Point of Sale Software

How to sell more

POS SOFTWARE

Identifying retail sales going up

 

Here is a surprisingly simple yet effective strategy way to increase sales in retail.

The Power of Product Placement

One of the most straightforward ways to increase sales is strategically placing your bestsellers, the items selling well in your shop. This technique is often overlooked but can significantly impact your bottom line.

In-Store Placement

Move your top-selling items to prime locations within your shop. These could be:

  • Near the entrance
  • At eye level on shelves
  • In high-traffic areas

By making your bestsellers more visible and accessible, you're making it easier for customers to find and purchase these popular items. These can be easy to find using your POS Software, which isn't just for transactions - it's a powerful tool for understanding your business. Here's how to use it effectively:

Identifying Your Bestsellers

Many retailers think they know their top sellers, but experience often tells a different story. Here's how to scientifically identify your bestsellers

Run a Top N Stock Report: This report is in the Register Reports section of your POS software.

Set some periods:

I suggest using it to:

    • Run the report for the past two years to understand long-term trends
    • Run it for the past three months to capture recent shifts in buying patterns

What I like is running it for yesterday, as the odds are what is a good seller yesterday will be a good seller today

  • So, run it for yesterday and what you have of today to capture the buying patterns now.

Analyse the Results: The report will show your stock items ordered by:

    • Quantity sold
    • Profit generated
    • Total sales

This comprehensive view lets you make informed product placement and stock management decisions.

Putting Knowledge into Action

Once you have your list of bestsellers, it's time to act:

  1. Investigate Product Locations: Physically check where these items are in your store.
  2. Customer Perspective Test: Ask someone unfamiliar with your shop to find specific products. It can reveal how easily (or difficult) customers can locate items.
  3. Adjust and Optimise: Based on your findings, rearrange your store layout to highlight your bestsellers.

The Impact of Small Changes

It's incredible how these simple adjustments can significantly impact your sales. By making your most popular items more accessible, you're making life easier for your customers and strategically positioning yourself for increased sales.

Remember, selling more isn't about drastic overhauls. Often, these minor, data-driven tweaks make the most significant difference. By regularly analysing your POS data and optimising your store layout accordingly, you'll be well on your way to boosting your sales and growing your business.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Proof of purchase

POS SOFTWARE

Retail proof of purchase

Proper proof of purchase practices are critical in retail today. We witness this firsthand through our support channels for retailers who contact us with questions and concerns about proof of purchase issues.

I am not a lawyer, and I would suggest asking the appropriate authorities if you have any queries.

The Significance of Proof of Purchase

  • Customer Assurance: Providing tangible evidence of transactions enhances customer confidence.
  • Legal Compliance: Adherence to proof of purchase regulations is a legal requirement.
  • Conflict Resolution: Proper documentation significantly streamlines dispute management.

Australian regulations

Transactions $75 and above

Should be supplied immediately

Transactions under $75

Proof should be provided upon customer request made within seven days. This can be a problem if they pay in cash. 

Acceptable Forms of Proof

Some examples of proof of purchase:

  • Cash register receipts
  • Handwritten receipts: I recently had a client whose customer demanded extra detail. He felt that the cash receipt did not have enough detail to show the tax implications of the transaction explicitly, so my client rewrote it in an invoice book and stapled the cash receipt to it.
  • GST tax invoices
  • Financial statements (credit/debit card, bank)
  • Lay-by agreements
  • Digital receipts (email, SMS)
  • Photographic evidence of receipts
  • Warranty cards with purchase details:
  • Serial numbers linked to supplier databases can be a problem. A client disputed that he had sold the item, while a supplier stated they had.
     

It's crucial to note that Australian Consumer Law doesn't explicitly define "sufficient proof of purchase. The requirement is that customers must reasonably demonstrate proof of purchase. 

Modern POS software can help you; one client showed a computer listing to a tribunal on the day the person claimed to have brought the item, but his shop had not sold this product. Another report that no sale for the claimed amount had occurred. We're moving towards a world where digital receipt proof of purchase will become the norm rather than the exception.

Essential Receipt Information

All proofs of purchase must include:

Essential Receipt Information in Australia

Managing Complex Scenarios

Late Requests and Itemized Bills

While charging for receipts after seven days is permissible, it's generally inadvisable due to potential negative customer impact.

For itemised bill requests:

These tend to be customers with specialised needs, and often, the retailer needs to go manual. In this case, I suggest keeping a record of that receipt. In a dispute, and the customer demands an itemised bill, you should immediately inform them that you reserve the right to charge them for the difference if it exceeds the original amount.

Dispute Resolution

In cases of disputed purchases without clear proof, it's essential to:

  1. Thoroughly investigate your POS System transaction records to check the transaction
  2. Consider alternative forms of evidence
  3. Inform customers about potential additional costs in itemised bills
  4. Balance customer rights with fraud prevention measures

    Handling Difficult Situations

    Several times, people have come into shops with what they claimed were faded receipts—essentially blank pieces of paper. In such cases, it's crucial to ask for alternative evidence. Remember, if a customer can reasonably demonstrate they purchased an item, denying their rights could be breaking the law.

Effective Record Management

The ACCC mandates a 5-year record retention period. To manage this effectively:

  1. Implement a reliable POS system
  2. Regularly back up data
  3. Archive old records before deletion
  4. Keep the backups; you never know when you need them.

Best Practices

  1. Staff Training: Ensure a comprehensive understanding of policies and procedures.
  2. Digital Transition: Utilise electronic receipts for improved storage and retrieval.
  3. Customer-Centric Policies: Prioritise customer satisfaction within legal boundaries.
  4. Clear Guidelines: If in doubt, seek advice from people who can help; most employee organisations can help here.

Conclusion

Adequate retail compliance practices are fundamental to building customer trust and safeguarding business interests. While legal compliance is crucial, the ultimate goal is to foster positive customer relationships while protecting the business.

If you want to know more, click here.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

How to Create a Useful Planogram of Your Shop

POS SOFTWARE

I've seen how helpful a good planogram can be for small stores. Since I've gotten questions about them, I want to share tips on making a planogram. This can:

  • Optimize your store layout
  • Boost sales

A planogram shows:

  • What shelves products go on
  • How to arrange products on shelves

The goal is to make shopping easy and encourage customers to buy more.

Why Planograms Matter for Retail Shops

Planograms are visual representations of your shop's layout, showing where products are placed and arranged. For most of us in retail, nothing beats a planogram to show visually what's happening in the shop.

A Cautionary Tale

Let me share a quick story. I had a client who had an ugly shop fit-out. When I talked to her about it, she told me that her partner was a carpenter who said, "I'll do it however you want." So she told him what she wanted, and he built it. Then she looked at the finished product and said, "This is what I asked for but not what I wanted." A planogram could have saved her a lot of disappointment.

Uses of Planograms

I've had clients whose sales have jumped by tweaking their store layout based on a well-crafted planogram.

The Great Debate on Professional Planogram Software

When I started discussing planograms, our competitors all suggested that people use professional packages. Now, you can use professional software, and its costs are pretty reasonable. However, they did not notice that these planograms look nice and are not straightforward to make or use.

Pros and Cons of Professional Software

Professional Software vs DIY Planogram Comparison

Professional planograms: you need to learn much before using them effectively. In my experience, if you're considering getting professional planogram software, I suggest purchasing one with a monthly subscription. These costs are relatively reasonable; you have lost little if the package fails.  Here is a decent discussion on this.

Most of us would be better off hiring someone who knows what they are doing rather than buying or renting such software.

Here would be a typical result from a professional planogram.

planogram sample

Here is a manual one.

A diagram of your shop with your best sellers listed as

Blue = Good

Yellow = Moderate to bad

Red = Very bad

blank = Zero

It visually shows the shop's sales, but there is no denying that the professional one has a better look. However, I think the manual is clearer.

Step-by-Step Guide to Making a Planogram

Step 1: Gather Your Tools

You'll need:

  • A couple of large sheets of paper
  • Some grid paper
  • Pencil and eraser. A pencil's significant advantage is that, unlike a pen, it's easy to rub out mistakes.
  • Ruler
  • Triangle Right Angle ruler
  • Ruler with shapes (circles, triangles, squares) if possible
  • Tape measure or Laser Distance Meter

Pro tip: I prefer a Laser Distance Meter. They're relatively cheap now; one person can do all the measurements quickly.

Step 2: Measure Your Shop

  1. On grid paper, draw a rough outline of your shop.
  2. Measure the largest dimension of your shop.
  3. Write down this measurement on the grid paper.
  4. Start at the rear of the shop and go around, measuring the outer parts. Write down every measurement.
  5. Go from the rear left of the shop and measure important details from left to right.
  6. Work your way to the front.
  7. Double-check by measuring from front to back.

Step 3: Draw Your Layout

  1. Start with the rough sketch to get a grip on the situation.
  2. Check on the grid that the measurements make sense.
  3. Do not kid yourself if it's all correct; there is something you have done wrong.

Step 4: Draw Your Final Draft

  1. Grab the larger paper to draw your shop layout.
  2. Get the larger measurement (generally the shop length first)
  3. Use this measurement to make a scale on your paper. Use a decent scale (e.g., 1 cm = 1 metre, 2 cm = 1 metre).
  4. Draw the other measurements.

Pro tip: In my experience, even experts need a few attempts. If you're not doing it a lot, you may need more. That's perfectly normal!

Step 5: Use Your Planogram

Once you have a decent planogram, make many copies. Later, you'll use these for different objectives.

Conclusion

By taking the time to create a planogram, you're investing in your shop's future. Improving your layout, customer flow, and bottom line is a good step.

Happy planograming!

FAQ

Q: What is a planogram?
A: A planogram visually represents some of your shop's features.

Q: Why do Planograms Matter for retail shops?
A: Planograms help people visualize what is happening in the shop. They assist in optimizing space, improving customer flow, and maximizing sales.

Q: Do I need professional planogram software?
A: Not necessarily. 

Q: How do I start creating a planogram?
A: Starting with the most significant dimension, the shop's length.

Q: What's the best way to measure my shop?
A: A laser distance meter is recommended as it's quick, accurate, and can be operated by one person.

Q: How many attempts does it usually take to create one?
A: Even experts typically need three attempts: a rough sketch, a detailed version, and a final draft.

Q: What scale should I use when drawing one?
A: Something that is easy to calculate.

Q: Why should I make many copies?
A: Multiple copies allow you to use the planogram for different objectives and planning purposes.

Q: Can a planogram help prevent layout mistakes?
A: A planogram can help visualise the layout before implementation, potentially avoiding costly mistakes in shop fit-outs.

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

In 2024 importance of R U OK? Day is growing

POS SOFTWARE

R U Ok? Day 2024

Running your shop is hard work! You deal with:

- Long days behind the counter 
- Money worries from taxes and bills 
- Government officers
- Customers 

Things recently got more burdensome for many owners as the economy is not going well.

With all these stresses, taking care of your mental health is critical.

Personal Experiences

Over the years, I've encountered some heartbreaking situations that highlight the urgency of this issue highlighted for today:

The Locked-In Boss

I once had a boss who locked himself in his office, overwhelmed by stress. The situation became so dire that we called his wife, and when she came, we had to threaten to call the fire brigade to get him out. Sadly, I never saw him again after that incident.

Ivan's Story

One of my clients, Ivan, who was a genuinely capital guy, seemed alright, so I was shocked after he disappeared when rumours in the newsagency community circulated that he had taken his own life. While I can't confirm if it was work-related, it's a stark reminder of the hidden struggles many in our industry face.

A Schoolmate's Tragedy

Recently, a classmate I knew well committed suicide. She had had three failed marriages, no kids and was looking at the end of her fourth marriage.

These experiences have deeply affected me and reinforced my commitment to prioritising mental health.

Startling Statistics

Recent surveys reveal some concerning trends:

  • 78% of retail workers experienced stress, anxiety, or depression symptoms in the past month
  • 45% of business owners feel they lack resources to manage employee mental health issues

These numbers aren't just statistics – they represent struggling people in our community.

As a business owner, you are responsible for creating a supportive work environment. Here are some legal obligations in Australia regarding mental health in the workplace:

Some of the employers responsibility for mental health

 

Practical Ideas for Support

Open Communication

Encourage regular check-ins with your team. A simple "How are you doing?" can open up meaningful conversations.

Flexible Scheduling

Where possible, offer flexible hours. It can help employees more effectively balance work and personal life.

Mental Health Resources

If you are worried, contact your industrial body for advice. They can provide information about what you should do and mental health services options.

Lead by Example

Share your own experiences with stress management.

Conclusion

Remember, if someone is struggling, tell them they are not alone, and there's nothing wrong with seeking help or referring them to someone who can help.

Fun fact: On average, in Australia, we have about nine suicides a day.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Why it is best to run a POS System as isolated as possible

POS SOFTWARE

POS System bakery


 ​

At POS Solutions, we have seen firsthand the critical importance of isolating your POS system. Drawing from my experiences and industry knowledge, let me share why this approach is crucial for retailers.

The Risks of an Interconnected POS System

In today's digital age, it's tempting to connect everything. However, isolation is crucial to your POS system. Here's why:

Unauthorised Access 

Its a real threat, I'll never forget our case with a café using our system. A staff member's boyfriend added an email processor to the POS, causing the entire system to crash.  A little knowledge can be dangerous. It was a nightmare to fix, all because of a tiny unauthorised change. This incident hammered home the importance of limiting access to your POS system.

Cyber Threats 

The are real, if I was to make a bet with you that this week one of our clients will have a real malware or cyber threat, I am sure I will win. These are constantly evolving. An isolated POS system is more challenging for people to infiltrate. By keeping your system separate as much from authorised access, you significantly reduce the risk of falling victim to these threats.

Data Corruption and Theft

Your POS system protects your lifeblood by holding crucial business data and sensitive customer information. Data corruption or theft can be devastating for a retailer. Worse unauthorised use of your point-of-sale information can get you in serious legal trouble. An isolated system provides an extra layer of protection against these risks.

Benefits of Running an Isolated POS System

Now, let's look at the positive side of keeping your POS system isolated:

Enhanced Security

Limiting connections reduces potential entry points for cyber attacks.

Improved Performance

Fewer external processes mean your computer runs less so it runs smoother and faster.

Simplified Troubleshooting

When issues arise, it's easier to pinpoint the problem in an isolated system.

Compliance

Many industry standards today strongly recommend isolated POS systems.

How to Isolate Your POS System

Here are some practical steps to isolate your POS system:

Dedicated Network

Set up a separate network just for your POS use.

Limited Access

Only authorised people can access your POS System. Inform your staff not to let anyone access your POS system without management permission.

A Word on Staff Needs

You might worry about staff needing internet access. Here's a simple solution: Set up a separate Wi-Fi channel for your staff and the public. Modem today can do this. This way, your team can check their emails or browse the web without putting your POS system at risk.

The Bottom Line

While isolating your POS system requires some extra work, it's worth it. Your business will benefit from security, stability, and happy customers!

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Save time and money with Supplier Integrations

POS SOFTWARE

Henderson Greeting

As a seasoned retailer, you know how putting the stock details into your POS System can be a big job. That is why file imports are a game-changer for your Point of Sale (POS) system. They are not just time-savers but also accuracy boosters.

Latest Supplier catalog integration

For those of you working with Henderson Greeting and Waterlyn, their electronic catalogue lists are now available for you to import into your POS system. This integration means you can keep your inventory up-to-date with minimal effort and ensure you have their latest products on file.

What We Did in Troubleshooting

If you take the file from us, you know that it has been

A. Checking for Hidden Characters

Some suppliers use special characters, which can wreak havoc during imports. We check for these sneaky troublemakers before giving you the import file.

B. Pricing disasters

Pricing disasters are no joke. I have seen a few pretty bad ones; recently, a pack of 10 cards, each at $1.50, was listed as $22.50.

Decimal places management

We have also implemented a double-check system to ensure our POS and import files agree on decimal places. In Australia, we use commas for thousands of separators and dots for decimal places (e.g., $8,123.03). However, most European countries do the reverse, using dots for thousands and commas for decimals, so in our example, it becomes $8.123,03. This difference can lead to significant pricing errors if not properly managed.

C. Barcode duplication 

It's 2024, and suppliers keep putting the same barcode on different items. This causes major problems, particularly if the items are priced differently. 

POS system import

It is essential to improve to succeed in retail constantly. By improving your methods of bringing in products, you save time and set up your business to continue doing well.  

We can help each other. I'm ready to listen if you want to discuss this or share when things went well or poorly.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Get smart shop products for Uncertain Times

POS SOFTWARE

We have all seen firsthand firsthand how economic downturns can impact retail. We must accept that Australians face a significant financial challenge in the immediate future, and retailers must adapt their product offerings to these times. 
 

Here are the RBA Australian Economic Forecast: Labor Market, Consumer Spending, and Inflation Trends (2024-2026)

 

RBA Australian Economic Forecast: Labor Market, Consumer Spending, and Inflation Trends (2024-2026)

 

As you can see, unemployment is expected to remain stable, and wage growth will be less than inflation, so household consumption will be below inflation. As such, the consumer and, as such, the retailer are looking at challenging times.

Understanding Consumer Behaviour in Tough Times

During economic uncertainty, consumers tighten their belts and try to cut money where they can, but they don't stop spending entirely. Instead, they prioritise:

  • Essential items
  • Products that offer value for money
  • Small, affordable luxuries

Targeting your inventory with these priorities can help weather the storm as a retailer.

I have seen firsthand how retailers in one field, like newsagencies, have moved successfully into totally unrelated fields like liquor, groceries and clothing, so accept an idea that is out of the box.

Top Product Categories to Consider

1. Children's Essentials

Parents always prioritise their children's needs, which they rarely cut down. Consider stocking:

  • Children's clothing (especially basics) - Clothing, in general, has proven to be an item that most retailers can get into. Kids need a constantly changing wardrobe.
  • Particularly, look at baby products.
  • Educational toys and books
  • Children art supplies

My experience talking to retailers Is that children's clothing maintains steady sales even when adult fashion retailers struggle.

2. Affordable Luxuries

People still want to treat themselves, just on a smaller scale. Look into:

  • Cosmetics and skincare - Women do not cut down much on cosmitics.
  • Gourmet food items
  • Small home decor pieces

Tip: Create attractive displays of these items near your checkout to encourage impulse buys.

3. Home Maintenance Products

As people spend more time at home, home improvement spending goes up:

  • Tools 
  • Paint and decorating materials
  • Gardening essentials
  • House cleaning supplies

4. Health and Wellness Items

Health becomes a top priority during uncertain times. Consider:

  • Vitamins and supplements - I wonder why more retailers overlook these products.
  • Fitness equipment and books.

5. Pet Supplies

Pet owners rarely skimp on their furry friends. Stock up on:

  • Toys and treats - particularly dogs
  • Pet care items and books.

Pricing and Promotion Strategies

To make these product categories work for your business:

  1. Emphasise value: Highlight cost-per-use or long-term savings.
  2. Bundle products: Create value packs that offer slight discounts. Bundles work well in difficult times.

Leveraging Technology

Your point-of-sale system can be a powerful tool in navigating these challenges. Use it to:

  • Track inventory trends
  • Identify your best-selling items
  • Manage promotions effectively

Personal insight: Our POS software has helped retailers quickly identify their product mix that sells now based on real-time sales data, which is a crucial advantage in rapidly changing markets. This information is not theoretical but honest facts about what is happening in your business. It takes you one second to find out, see here.

The Bottom Line

Success in retail isn't about being the past, but about the future, the most adaptable to change always win.

Adjust your product mix to the current times, emphasise necessities and affordable treats. Really dig into the information from your POS system - it's full of useful information about what your customers buy from you.

These approaches have helped many retailers I've worked with stay strong during tough economic times. You can do it too.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Four Decades of POS System Innovation

POS SOFTWARE

POS Solutions 41 years old

Today is POS Solutions' official 41st birthday. I bought it 41 years ago, planning to revolutionise the point-of-sale industry from some guys who could not make it work on September 8, 1983. I remember it well—a young guy with big plans who thought he was so clever; I had a partner, and we both had the arrogance of youth. Our only business plan was that if others could sell Business Software, so could we and since we both knew Point of Sale, having grown up in our parent's shops and considering ourselves terrific programmers. We started in a small serviced office in St Kilda; when he dropped out, I moved the company to my bedroom. This became my office. 

Slowly, POS Solutions became a leading POS software provider for businesses across Australia and New Zealand. Soon, I took on another partner, Zac, a computer engineer. Our steady growth and commitment to excellence have made us.

Our Winning Formula

Our success over these 41 years can be attributed to two core principles:

  1. Product Excellence: We have always invested in R&D and product development, maintaining a larger team of developers than our competitors. Our edge has always been our software.

  2. Customer-Centric Approach: From day one, we've prioritised exceptional customer service. There is a saying, "You can get whatever you want if you give people what they want." We knew their success would be our success.

Happy birthday to us!

Forty-one years of POS Solutions.  From the failing software business, I brought but somehow we made it work somehow, so now we went from my bedroom to a boardroom. That's something! Thanks to everyone who's been part of this wild ride. Customers, staff, partners, readers here - you're all legends.

Here's to many more years of trying to stay ahead in this crazy tech world!

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

More on Economic Ordering Quantity (EOQ)

POS SOFTWARE

Economic Ordering Quantity (EOQ)
Since my last post on Economic Ordering Quantity (EOQ) here, I've got a few questions. Many wanted more details on how to do the calculations for their shop. Since there is interest, I made a comprehensive reply here to explain it fully; that way, I can answer in mass.

Please remember that this requires information from your POS System, some technical skills and access to either Excel or OpenOffice (which are free, by the way).

Why EOQ Matters

Before we dive into the nitty-gritty, let's discuss why EOQ is special. It's a scientific way to manage your business to help you achieve maximum profitability by looking at the real world, where the stock cost goes beyond just the price of an item by the supplier. It addresses how often you should order stock from a supplier (Stock optimisation).

Now, if you buy too much, and it sits on your shelves:

- It then takes up valuable space

- Suffers from shoplifters

- Tying up your overdraft.

etc

Conversely, on the flip side:

- Not buying enough can cost you sales.

EOQ is designed to find the sweet spot between these two problems.

The EOQ Formula

Here's the formula used that mathematicians looking at the problem found:

Number of times to order = SQR(2 x D x k / h)

Where:

  • D is the ordering quantity of the item
  • k is the cost of ordering
  • h is the holding costs

I know our system isn't designed to handle this calculation directly, and the reasons will become clear why not here, but we've got a nifty ad-hoc reporting system that can do it, and it's a great way if you work through this of the power of our Ad-hoc reporting. Trust me, it's worth learning how to use it the Ad-hoc reporting. I think you'll be amazed at the power you have in your Point of Sale Software now.

How to get your EOQ

I never said it would be easy, only that it's a worthwhile exercise.

Go to register reports and select the top stock report, which is marked with the red arrow here.

Now, select your criteria; I used the stationery department because it's a simple department that most people could relate to. Furthermore, the note marked in red indicates that I put 99 million in for the number of items needed to get everything. I also picked a whole year, as small periods can have fluctuations that can muck up the long-term trends.

Now I have this report.

I imported the data into Excel, as shown here with the red arrow.

This then produced for me an Excel spreadsheet of my report.

That is the standard report, but now, I can change it to almost anything I want—ad hoc. This is the report I changed it to. Click on it for more details, and I will now explain how I did it.

Stock adhoc report

In my Excel spreadsheet, you will see that I have put all my variables on the right, so I can play with them later.

The first variable I need is D, which is the ordering quantity of the item. I have that here as units, so that problem is solved. All I need to do is divide it by 52 weeks a year, so column M2 =G2/52, and I copy it down.

I have to determine the cost of ordering. It takes the department about two hours for someone to process an order and another hour to process the order when the goods come. Say three hours plus some extras, say about $150. Since I have 247 items in this department, that works out, too.

k = $150/247 = 0.60728745

Now, we need the holding cost (h), which is the holding cost.

I explained how I get my stock-turns here, and it's 10 for this stationery department.

I would say for a year, we are looking at the interest of money plus shoplifting of about 1.5%, so say about 14%, so per week, that works out to 14%/52 weeks a year, about .2%, plus there is a rental on the building. This is something you need to determine. I suggested before that you go to your last year's profit and loss to resolve this. What is the cost of the space that you require to sell an item? When they do this, many report to me how stunned they were just how high that figure is. In this case, as I do not know it, I am setting it to zero.

Now, I need the stock on hand. I could use the figure that is there, but it suffers from the short-term fluctuations I mentioned above, so I prefer to use the yearly figure. I need to subtract the profit from the sales and divide it by the stock turns.

So, I make a formula (Sale$-Profit$)/stock turn in this Excel sheet, which is =(J2-H2)/$R$1, my SOH figure.

My h is now (SOH) x h + Fixed h, and you can see the column there marked N.

Now, my EOQ is easy to determine as it =SQRT(2*M2*$S$2/N2) and copy that down.

Since I am working in weeks, I did that 52 weeks and divided it by my EOQ.

The formula suggests that I should look at it every two or three months, which makes sense as stationery is a small department in this store with sales of about $3000 annually. However, there are certainly more important departments that the shop should investigate.

Now, I would change the figure, increase or decrease the stock turns, the holding costs, etc., to see what happens.

Common Mistakes When Implementing EOQ

Although EOQ is a valuable tool, there are some problems people commonly come up with when trying to use it:

  1. Ignoring variability: It assumes constant demand, which often needs to be corrected, e.g. Xmas stock or Mother's Day stock.
  2. Overlooking many costs: You need to include all the ordering and holding costs, including some less obvious ones like breakage and obsolescence. 
  3. Not updating regularly: As market conditions and costs change, you must periodically review your EOQ calculations; I suggest yearly.
  4. Perishable goods: It assumes that all items do not perish or have a marketing cycle, e.g. A magazine is monthly, and milk cannot be kept.
  5. Forgetting about lead times: It does not account for supplier lead times, particularly for items ordered from the net.
  6. Neglecting order quantity: It assumes you can order as little as you require; some suppliers have minimum orders.
  7. People's natural rhythm: People can be instructed to do the task once a week, every two weeks, or monthly, but it's a bit hard to tell then every 12 days. We do live in a real world.
  8. Often shops tend to have to do it by supplier not department: When you start to break down the figures to smaller sections of the shop you get results all over the place.I got this when I looked by suppliers, where you can see the problem.

    EOQ does by suppliers

    I suggest that you keep it simple and do it by department.

Wrapping Up

Remember, good inventory management isn't just about crunching numbers. It's about ensuring profitability is not sacrificed due to poor procedures. This is just one piece of the puzzle.

If there's enough interest, I will do a webinar on this topic and incorporate it into our software. So, let us know what you think!

Did you try to calculate EOQ for your shop? Please tell me what you found. I'm interested in hearing about your experience. Your practical experience is valuable to us, whether you have any questions or just want to share your thoughts.

Frequently Asked Questions (FAQ)

Here is an FAQ to answer some of your questions on the topic

Q1: What is Economic Ordering Quantity (EOQ)? 

A: EOQ is a scientific method used to determine the optimal quantity of inventory to order for the most profit.

Q2: Why is EOQ important for my business? 

A: EOQ helps maximize profitability by finding the sweet spot between overstocking (which ties up capital and space) and understocking (which can lead to lost sales).

Q3: Where can I learn more about implementing EOQ in my business? 

A: Links above were supplied, the Wikipedia has a decent article too here.

Q4: Do I need special software to calculate EOQ? 

A: No. While specialized software can help, you can calculate EOQ using Excel or OpenOffice spreadsheets using your POS System.

Q5: How often should I recalculate my EOQ? 

A: As market conditions and costs change, you should review and update your EOQ calculations. I think yearly should be enough. 

Q6: Can EOQ be used for all types of inventory? 

A: I think even if it is not applicable, the figures it produces, even if you have perishable goods or items with very short marketing cycles, are interesting.

Q7: How does EOQ relate to my Point of Sale (POS) system? 

A: Many modern POS systems are required to provide the information needed for EOQ calculations.

Q8: Is EOQ the only inventory management method I should use? 

A: No, EOQ is one tool among many.

Q9: Is this EOQ the only inventory formula for this use? 

 No, the EOQ formula has many variations, some of which might suit you better. Please let me know if you find one that you think is better.

The New All-in-One POS Computers: A Game-Changer

POS SOFTWARE

All in one POS Computer

Having worked in POS Systems for years, I have witnessed the evolution of point-of-sale systems. I am excited about the latest all-in-one POS computer models; these sleek machines are revolutionising retailing. 

The All-in-one POS system Advantage

These new all-in-one POS computers are fresh air on the front counter. They're not just computers but complete systems tailored for retail environments. Let's dive into what makes them so great:

Compact Powerhouses

Picture this:

- It has a 17-inch touchscreen

- An i5 CPU, 8GB RAM, and a 256GB M2 SSD, a high-performance computer that's been to the gym!

- Customer display

All packed into a single unit that looks good.

Built for Business

These are designed specifically for the rough and tumble of retail life. Temperature fluctuations, dust, spills, and slamming are constant uses—these are designed to handle them. I think all of us are tired of equipment that looks good in a showroom but fails in the real world of retail.

Why Retailers Are Falling in Love

Space Savers Extraordinaire

In my experience, counter space is like gold in retail. These all-in-ones are true space savers as they take up much less space.

These new models are an inch slimmer than the old models, with no loss of screen size. When I measured them, this is what I got.

All in one POS Computers

So we have more room at the front counter.

A Modern Face for Your Business

First impressions matter. An outdated computer monitor can make your whole shop look outdated. These sleek, modern all-in-ones show customers you're up-to-date and professional.

Value for Money

When you break down the costs, these all-in-ones are a bargain. They cost what a computer and touchscreen separately would with the same specs, but with the all-in-one, you're getting the customer display for free. So this is free

customer display

Real-World Benefits

Let's get practical. Here's how these systems can transform your day-to-day operations:

  1. Streamlined Transactions: Everything's integrated, making checkout smoother and faster.
  2. Easy Maintenance: One unit means less fuss regarding updates and repairs.
  3. Adaptable Setup: Adjustable screens mean you can customise the layout to fit your space perfectly.
  4. Professional Image: Impress customers with a modern, efficient-looking point of sale.

My Take

Having worked with POS systems for years, I can say that these all-in-ones are game-changers. They are designed to address many friction points that retailers struggle with, such as space constraints, durability issues, and the need for a professional image.

If you're a retailer looking to:

  • Maximise counter space
  • Upgrade your shop's image
  • Invest in durable, long-lasting equipment
  • Simplify your POS setup

...then an all-in-one POS computer could be just what you need.

Wrapping Up

In retail, having the right tools makes a difference. Every inch of counter space counts, and getting more speed is a bonus.

Get an edge with a modern, efficient, all-in-one POS system.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

How to stop a double discount

POS SOFTWARE

While discounts can effectively draw in people and increase sales, retailers should tread carefully. Multiple discounts applied to a single purchase can rapidly shrink profit margins to unsustainable levels. Looking up bargain shopping sites, you can read how double discounts dramatically impact a business's bottom line in dramatic examples. Let's explore double discounts and how you can prevent them using your point of sale (POS) system.

What Are Double Discounts?

Double discounts occur when a customer receives two discounts on the same purchase. For example:

  • A product is on sale for 20% off
  • An additional 10% drops off thanks to the customer's loyalty status.

While this added discount is a significant saving for them, it can destroy your profitability if not carefully managed.

The Impact of Double Discounts

To illustrate the effect of double discounts, let's look at this simple example:

Double discount

 

In this scenario, you lose $28 on a $100 item. Imagine this happening across multiple products and customers - it adds up quickly!

How to Prevent Double Discounting

Fortunately, your modern POS system offers features to help prevent double discounting. Here's how you can set it up:

  1. To avoid this happening, please do the following.

    Go to system maintenance, which is marked with the red arrow.

     

     

    Then find this option "prevent discounting of sale items," marked with the red arrow here.

     

    Set this to yes, as I have here. This will stop the double discount.

Benefits of Preventing Double Discounts

By implementing this simple change, you'll:

  • Protect Your Profit Margins: Ensure you're not giving away more than intended on each sale.
  • Simplify Pricing: Customers and staff will better understand the final price.

My Personal Experience

I went to a bargain shopping site, where a guy explained how to get another discount on top of the existing discount for an item. I followed instructions and got a $140 item reduced to $100  for about $70. 

Additional discount management tips

While preventing double discounts is crucial, here are some other strategies to consider:

  • Train Your Staff: Ensure all employees understand your discount policies.
  • Clear Signage: Display your discount rules clearly to avoid customer confusion.
  • Regular Audits: Periodically review your sales data to catch any discounting issues.  See how you can stop many of these automatically in our POS Software here.

Conclusion

Preventing double discounts is a simple yet effective way to protect your profits, so leverage our POS system's features and establish transparent discount policies to ensure promotions boost your business profitability.  

 

Our supplier search engine

POS SOFTWARE

I've seen firsthand how our POS software has revolutionised how brick-and-mortar retailers manage their businesses. Today, I want to highlight a feature: the supplier search engine.

Why a Robust Supplier Search Matters

For retailers, maintaining relationships with suppliers is often crucial. However, over the years, the number of suppliers can grow and become huge. That's where our supplier search engine comes in, making it easier to find the information you need quickly and efficiently. Modern retail management, with its idea of customer relationship management (CRM), actually does not stop at customers in a modern business. 

Our Supplier search engine

Our supplier search engine is designed with flexibility and ease of use. Here's how you can access and use this powerful tool:

  1. From the main menu, select Creditor > Maintenance
  2. Click on the Find button

Once you're in the search interface, you'll see a range of search options that allow you to find suppliers based on various criteria:

  • Company name
  • Contact name
  • Telephone number
  • Address
  • And more

The Power of Partial Matching

One of the most impressive features of our search engine is its ability to perform partial matches. I use it myself and find it a game-changer as it's hard to remember the exact details of many items like stock, suppliers, etc, after many years ago.

Real-World Application

Let me share a personal experience that demonstrates the power of this feature. I recently worked with a retailer who could only remember that the company had something to do with railways.

What I told him to do was go to the main menu and select Creditor > Maintenance.

 

POS System Main menu

Now select Find.

A supplier search

As you can see, we have many options for finding that supplier, such as the contact name and telephone number.



What you can also see is marked in green that you do not need all the details. I told him to type "rail" into the company name field, and within seconds, we had a list of all his suppliers with "rail" in their name.

In a second, he had the company details he needed; moments like these remind me why retailers have trusted our POS software for forty (40) years.

Benefits for Small Retailers

Our supplier search engine offers several key advantages:

  1. Time-saving: Quickly find supplier information without sifting through paperwork
  2. Accuracy: Reduce errors by quickly verifying supplier details
  3. Efficiency: Streamline ordering processes by having supplier information at your fingertips

Empowering Retailers for 40 Years and Counting

Our supplier search engine is just one example of how we've been helping retailers with cutting-edge POS software for 40 years with the technology they need in today's competitive retail landscape.

Celebrating Our Blog's Success: 7,000 Views in 28 Days!

POS SOFTWARE

Google search impact

As the primary writer for our blog, I'm so pleased to share some exciting news. Our recent post about POS systems for Australian retail shops has hit a remarkable milestone: over 7,000 views in just 28 days! This level of engagement is truly phenomenal, considering the natural and small market it addresses, and it shows that we're striking a chord with our target audience.

Why Our Message is Resonating

Addressing Real Retailer Needs

Our blog post isn't just about a POS system—it's about solving real problems. We've used our knowledge to create content that speaks directly to their needs, offering practical solutions to everyday issues.

Jargon-Free Communication

We've consciously tried to break down complex POS features into easily digestible information. One reader's comment stood out:

"Finally, I read a tech article that I can understand without a dictionary!"

This feedback reinforces our commitment to transparent, accessible writing.

Actionable Advice for Immediate Implementation

Our blog doesn't just describe our POS system—it provides practical tips that retailers can immediately implement. This approach has resonated with our readers, as evidenced by the high engagement rates.

The Numbers Speak Volumes

Let's break down what 7,000 views in 28 days means:

  • 250 views per day on average
  • Approximately ten views per hour
  • A new reader engages with our content roughly every 6 minutes

These figures are a testament to the relevance and quality of our content.

What This Means for Our Future Content

This success has given us valuable insights into what our audience wants. Moving forward, we'll continue to:

  1. Focus on real-world problems and solutions
  2. Use clear, jargon-free language
  3. Provide actionable advice
  4. Engage with our readers to understand their evolving needs

Wrapping Up

The incredible engagement with our blog post - 7,000 views in just 28 days - is more than just a number. It indicates that we're providing valuable, relevant information to people interested in POS systems. This success motivates us to continue creating high-quality, user-focused content that addresses the real needs of Australian retailers.

As we progress, we're excited to build on this success and continue serving our growing readership with insightful, practical content about POS systems and retail technology.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Google Search Impact

POS SOFTWARE

Google search impact

As this blog's primary writer, I'm thrilled to share this exciting news. This blog about POS systems for retail shops in Australia has had over 7,000 views in just 28 days. This remarkable engagement clearly shows that people interested in POS systems are finding our content and actively reading it.

Why Our Message is Hitting Home

Addressing Real Retailer Needs

Our blog post tackles the genuine challenges faced by retail shops. I know these pain points from my conversations with local retailers all too well. We're not just talking about POS systems; we offer solutions to everyday problems.

Clear, Jargon-Free Language

We've consciously tried to explain complex POS features in simple terms. As one reader commented, "Finally, I read a tech article that I can understand without a dictionary!"

Practical, Actionable Advice

Our blog describes our POS system and offers practical tips that retailers can implement immediately. This approach has struck a chord with our readers.

Wrapping Up

The incredible engagement with our blog post - 7,000 views in just 28 days - indicates that we're providing valuable information to people interested in POS systems.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Father's Day 2024

POS SOFTWARE

Father's day 2024

Father's Day is almost here. I hope you are prepared as it retails a golden opportunity, so please do not waste it. Let's dive into how you can use your point of sale (POS) software to maximise your sales.

Background this Father's Day

According to recent data, Australians are set to spend a lot. $820 million on their dads this year. That's a lot of potential sales to go around! Here's what people are buying now:

  1. Alcohol and food (34%)
  2. Clothing, shoes, and sleepwear (15%)
  3. Books, games, and music (15%)

While that's exciting news, the figure itself is slightly down last year, with the average person shelling out $101 instead of $112, but last year's figure was outstanding, so don't worry. 

At the GiftFair in Melbourne. Suppliers seemed to be pushing items for Father's Day, these items:

  • Beer steins and unique drinkware: Perfect for dad's favourite brew!
  • Quirky socks: Because who doesn't love fun feet?
  • Male grooming items: Help Dad look his best. I do not know how it will go in Australia, but retail publications in the UK are now saying they are doing well in retail shops.

Using Your POS System to Boost Sales

Check What Worked Last Year

The fact is that we are creatures of habit. What worked well last year often works this year. Do you remember last Father's Day? What sold well but didn't work? Your POS Software does! Use the "Top N Stock Sales for a Given Period" report to see last year's sales. 
 

Go to Register Reports.

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

In the form, put in today's and day-a-week's search and check it out. That will give you what worked last year. Make sure that these items are noticeable in your shop now.

Create Irresistible Bundles

Use your POS to create and track gift bundles. Maybe a "Beer Lover's Bundle" with a fantastic Stein and local brews? 

Offer Early Bird Specials

Did you know that 10% of shoppers have already bought?  The odds are now people are buying for Father's Day.

Making Shopping a Breeze

Remember, stressed-out gift buyers are your friends. Make their lives more accessible, and they'll love you for it. So, set up a "Father's Day Favourites" stand in your store and

  • Put your good sellers on the stand from your POS System data
  • Create staff picks based on sales data

Wrap It Up

Father's Day might be a short season, but it can significantly impact your bottom line. By using your POS system smartly and focusing on what shoppers want, you can turn this day into a real winner for your store.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

The Right to Disconnect: What It Means for your POS Software

POS SOFTWARE

Methods of communication

The short answer is that no one knows. We are on to it; I have discussed it before here and recently had several conversations with people about Australia's new 'right to disconnect' law. It's a hot topic, alright. 

Firstly, I am not a lawyer. This is not legal advice.

Right to disconnect Australia.

The right to disconnect gives employees the legal right to ignore work-related communications outside of their working hours unless it's deemed reasonable to respond. This includes, for example, your communication to them and any customer communication to your employees. It's part of the Fair Work Act amendments and aims to promote better work-life balance. I found a readable explanation by a lawyer here.

When Does It Start?

It's in effect for most businesses now, but organisations with fewer than fifteen (15) employees have until 26 August 2025 to comply. This means most of my clients have a year to digest it.

What Does 'Reasonable' Mean?

Here's the tricky bit - the law doesn't define what's reasonable. It's unclear if it's okay to send and, if so, what you can send; the main focus of the act is that the employee does not need to answer. Now, the courts must interpret this case-by-case until we get clarity.

My first question is, how does an employee know it's reasonable to respond till they read it? So do they have to read it, or is the onus on the employer to make sure it is reasonable before sending it? If so, based on my research and conversations and readings, here are some situations that might be considered reasonable to send:

  1. Emergencies (e.g., critical system failures)
  2. Pre-agreed on-call arrangements
  3. Safety issues
  4. Legal or regulatory requirements
  5. If you are overseas at a different timezone 

Impact on Retailers Using POS Systems

One concern I've noticed is how this law might affect rostering systems in POS software. Imagine this scenario:

You're working on rosters after hours and must inform an employee not to come in tomorrow. You send an email, but they don't respond. You call, but they don't answer, citing the right to disconnect. The next day, they show up for work unnecessarily.

This situation highlights the need for clear communication protocols and expectations.

I would be careful about working on the rostering system after hours. If this proves to be a problem, we are considering adding a holding facility to stop SMS and emails from being sent to selected people after hours. When we get answers, we can move. If you think we should add any changes, please let me know.

Note that SMS and most popular email services like Gmail can schedule their services; you may want to look into that so your communication goes out during business hours. Even if sending this stuff is okay, you do not want to be the test case to prove it.

After-hours communication policy

You need one. The right to disconnect is here to stay, and despite some talk by other politicians, it isn't very likely that you should go. At best, it might be amended. 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

How to avoid Point of Sale void fraud?

POS SOFTWARE

POS System frauds

I have seen how retail frauds severely impact retailers. As a retailer with a brick-and-mortar store, you're likely aware of the various business challenges. Void fraud is one of the worst threats to your business, as it attempts to bypass the security in your POS system. 

What is POS Void Fraud?

POS void fraud is a sneaky tactic where unscrupulous workers process a sale, take the customer's money, and then erase the transaction from the system, effectively taking the cash without leaving evidence.

The Mechanics of Void Fraud

Here's how it typically works:

  1. The employee processes a legitimate cash sale. 
  2. They void the transaction after the customer leaves
  3. The cash is pocketed, and no record of the sale remains
  4. End-of-day totals appear to balance. 

It's a sneaky tactic that can be hard to spot without the proper controls. 

Customers returning with queries about purchases not in the POS system are the primary method of catching these people. To make this legally stick, you need cameras on the till. This appears to be the only evidence the courts now accept.

Red Flags to Watch For

In my experience, several warning signs might help indicate void fraud is occurring:

  • An unusually high number of voided or no-sale transactions
  • Voids and no-sales happening at odd times or consistently by the same employee
  • Frequent voids for high-value items
  • Suddenly, low rates of cash

Suspicious Employee Behaviour

Be on the lookout for staff members who:

  • Frequently process transactions without customers present
  • Insist on handling specific customers or transactions themselves
  • Are overly protective of their register or reluctant to take breaks
  • Want to work alone? 

Regular audits and rotating staff assignments can deter potential fraudsters.

POS fraud prevention

1. Implement Strict Void Policies

  • Limit void permissions: Only allow trusted senior staff to process voids
  • Require approval: Set up your POS system to need manager approval for voids
  • Document reasons: Make it mandatory to record a reason for each void

2. Utilise Technology

Modern POS software offers powerful tools to combat fraud:

  • Real-time alerts: Get notified instantly of suspicious void patterns
  • Integrated camera systems: Link transactions to video footage for easy review
  • Detailed reporting: Analyse void trends and identify potential issues

3. What to do

  • Do not ignore the seriousness of void fraud
  • Proper cash handling procedures
  • Spot and report suspicious behaviour
  • Review your security camera footage regularly, mainly when a person is alone.
  • Conduct frequent, unannounced audits of  Void and No-sale transactions

A Personal Anecdote

I once worked with a small newsagency that discovered they were losing thousands of dollars to void fraud. The employee was ringing up transactions in the customer section, issuing receipts and then voiding the transaction in the cash register. We cut their losses almost immediately, needless to say, the owner.

Retail fraud detection

The first point is to check whether many of these voided transactions are occurring and when and who is doing them.



Easy enough to do: go to main menu > Cash register > Transaction Enquiry (see green arrow)

Now, search the transactions by ticking them as in the green arrow with voided entries only.

Now, look at what is happening.

Employee theft prevention

If you do not have our POS system to help prevent a void fraud, look for these features:

 

Feature Benefit
User-specific logins Tracks who performs each transaction
Tiered access levels Limits void permissions to trusted staff
Detailed void reports It helps identify suspicious patterns
Integration with CCTV Links transactions to video evidence

Conclusion

While POS void fraud poses significant problems, implementing effective strategies and our cutting-edge tools can safeguard your business. Remember, proactive measures trump reactive ones.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

This is a test blog please ignore

POS SOFTWARE

This is a test blog please ignoreThis is a test blog please ignoreThis is a test blog please ignoreThis is a test blog please ignore

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Your KPI, Labour Costs in Your Shop

POS SOFTWARE

Labour costs in a shop

This is one of the most used KPIs is labour cost with our restaurant clients yet it can be used for any modern business. In my years of experience working with point-of-sale systems, I've seen many retail shops firsthand how proper labour cost management can make or break a small business. 

Labour costs

The labour costs encompass all expenses related to your employees. This includes:

  • Wages and salaries
  • Overtime pay
  • Superannuation contributions
  • Payroll taxes if applicable
  • Employee benefits 
  • Paid time off (holidays and sick leave)

You probably have this figure in our profit and loss accountant, which the accountant prepared for you for the ATO. So, these calculations should only take you a few minutes to complete.

Revenue-based Labour Cost KPI

The labour cost ratio is a critical metric that measures the proportion of your revenue spent on labour expenses. It's calculated using this formula:

Labour Cost Ratio = (Total labour cost / Total revenue) x 100

If your shop's total labour costs for the year were $100,000. If your revenue is $500,000, then your labour cost ratio would be:

($100,000 yearly labour costs/ $500,000 yearly revenue) x 100 = 20%

So here it means you're spending 20% of your yearly revenue on labour costs.

Time-Based Labour Hour KPI

Although not part of the typical Labour Cost KPI, I suggest calculating it by week.

Labour cost a week = (Total labour cost / Number of weeks) 

If, for example, using the above, we say it is open 52 weeks a year

Labour cost a week = ($100,000 yearly labour costs/ 52 weeks )  = $1923 a week we need for labour costs in a typical week.

Why the Labour Cost Ratio Matters

Understanding your labour cost ratio is crucial because it:

  1. It helps you evaluate how efficiently you're using your staff
  2. Shows the impact of labour costs on your overall profitability
  3. Allows you to compare your performance with industry benchmarks

Industry Benchmarks

In the retail industry, labour cost ratios typically range from 15% to 20%. However, because all shops are unique, they have different benchmarks. It's essential to research specific benchmarks for a shop similar to yours in your area. Many labour costs by industry are listed here, unfortunately not all, so what people often do is look for some industries that are close to theirs and see what those industries offer.

Tips to Optimise Labour Costs

Based on my experience working with various retailers, here are some effective strategies to manage your labour costs:

Use a Modern POS System

Your point of sale system has plenty of items that can do tasks that use labour, e.g. AI stock ordering management features. Use it to monitor your labour costs:

  • It can also do rostering, allowing you to track your employee hours accurately
  • Generate reports labour
  • Allow you to forecast your staffing needs based on historical sales data
  • Identify peak hours and adjust staffing accordingly
  • Reduce overstaffing during slow periods

Employee Management

For example teaching your staff multiple skills, you can reduce the need for specialised roles to create a more flexible workforce. If you can reduce the need for someone extra to come to do a task, well that is a saving.

Monitor and Adjust Regularly

Keep a close eye on your labour cost ratio and adjust as needed. If it's creeping up, look for ways to increase efficiency or reduce costs.

Conclusion

Are you ready to take control of your labour costs? Start by calculating your current labour cost ratio and see where you stand. With the right strategies and tools, you can master labour costs and set your shop up for long-term success.

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Boost your shop sales with Google Business Profile

POS SOFTWARE

Your Google Business profile

Modern times demand modern methods, which means retailers must embrace online visibility. Today, in Australia, online visibility means Google, which means you need a Google Business Profile. What good is your "Open" sign if a shopper today looking for a particular business pulls out their smartphone and searches to find a product you sell?  If Google does not know you, they will recommend someone. Then, that customer will likely follow Google's directions to someone else.

Let me show you some examples of Google searches in Australia for some local businesses; I will pick three examples: a newsagency, a pet shop and a cafe.

I entered my SEO analytics provider, set Google, and then said newsagency. I asked what the top 18 things people search for when they look at newsagency are.

 

If you look at the list, location is more than half the searches. People are looking for a newsagency if we assume that 3,000 newsagencies in Australia is about 81,000/3,000 = 27 monthly searches per newsagency. 

Let us look at pet shops, and the situation is the same.

 

There are about 2,300 registered pet shops, which is about 62300/2300 =27  searches per pet shop a month. Interesting, it is the same.

Finally, let us look at cafes; it's the same story. 

We are looking at about 1,400,00 searches, and as we have about 26,124 Cafes and Coffee Shops businesses in Australia, we are looking at 53 searches per month for each cafe.

In all cases, many potential customers will use Google to look for locations for businesses that are almost certainly at the end of their buying cycle and ready to buy.

Ask yourself, "Why cannot they Google my business? Maybe it will increase sales if they find your business. We call this local SEO." 

A Note on Industry Collaboration

Despite our general policy of not referencing other industry players, we feel it's important to highlight our agreement with industry colleagues on this topic. The vital role of online presence for retailers has been a consistent theme in our industry dialogues, and it's gratifying to see a unified strategy emerging to support businesses in their digital evolution.

Why Google Business Profile Matters

In today's digital landscape, people often turn to Google when searching for local businesses. A well-optimised Google Business Profile ensures your shop appears in local search results and Google Maps. This increased visibility can lead to more foot traffic and sales. We call that Local search optimization to help with your business marketing. Today, 46% of all Google searches have local intent.
 

Tips

1. Check Your Google Business Profile

Check if you have one. If you have not, start making one. You may need to claim the existing one for your business listing.

2. Check the Information

Ensure the information about your business is correct and up-to-date, including:

  • Business name
  • Address
  • Phone number
  • Website
  • Opening hours

3. Choose the Right Category

Select the most appropriate category for your business to help Google understand what you offer.

Optimizing Your Profile for Local Searches

1. Add High-Quality Photos

Upload attractive photos of your store's exterior, interior, and products. Visual content significantly influences potential customers' decisions, so do not be afraid to take hundreds of pictures to find the right ones. You want to showcase your business.

2. Encourage and Respond to Reviews

Positive reviews boost visibility and credibility. Encourage satisfied customers to leave reviews and always respond to them, whether positive or negative. Go to your favourite customers and ask them. Tell them it's a big favour if you could give us one. 

3. Use Local Keywords

Include keywords that local shoppers might use when searching for your products or services in your business description. A simple way of doing this is to ask your customers what words they would use online if they planned to look for your product XYZ.

Verifying Your Google Business Profile

This is very important, as I see so many people messing up at this step. Verification is crucial for your listing to be found by searchers as this process has changed significantly since last year, so do the following to verify your business:

  1. Sign in to your Google account and go to google.com/business. Check it is verified it is not
  2. Select your business and click "Verify now."
  3. Choose your preferred verification method (usually by mail, phone, or email).
  4. Follow the instructions provided by Google to complete the verification process.

Monitoring and Analyzing Performance

Google Business Profile provides insights into how customers find and interact with your profile. Use this data to:

  • Understand which products or services are most popular
  • Identify peak times for customer interest
  • Refine your marketing strategies

Elevate Your Local SEO

In today's digital-first retail environment, harnessing free tools like Google Business Profile can be a game-changer. Implementing these strategies and maintaining an active profile will significantly boost your visibility to local shoppers seeking your products. Remember, consistency is key—keep your profile fresh and engaging. Seeing our industry unite to support retailers' digital growth is inspiring. We're fostering a vibrant local business ecosystem through knowledge sharing and collaboration. This cost-free advice can potentially drive substantial foot traffic to your store. Embrace these digital opportunities and increase your sales!

 

FAQ: Google Business Profile for Australian Retailers

What is a Google Business Profile? 

A Google Business Profile is your business's digital storefront on Google. It's like an "Open" sign for the digital age, helping potential customers find you when they search online.

Why is it important for Australian retailers? 

In Australia, online visibility often means Google visibility. Our research HERE shows that local businesses receive significant monthly searches:

  • Newsagencies: ~27 searches per month
  • Pet shops: ~27 searches per month
  • Cafes: ~53 searches per month. These searches are often from customers ready to buy, making your Google presence crucial.

How do I create or claim my Google Business Profile?

  1. Click here.
  2. Sign in with your Google account 
  3. Enter your business information
  4. Choose the appropriate category
  5. Add your location and service areas
  6. Provide contact details and website information
  7. Verify your business

If you have trouble give me a call.

What information should I include in my profile? 

Ensure your profile includes:

  • Accurate business name
  • Correct address
  • Up-to-date phone number
  • Website URL
  • Current opening hours
  • Appropriate business category
  • High-quality photos of your store and products

How can I optimize my profile for local searches?

  1. Add high-quality photos of your store and products
  2. Encourage and respond to customer reviews
  3. Use local keywords in your business description
  4. Keep your information up-to-date
  5. Post regular updates about promotions or new products

How do I verify my Google Business Profile?

  1. Sign in to your Google account
  2. Click here.
  3. Select your business and click "Verify now"
  4. Choose your preferred verification method (mail, phone, or email)
  5. Follow Google's instructions to complete the process

Can I track how my profile is performing? 

Yes, Google Business Profile provides insights into how customers find and interact with your profile. Use this data to understand popular products, identify peak interest times, and refine your marketing strategies.

Is a Google Business Profile free? 

Yes, creating and maintaining a Google Business Profile is completely free.

How often should I update my profile? 

Keep your profile updated regularly. Change business hours, contact information, or services immediately. Post new photos, respond to reviews, and share updates about promotions or new products to keep your profile fresh and engaging.

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.