's your business intelligence hub. Failing to use its reporting tools before and during a peak period like Easter is like driving blindfolded.

Action: Deeply analyse last year's Easter sales data before ordering.

Need some ideas

See what worked last year in your shop

Go to Register reports.

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

 

Put in,, say,, two weeks before Easter 2024, and check them out

As these items worked for you then, they should work for you again this year.

Now look at:

-Top-selling products overall.

-Best-performing categories.

-Sales trends day-by-day (when did the rush start?)

-Average transaction value (can promotions lift this?).

Your Easter Success is 100% you.

Let's be blunt: Easter presents a significant opportunity. Whether you capture your fair share depends on preparation and execution.

Good luck, and make this Easter your most profitable yet.

Easter is a great day to shop in retail as the holiday season is short, but sales can be impressive.

 

Written by:

Bernard Zimmermann

 

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

 

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Five Key Trends in the Toy Industry

POS SOFTWARE

The toy retail market has always been challenging. Because trends shift rapidly, retailers must have sharp insights to succeed, as the trend graph below shows.

 

Toy and Game Retailing in Australia Revenue (2014-2029)

 

It did go down a bit recently, but it's expected to go up this year.

I was talking to a major buyer of toys in a large retail store, and here is his advice based on his experience. It's useful as it shares practical lessons from someone on the front line. Could you consider implementing his strategies to boost your shop's sales?

Lesson 1: Beware the Risks of Media Hype

Product hype, with media hype, can present a financial risk if the hype fails and consumer excitement does not translate into sales for some reason. A recent example that sparked this conversation involved the recent Disney Snow White dolls released alongside the film. Shortly after the film's release, we can see deep discounts on these dolls, which are widely appearing across major retailers. Look at the green arrow; you can see it's already at a 34% discount.

Snow white doll review

This rapid price reduction suggests that initial inventory orders have overestimated consumer demand.

Interestingly, this apparent overstock situation doesn't stem from dissatisfaction with the product. Early consumer feedback often highlighted the dolls' quality and design. Could you look at the red arrow highlighting what consumers thought of the product? 4.8 out of 5 is good. Instead, the poor sales appear directly linked to the film's disappointing reception. It shows that a well-made product can falter if the media it depends on underperforms.

Actionable Takeaway

Diversify inventory

Do not over-invest in recent trend-based items. Could you look at your good sellers and analyse your POS data relentlessly?

Strategic Ordering

Start with a small order for high-risk, licensed products. Reordering successful items is often less costly than discounting to clear unwanted stock at a loss.

Leverage Local Insight

Monitor your customer inquiries. Local demand is often a more reliable predictor than national forecasts. Again, your POS system is critical for tracking these trends.

Lesson 2: Look at LEGO

Contrast Disney's unpredictability with consistently high-performing brands like LEGO. LEGO always seems to sell; ask yourself why.

We thought it was because LEGO has extensive appeal. It is not just that while children are a core market, the brand also cultivates a massive and lucrative adult base. You can see this if you look at LEGO's tactics: with its limited editions and controlled releases, they do not just sell toys.

Actionable Takeaway

While securing LEGO exclusives might be difficult, focus on creating unique value propositions.

Target High-Value Niches

Consider courting adults as this 'kidult' market often has higher disposable income.

Create In-Store Exclusivity

Try to be unique in some way.

Bundles

Pair a popular toy with a related item, e.g. a book, craft kits, etc.

Strategic Promotions

Run limited-time, store-specific offers. I had a customer who brought some LEGO limited edition products based on space travel; they generated a lot of interest.

lego kits

 

Look at the red arrows; they are not even targeted at kids. While you are at it, look at the price points.

Lesson 3: Target the Grandparent Market

What you can see in the toy market today is the growing financial influence of grandparents in toy purchasing. Today, they have fewer budget constraints than parents facing the rapidly increasing cost of living pressures. Grandparents today have significant spending power and a strong desire to treat their grandchildren. It makes them a crucial, high-value customer segment for independent toy retailers.

These grandparents prioritise durability, educational value, nostalgia, or finding that special 'wow' gift. They often buy from their memories, and your sales approach must reflect this.

Actionable Takeaway

Optimise your store and service model to get this lucrative demographic.

Accessible Store Layout

Make the physical shopping experience easy and pleasant for older customers.

Gift-Centric Approach

Offer attractive gift wrapping, create pre-made gift suggestions or bundles, and display items clearly as potential high-quality gifts.

Lesson 4: Fewer Kids, Fewer Hand-me-downs

There is a broad social trend now with our declining birth rates, which directly impacts the toy market.

Smaller families often mean fewer "hand-me-downs." Big Brother no longer has a little brother who can get his toys, which increases the need for more new toy purchases per child. Also, the budget per child has increased with fewer children. People buy fewer toys overall but spend more on them.

The market is shifting from quantity towards quality.

Actionable Takeaway

Prioritise well-made brand toys

Make this a key selling point in displays, signage, and staff interactions.

Justify Price Points

Do not shy away from higher prices for superior products.

Lesson 5: Educational Toys

Despite economic pressures and shifting trends, the demand for educational toys remains consistently strong. Parents seek developmental advantages, and grandparents favour toys offering substance beyond fleeting entertainment. It resonates powerfully across key customer segments.

Educational value is a potent, non-negotiable selling point that cuts through market noise. It aligns perfectly with the purchasing motivations of parents and, critically, the influential grandparent segment.

Do not forget educational toys.

Layout

Maintain a robust, diverse selection of science, arts and crafts, problem-solving, literacy, and imaginative play that builds cognitive or social skills. Use clear signage and shelf talkers to show educational aspects. Make it effortless for customers to find toys that teach.

Train for Authority

Could you make sure that your staff can confidently articulate specific educational benefits?

The toy market presents undeniable challenges: unpredictable licensed products (Snow White example), the need to compete with giants (like LEGO, by adapting their strategies), understanding key demographics (grandparents), adapting to societal shifts (value focus), and meeting persistent demands (educational play).

Success requires decisive action. As independent retailers, your agility is your advantage. React faster than chains, curate stock based on your customer data, build genuine relationships (especially with high-value grandparents) and deliver outstanding value through quality and expertise.

Leverage your POS data to rigorously track sales and customer preferences. Understand these market dynamics. Reduce the hype risks, broad appeal tactics, key customer segments, the value shift, and educational demand. Make strategic inventory, marketing, and store experience decisions. Focus relentlessly on what works for your business to survive and thrive.

What's Your Next Step? Which of these lessons will you implement first in your store? Share your biggest challenge or success story related to these trends in the comments below!

Written by:

Bernard Zimmermann

 

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

 

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Testing AI Chatbot pricing in a retail shop

POS SOFTWARE

AI testing evaluation

 

Pricing products effectively remains one of the most challenging aspects of retail management. It's a problem. You get a product you have never handled; how do you price the item for sale now? Getting it wrong can significantly impact profitability and competitiveness. Many people today have suggested that the new AI Chatbots can help, but none, as far as I know, have shown any proof of this. So, to address this problem, we conducted a comprehensive evaluation of six free AI chatbots to assess their effectiveness in pricing recommendations for Australian retailers.

Our Testing Methodology

We tested a scenario of a small newsagency in Keysborough, a typical Melbourne suburb located in a strip shopping centre. The test focused on pricing a specific product: a Pilot Frixion Ball Erasable Gel Pen pack containing three pens (black, blue, and red) with a fine 0.7mm tip using only free CHATbots.

Why only Test Free AI Tools for Stock Pricing?

We restricted the test to free AIs because most retailers are only now experimenting with AI chatbots. Few have purchased an AI Chatbot plan, whose costs now vary from about $25 to $200 plus GST (I have a customer who uses AI in our POS Software and runs a bill of up to $10 daily). Once you get into paid plans, there is a massive difference in what you get.

Free tools can offer an accessible starting point, but not everyone is equal for all tasks, as you will see here.

So, we limited our evaluation to these six popular free AI chatbots:

ChatGPT (OpenAI)

Claude (Anthropic)

DeepSeek

Google AI

Grok 3

Qwen

We wanted to test meta AI, which had announced a significant update, but unfortunately, it was not available when this report was written.

After multiple iterations to refine our approach, we developed a standardised prompt that described the retail location, business type, and product specifications. We then evaluated each chatbot's response based on nine key performance indicators. It all took a lot of time.

Evaluation Framework

Each AI tool was assessed across nine KPIs, with each scoring out of 10, giving us a maximum possible score of 90.

Quality of Information

Accuracy and relevance of data regarding the product, competitors, and market conditions

Usefulness

If the advice is impractical, what is the point of getting it?

Clarity

We are all busy people; we need something well laid out and comprehensible.

Actionability

We wanted clear, implementable recommendations

Accuracy

AI Chatbots do make errors and mistakes. We want correct information on costs, retail prices, and market trends

Adaptability

Not surprisingly, we found that to price appropriately in local retailing, the advice needs to be for a specific location and a store's customer demographics

Depth of Analysis

Besides price, we would like advice on various pricing strategy aspects

Creativity

It would be lovely to get information on innovative suggestions for marketing, e.g. bundling, promotions, or other sales strategies

Customer-Centric Approach

Not all customer segments react to pricing similarly, so we want to know how each responds. You rarely care if you get too much information.

Results Summary

 

Pricing products for different chatbots

The performance of each AI chatbot is summarised in the table below:

AI Tool  Price Range  Score (out of 90)
Google AI $9.99–$10.99 87 (winner)
Qwen $9.99 83
Grok 3 $9.49–$9.99 81
DeepSeek $12.99–$13.99 65
ChatGPT $11.99–$12.99 58
Claude AI N/A Eliminated

Notably, the top three performers delivered remarkably similar price recommendations, suggesting a similar practical use by a retailer on the top tools.

Detailed Analysis of Each AI Tool

1. Google AI (Score: 87/90)

Strengths:

  • Provided accurate pricing recommendations based on local competitor analysis, correctly identifying Coles' price range of $9.50–$14
  • Suggested appropriate margins of 35–50%, aligning with industry standards
  • Delivered a logically structured report with clear reasoning

Areas for Improvement:

  • Some sections contained overly technical markup calculations that would be challenging to understand.
  • User interface could be more intuitive for retailers without technical expertise

Key Insight:

Google AI excels at tracking and analysing local competitor prices, making it highly effective for crafting a pricing strategy.

2. Qwen (Score: 83/90)

Strengths:

  • Proposed innovative bundling strategies, such as pairing pens with notebooks at $12.99 to increase perceived value
  • Included practical promotional messaging suggestions (e.g., "Save $1 vs Coles!")
  • Presented information in an accessible, actionable format

Areas for Improvement:

  • Assumed a wholesale cost of $6.50, which appeared to be unrealistically low based on market research

Key Insight:

Qwen's focus on bundling opportunities and targeted promotional strategies makes it particularly useful for retailers looking to maximise revenue through upselling techniques.

3. Grok 3 (Score: 81/90)

Strengths:

  • Provided detailed customer segmentation analysis, correctly identifying pensioners as a key demographic in the Keysborough area
  • Recommended a four-week price testing strategy to refine the pricing approach based on actual sales data

Areas for Improvement:

  • Suggested profit margins were lower than industry standards
  • Report contained unnecessary repetition

Key Insight:

Grok 3's demographic analysis capabilities make it particularly valuable for retailers to align pricing strategies with local customer profiles.

4. DeepSeek (Score: 65/90)

Strengths:

  • Effectively highlighted product features (such as erasable ink) as unique selling points
  • Suggested strategic product placement near complementary items to encourage cross-selling

Areas for Improvement:

  • Recommended pricing ($12.99–$13.99) significantly exceeded competitor rates
  • Technical terminology like "left-digit effect" was used without explanation. A left-digital effect charges a $10 item as $9.99. Did you know that? We did not know until we looked it up.

Key Insight:

DeepSeek appears better suited for premium or specialty product pricing than standard retail items with established market positioning.

5. ChatGPT (Score: 58/90)

Strengths:

  • Provided a well-written, easily comprehensible report

Areas for Improvement:

  • Wrong information, e.g. it inaccurately estimated competitor pricing ranges
  • Did not check the local pricing of the product
  • Lacked depth in analysis and failed to provide sufficiently actionable recommendations

Key Insight:

In our test, ChatGPT's generalist approach proved inadequate for the nuanced requirements of a retail pricing strategy in a shop in the Australian market.

6. Claude AI (Eliminated)

Claude AI was disqualified from the final evaluation due to its inability to access real-time data and lack of localisation features for the Australian market, rendering its recommendations useless.

Key Findings and Implications

If looking at an AI Chatbot, you need to look at:

Real-time competitor analysis

You will not be able to do a good job of pricing if you do not have local information; this led to a pricing recommendation by ChatGPT that was disconnected from market realities.

Value-added bundling recommendations

Does it offer ideas to sell the product

Demographic-specific insights

In most shops, there are several different customer demographics, and these when pricing needs to be considered.

Overly technical presentations

Some Chatbots made us feel that the complexity was excessive, making the report difficult even though we told them not to make it complex.

Conclusion and Recommendations

For Australian SMB retailers seeking to use AI tools for pricing, Google AI, Qwen and Grok 3 emerged as the best due to their accuracy in competitor tracking and logical approach to margin calculations. Any of these can do the job well. If I were pricing an item and wanted some advice, any of these three Chatbots would give me good advice. As there must be a winner, Google AI won.

If you are interested in looking into this technology, I would suggest:

  1. Testing multiple free AI tools to identify which best aligns with your specific business needs
  2. Please don't assume the chatbot knows your local market conditions; the more you tell it, the better. You are better off assuming nothing.
  3. Check the AI report, as wrong information was sometimes supplied.
  4. Gradually expand your AI Chatbot over time.

This research demonstrates that free AI chatbots can provide valuable pricing insights for Australian retailers, though their effectiveness varies significantly across tools. By selecting the appropriate AI assistant and providing relevant contextual information, retailers can enhance their pricing strategies without investing in expensive subscription services.

Have you tried any of these tools yourself doing this type of test? Please share your experiences in the comments below!

Written by:

Bernard Zimmermann

 

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

 

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Why is my internet slow, but they say it's fast?

POS SOFTWARE

Internet speed testing

You get a good internet plan, and your internet provider says it is fast. They get you to run a speed test, and it shows your internet connection is quick, but really, you do not see it. It is common for people to feel that their internet is slow even though everyone tells you it is fast. I got such an enquiry yesterday. No one likes to wait; reliable internet isn’t just a convenience. After all, it’s essential for keeping your business running smoothly.

The Limitations of Internet Speed Tests

People seem to expect too much from these tests. What internet speed tests do is measure your connection under ideal conditions. They don’t often reflect the complexities of real-world internet usage. Here’s why:

Local Testing

Speed tests will often connect to servers geographically close to your location, thus minimising delays and avoiding congestion when connecting to more distant places. Usually, large internet providers use their speed test servers within their networks. These problems cause artificially high results. Also, some providers deprioritise types of traffic that they think can wait. As a result, your speed test might look great, but your experience is much slower.

Simplified tests

Speed tests rely on consistent, high-volume traffic and don’t account for the complexity of everyday tasks like video calls, streaming, or running multiple devices on the same network. These activities introduce variables that can significantly affect performance.

Peak Usage Times

In Australia, internet speeds often fluctuate based on demand. I have noticed in the evening it can slow right down. People tend to ring internet companies for support in the day time when they have some time.

Outdated equipment

Despite what many say, the quality of your modem and router play a significant role in Internet performance. When we replaced outdated equipment on one site, we saw an immediate improvement.

Software and Background Activity

Sometimes, slow internet is caused by what you are doing, if your computer is working, people are doing things in the shop, background apps and/or automatic updates are running often without you realising it. Yeah it can run slow.

External Network Congestion

If what you are doing is going say overseas, who knows where on the chain something could be causing problems. This is especially relevant as many of our customers rely on the internet for contacting their overseas suppliers

Practical Steps to Improve Your Internet Experience

If you’re frustrated by your slow Internet despite good speed test results, there are steps you can take to improve performance:

Upgrade Your Equipment

Check whether your modem and router are outdated; maybe consider upgrading to models that support higher speeds.

Move your Equipment

Check that your modem is away from interference sources, and move cables away from your network cables if possible. We had a customer who was running slow. The cause was that one of their internet cables was running just on top of the fluoro lights.

WIFI

I recommend Ethernet cables for critical devices like POS systems; they are generally faster and more stable. WIFI can sometimes cause problems. We laid a cable in one shop, and the problem disappeared.

Schedule your usage

Often, just moving when you do tasks can help. If it tends to be busy in the evening, move the task to an earlier or later time.

Test

If you are going to use a speed test, try this one

testmy.net

What I like about it is that it can test your speed and then give you a score compared to what other people in your city are getting. It can also check your speeds to overseas countries if that is what you are interested in.

I set it on a computer to run automatically every hour and then see what it says over a day.

Contact Your Internet Provider

If problems persist after troubleshooting, I would like to contact your internet provider for help. Ask them about the area you are in and your expected performance.

A Reliable Connection Is Key for Retail Success

A reliable Internet service is a necessity for running a modern business.

If you’re still experiencing issues after all of this, it might be time to consider upgrading your plan or switching to another provider!

We did!

Written by:

Bernard Zimmermann

 

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

 

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Boost Sales with a Loyalty Points Sale

POS SOFTWARE

Pre-buying loyalty points

Loyalty programs are the most popular type of program today. They have successfully fostered customer retention and driven sales. What it is trying to overcome is that unless a person buys regularly from you, it takes time for them to accumulate enough loyalty points to make it worthwhile to use them. This allows people to purchase points that can be used now. It boosts sales as it functions much like a gift card.

What Does It Mean to Sell Loyalty Points?

Selling loyalty points allows customers to purchase points instead of earning them through spending. The points can be redeemed now. For example, a customer might use points as a discount to buy more points. Many large brands, such as airlines, Hilton, and Starbucks, successfully employ this strategy. With proper planning, it could work for you, too.

Key Mechanics of Point Purchases

Similar to gift cards, which many of you now sell, customers pay upfront for points that they can redeem later. Think of it as a top-up.

This approach would be convenient in industries where people visit infrequently.

Advantages of Selling Loyalty Points

Enhanced Revenue Streams

Selling loyalty points provides immediate cash flow.

Improved Customer Experience

Customers gain control over their loyalty journey. With its accelerated progress, it can be used immediately.

Competitive Differentiation

Offering point purchases sets you apart from competitors still using traditional programs.

Valuable Behavioural Insights

As the points go to the actual buyer, a gift card goes to the buyer, making it harder to track what your customers want. This is a big plus as you can utilise the reports in the VIP section, so allowing better customer tracking.

Implementing such a system

Define Your Pricing Model

In this image above

$300 gives the customer $330

$500 gives $565

$1,000 gives them $1,150

I think it's too much, and I would suggest something like

$25 gives them $25

$50 gives them $52

$100 gives them $104

$250 gives them $255

The reason $25 gives them nothing better is that you do not want to encourage people to buy these points just to get a discount. Additionally, as is typical in such schemes, large purchases often result in a slightly worse deal than the $100.

Integrate with Your POS System

With our modern POS system, you can simplify point sales by:

  1. Automate point issuance upon purchase
  2. Syncing inventory with redemption options
  3. Tracking customer purchase/redemption patterns

There is no reason why you cannot experiment with offers like “Double Point Days,” which many retailers use.

Communicate Clearly

  1. Use in-store signage to explain how it works. No point in having it if no one knows bout it.
  2. I could see how someone like a barber could use it to send out targeted offers like “Need 50 more points for a free haircut? Buy them now and save $15!”
  3. Train the staff to explain the program’s value during checkout.

Written by:

Bernard Zimmermann

 

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

 

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Australian Dollar Crisis: Practical Tips for Retailers

POS SOFTWARE

Australian Dollar Crisis

 

The Australian dollar (AUD) is in a decline against its major currencies. It presents a significant economic challenge. Some people attribute this problem to external factors, such as trade tensions with other countries. However, the real causes are deeply rooted in Australia’s financial situation.

Here is a table to show this.

Australian dollar April 2025

Just looking at the table, you can see that it's not Trump, as we received only the minimum 10%, and yet almost everyone, including those who received more, is doing better than we are: Japan, 24%; China 54%; and India, 27%. None have seen their currencies drop as much as ours. 

The Australian dollar is now at a five-year low. It has been going down for years, and the forecast for it is not good.

AUD vs USD 5 years 2025

 

We are facing significant challenges for retailers since nearly everything is imported. Let's now examine Australia's Retail Outlook.

Retailers must adapt

Why Is the Australian Dollar Dropping?

That's a good question I wish would be asked more often now.

Our economy

This decline is compounded by external factors such as global trade dynamics and Australia's reliance on commodity exports. It has not been pretty for quite a while, and now our currency is viewed as a “risk currency.”

China’s Economic Slowdown

As Australia’s largest trading partner, China’s weaker economy and economic uncertainty are dragging down the AUD.

Commodity Dependence

Australia relies heavily on exporting commodities. Much of this is in uncertainty.

Unemployment

While unemployment rates are currently low, job availability in high-paying, export-oriented sectors, such as mining, is shrinking. This trend could lead to problems.

To many of you, this will affect your customers' spending habits.

How Does a Weaker AUD Affect Retailers?

Fewer tourists

Many of my customers tell me how they miss the Chinese tourists. Tourism is vital to us.

Rising Business Expenses

As we all sell products sourced internationally, you’re likely to be hit by higher wholesale prices soon. A weaker AUD makes imports more expensive.

These increased costs often lead to higher retail prices and/or a squeezing of profit margins.

Increased Operational Expenses

Beyond inventory costs, other business expenses will rise:

####Energy Prices In addition to the rising electricity prices we now face, Coal remains a dominant source of electricity generation in Australia. Since coal prices are set in US dollars, a weaker AUD directly increases electricity expenses for businesses.

Shipping Costs

Importing goods becomes more expensive as freight costs are typically calculated in foreign currencies, often the US dollar.

What Can Retailers Do to Adapt?

Consumer Spending Slowdown

With inflation now eating into household budgets, shoppers have prioritised essentials over discretionary purchases. This trend is if you sell non-essential items, such as fashion or gifts. I suggest stocking items that are necessities. Children are not being affected by this trend.

Diversify Your Supply Chain**

Relying on a single supplier is risky when currencies fluctuate; local goods and local suppliers might reduce reliance on imports. Shop around; different suppliers in different countries are affected differently. For example, a New Zealand supplier is only marginally affected, whereas a Japanese supplier would be significantly impacted.

Use your POS System

As prices and the economy change, the quickest and best way to assess your business and its current status is through your POS System. It will tell you trends, what is working and what is not working. What you need is actual data in real time.

Conclusion

Retailers in Australia faced a challenging period.

We need to focus on the customer experience.

The future belongs to those retailers who adapt.

Written by:

Bernard Zimmermann

 

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

 

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How to find old stock

POS SOFTWARE

 

Old stock refers to stock that has remained unsold for an extended period. This stock will hurt your business.

  • Unsold stock ties up money.
  • Every inch of shelf space in your store is valuable, so old stock prevents you from showcasing stock that sells.
  • Items will lose value just sitting on the shelf.

The first step is to identify the old stock using your advanced point-of-sale (POS) system, as I'll show you here.

Then, we will need to manage it, as it is not going away now.

How to Identify Old Stock

You can quickly pinpoint this old stock by combining your technology.

Leverage Technology for Better Insights

Modern point-of-sale (POS) systems track and identify old stock. Here's how our POS software can help:

  • Generate reports to identify items with low or no sales over specific periods.
  • Flag seasonal goods that haven't sold after their peak period.
  • Tell you how long each product has been sitting on your shelves.

Pro Tip

We invite you to explore our engaging training video on identifying old stock. Click here for a training video on identifying old stock.

I suggest focusing on one department. Once that is done, proceed to the following department. Make sure you work systematically.

It avoids making you feel overwhelmed.

Look for Patterns in Your Inventory

Sometimes, the issue isn't just individual products but broader trends. Use your POS data to spot patterns such as:

  • Check brands that consistently underperform
  • Price points that don't sell well
  • Categories with high amounts of leftover stock

These insights will help you clear out old inventory and improve your buying decisions moving forward.

What To Do Once You've Found Old Stock

Identifying old stock is only half the battle—you also need a plan to deal with it. Here are some effective strategies:

Repositioning Products

Always try this first; sometimes, all it takes is a little intelligence.

Bundling

My favourite method is to bundle unsellable stock with good-selling stock. Bundle slow-moving items with popular ones to create value packs. For example, pair unsold candles with bestselling home décor items as a gift set. Another example would be a cookbook that has not sold. Put it together with a cookbook that sells well and charges more for the bundle than the cookbook that sells well.

Clearance Sales and Discounts

The traditional method eliminates this by offering discounts to move slow-moving items quickly. A well-promoted clearance sale can attract bargain hunters while freeing your shelves for new products. It works well during the stock-taking season in July, but it's expensive.

Why Your POS System Is Key

A sound POS system doesn't just help you find old stock; it can help prevent it. Our POS software equips you with tools to manage your inventory.

Predictive AI

Why not use the AI built into our software for intelligent ordering? It's free. It does:

Demand Forecasting

Predicting future product demand based on past trends and external variables.

Optimal Reordering

Identifying the best times and quantities for replenishing stock to avoid overstocking or shortages.

Dynamic Adjustments

Continuously updating predictions based on real-time data, ensuring accuracy even in rapidly changing conditions.

Cost Optimization

Reducing holding costs and waste by maintaining just the right amount of inventory.

By leveraging these tools, you'll clear out old stock and avoid over-ordering in the future.

Final Thoughts

Old stock is an inevitable part of retail life—but it doesn't have to hold your business back. With the right strategies and tools, such as a reliable POS system, you can transform dead inventory into an opportunity for growth. Whether freeing up cash flow or creating space for new products, taking action now will set your business up for success.

Ready to manage your inventory effectively? Watch our step-by-step training video (click here) or contact us today for expert support! Don't let old stock weigh you down—start making smarter inventory decisions today!

Written by:

Bernard Zimmermann

 

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

 

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Using your POS Software to find your Unsellable Easter Stock

POS SOFTWARE

Easter unsellable stock problem

 

Easter brings sales, alright, with chocolate bunnies and festive decorations. However, once the holiday ends, retailers are often left with stock that is difficult to sell. It impacts their cash flow, and worse, it has to be stored. Your POS software can help you identify many unsellable items, allowing you to take action before they impact your profits.

Why Seasonal Stock Becomes Unsellable

Seasonal inventory is a double-edged sword. While Easter drives foot traffic, a study of 40 of our clients revealed that approximately a quarter of the seasonal stock often remains unsold after the holiday, becoming dead stock that ties up cash flow and storage space. That is why we decided to address this problem.

Here is what retailers typically do to solve this common retail challenge:

  • Buy a stock for Easter, but it can be sold after Easter.
  • Some can be returned to the supplier
  • Retailers will typically slash prices by 50–70% to clear Easter leftovers, which erodes their profit margins.
  • The rest has to be stored till next year

Fortunately, with our POS Software, retailers have a powerful tool to help them identify and sell this unsellable stock. This tool can help determine the number of items sold during Easter, but it will likely not sell after following this step-by-step procedure.

Step-by-Step Inventory Analysis

Your POS system does more than process sales—it can help identify unsellable items early, allowing you to take action before they impact your finances. Follow these steps:

Use POS Reports Effectively

Leverage Historical Data

Go to Register Reports, which is marked in green, and then select "Stock Sold During Period(a) Not Sold in Period(b)" from the in-stock section.

Now select in stock, "Stock Sold During Period(a) Not Sold in Period(b)"

Go to Register Reports > Stock Analysis > "Stock Sold During Period (a) Not Sold in Period (b)"

Run this report to pinpoint previous unsellable items:

Set Period (a) 01/03/24 – 31/03/24 (Easter)
Set Period (b) 01/04/24 – 40/04/24 (post-Easter lull).

This report will generate a list of items that sold during Easter but had no sales afterwards.

Flag products with year-on-year (YOY) sales declines. I suggest that ≥15% should be marked as high-risk for overstocking.

Easter sales management

A Melbourne newsagency found that plush toys sold 22% slower than the previous year. They cleared 85% of their inventory early by running a pre-Easter flash sale.

Call-to-Action

Don't let unsellable Easter stock weigh down your business! You can use your POS system today to identify slow-moving items early, take decisive action, and refine your strategy for next year's holiday season.

Conclusion

You need to be able to manage their stock effectively. You should use this report to help manage your stock and maximise profits effectively.

Executive summary

> Due to stock that is only available during specific seasons, such as Easter, seasonal holidays can be particularly challenging for retailers.
> Our POS Software can assist you with tracking down unsellable stock 
> This report will provide a list of unsellable products.

Written by:

Bernard Zimmermann

 

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

 

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The $20,000 Instant Asset Write-Off and Your Business

POS SOFTWARE

Australian Taxation Office

Most of us were shocked at the budget when we saw that the Instant Asset Write-Off scheme was ending this financial year, I guess the goverment decided it was too expensive. For Australian small business owners, the Instant Asset Write-Off scheme has been a vital tool for managing finances and improving cash flow for many years, as it enables immediate tax deductions on eligible purchases. However, recent changes to the scheme mean that time is running out to take advantage of its benefits. Now is your last chance to take advantage of the scheme if you're a retailer; the Instant Asset Write-Off benefits effectively end on June 30, 2025.  

What's Changing with the Instant Asset Write-Off?  

Threshold Reduction

The maximum threshold for claiming an instant asset write-off will drop from $20,000 to just $1,000. This drastic reduction means that most significant purchases will no longer qualify for immediate tax deductions.  

Deadline for Current Benefits

We have a deadline of less than three months. That means you must act now to purchase and install eligible assets, as waiting too long could mean missing out on substantial tax benefits. Simply ordering or paying for an asset isn't enough—it must be ready for use in your business by June 30, 2025.

So now is the time to review your POS System while you can still take advantage of the Instant Asset Write-Off scheme.

So, is your computer feeling sluggish? 

Are the long queues and slow checkouts frustrating your customers and costing you? Then maybe it's time to turbocharge your business with a new computer using an ATO's $20,000 Instant Asset Write-Off!

This allows you to immediately deduct the cost of eligible computers (up to $20,000) from your taxable income. In the past, this has saved thousands of dollars for many of my clients, and it can likely save you money as well. 

Here's why a new computer and the write-off are a winning combo for your business:

Unleash the Speed Demons! 

  • Faster Checkouts: Upgrade to the latest lightning-fast computer for even faster speeds. A new computer can improve the speed of your POS software performance.
  • Boost Staff Productivity: Their time spent on the computer costs you money and reduces their time for productive work.

Here's how it benefits you:

  • Improved cash flow: This deduction allows you to immediately deduct the full cost of the computers that you would otherwise have spent on depreciation over several years. This can free up a significant amount of cash flow.
  • Simplified tax time: No need to track depreciation schedules for your computers. Just claim the deduction and move on.

Real Business Owners, Real Results! ️

Since upgrading our computers with the write-off, checkout times have significantly decreased. Customers are in and out in a flash, and our staff are significantly more efficient. 

"The tax savings from the write-off were a huge bonus! We used the extra cash to invest in a top-notch inventory management system"

Don't Miss Out! 

This opportunity ends on June 30, 2025. The computers have to be in the shop and working by then, to claim this year so if you are interested you need to move immediately

Here's a win-win solution: Upgrade your computers with the ATO's $20,000 Instant Asset Write-Off, boost your business, and save thousands on your tax bill!

Contact us today for a free consultation and discover the perfect computer to boost your business and save with ATO's Instant Asset Write-Off!

Please consult with your accountant first to verify whether you meet the eligibility criteria, as this information is for general purposes only and shouldn't be taken as tax advice.

Written by:

Bernard Zimmermann

 

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

 

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Testing AI you can use for free

POS SOFTWARE

Framework to access AI for retailers need

As a retail consultant, I am excited about how AI can be used to support small—and medium-sized business (SMB) retailers.

We decided to address the problem of receiving too much information today. No one has time to wade through the mountains of reports we are getting, so I decided to test which free AI solution will deliver results for your shop.

We chose free because most SMB retailers are currently experimenting with AI, and as a result, many are utilising free AI solutions. There is no point in testing something few are using.

We extensively evaluated six leading free AI tools to answer this question, testing them against real-world retail reporting scenarios. We made and rated over 200 reports in total. What we discovered might surprise you, but the results certainly did surprise me. This analysis will be helpful and save you a lot of time.

What the test is addressing

There is a significant gap between the data and the time and knowledge needed to use it effectively. A modern POS system like ours generates hundreds of reports, which require considerable time to review to identify sales patterns, inventory levels, supplier performance, and financial statements. However, finding time to extract meaningful insights from these reports is another matter.

Yet the promise is that AI tools can do this and quickly process reports, identify trends, spot anomalies, and suggest actionable improvements.

The Free AI Landscape

Like so much in the world, not all AI tools are equal; some are better than others, and each one has account limitations.

We tested six popular tools to help you navigate these options:

ChatGPT (OpenAI)

Claude (Anthropic)

DeepSeek

Google AI

Grok 3

Qwen

Evaluation Criteria for AI Tool Performance

Now, we know that all of them are good, but there is always a case where even the best six runners in the world have one who is better, and that is what we wanted to find out: the best free AI for retailers.

Each tool was evaluated on its ability to handle our tests based on these criteria:

Information Accuracy

Accuracy formed the cornerstone of our evaluation. Without accurate information, even the most sophisticated analysis becomes worthless for making informed business decisions. We meticulously verified whether each AI tool could process retail data without introducing errors or misinterpreting figures. This involved cross-checking calculations against known values and assessing whether the tools maintained data integrity throughout the analysis. In retail, where margins are often tight, minor inventory valuation or sales forecasting inaccuracies can lead to costly mistakes.

Clarity of Presentation

Accurate information is only valuable if presented in an understandable format. We assessed each tool's ability to structure information logically with clear headings, appropriate visual elements, and a coherent flow that retail managers could easily navigate. We examined whether complex data was transformed into straightforward insights that wouldn't require a data science degree to interpret. A good report should communicate the key points to a retailer without requiring them to wade through jargon.

Actionable Insights

Data without direction offers limited value to retail businesses. We evaluated each tool's ability to convert raw information into practical recommendations that retailers could implement. I am very proud that our POS system provides our customers with tools they can utilise. I want the AI report to do the same. I want to know what specific opportunities were identified in my inventory optimisation, which products are underperforming, and what concrete actions I need to take from my supplier. Good tools should describe what is happening and what should be done next.

Business Relevance

We evaluated each tool's ability to focus on issues that matter most to Australian retailers rather than generic business statistics. Did the AI for example identify seasonal trends in an Australian retail cycles, did it highlight my supplier performance to my business. Information that is not relevant creates noise rather than value.

Consistency in Analysis

Consistency in reporting is crucial for tracking performance over time and making reliable comparisons. We examined whether each AI tool maintained a consistent approach to analysis in its report and whether its outputs provided a coherent narrative. We do not want contradictory findings. Retailers need to trust that the insights they receive follow logical patterns and don't send them in conflicting directions. Inconsistent analysis can lead to confused decision-making and undermine confidence in the technology itself.

This comprehensive evaluation framework enabled us to assess each AI tool beyond its surface capabilities, focusing instead on how effectively it would serve the practical needs of Australian retailers wanting to extract value from their business data.

Test 1: Long Trend Stock Report Analysis

The first test was designed to evaluate how the AI would perform if it were given a vast amount of data that retailers are receiving. If the AI cannot handle the data, it's of minor use to retailers. Retailers have lots of data today.

Now, understanding inventory performance is critical for any retailer. Seasonal trends, slow-moving items, and bestsellers all impact their bottom line, so we ran a comprehensive stock trend report spanning hundreds of pages. It's the kind of data most retailers can obtain but rarely find the time to analyse correctly. Our test data spanned 12 months and exceeded 300 pages in length.

Tool Performance

ChatGPT

Failed almost immediately, as it ran out of credits, rendering it essentially useless for comprehensive stock evaluation. Even before hitting its limits, it failed to provide actionable insights that would aid practical retail decisions. The reality is that a retailer, after running this report, would almost certainly want to rerun it to see whether anything different changes the outcome. I might have tested this year and last year, but here I get nothing. As such, we immediately dropped ChatGPT.

Claude

Initially performed better. It identified some fundamental product trends on the first run. Then it ran into credit limits. However, it did identify some fundamental product trends, but its inability to handle follow-up questions made it impractical for the iterative nature of retailers' needs. As such, we dropped it immediately.

DeepSeek

Attempted a different approach to the credit limit problem. It took only a tiny section (6%) of the information. While this allowed it to complete the task without running out of resources, it did not give much.

Google AI

The first problem was that Google required CSV files, while all the others accepted Excel format, which we preferred. However, it did identify fundamental product trends; however, we all felt it lacked the depth needed for effective inventory management. Its surface-level insights wouldn't provide much of a competitive advantage for retailers looking to optimise stock levels.

Grok 3

Boy, were we impressed with this AI. It took the entire report without issues. It then provided a detailed trend analysis that would help retailers make smarter decisions. For example, it identified some products specifically for BBQs and reported that they sold well during the summer. It also spotted anomalies that would be easy to miss in manual review, such as products that underperform only during specific weather conditions.

Qwen

It performed admirably by identifying anomalies and supplier diversity trends, though it didn't match Grok 3's depth. It correctly helped identify problematic stock items. Unfortunately, it offers fewer actionable recommendations for improvement than Grok 3.

ChatGPT failed

AI Model Ave Score
Grok 3 9/10
Qwen 8/10
Google AI 7/10
Claude 7/10 Limited
DeepSeek 7/10

Test 2: Trial Balance Analysis

Accurate financial reporting is the backbone of retail success. The second test focused on a small compact trial balance dataset. What we wanted was an analysis that didn't require an accountant to understand.

Tool Performance

DeepSeek

It produced precise observations but struggled with depth when analysing discrepancies. Its summarised approach meant that nuanced financial issues, which could significantly impact a retail business, were overlooked.

Google AI

Here, we got straightforward summaries that aligned with our general ledger data but it lacked depth in identifying anomalies. We felt that although it was helpful for essential reconciliation, it wouldn't alert a retailer to subtle patterns.

Grok 3

Wow, it delivered a detailed financial summary with cross-referenced data for accuracy. It flagged discrepancies that required further investigation, allowing us to explore these issues. This capability could be invaluable for retailers without accounting expertise in maintaining the financial health of their business.

Qwen

It did a good job of highlighting significant balances and unexpected changes effectively. Again, it did not match Grok 3's level, but it did come up with much good stuff.

AI Model Ave Score
Grok 3 9/10
Qwen 8/10
Google AI 7/10
DeepSeek 6/10
Claude N/A

Test 3: Supplier Purchases Report

Managing supplier relationships is critical for maintaining healthy margins and consistent product availability. The third test examined a supplier purchases report to evaluate performance, track expenditures, and identify inefficiencies.

Tool Performance

DeepSeek

It did produce some quick overviews. It struggled with detailed metrics, such as cost per transaction or order accuracy. Its summarised approach meant it missed some critical inefficiencies; we did not think it was trivial, as these sorts of things directly impact margins.

Google AI

It did provide a structured summary but lacked in-depth spending analysis by category or supplier benchmarking. While helpful for basic understanding, we did not see key KPIs, such as identifying problematic vendors.

Grok 3

It did offer comprehensive supplier evaluations with detailed metrics. It identified inefficiencies. We thought it was suitable for managing dozens of suppliers. It was good, with its actionable tips.

Qwen

It did highlight anomalies as well as Grok 3 in the supplier but lacked actionable details.

AI Model Ave Score
Grok 3 9/10
Qwen 8/10
Google AI 7/10
DeepSeek 6/10
Claude N/A

Summary Performance 

When evaluating these tools specifically for retail applications, clear patterns emerged across all three test scenarios:

Tool Stock Analysis Financial Analysis Supplier Analysis POS Integration Overall Rating
ChatGPT We do not think its free version is suitable for retailers. Failed
Claude Limited Accurate but limited Decent but restricted Good 6/10
DeepSeek Partial (missed trends) Clear but shallow Quick but surface-level Good 6/10
Google AI Consistent but basic Straightforward Structured but limited Limited 7/10
Grok 3 Comprehensive Detailed Comprehensive Good 9/10
Qwen Good anomaly detection Highlighted changes Good diversity insights Good 8/10

Practical Implementation for Your Retail Business

Understanding how these tools perform in controlled tests is helpful, but implementing them in your daily operations is where real value emerges. Here's a practical approach to leveraging AI for business improvement.

Start Small and Focused

Begin with a specific business challenge rather than trying to analyse everything at once. Consider identifying your slowest-moving stock items for clearance, evaluating which suppliers offer the best value for similar products, or analysing sales patterns to optimise staffing during peak hours. Starting with a focused approach allows you to see tangible benefits quickly while building your comfort with the technology.

Prepare Your Data

Export relevant reports from your POS system in a format your AI tool can process. Depending on what tool you use, you need CSV or Excel. I prefer Excel but its your call. Check first that your data is clean and good. If you feed the AI rubbish, you will get rubbish back.

Ask Specific Questions

Frame your queries in specific, actionable terms rather than general requests. Instead of asking the AI to "Analyse my stock," try something more targeted, such as "Which product categories show seasonal patterns, and when should I increase inventory for winter?" Similarly, rather than requesting the AI to "Check my finances," ask, "Are there any unusual expense patterns compared to last year, and which categories show the largest percentage increases?" Specific questions yield specific, actionable answers.

We found that general queries often provided incorrect answers, requiring multiple attempts to obtain a satisfactory response.

Implement Findings Systematically

Test your questions systematically and record the question that yields the answers you want. This systematic approach ensures that AI becomes a valuable part of your business improvement cycle rather than just an interesting experiment.

Focus on applying insights

The best analysis is useless if it is not applied. Each of your analysis sessions should end with clear action items to be implemented and tracked.

Recommendations for Australian Retailers

Based on comprehensive testing and practical retail experience, here are my specific recommendations for retailers looking to leverage free AI tools:

Use Grok 3 as your primary analysis tool. I am told it will soon be charged, but now it appears to be the best in the free AI market. We were impressed with its ability to handle complex questions and our interactive questions, which is excellent if, like me, you like following your natural curiosity.

"A good question in business does not lead to an end; a good question opens doors you never knew existed."

Consider using Qwen; it's excellent. We found it helpful as it gave a good second opinion. It can be especially valuable when making significant business decisions.

If you're currently using ChatGPT or Claude, be aware of their significant limitations for business analysis. Their credit restrictions make them impractical for the iterative analysis that delivers real value. You may find yourself frustrated when analysis suddenly stops.

Conclusion: The Future of Retail Intelligence

Retailers, rather than using intuition alone, can use the Free AI tools now available to gain insights.

Written by:

Bernard Zimmermann

 

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

 

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Inflation Tactics Used by Your Suppliers

POS SOFTWARE

Inflation Tactics Used by retailers Suppliers

To combat suppliers' inflation tactics, you need to consider diversifying your supplier base and negotiating better contracts. But let's look into the details of these tactics. 

As I was reviewing the ACCC report on supermarkets, which discussed some of the inflationary pressures that retailers face. You can read it here.

While reading it, I thought of the problems that SMB retailers face. While we strive to maintain competitive prices for our customers, suppliers often use subtle tactics to increase costs. Here, I will list some to help you both identify these tactics, know the public discourse on the subject, and some actionable strategies to protect your business.

Here are the standard Supplier Inflation Tactics

They are generally subtle, as suppliers are accustomed to inflation and know how to adjust prices with minimal fuss. They try to raise prices without explicitly doing so, creating an illusion of price stability that is not true. Yet, these methods will significantly impact margins and reduce customer trust in you, even though it is not your fault.

Shrinkflation

shrinkflation and cherry ripes

It is now the most common method; shrinkflation occurs when suppliers reduce the size or quantity of a product while keeping the price unchanged. For instance, a cereal box might shrink from 560g to 495g, but the price remains $4.50. Often, the box size remains the same. This hidden cost increase erodes value for both you and your customers. I have spoken about it here.

Skimpflation

The most common term for this is "shitflation," but let's be polite. Skimpflation is lowering product quality without reducing prices. Examples include switching to cheaper ingredients or materials. Recently, a customer of ours reported that they are receiving complaints because the paper for a photocopier they supplied is not as good as it used to be. Here is a direct example of how these changes lead to customer dissatisfaction and affect their reputation.

Stealth Inflation

This tactic involves adding hidden fees or surcharges instead of raising base prices. For example, some suppliers have now introduced "handling fees", which inflate costs without appearing as a direct price increase on invoices.

Shadow Inflation

Here, we observe a decline in service quality with no corresponding price increase. Suppliers may send reps less frequently, have longer delivery times, take longer to repair, or reduce customer support.

Excuseflation

Suppliers may use general inflation as an excuse to raise prices. I had a beauty a few days ago when I complained about the price increase. One wanted to change me over to UPS. The supplier informed me that it was due to Trump's tariffs. I just laughed; what do you think? Are we that stupid to believe that? Those tariffs only apply to goods coming from some countries into the US. I am in Australia, so come up with another excuse to justify this price rise.

Actionable Strategies for Retailers

Here are some proactive strategies for mitigating the effects of supplier-driven inflation: Protect your margins while maintaining customer trust.

Monitor Product Changes

You will never do much about it if you do not know about it. Here is where a modern POS system can help you manage inflation impacts effectively:

  • Tracking margin changes in real-time.
  • Identifying trends in product specifications and Pricing.
  • Comparing supplier performance metrics like delivery reliability and price stability.
  • Integrating customer feedback data to assess how product changes affect satisfaction.
  • I had a customer who, when he realised that the items were suddenly smaller, changed the old ones in stock at a slightly higher price. You should not do that, but he argued that the old ones were worth more now.

Negotiate with Suppliers

  • Highlight with them effective price increases
  • Request discounts, or they may have alternative products that offer better value.
  • Demand advance notice of product changes.

Diversify Your Supply Chain

  • Source alternative suppliers for key products to avoid over-reliance on a single vendor.
  • Compare suppliers based on Pricing

Adjust Pricing Strategically

  • You need to be aware of a price change has occurred Consider communicating with your customers about necessary price adjustments due to supplier cost increases. The ACCC wants this, but I am unsure if it's a good or possible idea. Some suppliers withdraw a previous product and make a new product, e.g., 12 pencils in a box become 10 pencils in a box. It certainly is vital that you know about it if it comes up.
  • Offer value-added promotions like bundles or loyalty rewards to soften the impact of price hikes.
  • I like introducing tiered pricing options with premium, budget, and cheap alternatives to cater to diverse customer needs.

Conclusion

The reality is that inflation is terrible now. We are all feeling it. It may cost the government the election, as many blame it on them. Whether that is true or not, I can tell you it's not our fault.

What needs to be monitored as it causes:

Margin Pressure

Hidden cost increases reduce your profit margins, forcing you to make tough decisions about pricing strategies.

Inventory Complexity

Product changes due to shrinkflation or skimpflation complicate inventory management and purchasing decisions.

Customer Trust Issues

Customers may attribute perceived price increases or declining quality to you rather than the supplier, which can damage trust in your shop.

Administrative Burden

Monitoring and responding to these tactics requires additional time and resources that could be spent on other aspects of your business.

 

Written by:

Bernard Zimmermann

 

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

 

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What Is a POS System?

POS SOFTWARE

Point of Sale (POS) system

A point-of-sale (POS) system allows your business to accept customer payments, track sales, and manage the shop.

The POS System

Hardware: The Physical Backbone

Every POS system includes hardware components that facilitate transactions. Common examples include:

  • Terminals: Countertop units or mobile tablets are used to process sales.
  • Barcode Scanners: Quickly identify products and prices.
  • Receipt Printers: Generate paper or digital receipts for customers.
  • Cash Drawers: Secure storage for cash transactions.
  • EFTPOS Machines: Widely used in Australia to process card payments efficiently.

Software: The Brains of the Operation

The software component powers the functionality of a POS system:

Sales Processing

Inventory Control

Tracks stock in real time. This enables retailers to monitor their stock.

Customer Relationship Management (CRM)

Stores customer data to build loyalty programs.

Reporting and Analytics

Provides insights into sales trends and staff performance.

How POS Systems Transform Aussie Retail

Streamlined Operations

POS systems automate many manual tasks, allowing businesses to operate more efficiently:

  • Automatically adjust stock levels after each sale.
  • Generate detailed reports for financial tracking and decision-making.
  • Process payments.

Data-Driven Decision Making

Gets the retailer information that helps them make better decisions:

  • Identify top-selling products to optimise inventory.
  • Identify dead stock For example, a Melbourne newsagent discovered that 20% of his stock, using this insight from their POS system, was dead and not selling.
  • Analyse peak trading hours for better staff scheduling.
  • Track customer purchase behaviour to tailor promotions.

Enhanced Customer Experience

Modern POS systems improve the shopping experience by:

  • Reducing queue times with faster checkouts.
  • Offering personalised recommendations based on purchase history.
  • Managing loyalty programs seamlessly.

Real-World Benefits from Our Users

Benefit Example
Efficiency A Sydney café reduced transaction times by 45 seconds per sale.
Inventory Management A Melbourne newsagency cut overstocking by 20%, freeing up cash flow.
Customer Loyalty A surf shop increased repeat customers by 25%.
Mobile Sales A pet shop boosted sales by 15% using our mobile POS systems.
Data Analytics A Gold Coast lotto improved its product mix based on sales insights.

The Future of POS in Australia

As we move forward, POS systems will become even more integral to retail success:

Omnichannel Integration

The shop will need to be connected to the internet

AI-Powered

AI is already investigating many aspects of the shop. We feed information from a POS System into AI to investigate improving shop layouts, inventory, marketing strategies, etc.

Cashless society

It is only a matter of time before Australia becomes a cashless society

Cryptocurrencies

With bank fees the way they are now, it is only a matter of time before we see a growing movement to crypto.

Conclusion: Empowering Australian Retail

A POS system is an investment in your future retail business.

Explore our top POS System, which has been used in thousands of stores Australia-wide for over 40 years.

 

Written by:

Bernard Zimmermann

 

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

 

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