Understanding your Customer Acquisition Cost (CAC) is a key retail element today. We use it in marketing budgeting. I will show you how to calculate it to ensure your marketing budget delivers accurate results.

What is Customer Acquisition Cost(CAC)?

Customer acquisition cost, or CAC, is the cost of acquiring a new customer. Different channels, like social media, newspapers, email newsletters, etc., have different costs and effectiveness. We are trying to determine the most successful channel for the cost vs new customers.

To calculate your CAC, we divide your total marketing costs, including advertising costs, promotions, event expenses, product giveaways, and even extra salaries related to marketing efforts, by the number of new customers you gain.

Why CAC Matters

Knowing your CAC helps you:

• Evaluate the effectiveness of different marketing channels
• Allowing you to allocate your marketing budget more efficiently
• Understand the actual cost of growing your customer base
• Make data-driven decisions about your marketing strategies

Calculating CAC with Your POS System

Your point-of-sale system is crucial for accurate CAC calculations. Here's how to use it:

1. Compare current sales to the same period last year
2. Adjust for overall business growth or decline
3. Identify the number of new customers gained by a recent advertisement.

For example, suppose you averaged 100 sales per day last year and made 105 sales per day this year during a promotion. In that case, we had 5 new sales. This year's business is up about 2% compared to last year's figures, so we have five new sales, less than the two we would have had anyway. So, we are looking at three new sales per day due to this advertisement.

Real-World Examples

Let's crunch some numbers to see CAC in action:

Newspaper Advertisement

• Cost: $200 (design) + $1,000 (placement) = $1,200
• New customers: 10
• CAC = $1,200 / 10 = $120 per customer

Facebook Advertisement

• Cost: $200
• New customers: 1
• CAC = $200 / 1 = $200 per customer

Google Marketing Campaign

• Cost: $600
• New customers: 5
• CAC = $600 / 5 = $120 per customer

In-Store Sign

• Cost: $300
• New customers: 6
• CAC = $300 / 6 = $50 per customer

In this scenario, the in-store sign proves most cost-effective.

Beyond the Basics

Customer Value Assessment

Some people prefer profit over sales because a high-margin giftware buyer is worth more than a newspaper purchaser. I support this view. One of the problems here often is that something is popular; prices are thin, and you promote it, which gets some customers but little profit. The cost of the advertisement is actual.

Your POS System can give you the profit figures.

Fixed Cost Considerations

Sometimes, CAC calculations include fixed costs. The new shop should give you four new customers for two shop locations with a difference of $200 extra monthly rent. To a marketer, the CAC = $200 / 4 = $50 per monthly customer. Is $50 a customer worth it to you as a business owner?

Implementation Steps

1. Get figures before the promotion of what your current customers are.
2. Experiment with different marketing strategies and track results
3. Calculate the CAC results; the more you do, the easier it gets.
4. Regularly review and adjust your marketing mix based on CAC data

By mastering your Customer Acquisition Cost, you'll make smarter marketing decisions, stretch your budget further, and build a loyal customer base that will support your business for years. Keep experimenting, tracking, and refining your approach—your bottom line will thank you!

Frequently Asked Questions (FAQ)

Q: Why should I use CAC in my business?

A: CAC should be used in your business as it helps optimise your marketing and sales budget allocation by showing exactly how much you're spending to gain each new customer, allowing you to identify inefficiencies and reduce wasteful spending.

Q: How is CAC calculated?

A: Divide the total cost of sales and marketing by the number of new customers acquired during a specific period.

The formula is: CAC = (Cost of Sales and Marketing) / (Number of New Customers)

The costs include all costs associated with acquiring customers, such as salaries, tools, advertising expenses, and related overhead.

Q: What is a reasonable CAC?

A: The cost of a CAC varies significantly by industry. In Australia, retail prices are generally about $60. If you are starting a business, it's often higher.

Now, retailers must focus on the Christmas holiday season, but we must also look ahead with strategic planning for 2025.

Short-term Preparation for the Holiday Season

Assessing the Cost of Unpreparedness

Consider the potential impact of being underprepared for the holiday season.

• Revenue loss from missed sales opportunities
• Damage to customer relationships due to poor service or stock issues
• Increased stress

For many of our clients, this holiday period represents 30% of their annual revenue. Being unprepared could significantly affect your yearly financial performance and long-term business health.

Technical Readiness

Ensuring all your technical systems function smoothly during the coming holiday period. It includes:

• Check that your Point of Sale (POS) system runs efficiently.
• Confirming that all payment terminals are operational and can handle increased transaction volumes
• Testing barcode scanners and other peripherals for accuracy and speed

How much does anyone want to bet that a few of our clients will contact us in a panic because some POS equipment they never tested is not working?

A technical malfunction during peak shopping times can result in lost sales and customer dissatisfaction, potentially impacting your reputation long-term.

Inventory Management

Proper stock control is critical during the holiday rush. Consider the following:

• Review historical sales data to anticipate demand for popular items
• Ensure adequate stock levels for high-turnover products
• Make sure that your high-turnover products are noticeable.

Staffing Considerations

Adequate staffing is essential to manage increased customer traffic. Key points to address include:

• Assessing the need for additional temporary staff
• Optimising employee schedules to cover peak hours effectively
• Providing thorough training to ensure all staff can handle holiday-specific scenarios

While immediate holiday preparation is crucial, successful retailers must simultaneously lay the groundwork for the coming year. Let's examine how to balance these short-term needs with strategic planning for 2025.

Medium-term Planning for 2025

Current Growth Trends

Recent data shows positive growth in the Australian retail market:

In October 2024, retail sales increased by 0.6% month-on-month, surpassing market expectations of 0.3%

Year-on-year growth in October 2024 was 3.4% compared to the same period in 2023

Embracing Incremental Change

Consider the following strategies to keep your business competitive without overextending resources:

• Evaluating your product mix and potentially introducing new lines
• Refreshing your store layout or visual merchandising to enhance customer experience
• Implementing a simple customer loyalty program to encourage repeat business

These changes don't require significant technological investment but can substantially impact customer engagement and sales.

Customer-Centric Approach

Understanding and responding to customer needs remains crucial. Start by gathering customer feedback through informal conversations and simple surveys. Combine this with sales data analysis to identify trends and customer preferences. Finally, ensure your staff receives training to provide exceptional service that distinguishes you from competitors.

You can make informed decisions about your business direction by staying attuned to your customers' evolving needs.

Take action now

Begin by thoroughly assessing your holiday readiness.

Then, schedule dedicated planning time for your 2025 strategy. Your future success depends on the decisions you make today. Consider a website where you can seamlessly integrate your physical stores with your online website.

Also, I strongly suggest that you look into local SEO. If people cannot find you on the Internet, they will not find you at all.

The holiday shopping season is here. Your inventory management strategy during this period can make or break your seasonal success. Having fully stocked shelves isn't just about meeting demand – it's about maintaining customer satisfaction and maximising revenue potential.

The GMROI Report: Your Stock Level Lifesaver

Your POS system's hidden gem, the GMROI (Gross Margin Return on Investment) report, provides an immediate snapshot of your stock levels. This report reveals critical insights beyond basic stock counts.

How to Access the Report

We have a unique report that is super fast to run and gives you an immediate snapshot of your stock levels.

In the Cash register report, call up the GMROI (see the selection highlighted) in your point of sale software in the reports here.

You can select the list of options you want, and I suggest you go over these options later when you have time.

You should do this by departments or suppliers, whatever makes more sense to you. 

Now you get a report like this.

As you can see, the items are all listed.

Let’s look at it in detail:

What we are looking for are items with low stock on hand figures, decent sales, and reasonable ROI% figures. ROI% is the return on investment. It is one of the best ways to determine how valuable your stock items are to your business. It is calculated by the (unit sold) x (Profit)/ (Average stock cost), and you need about 3.2 in industry. However, as you can see here, there are many items above and below it.

Understanding the GMROI Report

Once you've generated the report, you'll see a list of all your items with several key metrics. Here's what to focus on:

1. Stock on Hand: This shows your current inventory levels for each item.
2. Sales: This indicates how well the item sells.
3. ROI%: The Return on Investment percentage is crucial for determining an item's value to your business.

While these metrics provide valuable data points, knowing how to interpret them effectively is critical to making informed inventory decisions.

Interpreting the Results

When analysing your GMROI report, keep an eye out for:

Low Stock, High Sales: These are your priority items. If they have a good ROI, you'll want to reorder them immediately to avoid stockouts during peak shopping.

Reasonable ROI%: The industry standard is about 3.2, but you'll notice variations across your inventory. Your star performers are significantly above this, while those below might need attention.

Taking Action

Now that you have this information at your fingertips, it's time to act:

1. Identify Critical Items: Look for products with low stock levels but strong sales and good ROI. These should be your top priority for restocking.
2. Place Orders: Contact your suppliers for these critical items immediately. Remember, they might be experiencing high demand from other retailers, too.
3. Adjust Forecasts: Use this data to refine your sales forecasts for the holiday season. This can help you avoid similar situations in the future.
4. Consider Promotions: For items with high stock levels and lower sales, consider running promotions to move inventory and free up cash for better-performing products.

The Power of Your POS System

Your POS system is more than just a cash register—it's a powerful ally in managing your retail business effectively. By regularly utilising tools like the GMROI report, you can:

• Prevent stockouts of popular items
• Optimise your inventory investment
• Improve cash flow by identifying slow-moving stock
• Enhance overall profitability by focusing on high-ROI items

Frequently Asked Questions (FAQ)

Q: What should I look for in this GMROI report?
A: look at these three columns.

-Stock on Hand (your current inventory levels)

-Sales (see how items are selling)

-ROI% (Return on Investment percentage)

Pay particular attention to items with low stock but high sales and a good ROI, as these may need immediate reordering.

Q: What's considered a good GMROI?
A: 3.2 or higher is often considered good. As this will vary by industry and product type, I suggest you evaluate the report and judge.

Q: How can I improve my GMROI?
A: Strategies include:
1. Increasing sales without increasing inventory levels
2. Reducing inventory levels without affecting sales
3. Increasing gross margin through better pricing or supplier negotiations
4. Improving inventory management to reduce excess stock
5. Push high-performing products
6. Implementing just-in-time inventory practices
7. Using your reports for better demand forecasting

Q: How often should I run the GMROI report?
A: Run it frequently (daily or weekly) during busy seasons like holidays. In less busy periods, monthly or quarterly might suffice.

Q: How can the GMROI report help improve cash flow?
A: The report helps identify slow-moving stock. By addressing these items through promotions or adjusted ordering, you can free up cash tied in excess inventory and reinvest in better-performing products.

During our end-of-year survey, which we are doing now, we got a surprising result.

One of our clients shared an unexpected thought for a suggestion.

He stated that he starts daily on a mission to spread happiness by greeting everyone and playing upbeat music. Sometimes, he does an impromptu dance to the cheerful music as he gets into it. These seemingly simple acts of positivity created a ripple effect that transformed his entire business ecosystem. He states that his team morale has improved since doing this, as has his bottom line; plus, he enjoyed it more.

My Observations

In today's business world, it's easy to get caught up in the day-to-day operations and forget the fun bit. After reading this on my Google Home Unit, I played a "Wake up Happy Good Morning" playlist. It works. It gave me energy when the song "Always Come Out of the Bright Side of Life" started playing.

Happy employees

"Great things in business are never done by one person; they're done by a team of people" - Steve Jobs

While doing some research, I found references that a happy staff doesn't just mean a positive work environment; it translates into tangible business benefits. Reports show that teams with high staff morale are 13% more productive. This increased productivity can make a significant difference in retail, where efficiency is crucial.

It will likely have a ripple effect on your customer interactions. Customers can sense when staff are genuinely happy and engaged, leading to a more enjoyable shopping experience.

Conclusion

Could you give it a try and have some fun at work? I am sure it will not hurt.

I am now getting a lot of enquiries about Tower Systems' Sale and what's happening with it. Gossip does not like a vacuum.

The short answer is I don't know, but after being involved in many business sales on both sides, I can make an educated guess.

Here are the facts: Tower Systems announced to its clients and suppliers that it had been sold to Vela Software. It is one big subsidiary of a vast multinational company. 

When I heard this, I was shocked. Rumours had been circulating in the industry that Tower Systems was for sale; I'd been involved in one such negotiation but walked away. 

But it's one of those things where Grandfather is very sick; we know he's very ill, and we're waiting to hear that he's died. But when he dies, it's still a shock. Same issue here - I knew Tower Systems was for sale, but when I heard in October it had happened, I was shocked. Then, we all would be further surprised by the silence.

Vela's Likely Acquisition Process Timeline

Initial market research (1 to 3 months)

Preliminary financial assessment First, informal contacts probably use a business agent appointed by Tower Systems.

Preliminary Engagement (2-4 weeks)

Exchange of NDAs Initial information sharing CIM review First meetings

Initial Evaluation (4-8 weeks)

Analysis of business fit Preliminary valuation Market position assessment Initial offer/expression of interest.

Formal Agreement Stage (4-8 weeks)

Negotiation of terms The signing of a definitive agreement Subject to due diligence conditions Confidentiality maintained

Due Diligence (6-12 weeks)

Comprehensive review process Multiple workstreams: • Financial • Legal • Operational • Technical

I suspect the problem might be here, which is holding up the deal.

Decision Point (2-4 weeks)

Review due diligence findings Final negotiations, if needed Go/no-go decision Possible price adjustments.

Completion and Integration (4-8 weeks)

Final documentation Deal Closing Public announcement Integration begins

So, a typical timeline would be six to nine months.

The Deafening Silence

Now, people are commenting on what's happening and why we're hearing nothing from either Tower Systems or Vela Software. This silence is very unusual. Generally, the buyer and seller make a joint announcement once a sale occurs. There's usually a ceremony, pictures are taken, and a joint public announcement is made.

From what I can see online, Vela's standard acquisition practices include a clear pattern of formal announcements, CEO statements, and continued communication. It's very much in the buyer's interest to notify stakeholders in the company they're buying immediately after the sale about what they intend to do. Customers need reassurance. Suppliers want to know what's going to happen. Staff need to know what to say, and the buyer wants to know what the staff will do after the takeover.

The Tower Systems situation now lacks these hallmarks—no formal announcement, no Vela acknowledgment, and abrupt communication cessation. This isn't typical for Vela Software, which usually maintains transparent communication and formal processes.

This silence is deafening.

Possible Scenarios

Given these unusual circumstances, I have four potential scenarios, some of which are not mutually exclusive.:

1. The Sale is Going Ahead

I propose that Tower Systems' announcement was unauthorised and early in this scenario. Although it was signed, Vela has yet to go through with the sale and is following the path of due diligence. They're still checking. The holiday season has delayed them moving forward immediately.

If so, I suspect we're looking at late January or early February 2025 for the formal announcement.

2. Someone Else Has Made a Competitive Offer

Although unauthorised, Tower System's announcement was an intelligent move to get someone else to act. Maybe there's someone Tower Systems was talking to who wants the company. Vela Software was probably only one of many approaches to buy Tower Systems. Tower Systems is effectively saying that if you wish to have us, you need to act now, or you will lose us. If so, I wonder if we'll hear much until March 2025 as they return to the negotiation. It would also explain Vela Software's silence, as they might be out of the race now.

We're looking, I think, at March 2025 to hear more.

3. Vela Software Rejection

Here, Vela Software said they would buy Tower Systems, but during due diligence, they found something they didn't like and walked away. For this to be true, the sale must have significant issues.

I've heard of this happening many times. I had a client who was going to sell his shop. The stocktakers were counting the day before the transfer. The new owner looked at the value of the existing stock being added up and told the stock-takers to stop as it was too much. He then announced it was far too much stock for what he had been told, and it looked old. The sale was cancelled.

If this is the case, I expect we won't hear anything from anyone.

4. Vela Software Wants a Price Renegotiation

The deal was made. Tower Systems announced it as a done deal. But then, while doing their due diligence, Vela Software found things they didn't like. They're willing to go ahead but want a better price or a change in conditions.

If so, we're looking at a fresh valuation process and negotiations. In this scenario, I wouldn't be surprised if we heard nothing more until March.

Market

Having made the announcement, I feel Tower Systems should say something now. In the meantime, I suggest that anyone doing business with Tower Systems immediately ask for a written statement from Tower Systems stating that the terms of the existing agreement will be honoured for the payment. New guy means new terms and conditions.

While the silence surrounding the Tower Systems sale is unusual, it's not unprecedented in business acquisitions. As we move into the new year, we should see more clarity on the situation. Therefore, don't be surprised if we hear something only in March 2025. After that, I think it's only fair for us to ask questions.

Recently, a client brought an almost new computer, it was claimed, but it turned out to be an old computer. Interestingly, the client himself is very computer-knowledgeable, and he was fooled.

Here, you can discover how to protect your investment and avoid getting scammed when buying a computer with these expert verification techniques. I always recommend purchasing only from reputable vendors. Note that this means more than just big ones, as many small vendors are reputable.

The Importance of Accurate Age Verification

Outdated systems disguised as new can create multiple problems:

• Performance issues affecting daily operations

• Compatibility problems with modern software

• Potential security vulnerabilities are threatening your business.

Consider these statistics:

• The average lifespan of a new system is 3 to 5 years; a two-year-old computer gives you 1 to 3 years, and a three-year-old probably about a year.
• Outdated systems will have higher repair costs.
• Performance degradation in older systems will lead to slower transaction times as they age.

The Bigger Picture

While determining the exact age of a computer system is crucial, it's not the only factor to consider when upgrading your POS setup. The reliability, compatibility with your chosen POS software, and the vendor's support are equally important. A slightly older system that's well-maintained and fit for purpose might serve your business better than a brand-new system that needs optimisation for retail operations.

Consider these key factors:

• System reliability and uptime
• Compatibility with modern POS software
• Vendor support and warranty options
• Overall performance for your specific retail needs

Serial Number: Your First Line of Defence

The serial number is your most reliable age indicator.

To locate it:

• Check the back of desktop computers

• Look under Computer

• Inspect the battery compartment.

For Windows-based systems, use the Command Prompt.

"wmic bios get serialnumber"

It might display the serial number if it is in the BIOS.

Once you have the serial number, visit the manufacturer's website or contact customer support. Many companies can provide manufacturing date information based on the serial number.

However, many computers today do not have the serial number here, so you get a "Default String."

While serial numbers can be reliable indicators, sometimes they're not accessible. In such cases, the BIOS date provides another verification method."

BIOS Date: A Window into the Past

BIOS date

Probably the quickest way to determine the approximate time your computer was initially assembled is from the BIOS date. You can check the system information in Windows. To access this, type "system information" in the start menu's search bar, run it, and a window will pop out showing you details about the computer, including the BIOS Date.

What you will get is

This will only work if the computer's BIOS was new at the assembly date and had not been updated since the initial installation.

The BIOS (Basic Input/Output System) data can offer valuable insights into a computer's age. Here's how to check it:

1. Open the Command Prompt (search for it in the Start menu).
2. Type one of these commands and press Enter:

"systeminfo.exe" or "msinfo32.exe"

1. Look for the "BIOS Version/Date" in the output.

This date indicates when the computer's BIOS was last updated. However, some manufacturers or tech-savvy sellers might update the BIOS before selling, which could mask the system's actual age. So, buyer beware.

Windows Installation: A Clue, Not a Guarantee

Going into Windows setting > About, it will tell you the version of Windows and when Windows was installed. Again it is a guide no more as a new version of Windows may have been installed on that computer

Checking the Windows installation date can tell you its setup date, but it does not always indicate the hardware's age. Here's how to find this information:

1. Go to Windows Settings (you can use the Windows key + I shortcut).
2. Navigate to System > About.
3. Scroll down to find the Windows version and installation date.

However, someone may have reinstalled Windows by upgrading it so that this date might reflect something other than the computer's age. However, it can be a helpful piece of the puzzle when combined with other verification methods, as you can be reasonably sure that the computer is likely older than this date.

Component Inspection: Devil in the Details

For those with more technical know-how, inspecting individual components can reveal much about a system's age, but this brings up another problem. I have seen people replacing components with older ones, but this will be the subject of another post.

Summing up

It is not easy to find out. These methods, at best, can only help.

It's important to note that a computer's age is not always an accurate indicator of its performance or lifespan. An older computer that has been well-cared for often functions perfectly for many years. New computers that are lemons are not uncommon, either.

FAQ

Q: How can I tell if a computer is new?
A: Check multiple age indicators: serial number verification, BIOS date, CPU model release date, and Windows installation date. No method is foolproof, so various verification techniques provide the best assurance.

Q: What's the most reliable method to check a computer's age?
A: The serial number is the most reliable indicator when available. You need this number when you contact the manufacturer to get the manufacturing date.

Q: How do you find out how old a computer is?
A: Use multiple verification methods above.

Q: How do you find the date on the computer?
A: Access dates through System Information (systeminfo.exe) to find the Original installation date and BIOS Version/Date, or check Windows Settings > System > About for the installation date.

Q: What is the age of the computer System?
A: Generally, computer systems are typically categorized
- New (1-2 years)
- Middle-aged (3-5 years)
- Aging (5+ years) 

Most businesses value a computer for five years, and after that, it has no book value. 

Q: How old is my computer in human years?
A: This is an awful measure, but it is commonly stated that a computer ages at five human years for each actual year. 

Q: Can the BIOS date be manipulated?
A: The BIOS can be updated, which changes its date. That's why using multiple verification methods is essential rather than relying solely on BIOS information.

Q: How do I check the Windows installation date?
A: Access Windows Settings > System > About. While this shows when Windows was installed, remember that Windows could have been reinstalled on older hardware.

Q: What should I do if I discover my "new" computer is used?
A: Document all evidence, contact the seller immediately for resolution, and if necessary, file complaints with consumer protection agencies. 

Q: How often should I replace my computer?
A: Replacement for business and POS systems is typically recommended every 3-5 years. Systems older than this often experience performance issues and security vulnerabilities.

Q: Can I trust component inspection?
A: Component inspection can be helpful but requires technical knowledge. Be aware that components can be swapped, so this method should be used alongside other verification techniques.

Q: What if the serial number shows "Default String"?
A: This is common in modern computers where the serial number isn't stored in the BIOS. In these cases, check the physical serial number on the device or use alternative verification methods.

Q: How can I verify the age of individual components?
A: Use system information tools to identify component models, then cross-reference their release dates with manufacturer specifications. However, remember that components might have been replaced over time.

Implementing a strategic best-seller labelling system can boost your retail sales through proven psychological triggers. Products with best-seller badges experience an increase in visibility and conversion boost. As a retailer in Australia, this simple yet powerful technique could be the key to driving customer interest and improving your bottom line. The majors like Amazon do it, so why not you?

The Power of "Best-seller" Labels

Best-seller labels tap into fundamental human desires for belonging and social validation. The sense of belonging drives purchase decisions by providing customer validation. Customers who see an item as popular are more likely to trust its value and quality. This psychological trigger can significantly influence purchasing decisions, making it a valuable tool in your retail arsenal.

Why This Works

This strategy is effective for several reasons:

Social proof

People tend to follow the crowd, especially when making purchasing decisions.

Attention-grabbing

The signs draw the eye, making these products stand out.

Simplifies decision-making

A "Best-seller" label can tip the scales for indecisive customers.

Good Value

Best-seller items are seen as good value.

Maximizing Product Visibility

Strategic placement of best-seller products in high-traffic areas and at eye level significantly impacts customer engagement. It is vital as these items sell. Consider these placement strategies:

• Position best-sellers near the entrance to catch immediate attention
• Place them at eye level on shelves for easy visibility
• Use end-cap displays to highlight top performers
• Put items that would sell well with this item around them.

Implementing the Strategy

Now that you understand the psychology and have your data, it's time to put your plan into action:

Best-seller Signs

I suggest purchasing some for a professional look. An essential tip is to ensure your signs are in red to grab attention and create urgency. Have a look at something like this.

Review your top seller's list.

Your Point of Sale (POS) system is a goldmine of valuable data. Here's how to use it to identify your top-selling items:

Go to Register reports.

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

Now, in the form put in the last 30 days and select a department

A report looks like this with your top sellers listed.

This report will list your best-performing products over the past month. Now, go through these items and select as many as reasonably possible. Choose as many items as possible from your top sellers' list; the best-sellers are generally evident when you look at the list. Typically, you get about five on every list.

To gain deeper insights, run reports for multiple timeframes:
- Month data for current patterns.
- Three-month data for seasonal patterns 
- Year data for long-term performance

The bonus of doing several runs is getting more best sellers. 

As a punt, you should get about ten items per department. You do not want more.

Select and label your best-sellers

Place your "Best-seller" signs next to or pointing at these items

Maintain the strategy

Set a reminder to repeat this process monthly, as this ensures your "Best-seller" labels always reflect current top performers

Tracking Performance Metrics

To measure the success of your best-seller strategy:

• Monitor sales of labelled items before and after implementation
• Track overall store revenue changes
• Observe customer behaviour and engagement with labelled products
• Analyze changes in product visibility and shelf time

Optimizing Customer Psychology

Remember, bestselling labels are more than signs- powerful psychological triggers. To maximize their impact:

• Use persuasive language on your labels (e.g., "Customer Favourite")
• Combine best-seller labels with limited-time offers to increase urgency
• Train staff to highlight best-seller items during customer interactions

Conclusion

The "Best-seller" labelling strategy is a simple yet powerful tool that leverages your POS system's data to boost sales. By highlighting your top-performing products, you're guiding your customers towards items that will likely satisfy them, increasing your sales.

FAQ

Q: How often should I update my bestseller labels?

A: We recommend that you update your bestseller labels monthly. This ensures that your labels always reflect your current top-performing products, keeping your store layout dynamic and engaging for repeat customers.

Q: What makes a bestseller on Amazon?

A: A bestseller on Amazon is primarily determined by sales volume within a specific category. The Amazon A10 algorithm considers factors such as sales velocity and sales history when ranking products. The bestseller status is updated hourly, reflecting recent sales performance

Q: Can I use bestseller labels for many of my products?

A: While it might be tempting, your customers are not fools and will smell a rat if you are not genuine. Plus, overusing the label can dilute its impact and reduce customer trust. Stick to labelling your actual top-selling items based on your POS data.

Q: What colour should my bestseller signs be?

A: Red is the most effective colour for bestseller signs. Red grabs attention.

Q: How do I determine which products are my bestsellers?

A: Use your POS software to generate a "Top N Stock Sales for a Given Period" report.

Q: Will this strategy work for all types of retail businesses?

A: I have seen it effectively used in many shops, from hamburgers to chemist shops. However, the impact may vary depending on your products and customer base. It's worth testing and measuring results in your unique retail environment.

Q: How does this strategy tap into customer psychology?

A: Bestseller labels leverage social proof, a psychological principle where people tend to follow the actions of others. Customers who see a popular product are likelier to trust its value and quality, influencing their purchase decisions.

Q: Can I combine bestseller labels with other promotions?

A: Absolutely! You can introduce if you want bestsellers for the promotion, too.

Q: How do I measure the success of this strategy?

A: Track sales of labelled items before and after implementation, monitor overall store revenue changes, observe customer behaviour around labelled products, and analyze changes in product visibility and shelf time. Our POS system will be able to provide this data.

Most of our retail clients who never had a Black Friday Sale listened to us, did it at the last minute, and saw increased sales. It's still possible to capitalise on this massive shopping event. Here's how to make the most of Black Friday today and maximise your in-store profits.

Why Participate in Black Friday?

Black Friday has become a vast retail occasion in Australia, with brick-and-mortar stores gambling a vital function. In 2023, in-save Black Friday income increased by 15% compared to the preceding year, with foot visitors up 22% in shopping centres across most critical Australian cities.

Setting Up Your Same-Day Flash Sale

1. Choose the Right Sale Items

Select products that will attract bargain hunters and clear your inventory:

• Overstocked items
• Slow-selling products
• Popular items with a small discount to drive foot traffic

Your POS system can help you identify these products quickly by generating reports on stock levels and sales performance.

2. Leverage Your POS Software

Your point-of-sale system is crucial for last-minute sales success. It makes it very easy.

Here are some instructions. 

Remember, these are overstocked or slow-selling products, and you are dealing with bargain hunters who want stuff like this now.

3. Promoting Your Flash Sale

What is the point of having a Black Friday Sale if you don't tell people about it? Put a sign up. Do not worry about it being a little early or removing it after Black Friday. Black Friday Sales now last for weeks.

On the Facebook page of one local business, which I know is very professionally run, I saw the following written

Don't miss out on these amazing Black Friday deals! Shop early to get the best selection. We also have a great gift guide to help you find the perfect presents for everyone on your list. And don't forget to take advantage of our price match guarantee!

Make your own sign. I suggest including some of these words as, based on what I have seen, they seem to work.

Black Friday

Cyber Monday

Doorbuster 

Gift Guide

Holiday deals

Price match, 

Save money

Shop small

Here are some ideas:

• "Black Friday Flash Sale - Today Only!"
• "Doorbuster Specials - While Stocks Last"
• "Shop Small, Save Big - Support Local"
• "Price Match Guarantee - Ask Us How"

Conclusion

While planning for Black Friday is better, participating and boosting your in-store sales is not too late. By leveraging your POS system, creating urgent promotions, and focusing on clearing stock, you can turn this Black Friday into a profitable event for your shop.

Australian consumers actively seek in-store Black Friday deals. 68% of Australian shoppers now plan to visit physical stores for immediate gratification and tactile experiences.

Post-Black Friday Strategies

Extend it, extend it and extend it. Black Friday is much longer than a day.

Black Friday Sales FAQ

Q: How do you Make a Sale on Black Friday? 

A: Start by determining the proper merchandise to discount, focusing on overstocked gadgets and gradual-moving inventory. Use your POS device to generate inventory reports. Then, creating urgency with time-restrained gives and ensures aggressive pricing whilst maintaining profitability.

Q: How do you Announce a Black Friday Sale? 

A: Create eye-catching signage using proven promotional keywords like:

• "Black Friday Flash Sale"
• "Doorbuster Specials"
• "Shop Small, Save Big"
• "Price Match Guarantee"

Leverage your social media platforms to announce the sale, and don't worry about extending the promotion beyond Black Friday itself, as these sales typically run for several weeks.

Q: What is the Black Friday Sale in Australia? 

A: Black Friday has come to be a primary retail event in Australia, with in-shop sales increasing by 15% in 2023 compared to the previous year. Physical store site visitors saw a 22% increase throughout fundamental Australian cities, and sixty eight% of Australian buyers especially plan to go to brick-and-mortar shops for Black Friday for fast purchases and arms-on shopping stories.

Q: How do you run a Successful Black Friday Sale?

A: Product Selection

1. Focus on overstocked inventory
2. Include popular items with smaller discounts

3. Feature slow-moving products that need clearing

4. POS System Utilisation

5. Use your point-of-sale system to track inventory
6. Monitor sales performance in real-time

7. Implement price changes efficiently

8. Promotion Strategy

9. Display prominent signage
10. Use proven promotional keywords
11. Extend sales beyond Black Friday

12. Implement a price match guarantee

13. Post-Sale Management - Consider extending your sale period to maximize revenue potential and clear remaining inventory.

For Australian retailers, every dollar invested in inventory directly impacts the bottom line. Real-time inventory management revolutionises how you track, manage, and optimise your stock to maximise profits and boost your profitability. Real-time stock management offers many advantages that traditional techniques cannot in shape. Real-time inventory management provides many advantages that conventional methods can't match. Here's how it can benefit your business:

Guide to getting Real-Time Inventory Information

Real-time inventory management is essential for preserving optimum stock ranges and ensuring clean operations in your retail commercial enterprise. Here's a step-by-step approach to having access to your inventory records fast and effectively using our POS device:

Step 1: Access the Stock Performance Report

Navigate to stock performance. You'll find critical data about your current inventory levels and sales trends there.

Step 2: Go to Register Reports

Within the stock performance section, locate the "Register Reports" option. It will lead you to various reports that provide insights into your inventory and sales.

Step 3: Select Suppliers' Sales Trend

Once in the Register Reports menu, choose "Suppliers" and "Suppliers Sales Trend." This report will give you a comprehensive overview of how each supplier's products perform in your store.

Step 4: Set Your Date Range

To get a meaningful analysis, set the date range for the past year. It will provide a complete picture of sales trends and inventory movements, helping you make informed decisions.

Step 5: Analyse the Report

After generating the report, take a close look at the data:

A report like this pops out.

Let us go through it.

A negative stock item marked with a green arrow is a sign that your stock quantities are not wholly correct.

Look at the red arrow. You have 19 of these items now but have never sold any of them. This is a worry. Ask what happened.

Also, as you go down, you will see an item with a blue arrow. You have none in the shop. See how you have no stock but have sold many of these items.

Where is this going?

Retailers can get ahead of the competition in real-time. It will enhance your efficiency and increase sales.

Step 6: Take Action

Use the insights gained from your analysis to make strategic decisions:

• Adjust Orders: Modify future orders based on stock levels and sales trends.
• Communicate with Suppliers: Use your data to have informed discussions with supplier reps, ensuring they understand your needs and challenges.
• Optimise Inventory Levels: Implement adjustments to keep superior stock tiers, stopping overstocking and stockouts.

Following this step-by-step guide, you can efficiently access actual-time inventory information. This will empower you to make knowledgeable choices that improve your shop's performance and increase sales.

Improved Cash Flow

Optimising stock levels with real-time data frees up capital that would otherwise be locked away in excess inventory. ### Enhanced Decision-Making Access to live information lets you make knowledgeable buying, pricing, and promotions choices. You'll be able to respond quickly to market demands and adjust your techniques accordingly.

Increased Efficiency

Automating tasks like inventory counts and reorder approaches saves time and reduces human blunders, allowing you to focus on strategic activities that power the commercial enterprise boom.

Better Customer Service

Ensuring popular gadgets are always in inventory complements patron satisfaction and builds loyalty. Happy customers are much more likely to go back and advise your store to others.

Competitive Advantage

It is crucial to stay ahead of competitors who depend on previous methods. Real-time stock control offers the potential for quicker response times and more accurate forecasting.

Traditional vs. Real-Time Inventory Management

Traditional inventory control often suffers from old and faulty information, primarily due to sluggish reaction instances and reactive inventory degree optimisation.

Leveraging Real-Time Data in Supplier Interactions

Having instant access to your inventory records strengthens your position while dealing with providers. Here's a way to make the maximum of this advantage:

Review your inventory report before meeting with a supplier rep to identify areas of concern or opportunity.

• Demonstrate control by showing the rep that you have a firm grasp on your inventory situation through specific data points from your report.
• Ask informed questions using your data to probe deeper into product performance and seek solutions for underperforming items.
• Negotiate effectively leveraging your sales data to secure better terms and discounts on high-performing products or arrange returns for slow-moving stock.
• Avoid overstock pitfalls by resisting pressure to accept excess inventory, referring to your real-time data, and sticking to optimal stock levels.

Taking the Next Step: Implementing Real-Time Inventory Management

Ready to revolutionise your retail operations with modern inventory management? Here's how you can get started:

1. Book a Free Demo: Experience how our POS device can transform stock management. Our group will stroll you through the capabilities tailored to your commercial enterprise wishes.

2. Customised Implementation Plan: We'll create a personalised roadmap for integrating our POS system into your modern-day operations, ensuring minimal disruption to your enterprise.

3. Seamless Data Migration: Our professionals will switch your inventory information to a new machine, ensuring accuracy and completeness.

4. Comprehensive Staff Training: We offer thorough education periods for you and your group, ensuring everyone is confident in using the new machine to its full capability.

5. Ongoing Support: Our devoted Australian-based guide group is always available to help you with everything, from preliminary setup to destiny enhancements.

By choosing our POS device, you're no longer simply shopping for software programs but investing in a partnership devoted to your retail fulfilment. Our solution gives actual-time stock monitoring, automatic reordering, and insightful sales analytics designed to reinforce your profitability and streamline your operations.

Refrain from letting previous stock practices hold your business back.

Frequently Asked Questions (FAQ)

Q: What is a real-time inventory management system?

A: A system that gives you an actual inventory. It uses advanced technology to track inventory changes, permitting you to monitor stock levels, income developments, and crucial data in actual time. This machine lets outlets make knowledgeable decisions quickly, optimise inventory ranges, and respond promptly to marketplace demands.

Q: What is real-time stock management?

A: Real-time inventory control involves tracking and managing your inventory levels. It affords up-to-date information about your stock, enabling you to make informed choices quickly and efficiently. This technique permits fast updates to stock facts as transactions occur, ensuring you constantly have the most modern statistics for your inventory.

Q: How does actual-time inventory management benefit my commercial enterprise?

A: Real-time stock management gives numerous blessings:
- Improved Cash Flow: By optimising stock levels, you free up capital that can be reinvested in other business regions.
- Enhanced Decision-Making: Access to live records allows for knowledgeable buying, pricing, and promotional selections.
- Increased Efficiency: Automating duties like inventory counts reduces mistakes and saves time.- Better Customer Service: Ensures popular items are always in stock, enhancing customer satisfaction.
- Competitive Advantage: Provides faster response times and more accurate forecasting than traditional methods.

Q: How can I access real-time inventory information using your POS system?

A: Follow these steps to access real-time inventory information:
1. Access the Stock Performance Report: Navigate to the stock performance section in your POS system.
2. Go to Register Reports: Click on the "Register Reports" option to gain insights into your inventory and sales.
3. Select Suppliers' Sales Trend: For a comprehensive overview of product performance, choose "Suppliers" and "Suppliers Sales Trend."
4. Set Your Date Range: Set the date range for the past year to analyse sales trends and inventory movements.
5. Analyse the Report: Review data for negative stock items, slow-moving stock, and out-of-stock bestsellers.
6. Use insights to adjust orders, communicate with suppliers, and optimise inventory levels.

Q: What should I do if I find discrepancies in my inventory report?

A: If you notice discrepancies such as negative stock items or slow-moving products, take immediate action:
- Investigate the cause of discrepancies and correct any errors in your records.
- Adjust future orders based on accurate data to prevent overstocking or stockouts.
- Communicate with suppliers to address any issues with product supply or demand.

Q: How can real-time data improve supplier interactions?

A: Real-time data strengthens your position when dealing with suppliers by:
- Allowing you to demonstrate control over your inventory situation with specific data points.
- Enabling informed discussions about product performance and solutions for underperforming items.
 

Q: What steps should I take to implement real-time inventory management?

A: To implement real-time inventory management with our POS system:
1. Book a Free Demo: Experience how our system can transform your inventory management.
2. Customised Implementation Plan: We'll create a tailored roadmap for integration with minimal disruption.
3. Seamless Data Migration: Our experts will ensure the accurate transfer of your existing data.
4. Comprehensive Staff Training: We provide thorough training sessions to use the new system confidently.
5. Ongoing Support: Our Australian-based support team is available for assistance from setup to future upgrades.

Are your computers slow? Here are some practical solutions to measure and improve your system's speed.

Common Causes of Slowdown

Software Bloat

Over time, as you install new applications and grow your software library, your system accumulates clutter that consumes precious assets and processing power. That sluggish buildup can result in decreased overall performance.

Insufficient RAM

As a rule, the Random Access Memory (RAM) is critical to the computer's overall performance. When RAM becomes inadequate, your computer's speed suffers substantially. It is a bottleneck that causes slowdowns.

Adding more RAM is often a cheap, quick method to increase your computer speed.

Disk Drive Space

If your hard drive is used up, it will impact your computer's speed. Make sure that you have at least 10% of disk space free.

While hardware limitations affect performance, software issues can be equally problematic.

Malware Infections

You'd be surprised how regularly we find viruses and malicious applications running silently on our clients' computer systems. Besides being a security issue, these packages devour system resources and cause slowdowns, so antivirus scans are critical to prevent this difficulty.

Fragmented Hard Drive

On older machines, your hard drive fragments files over time, making it harder for your computer to access them quickly. Older computers need regular defragmentation as it can help mitigate this problem.

Outdated Hardware

As software evolves and becomes more resource-intensive, older hardware may struggle to keep up. It can be particularly noticeable with storage drives and RAM.

Background Programs

Many applications are set to run automatically at startup, consuming resources even when you're not actively using them.

Check your startup folder to manage these programs.

Once you understand these common slowdown causes, you can assess your system's performance adequately.

Measuring Performance

Preparing Your Windows PC for Performance Testing

Before running any benchmarks on your Windows PC, prepare your system:

• Restart your computer.
• Update your Windows operating system and drivers to the latest versions.
• Run a quick virus scan to rule out any performance-draining issues.

Testing Tools and Methods

Using PassMark PerformanceTest for Comprehensive Benchmarking

I recommend PassMark PerformanceTest software, which is well-known for computer testing and benchmarking. It offers insights into your computer's capabilities, including processor speed, RAM overall performance, and hard drive performance.

System Requirements for PassMark

• Windows 7 or later (32-bit or 64-bit)
• 1 GB RAM (2 GB recommended)
• 200 MB of free space on your computer's hard drive
• DirectX 9 compatible graphics card for GPU performance testing

If your machine is under these specifications, it's likely time for an upgrade.

Running the PassMark Benchmark

This is a quick and professional way to determine how your computer performs in the modern world. The software we use is a performance test. You can get a free copy here. Then, launch the application and select "Run Benchmarks." Choose between a quick test or the entire benchmark suite to test your PC's performance. Allow the benchmark to run uninterrupted, which may take 15-30 minutes.

Interpreting PassMark Results

The score you will get looks like this.

​

The lower the percentage percentage figure, the worse the score. This computer is pretty ordinary. It is in the bottom 13%, or if you prefer to think of it like this, 87% of computers tested are better than it. So, as you can see, it is way in the low range.

​After completing the tests, PassMark generates a comprehensive report on your computer's performance. The Overall PassMark Rating represents your system's general performance level. Component Scores provide individual ratings for CPU performance (processor speed), memory speed (RAM your computer uses), disk operations (hard drive on your computer), and GPU performance. The Percentile Ranking helps you compare your PC to others, translating your computer's performance relative to other systems. A score, for example, of 13% means that 87% of the computers are better.

Windows Built-in Performance Testing Tools

Windows 10 includes several built-in tools to test and monitor device performance:

1. Press Windows Key + R, type "perfmon /report", and press Enter. Wait 60 seconds for a detailed system performance report.

2. Task Manager: Right-click the taskbar and select "Task Manager. " Then, go to the "Performance" tab to view real-time CPU, memory, and disk usage.

3. Windows Security Device Performance and Health: Open Windows Security, navigate to "Device performance & health," and view your PC's overall health and any performance issues.

Optimisation Strategies

Based on your benchmark results, consider several steps to improve PC performance:

1. If specific components underperform, prioritise upgrading them.
2. Optimise your computer by uninstalling unnecessary programs and updating essential software. If performance issues persist, consider a clean Windows installation.
3. Schedule regular maintenance, including routine disk cleanups, to keep your device secure and performing well.

Strategic Computer Placement

Once you have gathered performance data for all your computers, you can strategically allocate them to maximise overall productivity. This process, sometimes called "playing musical chairs" with your computers, involves placing your fastest machines where speed is most critical.

Rank your computers

Create a list of all tested computers, ordered from highest to lowest performance based on their benchmark scores.

Identify high-demand workstations

Determine which roles or departments in your organisation require the most computing power. It might include graphic design, video editing, data analysis, or software development teams.

Match performance to needs

Assign your highest-performing computers to the workstations with the most demanding tasks. Then go down the list.

You can significantly improve overall productivity by strategically placing your fastest computers where they're needed most.

Conclusion

Regular overall performance testing can help maintain an efficient POS System. Using benchmarking software and integrated Windows gear, you may gain precious insights into your computer's capabilities, and give you actionable solutions.

Frequently Asked Questions

Q: What is the PassMark benchmark?

A: PassMark is benchmarking software that tests various PC components, including CPU, GPU, RAM, and storage. It runs a sequence of tests to measure overall performance and gives rankings that permit you to compare your computer to others.

Q: Is PassMark reliable?

A: PassMark is generally considered reliable for comparing performance.

Q: Can running benchmarks damage my computer?

A: No, running benchmarks won't damage your computer. These tests stress your system within safe limits. However, ensure your computer has proper cooling, as benchmarks can cause temporary increases in temperature.

Q: What's a good PassMark score for a modern computer?

A: It depends on what you need, but for general use in 2024, a score above 5000 for a POS System computer should be good.

Q: How can I improve my computer's performance without upgrading hardware?

A: You can improve performance by:

1. Uninstalling unnecessary programs
2. Cleaning up your hard drive
3. Disabling startup programs
4. Updating your operating system and drivers
5. Running regular malware scans
6. Defragmenting your hard drive (for HDDs only)

Q: Is upgrading RAM or switching to an SSD better for performance?

A: Both will significantly improve your computer's performance. Upgrading RAM will help if you run out of memory, and SSD will speed up your hard drive.

Q: How do I know if my computer's slowdown is due to hardware or software issues?

A: If the PassMark score is poor, it may indicate a hardware issue. If your scores are average, but you're still experiencing slowdowns, it's likely a software problem.

​

Our Black Friday Sale is Here and Can Save You Money!

Prepare to save big on essential POS equipment during our biggest sale of the year. Here at POS Solutions, we are thrilled to help our customers save significantly  - Limited Time Black Friday Offer.

Secure Next-Gen POS Systems at Low Prices

Now is a good time for us to offer you low prices, as many of our partners have excess stock they know they cannot clear out for months. They are keen to move, so we offer to pass some good savings on to you to help you and them. We tell them what we want: "Our Black Friday Sale is here, with limited-time offers and doorbuster deals!" That's why we worked with our suppliers to bring you some incredible deals for Black Friday.

I can tell you this: when this stock goes, it doesn't return at these prices.

Huge Savings on Computer Equipment

If you've been holding off on upgrading your computers and tech gear, now is a great time to take the plunge! We have deep discounts. See our newsletter for details.

Why Upgrade Now? 

Inflation and the Australian Dollar

This is the last chance to get such great prices on computer equipment. With rising inflation and the weakening Aussie dollar against the US dollar, prices are expected to increase next year.  The dollar does not look pretty now.

Improved Efficiency

Upgrading your POS system can lead to faster checkouts and happier customers, ultimately driving more sales. Stay ahead of the competition by investing in technology that supports long-term growth.

Secure your POS system before prices increase - Call us now.

It is the last chance to get such great prices on computer equipment.

Poor inventory management has been shown to cause retail businesses to lose up to 30% of potential sales during the Christmas rush. With only a slight delivery delay and unpredictable buying patterns, maintaining optimal stock levels becomes a challenge for retailers. Mirror marketing offers a proven solution to these challenges.

Understanding Mirror Marketing

Mirror marketing is a proven methodology for inventory management. It compares historical sales data with current inventory, which helps retailers maintain optimal stock levels. It identifies potential stock gaps before they become problems, ensuring you're well-prepared for upcoming sales periods. For example, a retailer can compare last December's hot-selling items against current stock levels to prevent shortages of popular gift items.

The foundation of mirror marketing lies in its systematic use of historical data analysis. Industry data shows retailers implementing mirror marketing achieve an average 25% reduction in stockouts during peak seasons.

The Power of Historical Comparison

Recent studies have shown that nearly half of all retailers experience significant stock shortages during Christmas. However, historical data analysis has proven to improve forecast accuracy by up to 40%. Most importantly, retailers who properly manage their inventory through mirror marketing techniques have reported increased holiday sales.

Mirror marketing helps identify items popular during previous periods but not currently selling - often because they're out of stock rather than due to decreased demand. This insight is invaluable during the holiday season when customer demand fluctuates dramatically.

Implementation Strategy

Setting Up Your Reports

Now, here is a step-by-step method for doing it.

Go to Register Reports marked in green.

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

The report tells us what was sold in a previous period (a) last year but has not sold in this period. The reason often is you have run out of some stock lines.

So we put in the dates for the last seven (7) days of the previous year.
Then we put in the dates to compare with last week.

You will now be confronted by many different options, but let us keep it simple, so ignore them and run the report. Check the report showing the listed stock lines.

Monitoring and Analysis

Successful implementation requires consistent weekly inventory analyses and daily monitoring of trending items during peak seasons. Maintaining detailed historical records and acting on report insights within 24 hours of generation prove essential.

Holiday Season Strategy

The Christmas period demands increased vigilance in inventory management. Daily report checks are often necessary to capture seasonal trends effectively.

"Retailers using mirror marketing during peak seasons typically see a terrific improvement in stock availability and an increase in sales conversion rates."

Success Metrics and Implementation

Implement these mirror marketing strategies to transform your holiday inventory management today. Proper planning and systematic monitoring will help ensure a successful Christmas season.

Frequently Asked Questions About Mirror Marketing

Q: What is mirror marketing?

A: Mirror marketing is an inventory management methodology that compares historical sales data with current stock levels to optimize inventory. It helps retailers prevent stockouts by analyzing past sales patterns to predict future demand.

Q: What is the difference between Order Management Systems and inventory management?

A: Order Management Systems and Inventory Management serve different purposes:

Q: How effective is mirror marketing for retail businesses?

A: Mirror marketing has been shown to reduce stockouts by approximately 25% during peak seasons and can help prevent up to 30% loss in potential sales during Christmas.

Q: What reports do I need to run for mirror marketing?

A: To implement mirror marketing, you need to:

• Access Register Reports
• Select "Stock Sold During Period(a) Not Sold in Period(b)"
• Compare the previous year's data with the current period
• Review stock lines that show discrepancies

Q: How often should I run mirror marketing analyses?

A: For good results:

• I recommend every week over Christmas
• Review reports immediately as the information is current 

Q: Can mirror marketing improve holiday season sales?

A: Yes, retailers using mirror marketing during holiday seasons typically experience:

• Improved forecast accuracy
• Better stock availability
• Increased sales conversion rates

Q: What are the key benefits of mirror marketing?

A: The main advantages include:

• Prevention of stock shortages
• Early identification of potential inventory gaps
• Improved seasonal sales performance
• Better prediction of popular items

Q: How do I get started with mirror marketing?

A: To begin implementing mirror marketing:

1. Create regular monitoring schedules
2. Act on insights immediately

Q: Is mirror marketing suitable for all retail businesses?

A: I cannot see why not, as mirror marketing can benefit any retail business that:

• Experiences seasonal sales fluctuations
• Maintains inventory records
• Has at least one year of historical sales data
• Wants to optimise stock levels

We're pleased to announce a significant upgrade to our Commonwealth Bank of Australia (CBA) integration, which offers faster processing and more payment options. If you use CBA-integrated EFTpos now, this enhanced system will revolutionise how you handle transactions and manage your business finances. I suggest you upgrade now if you use or want to have CBA.

Key Features at a Glance

• Much faster EFTPOS and credit card processing
• No premium card surcharges, e.g. American Express acceptance
• Digital wallet compatibility
• Real-time financial insights
• Enhanced security features

Faster, More Stable Processing

The enhanced CBA Smart Business system delivers significantly faster and more stable processing. Tests show up to 30% quicker processing times. This means shorter queues, happier customers, and more efficient operations for your business.

Multiple Payment Options

Beyond basic payment processing, this enhanced integration delivers several key benefits for your business:

Diverse Payment Landscape

The new system provides a comprehensive range of payment options to cater to all your customers' preferences:

• EFTPOS payments
• Credit cards (Visa, Mastercard, and American Express)
• Digital wallets (Apple Pay, Google Pay, and Samsung Pay)

No premium card surcharges

A standout feature is that you can confidently accept cards without concerns about premium card fees.

It opens up a new customer base, as 22% of Australians now carry an AMEX card and prefer to use it. I know a lot of corporations that issue expense accounts; people can only use them if the retailer accepts AMEX.

Digital Wallet Compatibility

This enhanced system fully supports digital wallets with the rise of contactless payments. In Australia, 40% of consumers now use digital wallets for in-store purchases, making this feature crucial for modern retailers.

Real-Time Financial Insights

The CBA Smart Business integration provides real-time insights into your cash flow, allowing you to:

• Monitor transactions as they occur
• Generate detailed reports
• Make better business decisions as you have up-to-date financial data

This level of visibility can be a game-changer as it makes reconciling much easier.

Enhanced Security and Backup Features

Security is paramount in today's digital landscape. I doubt you will have a problem with CBA, and if something goes wrong, you have local support, which many smaller providers cannot provide.

Operational Efficiency

Streamlining your payment processes can significantly improve your day-to-day operations:

• Faster transaction processing reduces queue times
• Simplified accounting and reconciliation saves you hours each week
• Automated reporting frees up time for other essential tasks

Improved Customer Experience

By offering a more comprehensive range of payment options and faster processing, you're enhancing the customer experience. It can lead to:

• Increased customer satisfaction
• Higher likelihood of completed sales
• Potential for repeat business and positive word-of-mouth

Implementation and Support

Upgrading to the new system is a straightforward process:

1. Contact our integration team
2. Schedule an installation date
3. Receive on-site training for you and your staff
4. 24/7 technical support

Conclusion

It offers a comprehensive solution to improve efficiency.

Ready to upgrade your payment processing? Contact us to start moving.

Here's the complete FAQ list in markdown format:

[FAQ] Frequently Asked Questions

Q: What are the main benefits of upgrading to the enhanced CBA Smart Business integration?

A: Faster transaction processing, no premium card surcharges, digital wallet compatibility, real-time financial insights, and enhanced security features.

Q: How much faster is the new system?

A: Tests have shown that the new system processes up to 30% quicker transactions.

Q: Does this system accept American Express cards without additional fees?

A: The enhanced CBA Smart Business integration allows you to accept American Express cards without premium card surcharges.

Q: What digital wallets are supported by this system?

A: The system supports major digital wallets, including Apple Pay, Google Pay, and Samsung Pay.

Q: How can real-time financial insights benefit my business?

A: Real-time insights allow you to monitor transactions as they occur, generate detailed reports, and make informed business decisions based on up-to-date financial data.

Q: Is the upgrade process complicated?

A: No, the upgrade process is straightforward.

Q: What kind of support is available after the upgrade?

A: You'll have access to 24/7 technical support following the upgrade and local support.

Q: How does this system improve customer experience?

A: By offering faster processing and a more comprehensive range of payment options, the system can reduce queue times, increase customer satisfaction, and potentially lead to more completed sales and repeat business.

Q: Is this system secure?

A: Yes, the CBA Smart Business integration comes with enhanced security features, and you have the backing of CBA for support if any issues arise.

Q: How much does CommBank EFTPOS charge?

A: This is the big question I cannot answer as it depends.

If you are struggling with order fulfilment, look at partial fulfilment.

Understanding Partial Fulfillment

Partial fulfilment is a strategy in which the retailer has backorders from customers; they then ship the available items and bill from an order ASAP while leaving the rest on backorder. This approach offers flexibility in order processing, improving customer satisfaction and cash flow.

How Partial Fulfillment Works

The process is straightforward:

1. A customer places an order for multiple items.
2. Your inventory system identifies which items are in stock.
3. When available, the items are shipped immediately.
4. Out-of-stock items remain on backorder to be shipped when available.

So, customers receive a portion of their order now rather than waiting for all items to be in stock before shipping.

The Advantages of Partial Fulfillment

Implementing partial fulfilment brings numerous benefits to your retail business:

Improved Cash Flow

By shipping available items immediately, you can invoice and receive payment sooner.

Enhanced Customer Satisfaction

Customers appreciate receiving part of their order quickly rather than waiting for everything to be in stock.

Reduced Storage Costs

You can operate with leaner inventory levels, reducing warehouse space requirements.

Better Inventory Management

It is easier to keep track of items more effectively.

Multi-Location Stock Management

You can often order directly from the supplier and deliver the goods directly to the customer. Just be careful that the customer needs to get the price. I find this cheaper and more manageable. If they provide it to me anyway, and then I deliver it to the customer, why not have the supplier do it directly? Let them have the headache and cost of delivery.

Increased Flexibility

You can fulfil orders from whichever location has the stock available.

Faster Order Processing

By utilising stock from multiple locations, you can process orders more quickly.

Reduced Shipping Costs

Often, you can ship from the location closest to the customer, minimising shipping expenses.

Implementing Partial fullfilment

Go to business invoicing.

This is a test example of how it works

Now, we have four separate orders from suppliers to fulfil the customer's order

Why wait till the last one of these arrived to ship it out?

Train Your Staff

Properly educate your team on handling partial orders.

Overcoming Common Challenges

While implementing these strategies, you may encounter some challenges:

Clear Customer Communication

Be transparent about partial shipments and expected delivery dates for back-ordered items. I would like to include the shipping details so the customer can directly contact the shipper without me having to deal with the middleman's headaches.

Managing Shipping Logistics

You may need to coordinate with multiple carriers or locations. With our POS System and correct processes in place, these challenges can be effectively managed.

Success Stories: Australian Retail Triumphs

Consider these real-world examples of Australian retailers who have successfully implemented these strategies:

1. Newsagents doing Back to School Often wait for goods to arrive on the order, but why hold up 90% of the order because 10% has yet to come?
2. We do it - We often have to wait for a part, but there is no reason we cannot send out what we have now.
   

   Conclusion

   Learning how to do partial fulfilment can transform your retail business. It enables you to maximise inventory, improve customer satisfaction, and boost revenue.

FAQ

Q: What does it mean when an item is back-ordered? 
A: A back-ordered item is generally out of stock in the shop, but the supplier can still purchase it with a future delivery date once inventory is replenished. The item will be shipped when it becomes available again, and customers are placing orders for when it arrives.

Q: What is the difference between backorder and out-of-stock?
A: The key differences are:
- Backorders can still be purchased and will be delivered when available
- Out-of-stock items cannot be ordered until they return to inventory
- Backorders have an estimated delivery timeframe
- Out-of-stock items have no guaranteed return date

Q: What is the difference between a backorder and a pre-order?
A: Here are the main distinctions:
- Pre-orders are placed before an item is released or manufactured
- Backorders are placed after an item has been released but is temporarily unavailable
- Pre-orders typically require upfront payment
- Backorders usually charge payment upon shipping
- Pre-orders help gauge initial demand
- Backorders help manage existing demand for established products

Q: How does the partial fulfilment process work? 
A: 1. Customer submits an order for multiple items
2. System checks inventory availability
3. Available items are shipped immediately
4. Backordered items are shipped when they become available

Q: Can suppliers ship directly to customers?
A: Suppliers often can ship directly to customers, reducing handling costs and delivery complications.

Q: What do I need to prepare before implementing partial fulfilment?
A: - Train staff on handling partial orders
- Set up proper business invoicing systems
- Establish clear communication protocols
- Implement inventory tracking systems

Q: How do I manage shipping logistics?
A: Coordinate with multiple carriers and locations through your POS System and established processes.

Q: How should I communicate partial shipments to customers?
A: Provide transparent information about:
- Which items are shipping immediately
- Expected delivery dates for back-ordered items
- Shipping tracking details

Q: Will customers accept partial deliveries?
A: Generally, customers prefer receiving some available items quickly rather than waiting for complete orders.

Q: What are the financial benefits?
A: - Improved cash flow from faster billing
- Reduced storage costs
- Lower shipping expenses through optimized delivery routes
- Better inventory turnover

Q: How does it affect inventory management?
A: - Enables leaner inventory levels
- Improves stock tracking
- Allows for multi-location stock management
- Facilitates faster order processing

​As retailers, we're heading into our busiest and most profitable time of the year. With deliveries growing, managing delivery expectations is crucial for customer satisfaction and repeat business. Let me share some practical advice on handling your Christmas shipping schedule.

Choose the Right Service Level

Considering what happened last year, Express Post is your best mate for last-minute orders. It offers next-business-day delivery to 80% of Australian addresses. While it costs more than standard delivery, the tracking capabilities and faster delivery times make it worth every cent during the Christmas rush. Plus, you get verification from Australia Post that it was delivered.

Setting Your Store's Cut-off Dates

Remember, these dates below provide a guideline rather than guarantees. The earlier you send your parcels, the better their chance of arriving before Christmas. Consider offering Express Post as a premium option for last-minute shoppers who need faster delivery guaranteed.

Australia Post Christmas lodgement dates are here.  One point is these date are for items that are delivered by 2:30pm at an Australian Post outlet.

Domestic Deliveries

I recommend setting your store's order cut-off dates at least 2-3 days before Australia Post's deadlines:

• Regular parcels: Set your cut-off to December 17
• Express orders: Final orders by December 20
• Interstate letters/cards: Cut-off December 11

International Shipments

New Zealand: 5 December 2024

United States and Canada: 11 December 2024

United Kingdom: 6 December 2024

Practical Tips for Smooth Operations

-Packaging and Processing Tips Address Verification Essentials Proper addressing might seem basic, but it's crucial for timely deliveries. Include:

Unit/apartment numbers

Complete street address

Suburb and postcode

Trust me, no one will complain if you put too much detail.

Order Processing

• Dedicate specific times each day for packing orders
• Print shipping labels in batches
• Use your POS to generate packing slips automatically

Communication Strategies

Clear Messaging Display shipping cut-off dates:

• On your website homepage
• At checkout
• To confirm emails
• In-store signage

Customer Updates Use your POS system to:

• Send shipping notifications to your customer when you sent it and the expected delivery date
• Include tracking information
• Alert customers about potential delays

Preparing Your Team

• Understand and communicate delivery timeframes
• Handle shipping enquiries confidently
• Process orders efficiently using your POS system

Looking After Regional Customers

If you're serving customers in WA NT, or regional areas:

• Add extra processing days
• Consider express shipping options
• Be upfront about extended delivery times

Last-Minute Solutions

For those inevitable last-minute shoppers:

• Offer click-and-collect until December 24
• Provide gift cards as a backup option
• Consider local courier services for nearby customers, maybe deliver it yourself.

Remember, while Australia Post has announced their cut-off dates, we retailers must work backwards from these dates.

Planning and using your POS system effectively can turn the Christmas rush into an opportunity.

​

In Australia, most business failures stem from poor cash flow. Poor credit management is a critical survival skill for Australian retailers. While extending credit can help build valuable business relationships, it's a delicate balance that requires careful management. Many retailers find themselves challenging as some customers need credit to trade with them. These arrangements can quickly become significant debt collection problems if not adequately controlled.

For this reason, establishing clear credit limits using your Point of Sale (POS) system is critical from day one. This proactive approach prevents a typical scenario of customers accumulating more debt, which can lead to costly and time-consuming collection efforts later.

One point I want to make here is that, from personal experience, just because an organisation is large or a government authority, the problem goes away. I have been in government agencies chasing debts long overdue and complaining about nonpayment. I have had government department cheques bounce. I have had a government department take forever to pay their debts. What makes it very hard with these large organisations is that they have policies they follow, and often, despite your best efforts, they still need to change them. The other problem with large organisations is that threatening them with legal action usually does not work as it often does not worry the person personally, and all it means to them is that the problem will get transferred to another department. In these situations, keep your cool.

Understanding Credit Management

Credit management in retail isn't just about offering payment terms—it's about protecting your business while maintaining strong customer relationships. A study by the Australian Retailers Association stated that businesses using strict POS-based credit controls are 60% less likely to face serious debt collection issues.

Why Credit Limits Matter

• Protect against excessive credit exposure
• Create clear boundaries for customer spending
• Automate credit decisions through your POS
• Reduce the risk of debt creep
• Make a plan for the total amount of money you trust Joe Blow. Use that as a benchmark.
• A credit limit should only be increased if required and if the customer consistently pays. They must earn a higher credit limit.

Credit Policy Development

-Set up a well-structured credit policy in your POS system that should include:
-Clear payment terms (30, 60, or 90 days)
-Specific credit limits are based on customer history and needs.
-Make a formal approval process for limit increases
-Set a warning threshold for your business, typically at 70% of the credit you are willing to give.
-Preventing Over-Reliance on Credit
-Consider alternatives; today, with widespread credit and BNPL cards, consider whether the customer needs credit. 

Early Warning Systems 

-Customers are approaching credit limits.
-Overdue payment patterns
-Unusual purchasing behaviour
-Payment promise breaches

POS System Setup & Features

In your system, click on the main menu to customer > customer maintenance.

Now call up a customer, and click Other Details. (see green arrow below)

There are two options that I would like to run through with you. 

You can select a credit limit for a period, a big problem with majors is that they have the money, but they take a long time to pay, so in this case, you may want to give them a large credit limit but watch if they go over time.

The next option is to decide whether the account should be stopped if it exceeds the credit limit or the operator should be warned so you can be notified. Collecting the debt while they are in front of you and want the goods is the cheapest and best place.

Trust me. It’ll all be worth it to do this.

Allow people to get more credit limits over time, start them small and let the amount build up.

I also recommend that every year, you review your credit limits.

Conclusion

Managing credit limits effectively through your POS system is crucial for retail success in today's competitive Australian market. While it might seem easier to be flexible with credit limits, the short-term convenience isn't worth the potential long-term headaches. Our POS system removes emotion from credit decisions and consistently enforces your policies, helping build a more robust, more profitable retail business with healthy cash flow and minimal credit issues.

Time to do some essential Black Friday Stock Analysis; time is running out! 

With Australian retail sales reaching $6.36 billion during Black Friday 2023 and over 50% of Christmas shopping occurring, early strategic inventory planning will directly impact your bottom line. Use your sales history to see what sells in your shop patterns as your key to maximizing Black Friday 2024 profits.

Maximizing POS Data

Our modern point-of-sale system can give you the information you need to get actionable insights into what sells in your shop in this period. Here is your rapid assessment framework:

Data Collection Process

It is easy and takes 30 seconds.

Go to Register reports.

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

Look at last year, the week before (17-24 November 2023)

Now look at 6-29 November 2023

This will give you your Key Performance Indicators (KPIs) for sales.

Action Steps for Success

1. Adjust stock levels based on historical trends
2. If necessary, contact suppliers for high-demand items
3. Update display strategies

These reports must be checked to see what looks interesting and, more importantly, if you have enough stock.

Do it and see how you go.

We do not have much time!
 

FAQ: Black Friday Sales Planning Guide

Retail Basics

Q: What is the significance of Black Friday in Australian retail?

A: Black Friday is now Australia's biggest shopping event. It generated over $6.36 billion in retail sales during 2023. It also marks the official start of the Christmas shopping season, with 30-50% of annual Christmas sales occurring during this period. For retailers, it's a critical time.

Q: What are the critical dates for Black Friday 2024?

A: The core Black Friday sales period runs from November 29 to December 2 (Cyber Monday) 2024. However, many Australian retailers begin their promotions earlier in November to capture early shoppers. Plan for:

• Early Bird Sales: Mid-November
• Main Event: November 29
• Cyber Monday: December 2
• Extended Sales: Through early December

Q: Which retailers typically participate?

A: Black Friday has become ubiquitous across Australian retail. Participation includes:

• Major department stores (Myer, David Jones)
• Electronics retailers
• Fashion and apparel brands
• Online marketplaces
• Small and medium local retailers
• Specialty stores

Data Analysis & Planning

Q: What specific POS data should I analyze for Black Friday planning?

A: Focus your analysis on these key metrics:

• Previous year's top sellers (17-24 November 2023)
• Extended period performance (6-29 November 2023)
• Year-over-year growth patterns
• Stock depletion rates
• Average transaction values
• Peak sales times

Q: How can I use historical data to predict 2024 trends?

A: Conduct this three-step analysis:

1. Review last year's performance:
   • Best-selling categories
   • Daily sales patterns
   • Customer purchase behaviours
2. Compare with current market trends
3. Adjust predictions based on economic conditions

Inventory Management

Q: How should I adjust inventory based on historical data? A: Follow these inventory adjustment guidelines:

• Increase top-seller stock by 20-30%
• Reduce slow-moving inventory
• Add new products in successful categories
• Factor in current market conditions
• Set reorder triggers for high-demand items

Q: How can I prepare for supply chain challenges? A: Implement these preventive measures:

• Order high-demand stock early (by early October)
• Establish backup supplier relationships
• Create contingency plans for popular items
• Maintain clear customer communication channels
• Set up stock-level alerts

Sales Strategy

Q: What display strategies work best for Black Friday?

A: Optimize your store layout with:

• High-visibility locations for top sellers
• Clear promotional signage
• Strategic impulse buy placement
• Efficient traffic flow patterns
• Mobile POS stations for peak times

Q: What metrics should I track during the event?

A: Monitor these real-time indicators:

• Sales velocity by item
• Stock levels
• Average transaction value
• Customer flow patterns
• Staff performance
• Return rates

Post-Event Analysis

Q: What analysis should I conduct after Black Friday?

A: Evaluate these key areas:

• Sales performance vs predictions
• Inventory accuracy
• Customer satisfaction metrics
• Marketing effectiveness
• Operational efficiency
• Staff feedback
• Technology performance

Q: How can I improve customer experience based on data?

A: Use your insights to:

• Optimize staffing levels
• Enhance product knowledge training
• Streamline checkout processes
• Improve store layout
• Refine promotional strategies

Implementation Priority

1. Begin data analysis immediately
2. Order inventory by early October
3. Train staff by early November
4. Set up displays one week before
5. Monitor and adjust during the event

Properly managed loyalty programs are becoming increasingly common in today's retail landscape. Most Australians are members of a loyalty program, and usage is going up.

Understanding Point Expiry Mechanics

Point Expiry in Loyalty Programs: A Smart Strategy for Your Retail Business

You're likely familiar with loyalty programs, you cannot get away from them today. You may have seen their power to keep customers coming back. Today, let's dive into a crucial aspect many small business owners overlook: point expiry.

Why Point Expiry Matters

Point expiry isn't just about managing your books, although it helps there as large numbers of unused points can be financially troubling, as some of my clients have found out.  It is a powerful tool for driving customer engagement. Customers are much more motivated by the possibility of losing their rewards than they are by the possibility of gaining new ones. This psychological trigger can significantly boost your program's effectiveness.

Setting Up Your Expiry System

Choose the Right Timeframe The sweet spot for most Australian retailers is 12 to 24 months. This gives your customers ample time to earn and redeem points while keeping your program manageable. We tend to recommend 12 months. 

Clear Communication: Your POS system should automatically track point balances and send timely reminders about expiring points. Your POS System makes this process seamless, as it handles everything from:

• Point balance tracking
• Automated expiry notifications
• Redemption monitoring

Making It Work for Your Business

Clever Program Design: Your loyalty program should offer multiple redemption options to prevent point hoarding. Consider including:

• Essential rewards that are easily attainable
• Premium rewards for higher spenders
• People love charitable donation options for unused points; remember to select a few non-partisan charities they can pick from. 

Managing Customer Expectations

The key to success is transparency. Your POS system should provide clear visibility of:

• Current point balances
• Upcoming expiry dates
• Available redemption options

Measuring Success

Your POS analytics should track crucial metrics like:

• Redemption rates
• Customer engagement levels
• Revenue impact

Remember, a well-managed point expiry system isn't about taking away value from your customers - it's about creating a dynamic program that keeps them engaged and returning to your store.

Want to learn how a modern POS system can help you manage your loyalty program more effectively? Let's chat about finding the right solution for your business.