Now, many are starting to agree with me that XChangeIT should be free for the users of this product. I said it for years and have not changed my mind. We are pleased to have been involved with XChangeIT from the start, even before it began processing Gordon and Gotch invoices in newsagencies electronically. Over the years, we have seen it deliver real value to the magazine channel, but that was years ago. The current charging model no longer stacks up, and the industry should review how this essential service is priced. The system that I have studied the most is the Ariba used by Coles, and I doubt the magazine companies charge Coles for their electronic invoices. Ariba is free to use.

Key Takeaways

• XChangeIT is an essential data exchange service
• Electronic invoicing is now standard practice across retail
• Newsagents fund a system that also benefits distributors and suppliers through cleaner data and lower admin costs.
• Fairness becomes a bigger issue when a retailer has no practical alternative to the service.
• Value-based pricing is easier to defend when a platform offers premium analytics, benchmarking, or decision tools.
• Industry review is warranted when essential infrastructure operates as a monopoly.
• Newsagents should push for transparent pricing, clearer value delivery, and independent review of access arrangements.

What Is XChangeIT and How Does It Work?

XChangeIT is the data exchange platform widely used in the Australian magazine supply chain to send invoices, return information, and other supply-related data between publishers, distributors, and retailers. First, it reduces manual data entry and supports faster, more consistent administration. For example, instead of a store owner manually entering 50 magazine titles into their inventory, they can use our POS System to populate the delivery data automatically.

Moreover, that operational role is real and worth acknowledging. The issue here is not whether XChangeIT is worth it, but whether retailers should still pay for access to a service that is now a standard business practice.

The first question many will ask is whether the charging is legal. The answer, I think, is YES, but that is not the point here. I am talking of fairness.
https://www.possolutions.com.au/blog/xchangeit-is-it-a-fair-and-reasona…

Why Are Newsagents Charged for XChangeIT Access?

Newsagents are charged for access because the platform was historically introduced as a specialised, premium technology solution for a complex problem. Then it was premium technology that was unusual, complex, and commercially distinctive.

Today, electronic invoicing and automated data exchange are standard operating tools across retail. Anyone with a simple accounting program, say like MYOB, for about eleven dollars a month can send invoices electronically. Our POS Systems allows our users to send electronic invoices free.

Is XChangeIT Now Essential Industry Infrastructure?

As an essential industry infrastructure, all market participants must use it to trade efficiently. Across the many retail sectors I have worked in, I have not seen suppliers routinely charge stores for receiving a standard invoice. Do you charge your customers to receive your invoices electronically? 

Then there is another issue. Magazine sellers are not just receiving data through XChangeIT; they are also sending information to the suppliers and distributors. Distributors benefit from cleaner returns, fewer processing errors, and more efficient administration. Yet the smallest business in the chain, the magazine seller, is being asked to bear the cost.

When Is a Separate Platform Fee Justified?

This separate platform fee would now be justified if XChangeIT delivered what it was originally promising to do: measurable, premium capabilities that go beyond standard transaction processing, say if XChangeIT delivered advanced analytics, stronger reporting, benchmarking, and practical marketing tools beyond basic transaction processing. I do not see anything happening here. Years ago, they started these projects. I can remember them collecting that data for mathematical studies, but nothing came of it despite some interesting results. 

The Fair Position for Newsagents

XChangeIT is playing an essential role in the magazine channel, and that contribution should be recognised. Newsagents should be asking for transparent pricing, clearer value delivery, and an independent review. You can read more here on the fairiness of XChangeIT.  I am glad now others are agreeing with me now.

Written by:

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

List the top 4 markets or products your business services:

1. ………

2. ………

3. ………

4. ………

Now do a Google search and check the AI Overview,

Ask it for each of these markets or products
“Who are the best [markets/products] in [My Suburb]?”

Sample questions might be:

“Who are the best greeting card companies in Keysborough?”

“Who are the best pet food suppliers in Dingley Village?”

If your business isn't showing up in those answers, you’re quietly missing out on customers. Today probably about 20%.

Also check:

Is your shop’s name and address easy to see (or clearly linked to the product)?

Are your competitors more visible in the answer?

Try this today (it’s free and easy).

What Free Tools can you use now to help improve your score? 

These online systems pull from the exact same places. The main ones being 

Google Business Profile – your digital shopfront in searches and maps. This tells them where you are and what you sell.

Facebook Page – where people check hours, photos, and reviews.

Check the links to see what you can do now for free.

Click here for some ideas to talk about online
 

Many are missing out on a simple, high-margin product category that your customers already buy elsewhere. Why not put in a clothing range to boost your shop?

Key Takeaways

• Profit margins in utility clothing
• Strategic placement of weather-ready apparel near checkout zones drives high-value impulse purchases.
• Inventory testing involves launching just 6-12 apparel units
• Point of Sale (POS) analytics required.
• Staff training focuses on practical, weather-related conversation starters to encourage add-on sales.

Clothing Retail Expansion

Everyone needs clothes. It has better sales potential and margins than most products. For example, a $60 jacket with a $30 wholesale cost delivers far more profit than selling several magazines. Ultimately, clothing is a high-margin, everyday category.

Moreover, Australia's apparel market remains a stable investment for local shops.

Select the Right Clothing Category?

What you want is something that increases your average basket size by turning routine, low-spend visits into higher-value transactions. For example, a customer buying a birthday card would notice a lightweight jacket. If it's cold and wet, they will often grab it.

Utility clothing sells best because it solves immediate, everyday needs without requiring a changing room.

Clothes displayed by hanging save shelf space. Choosing the right clothing category involves picking a narrow, practical niche that matches your existing customers. Study similar retailers for proven, low-risk ideas.

How Should You Test a Clothing Range?

Testing a clothing range means starting small and measuring concrete results before committing to a larger order. For example, introducing just two jacket styles in limited quantities drastically reduces your financial risk.

Define a Test Range

Start your test with just 1–2 product types and 2–3 colours, for a total of 6–12 units. For example, order a handful of adult wind-resistant jackets and a matching kids' version. Treat this strictly as a 3-6 month seasonal test.

How Do You Source Clothing Brands for Your Shop?

Sourcing clothing brands involves partnering with wholesalers who can actively support you. For example, local Australian outerwear brands often supply boutique hardware stores or newsagencies without demanding massive minimum orders.

Where to Find Brands

Look for independent labels, outdoor brands, or local suppliers. For example, check a brand's website for "stockist" or "apply to stock" pages. When contacting them, always ask about minimum order quantities, delivery fees, and consignment options. Be careful, as in my experience, many of these suppliers will, if they think you do not know, try to get you to take unsalable stock. Most clothing suppliers are sitting on such stock. Conversely, you can get such stock at a very good deal. If so, they work well in a dump box.

What Pricing Strategy Works Best for Clothing?

Clothing pricing works best when you balance perceived affordability with strong retail margins. For example, a jacket bought for $30 wholesale can comfortably retail for $54–$66.

How Should You Display Clothing in a Store?

Clothing displays should be simple, highly visible, and tied directly to existing customer flow. For example, placing jackets on a small vertical rack near your greeting-card wall captures customers who are already browsing.

First, use folded-stack displays or small racks with clear, benefit-driven signage. For example, use a sign that reads: "Light wind-resistant jacket for school runs and park days." Keep the range feeling like a helpful add-on rather than a demanding fashion section.

Utility Clothing vs. Fast Fashion in Small Retail Stores

Utility clothing focuses on practical, weather-resistant garments designed for everyday use, while fast fashion offers trend-driven apparel with shorter lifespans. When comparing the two, utility clothing offers a longer shelf life, lower inventory risk, and higher, more consistent sell-through for non-fashion retailers.

A POS System Helps Manage Clothing Sales

Your Point of Sale (POS) system is very important here as clothing is such a specialised product with sizes, colours, styles, etc. It does not take much to have many combinations. Five sizes, male and female, five colours, and four styles give you 200 combinations. Automatically analysing sales data, predicting demand, and recommending reorder quantities across 200 combinations is a lot of work for a small department, and in clothing, you need to analyse in real time. You also need to be ruthless here in getting rid of unsellable stock, as it takes up a lot of room.

First, use your system's sales reports by SKU to eliminate guesswork. Our advanced POS systems will identify trends for you.

Conclusion

Clothing can increase revenue. Start small, focus purely on practicality, and let your POS System guide you.

Written by:

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

Today, Australian businesses use AI for tasks such as drafting, reporting, analysis, and administration. You're probably one of them, but have you considered the risk of starting when your business information is outside the store's control? The problem, I am sure, is not foul play by the AI company but the storage of information. This is what many business people miss: where is the information in an AI service?

Key Takeaways

• Data movement risk: Online AI moves prompts and files into third-party systems, creating privacy, confidentiality, and retention risks.
• Control advantage: Local AI keeps prompts and files inside a business-controlled environment, giving retailers stronger control over access, logging, and deletion.
• Privacy obligations: Personal information in AI prompts can trigger Privacy Act duties about collection, use, disclosure, accuracy, and security.
• Commercial exposure: Confidential business information, such as supplier terms, pricing logic, and dispute strategy, can create serious risk even when privacy law does not apply.
• Shared access risk: Shared AI accounts can expose past prompts, uploaded files, and internal thinking to unauthorised parties.
• Tiered policy: The right answer for most retailers is not all-local or all-online.

What Is Local AI vs Online AI for Business?

Local AI is AI stored on your computer, and that runs on it. Right now, it's really hot with a lot of public interest. The two biggest advantages people see are cost and privacy. Today, local AI can deliver about 80% of what online AI companies can give you.

Let us discuss a real user case.

A staff member ask an AI tool to rewrite their reply to a customer complaint, what is being stored on the AI is the angry shopper's name and address.

How Does the Privacy Act Apply When Staff Uses AI?

Under the Privacy Act, which would apply to AI use if it involves personal information.

The government says you must take a careful approach to AI use involving personal information, conduct due diligence on the product, and build human control, privacy governance, and staff procedures around its use.

Where it is actually frightening is that AI hallucinates. In one study I saw, the rate was between 0.6% and 2.6% today. What happens if An AI hallucination incorrectly states a specific staff member was fired for theft. and that information gets out.

The other concern is that an AI can be very good at finding other information on a person, for example For example, a pharmacy collecting a patient's email for a receipt cannot legally dump email addresses into an AI tool to predict their future medical purchases. The Privacy Act restricts businesses from using data for secondary purposes without consent or an exception.

About business Confidential Business Information?

Confidential business information may include pricing policies, supplier terms, internal reports, and other factors that drive your commercial advantage. This data can create a serious risk when it leaves the business. For example, I remember a newsagent who was very upset when he discovered that a report showing his seasonal greeting card markup by supplier was given to another shop nearby.

What about using AI to prepare an email to a supplier, asking for an extension to pay because they do not have the money this week, and then it ends up with another supplier of theirs?

Shadow AI

Most people have one AI account for business. They then share it with everyone to use. We call this a Shadow AI account. In practice, it means everyone can see the information.

It may get worse, as many people today have smartphones and use them, which means your staff member has this confidential information stored on their AI account. I have no idea how to handle that problem.

How Long Do Online AI Providers Keep Your Information?

There are many pluses to storing this information for a long time. For example, in the above example, where a merchant is writing to a supplier for an extra month's credit, the merchant may need to refer to the letter in a few weeks. So you want it to stay as long as possible. Most suppliers claim they can keep it for 60 days, but I read that their internal logs retain it much longer. We do know from a case in the US that even after the user deleted the information, it was still stored officially for training purposes.*

We do know that AI companies do analyse your messages, not just for training purposes but also for some illegal activity such as paedophilia. How deeply they go, I do not know. Still, I remember how, a few years ago, people were complaining that Google Gemini was becoming unusable because it was so politically correct. The AI refused to label a drink by a hot chill dish by its name in a restaurant. What the AI companies do with the information they flag, I am not sure. It would be nice to know.

Can Using AI in a Legal Dispute Damage Confidentiality or Privilege?

Short answer: YES.

The police or courts can demand this information from you or the AI company. If you use an AI company under US law, they will have no problem getting it. If you use, say, a Chinese AI company, it may not be so easy for them to get it.

If you want to know more, check out the Federal Court of Australia, which published its Generative Artificial Intelligence Practice Note, GPN-AI, on 16 April 2026. This document sets clear expectations regarding the responsible use of AI during proceedings.

There is no problem in a judge ordering a retailer to disclose exactly which AI software they used to summarise thousands of pages of contested supplier invoices and to demand a copy.

Why Does Local AI Appeal to Privacy-Conscious Businesspeople?

The first point is that it limits the risk of third-party access to the data. Today, about 80% of all AI requests in large organisations go through their local AI. It gives the organisation direct ownership of its security and usage. It often allows you to know who asked and when.

AI Policy statement

Here is one I wrote; feel free to use it or modify it as you require.

Artificial Intelligence (AI) Acceptable Use Policy

1. Policy Purpose
   This document defines how we may use artificial intelligence tools to improve efficiency while protecting customer privacy and commercial confidentiality. It establishes well-defined guidelines for tool selection, information handling, accuracy verification, and incident reporting. The policy will be reviewed to ensure compliance with current technical progress and regulatory requirements.
2. Scope of Policy
   It applies to all full-time employees, casual staff, contractors, and temporary personnel. It covers AI usage on company-owned devices, shop-floor tablets, cloud workstations, and personal devices used for work.
3. Approved Tools and Account Access
   Staff must exclusively use AI platforms authorised by management. The IT department maintains a register of approved tools with defined security certifications. Single sign-on credentials are required for all licensed accounts. Unapproved public applications need management approval first. Use of tools falling below minimum security thresholds will stop immediately.
4. Protecting Point of Sale Data
   Extreme caution must be exercised when exporting information from our organisation. This includes such things as raw transactional records, customer loyalty databases, and end-of-day financial summaries must never be uploaded to unapproved public platforms without prior sanitation. Personally identifiable information should be masked before export.
5. Human Review and Accuracy
   Artificial intelligence models frequently generate plausible but incorrect outputs, a process identified as hallucination. Each employee remains fully accountable for the accuracy of machine-assisted work products before the submission. We ask that if in doubt, you see management before release.
6. Incident Reporting and Consequences
   Any accidental data exposure involving AI platforms are required to be reported to the manager on discovery. Rapid reporting enables immediate containment, including session termination, cloud cache deletion, and customer notification if required.

Regards

Manager

Conclusion

An important AI question for a businessperson is who controls the information after it's entered into an AI. You must ensure your operational data remains secure. I suggest, for both cost and security, that you consider Local AI if possible. I discussed deployment of Local AI here.

Written by:

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

Many customers still want to pay in cash. Many of these are finding that we are seeing shrinking cash access, fewer ATMs, and weaker retail banks slowly destroying our cash infrastructure.

Key Takeaways

• Cash Out Day 2026 takes place this year on Tuesday, 28 April
• It encourages Australians to withdraw physical cash as a public show of support for keeping cash available.
• Cash still matters to many local shoppers.
• A clearer political consensus is forming that keeping cash is important, but politicians will only push for it if voters and businesses visibly support it.
• Supporting cash can help your store signal convenience, reliability, and community values at a time when trust matters more than ever.
• The October 2026 surcharge changes will reshape payment habits, making it even more important to review your cash policy.
• A simple in-store promotion can help you back Cash Out Day

What Is Cash Out Day 2026 and How Does It Work?

Cash Out Day 2026 is an Australian campaign that encourages people to withdraw physical money on that day to show that cash still matters. In practical terms, shoppers are asked to visit an ATM or a bank branch on Tuesday, 28 April, and withdraw some money as a simple public signal that they want cash access protected.

The campaign speaks to a larger concern. Many Australians can see that access to cash is slowly shrinking, with fewer bank branches and fewer ATMs. This is about sending a message to banks, payment providers, and governments that cash still plays a real role in everyday life.

Importantly, there is also a political angle retailers should not ignore. A clearer political consensus is emerging. Politicians can see that many feel that keeping cash is important. They can see voters push back against branch and ATMs closures. But let us face it, politicians respond to visible public pressure. If they do not see shoppers and businesses actively supporting cash, many will move on to other issues. Policy usually follows pressure, not silence. Silence will cause the issue to fade. For example, if a local MP hears complaints from traders and residents about ATM access, that concern stays alive; if nobody speaks up, it drops down the priority list.

Did Cash Out Day Achieve Its Goals?

Cash Out Day 2024 certainly raised awareness, but unfortunately, in 2025, it did not create the level of public momentum the organisers wanted. They thought it was because so much had happened that day, so people were distracted. I think it was partly because the date got mucked up. Moreover, last year’s poor result was likely due to many Australians believing the issue had already been handled. The government was then talking about protections for cash acceptance, so many assumed the problem was solved. Many of these people would be very disappointed now with what the government came up with. Actually, their proposals were considered disappointing, that it was defeated in the Senate.

How Can Your Store Promote Cash Out Day 2026 In Practice?

Promote Cash Out Day 2026 by making cash acceptance visible and normal, reassuring customers of your support for choice without conflict. A small sign, like “Cash welcome here on Cash Out Day, Tuesday 28 April,” can start conversations without overwhelming customers.

If you want to sign a petition that now has over 200,000 signatures, click here.

Conclusion

This year, Cash Out Day 2026 will hopefully be a practical reminder that cash still matters.

Written by:

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

As a retailer, you need to keep records for years. Government regulations, legal needs, or even access to old customer data are all important! I sometimes had to access very old information just for commercial reasons, 20+ years ago.

Now, have you thought about how long your digital records will last?

Sadly, the hard drives and discs we use aren't built to last centuries, unlike the old carvings archaeologists have been uncovering up to today. Let's look into long-term storage, so you make the right choices.

How Long to Keep Retail Records

In Australia, retailers should keep POS system records, invoices, receipts, daily reports, and end-of-day summaries for at least five years. However, seven years is safer under Australian Tax Office guidelines. Keep payroll records for a full seven years, too. Extend that period if the records relate to assets, warranties, or legal disputes.

Here is a detailed table of the times required, I have put together and by who wants it 

Business Record Retention & Disposal Schedule

I will add that, personally, I am not in favour of deletion unless you have to, as you never know when you might need the information. For example, a client of mine is involved in a case linked to 2006. When records this old are missing, courts accepted that as reasonable, but then it becomes their word against the other party's. This is not a good position to be in! 
 

We call this a Potential Litigation Hold.

What Lasts, What Doesn't, and How to Make it Better

• Cloud storage: Theoretically, it lasts forever, but there will be issues.
• Magnetic Tapes to the Rescue? These can, under ideal conditions, last a long time, but few of us actually have the specialised equipment. Besides, it's often a pain to use.
• Old-fashioned Hard Drives: Most last about 3-7 years, though a lucky few last longer. To keep them, you need to use them; otherwise, they deteriorate after about two years.

• Optical Discs: Please aim for quality; write-once media like Verbatim Gold have longer longevity, and the cheaper ones have much less. For CDs and DVDs, you are looking at 5 to 100 years, depending on the type. When I went to the Verbatim website and looked at their warranty here, I noticed they only offer a 2-year warranty, which does not include a data retention guarantee. The courts may have something to say about that, but few people want to have to argue this in court.

Most people today, when considering very long-term storage, look to DVDs because they are both convenient and economical. If you go this route, here is how to do it:

Protecting Your Precious Data on CDs and DVDs:

It depends on three main factors:

1. Have more than one backup. I argue that you do not have a backup if you have only one. These two backups should be stored in different locations so that if anything happens to one, the other is safe elsewhere.
2. You need good-quality DVDs. There are good reasons why they are a bit dearer. This comes from a Canadian government study, which you can find here.

3. Environment matters! Pick a place:

• Cool & Dry: Store items at around 20°C with about 40% humidity.

• The Dark Side: Store discs in cases out of direct sunlight. I put a sealed plastic bag over them.
• Peace & Quiet: Avoid putting the discs where they will be moved or dropped.

Using DVDs for archiving business and POS records has distinct advantages and drawbacks, especially compared to modern hard drives or cloud storage.

Pros of DVD Storage

• Long lifespan: High-quality, archival-grade discs (such as those with a gold metal layer) can last 50 to 100 years when stored in the right environmental conditions.
• Tamper-proof: Standard recordable DVDs (DVD-R or DVD+R) are write-once media, meaning that once your data is burned onto the disc, it cannot be accidentally deleted, overwritten, or infected by ransomware.
• True offline security: DVDs provide "air-gapped" cold storage. Because they sit on a shelf rather than being connected to a network, they are completely immune to online hacking or cloud policy deletions.
• Excellent for chunking: DVDs are great for archiving specific, yearly projects (like a disc labelled "FY2025 Accounts"); other methods, like the cloud, tend to mix up your data.

Cons of DVD Storage

• Low capacity: A standard DVD holds 4.7 GB, dual-layer 8.5 GB. Suitable for text reports and spreadsheets but insufficient for larger files, requiring the management of multiple discs.
• Slow write speeds: Burning data is slower than on fast SSDs and USB drives.
• Vulnerable to damage: DVDs degrade within 5-10 years due to heat, humidity, sunlight, or scratches, often going unnoticed until it's too late.
• Limited hardware support: Modern computers rarely have built-in DVD drives.

Cloud Storage

As the limitations of physical storage have become increasingly apparent, cloud storage emerges as a compelling solution for preserving your digital legacy. In theory, entrusting your data to a reputable cloud provider can overcome many of these problems.

Pros:

• Accuracy: Today, many Cloud storage providers offer an astonishing rate of accuracy in their storage capacity. One I saw doing an online search offering 99.999999999% (that's 11 9s!) data durability. That far exceeds the reliability of any physical media.
• Dispersed storage: Many Cloud providers store your data across multiple geographically dispersed data centres, ensuring redundancy and resilience.
• Easy access: Your data is available on demand from any internet-connected device, anytime, anywhere.

Cons:

• Cost: Generally, it costs, though many, like Google and Microsoft, offer a limited free plan.
• Future uncertainty: Considering the time frame we are looking at here, a cloud provider could go out of business, change its policies, and who knows what else.
• Policy: Some cloud providers, e.g. Google, state that they "reserve the right to delete an inactive Google Account and its activity and data if you are inactive across Google for at least two years." So every two years, you have to log in to your account and say, "Hey, this account is still active." It's not a big ask, but it's not entirely set-and-forget.
• Remembering passwords: Cloud accounts rely on account names, passwords, and, increasingly, mobile numbers. Over the next 10 to 20 years, how will you remember these details? Will you have the same mobile number then? If someone else has access to your account and its passwords, they can also access your data.
• Control: In an overall sense, you do lack control.
• Privacy concerns: Be aware of potential changes in data privacy laws or a provider's terms of service. Although few of my clients have an issue here now, the privacy laws are slowly turning to the idea that much data businesses store must be held in Australia, not an issue now, but who knows in 10 to 20 years.

Summing up:

Overall, my preference would be to burn two copies of my business records onto a good-quality DVD. Put them with your business records in a safe place in your house in a protective box, as seen here:

I would then put a copy on a free service like Google, which I could access anytime, anywhere.

If you decide to go this route, here is a suggested policy

Management of Archived Physical Media (DVD/CD)

Effective Date: [Insert Date]

Objective: To ensure business compliance with the Privacy Act 1988 and ATO record-keeping requirements when using non-rewritable storage media.

Access Controls (Security)
Physical Lockdown: All archived DVDs containing personal or financial information are stored in a secured room, fireproof cabinet or safe.

Restricted Access: Only [Insert Job Title, e.g., Business Owner] is authorized to access the archive.

No Active Use: Staff are strictly prohibited from accessing, copying, or disclosing personal data from archived discs for marketing or general business operations.

Labelling & Warning
Every archived disc or its protective sleeve must be clearly labelled with a Generic Warning.
Label Template: “ARCHIVED DATA: [Year Range]. Contains personal information. Access restricted. DO NOT USE. 

Final Disposal (Destruction)
If you decide to destory the disc, it must be irretrievably destroyed. 

Note: Simply throwing a disc in the general waste or scratching it by hand is not sufficient.

Conclusion

Long-term record storage isn't just about compliance; it's about keeping your retail history available and trustworthy for years to come.

Want to get your data storage sorted? Contact us for a free consultation!

Frequently Asked Questions (FAQ)

Q: Can I leave my POS backups on a USB thumb drive in a drawer?
A: No, I highly advise against this. USB flash drives use similar technology to SSDs. If sitting unpowered in a draw for years, they can lose their charge, and your data may silently corrupt or vanish. They are great for moving files around today, but terrible for 10-year storage.

Q: Does the ATO accept digital copies, or do I need the original paper receipts?

Q: What is the best brand of DVD for long-term archiving?
A: Look for "Archival Grade" or "Gold" DVDs. Brands like Verbatim (specifically their Gold Archival range) or CMC Pro are widely trusted. They use a gold reflective layer that resists oxidation and degrades much better than the cheap silver discs you buy in bulk at the supermarket.

Q: Is it enough to email the backup to myself?
A: I do that, and it's okay for a quick, temporary backup, but it shouldn't be your only long-term strategy. Emails can be accidentally deleted, end up in junk folders, or become inaccessible if your email provider changes policies or you get locked out of your account 10 years from now.

Written by:

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

Every time a customer taps their card at your counter, a slice of that sale quietly disappears into the banking system. Currently, many recover some of that expense through a checkout surcharge. Here, I will show you exactly how to use your POS System to protect your margins as the 1 October 2026 surcharge ban deadline hits.

Unlike many people, I was one of the few directly involved in the discussion about the Reserve Bank of Australia (RBA) ban on surcharges, and that is why, after reading some of their advice, which I found almost useless and self-serving, I wrote this article. 

Key Takeaways

• The 2026 RBA surcharge ban legally prevents retailers from passing card processing fees directly to customers at the checkout.
• Least-Cost Routing (LCR) directs debit payments to the cheapest network but requires manual activation by the retailer.
• Blended merchant rate plans will hide the proposed fee reductions unless retailers switch to interchange-plus pricing.
• Many fixed-price stock items force shops to absorb payment costs completely because retail prices cannot be raised.
• Premium reward credit cards remain highly expensive to process and will cut deeply into retail profits.
• No-cost EFTPOS providers must alter their entire business model, leaving retailers vulnerable to sudden fee introductions.
• Modern Point of Sale (POS) software allows retailers to find products that can absorb the price bump.

What is the 2026 RBA Surcharge Ban?

The 2026 RBA Surcharge Ban, effective October 1, 2026, prohibits Australian retailers from adding checkout fees to Visa, Mastercard, and EFTPOS transactions. This ensures consumers see a single final price without surprise charges. For example, a retailer can't add a 1.5% fee on a $20 book to cover banking costs. However, this ban only covers processing costs, not penalty rates for weekends or holidays. Retailers can still charge holiday surcharges if they are clearly disclosed, such as a 10% Sunday surcharge at a cafe, excluding card-specific fees. 

The RBA surcharge ban starts on 1 October 2026 for all domestic card networks.

The RBA combined a ban on interchange fees with mandated reductions, which are hidden charges your bank pays to card networks for transaction approval. For instance, the fee for verifying funds with Visa is capped at a lower rate.

Why the 2026 RBA Surcharge Ban Matters for Your Bottom Line

The 2026 RBA Surcharge Ban shifts the burden of payment processing directly onto retailers. This matters because the fundamental cost of processing electronic payments does not disappear; the RBA wants it to be an invisible operating expense. For example, a shop processing $500,000 in card sales annually will instantly lose $7,500 in pure profit if it previously charged a 1.5% fee to its customers.

Card payments cost the Australian economy over $1.6 billion annually.

Consequently, SMB shops face a structural disadvantage compared to massive supermarket chains. Large acquirers and major retail chains can negotiate ultra-low processing rates directly with banks due to their massive transaction volumes. For example, while an independent newsagency might pay 1.2% per tap, a supermarket giant next door might pay a fraction of a cent per transaction.

Are Cash Discounts Still a Legal Alternative to Surcharging After October 2026?

YES. Cash discounts remain a fully legal and compliant pricing strategy for retailers who want to encourage customers to use cash. The Reserve Bank explicitly allows businesses to display a standard shelf price and reduce it at the register for cash. For example, you can price a greeting card at $8.00 on the shelf, but program your pos system to automatically drop the price to $7.80 when the cashier selects the cash payment button.

However, relying on cash discounts is a severely limited strategy in today's digital economy. Almost all consumers have shifted overwhelmingly to cards, meaning a cash incentive will capture only a small percentage of your traffic. For example, putting up a sign offering a 2% cash discount will not convince many busy parents to walk to an ATM.

Therefore, cash discounts can make only a minor contribution to your overall margin protection strategy. You must combine this tactic with rigorous merchant-fee negotiations and smart inventory pricing to protect your entire business. 

Do Premium Reward Credit Cards Cost Small Retailers More After the Surcharge Ban?

Premium reward and corporate credit cards incur higher interchange fees than standard debit cards mainly because of their point structures, and under the 2026 surcharge ban, Australian retailers must absorb these costs now in full. These luxury cards fund their points programs by charging the merchant more. This practice should be illegal, as the merchant is being forced to pay the bank's marketing. The RBA did not seem to care about that.  For example, processing a standard EFTPOS debit card might cost your shop 14 cents, but tapping a platinum frequent-flyer credit card for the same purchase might cost you 80 cents.

Some shops will be hit much more if they sit in an affluent suburb, where customers are actively chasing airline points and cash-back rewards on every small purchase. For example, a customer buying a simple $5.00 newspaper might tap a corporate credit card, with higher fees.

However, because Amex has notoriously high fees and is not local, you will be legally permitted to refuse their cards. For example, you can stick a clear "No Amex" sign on your front door and configure your pos system to decline those specific cards automatically.

Are You Caught in the Blended Rate Trap for Merchant Fees?

This is important: blended merchant fees include the true cost of card processing by charging a flat percentage across all card types. Banks have been aggressively selling these simple flat-rate plans, but they are incredibly dangerous when the wholesale fees drop. 

The upcoming RBA wholesale caps will, as such, not automatically save you money if you remain on such a plan. When the government forces banks to lower their interchange fees, the banks may not be legally required to pass those savings on to retailers under flat-rate contracts. If so, the bank will enjoy a wider profit margin on your transactions while you continue paying the same 1.5% fee.

Therefore, you must contact your bank immediately and review your pricing. Ask about the "Interchange-Plus" pricing model. It is transparent and charges you the exact wholesale cost of the card plus a small, fixed bank markup. For example, on an Interchange-Plus plan, when the RBA drops the wholesale cost of a debit transaction, only then will your monthly merchant bill drop.

How Does Least-Cost Routing (LCR) Lower Debit Card Costs?

Least-Cost Routing (LCR) is a payment terminal feature that automatically directs debit tap-and-go transactions through the cheapest available network, typically EFTPOS, reducing per-transaction costs for Australian merchants. Almost all businesses will be better off under this scheme. However, most businesses do not have it, and, unfortunately, the Reserve Bank has not legally required banks to enable this money-saving feature. This means most retailers are currently paying higher fees simply because they have not activated it. If so, you must take proactive steps now to fix this in your business. Pick up the phone, call your EFTPOS provider, and explicitly demand that Least-Cost Routing be activated. If your provider refuses or claims their older terminals cannot support the feature, it is time to shop for a new EFTPOS provider immediately.

What Should You Do If You Use a No-Cost EFTPOS Provider?

If you are using a zero-cost EFTPOS provider, you are not actually getting free banking; your customers are simply paying your merchant fees via an automatic surcharge.

From 1 October 2026, the RBA will make it illegal to pass card fees directly to consumers at the point of sale. Because zero-cost providers rely entirely on consumer surcharges for their revenue, their current business model probably reverts to charging retailers directly. They cannot legally continue providing you with free hardware and 0% merchant rates.

Now, traditional banks can comfortably keep charging you a flat 1.5% merchant fee behind the scenes, and what you will see is that the zero-cost providers will rewrite their contracts. 

Recently, I contacted a major no-cost EFTPOS provider on behalf of my clients to ask about their business model after October 2026. They admitted they were still digesting the information and needed time to figure out their post-ban pricing strategy. 

Therefore, if you use one of these providers, you must demand answers about your future contract terms. I suggest contacting them in June after they have had some time to work it out. 

How Do You Handle Fixed-Price Inventory vs Flexible Inventory?

Fixed-price inventory is products you do not control, such as lottery tickets, goods with retail prices printed on them, etc. The retailer cannot adjust the shelf price. These items are considered the biggest problem now.

Consequently, you cannot treat your shop as a single, average-profit pool. You need to identify which departments can carry slightly higher prices without being aggressive. 

What Dates Should Retailers Put in the Diary?

We have a strict timeline due to regulatory deadlines, Unfortuanely they don't match retail realities. The government has created a transparency gap. The ban begins in October 2026, but major banks won't publish actual pass-through rates until late January 2027. This leaves you blind during Christmas.

Foreign card interchange caps take effect on 1 April 2027, but we are still awaiting details.

How Can Your POS System Automate Margin Protection?

Your POS system can act as your primary defence against shrinking retail margins. Rather than guessing which items can absorb price bumps, your software provides hard, irrefutable data on category profitability. For example, you can run a GMROI (Gross Margin Return on Investment) report to discover exactly which gift lines sell quickly at a high margin, marking them as prime candidates for a small price increase.

Furthermore, modern POS software allows you to execute these defensive strategies in bulk, saving you days of manual data entry. Once you decide to increase your novelty stationery category by 3%, the software does the heavy lifting. For example, you can use the bulk price update tool to instantly raise prices on 400 separate stationery items with a single click, instantly updating the barcode database.

Your POS system tracks changes in real-time, showing if adjustments like a 40-cent price increase for premium greeting cards impact sales. If sales stay steady, you've recovered fees without losing customers.

What Steps Should You Take Before October 2026?

Retrieve your latest merchant statement and scrutinise it immediately. This document holds your current financial exposure to card fees. For example, identifying exactly how much you pay in scheme fees, terminal rentals, and percentage rates gives you a baseline to measure any future bank promises against.

Next, execute this strict operational checklist to secure your business:

1. Contact your bank to confirm your current pricing model.
2. Demand written activation of Least-Cost Routing for all terminals.
3. In June, if you use a no-cost EFTPOS provider, find out their exact post-October fee structure.
4. Run category margin reports to separate fixed-price from flexible inventory.
5. Strategically raise prices on flexible, high-margin categories before August.

Finally, communicate with your staff so they understand why signage and checkout processes will change. For example, training your team on how to explain the disappearance of surcharges smoothly prevents awkward conversations at the register when the October deadline arrives.

Conclusion

The 2026 RBA surcharge ban is a profound structural shift that forces Australian retailers to manage hidden costs intelligently. While the government narrative focuses on consumer fairness, the reality is more than that.

Written by:

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

Today, AI can help with writing, legal work, accounting, financial reporting, admin, customer communication, etc., in business. The fact, however, is that today the real choice is not finding the "best AI", but finding an AI that delivers the best value without becoming a massive computer job. Here, we will break down our hands-on tests comparing local vs. online AI to help you choose the exact setup that fits your shop. It can run either locally or online. Now, can a local AI replace an online AI for your business? The short answer is NO, but the real answer is it depends.

Key takeaways

• Cost is a major factor, with online AI services like ChatGPT generally costing a minimum of $30 to $35 per month.
• Local AI runs directly on your own hardware and can be free to run if you already own a suitable computer.
• Online AI is much faster and easier to use for everyday business tasks.
• Privacy is highly secure with local AI because your sensitive business information never leaves your computer.
• Hybrid setups that mix local and online AI can work well, but they often become messy in everyday retail use.
• Information on both systems is roughly the same
• POS system reports can be easily fed into a local AI, providing insights that are just as good as a paid online service.

What Is a Local AI and an Online AI?

A local AI runs entirely on your own computer, while an online AI runs on a server and is accessed over the internet. For example, a local AI might sit on your PC in your back room, while an online AI can be used anywhere you have internet. This may be a problem if you work both in the shop and at home. My local AI is on my home machine, and I cannot run it at work.

Today, local AI technology has recently taken a massive leap forward as Google released AI software called gema-4-31b-it, which can run on many computers and delivers very good results, sparking immediate interest among some of our clients. It directly addresses the two biggest problems many business owners are considering with AI right now: ongoing costs and data security.

Moreover, the big problem is the technical knowledge required to set it up properly. Based on my conversations with people who have done it, it is not hard, but they all already had a lot of computer skills. Finally, you must remember that cost is not only about money leaving the bank account. If the owner spends three hours trying to fix a local AI model after a software update, the real cost is management time. For example, those three hours could have gone into merchandising shelves, ordering new stock, or supervising floor staff.

How much better this model is compared to others available is debatable; there is a Chinese AI Software model, Qwen3.5, which I have used, and I think is almost as good. There are also some smaller versions, such as gema-4-2b-it, that can run on not-so-powerful computers, which is very good.

How long does a query take?

This depends much on the model that you use. I did a speed test using a question, "when was GST introduced into australia and when does it apply", I ran this many times using Gemma  on my computer

2B it took an average of 4 seconds

4B it took 18 seconds

26 B took 25 seconds

31 B took me 1 minute 10 seconds

Not surprisingly, the larger the model, the better the answer. Now, interestingly, the older QWEN 35 B gave the best answer, taking 35 seconds. Overall, I found QWEN 35 B to be just as good as Gemma 31 B.

But this is the one that everyone seems so excited about gema-4-31b-it, so let us discuss this one. 

How Much Does a Local AI Really Cost a SMB Business?

The true cost of such a local AI depends heavily on the computer hardware you already own, as the software itself can run for free. You generally need a very good computer from 2025 with a powerful graphics card to run a local AI smoothly. Unfortunately, this is not the sort of computer that retailers tend to buy for their shops. For example, a standard shop PC used just for scanning barcodes does not work for local AI. The computers that can run these models are more like the gaming computers that kids buy. If such a computer is already part of your normal business operations, then the local AI is effectively free. However, if you have to buy a $3,000 gaming computer just for the office, the cost isn't worth it.

Moreover, the next problem is the technical knowledge required to set it up properly. Based on my conversations with people who have done it, it is not hard, but they all already had a lot of computer skills.

Finally, you must remember that cost is not only about money leaving the bank account. If the owner spends three hours trying to fix a local AI model after a software update, the real cost is management time. For example, those three hours could have gone into merchandising shelves, ordering new stock, or supervising floor staff.

What Does an Online AI Cost a Business?

An online AI costs a predictable monthly subscription fee, usually starting at $30-$35. For example, a retailer can pay a flat $35 fee to ChatGPT and get instant access to the smartest models available.

This monthly fee gives you access to massive supercomputers without needing to buy one yourself. If you are a heavy user, however, it can cost much more because most online AI companies have strict limitations on how much you can use them per day. For example, one of our users, after writing 50 product descriptions in one morning, hit a limit and was locked out for a while. Because of these usage limits, many serious AI users end up having two different accounts. This means we are looking at about $65 a month to ensure the business never gets interrupted.

Cost is not just cash; it is also your time. 

Is Online AI Easier for an SMB Business?

Online AI is definitely easier to use for a small retail business because the AI company handles all the technical background work. For example, a retailer can sign up with an email address and start writing an advertisement almost immediately. They are designed to be almost trivial to set up and use for the average user. Most of them offer free plans you can set up to test, so the risks are very small. For example, a shop owner can use a free online plan to write a quick Facebook post without entering a credit card.

Moreover, because these tools are so popular, finding help is incredibly simple. Most computer-literate people know how to use them, so it is easy to get staff or friends to help you if you get stuck.

Ease of use drives adoption. If software is hard to use, we will all ignore it.

How Fast Is Local AI Compared with Online AI?

Local AI is often painfully slow to use compared to the near-instant speeds of an online AI service. Even with a good computer, you do not have a supercomputer. For example, when asking a local AI to write a complicated refund policy, you might literally wait minutes for it to type out the words. This speed point should be considered very carefully by anyone who is busy. I ran tests on a $6,000 computer, and even after an online AI had given me an answer, I was still waiting for the local AI to finish. For short answers, local AI was perfectly fine. But when I asked questions that required a long answer, I ended up making coffee while I waited. This slowness makes certain tasks unusable. If you are dealing with a long, complex legal problem, like a rental agreement, where you need to ask 20 different questions back-to-back, the waiting time makes it unusable. What am I supposed to have 20 cups of coffee?

Size of question

A main problem is that local AI cannot handle as big reports as online AI. This is a real problem if you want to run with a lots of information.

What Are the Privacy and Security Trade-Offs?

The main privacy trade-off is that online AI sends your data to the internet, whereas local AI keeps it on your machine. For example, if you feed your profit margins into a local AI, that highly sensitive data is going nowhere. Data security is one of the biggest concerns for SMB retailers right now. When using an online AI service, you have to ask yourself: where is this information going? For example, if you paste a customer's private address into an online AI to format a shipping label, that data is now stored on a foreign server. You must consider who can access this information and what damage it could cause if it falls into the wrong hands. A local AI solves this completely by keeping the information inside your computer.

Privacy is local AI's biggest strength. Your data never leaves your computer.

How Good Is the Quality of Information from AI?

The overall quality of information from a local AI is excellent and often just as good as that of an online AI. For example, when asking a local AI to explain a tricky accounting term, it provided me with a deep, accurate answer.

Then I fed a local AI several long, highly difficult tests and was very impressed by the depth and quality of the information it provided. Overall, I found the answers to be good, and often better, than those from an online AI service.

Having a smart AI locally means you get top-tier brainpower without paying a subscription. However, there are two major problems retailers must watch for in the quality of this information.

How Current Is the Update Information?

This is the most important problem: a local AI's knowledge depends on its date of manufacture. Here, Google trained it up to January 2025; as such, it knows absolutely nothing about the recent RBA surcharge ban. It also does not know the local prices of the products I asked about. In business, one often needs the most up-to-date information. Well, you cannot get such answers here. What you need is a plugin that is very slow in use.

For SMB businesses, this lack of current events makes a local AI impractical for many uses. This is why I do not believe a local AI is a total solution.

AI Hallucinations

An AI hallucination is when the AI goes crazy and confidently makes up nonsense. One of the biggest problems with AI is that, when asked a question, it can simply make up answers. It happens with any AI, and with the state of today's technology, you have to check the answers yourself manually. While I would not say that in my tests, "local AI hallucinates more", it definitely had fewer safety checks. This is because online AI companies have gone to great lengths to address this problem.

You need to check the local AI much more carefully. There is an old warning about free advice: if it is free, you'd better check it.

How Can Local AI Work With Your POS System?

I found that local AI can easily process and analyse daily reports, as long as they are small and generated by your POS software. For example, I exported a few weekly sales reports and fed them directly into the local AI to identify which items are selling best. I specifically wanted to know how this technology handles raw retail data. I had absolutely no trouble doing so, and I was incredibly impressed with the quality of the information that I got back. The local AI instantly read the numbers, spotted the trends, and gave me a clear summary of what was happening in the shop. For example, the AI correctly noticed that umbrellas sold rapidly yesterday and suggested I move them to the front counter.

For this specific job of crunching numbers, I consider the local AI comparable to the paid online service. It will allow you to get free deep insights from a Point of Sale (POS) system without ever uploading your private sales figures to the internet.

Should an SMB Business Use a Hybrid AI Setup?

A hybrid setup is when a business uses both a local AI and a free online AI simultaneously. For example, a shop might use a private local model to read their financial reports, and a free online service to look up current news.

Because many online AI tools offer free plans, many SMBs want to try both. You may consider it, although it is much messier as you need to manage two systems.

Moreover, for many, it is clearly an attractive idea. You keep your privacy when required, while still using online AI when you need web access, faster speeds, or fresher information.

It will work if you are clever. What you might do is go to an online service and ask it, "What factors are important for reviewing a commercial lease?" Now, you get the answer, put it into a local AI, and say, "Based on this online output, what do you think of my private lease document?" It will work, but it's not a good solution as there is always more to consider.

Where Does Each AI Fit Best in Retail?

We were all very impressed with the quality of local AI information, but this is really a decision about the correct fit.

First, for most SMBs, an online AI is a better starting point. It is simply easier, faster, and much more polished for beginners.

Moreover, local AI makes perfect sense when you already have the gaming-style hardware, care strongly about your privacy, and are happy to spend more time.

Where online AI usually fits best

• Marketing campaigns and seasonal store promotions.
• Finding current product information from suppliers.
• Researching current events and news.
• Asking general legal or business questions.

Where local AI usually fits best

• Writing internal notes and staff procedures.
• Sensitive drafting that should stay only with you.
• Repetitive writing on a machine you already own.
• Use cases where avoiding monthly fees matters more than fast speed.
• Processing private financial reports.
• Analysing reports from a pos system.
• Customer communication and email drafting.

Conclusion: Making the Right AI Choice

Ultimately, you do not have to choose the most famous AI; you have to choose the one that makes your retail life easier. If you want instant help with marketing and do not mind a small monthly fee, online AI is your best bet.

However, if you want to analyse sensitive reports from your pos system and already have a strong computer, local AI is an incredibly powerful, free tool. Take a look at your shop's daily tasks, try out a free online plan to get a feel for it, and then decide if bringing the brainpower locally is worth the setup time.

Experiment further

If you want to experiment on your computer, visit LM Studio and download a copy. You can find instructions on how to get started there. There’s also a mobile version available on Google Play, which is handy if you’re somewhere without internet access.

To run a decent AI in LM Studio, you'll need a computer with sufficient video memory (VRAM) to process AI models smoothly. For instance, if you want an AI to securely analyse offline sales data from your Point of Sale (POS) system, you need at least an 8 GB NVIDIA graphics card, the more the better, my VRAM is 64GB, and it's slow. Next, your system RAM needs about 32 GB and using an SSD would be good to ensure the AI remembers long conversations without lagging. 

Written by:

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

Today, many shops are losing customers because shoppers now look online before shopping. What you need to do is review your local online presence. Then fix the biggest issues, and make your shop easier to find.

Key Takeaways Box

• Conducting a local online audit to show you what customers see when they search for you.
• Use private or incognito search. This is as it provides a clearer view of what customers see.
• An incorrect business name, address, or phone number will confuse shoppers and search engines.
• A Google Business Profile helps your shop appear in Google Search and Google Maps.
• An incorrect location can lead customers to the wrong shop, so you should test directions yourself.
• Some simple tricks can help Google and shoppers know what you sell.

What Is a Local Web Presence Audit?

A local web presence audit is a simple check of how your shop appears online. For example, a customer might search for "lotto near me", "dog food <suburb>", or "magazines <suburb>" before deciding where to shop.

Next, this audit looks beyond your website. For example, it also checks your Google Business Profile, business name, address, phone number, social pages, map pin, and how your shop appears in search results.

Also, this kind of audit is not hard. For example, you can do it in less than half an hour with a phone, a computer, and a simple checklist.

Fact: wrong details lose sales.

Why Local Web Presence Matters

A local web presence matters because many shoppers often search first and visit second. For example, if they need a card, magazine, gift, or stationery item quickly, they usually look online before they leave home.

Next, local SEO works best when your business details are clear and consistent across the web. For example, if your shop name is one thing on Google and another thing on Facebook, search engines can get mixed signals.

Also, your online details shape trust. For example, if something looks wrong, for example, your address looks wrong, many customers will choose another shop.

Clear local data builds trust.

Search for Your Shop Like a Real Customer

On a paper list note:

1. Your business type, e.g. newsagency, pet shop, chemist, etc.
2. Top three products you sell
3. Name of your shop
4. Phone number of your shop

Searching like a real customer means using the same words and search habits a shopper would. Since I mainly use Chrome, I tend to use Edge in private mode for this work, but in truth, Chrome in incognito mode works well too. This helps reduce the effect of my online usage.

You need to do the Local Web Presence Audit in four stages:

1. With your computer using Google
2. With your computer using Bing
3. With your smartphone, using Google
4. With your smartphone, using Bing

Smartphone results can differ from computer results, and it's about 50/50 which shoppers will use.

For each stage:

Put your business type into the search and add your suburb, e.g., "gift shop <your suburb>" or "Flower shop near me", etc.

Check what you see, note whether your shop shows up, and whether what the search says about you is correct.

Now search for the top three products you sell, e.g. you may say "lotto near me", "dog food near me", "butcher <your suburb>".

Check what you see, note whether your shop shows up, and whether what the search says about you is correct.

After that, search your exact business name on its own. For example, this shows whether your main listing is easy to find and whether old pages, old addresses, or other shops appear instead. Check spelling, punctuation, and the trading name. For example, if one listing says "Smith's Newsagency" and another says "Smiths News & Gifts", you may be making it harder for search engines to connect the dots.

How Do I Check My Google Business Profile and Map Pin?

In my experience, most problems stem from errors in your Google Business Profile. Your Google Business Profile is one of the most important local listings you have because it helps your business appear in Google Search and Google Maps. For example, when someone searches for a nearby shop, the map result often shapes the visit before the website does. I have discussed how to set it up and fix it here.

https://www.possolutions.com.au/blog/boost-your-shop-sales-with-google-business-profile

A modern business needs to have this right. Fix any errors straight away. For example, if the pin is off, move it to your real front door and check that the address matches what appears on your website.

A map pin can make or break a visit.

Finally, also important to look at your business category and photos. For example, good categories and fresh shopfront photos help customers understand what you sell before they visit. Use your POS system's sales reports to make sure that all your major stock items are listed.

How Do I Review My Facebook and Social Media Pages?

Your social media pages should support your local search presence and help shoppers trust your shop. For example, when someone searches your business name, a good Facebook page can confirm that your store is active and real.

Next, ensure your business details match across all platforms. For example, your Facebook page, Instagram bio, and website should all show the same name, address, phone number, and web link.

Then, look at your last ten posts. For example, if the page has been quiet for six months, it may make shoppers think the business is not active.

Also, post what people buy. For example, show new stock, seasonal products, popular gifts, school supplies, card displays, or shopfront photos.

After that, make your posts useful. For example, short posts like "New puzzle books in store now" or "Mother's Day cards now available" can turn a search into a visit.

Finally, check your contact buttons. For example, a customer should be able to call, message, or get directions with one tap.

How Do I Check My Competitors Online?

Checking your competitors online helps you see what local shoppers see first and what people are looking for now. For example, if three nearby shops appear before you for the same product search, you need to know why.

Next, search the same phrases and note who shows up. For example, look at their Google listings, photos, reviews, website pages, and social media activity.

Then, look for patterns. For example, they may use clearer category names, better shopfront photos, or better local wording than you do.

Also, copy the structure, but not the wording. If it's working for them, it can work for you too.

Conclusion

A local web audit is a simple way to make your shop easier to find. When shoppers search online, they need to see the right name, the right products, and the right location without confusion.

Written by:

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

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

Key takeaways

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

What is the 2026 RBA surcharge ban?

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

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

Why did bank shares rise?

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

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

Why did the reaction look odd?

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

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

What does the share move mean?

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

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

Why this matters for retailers

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

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

What changes at the checkout

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

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

How to prepare

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

Next steps

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

Retailers should take four steps before 1 October 2026:

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

Prepare your shop for the 2026 RBA surcharge ban

Update:

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

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

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

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

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

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

Written by:

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

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

Key Takeaways

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

The Point of Sale (POS) System Information Hub

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

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

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

How Does Greeting Card Management Increase Retail Profits?

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

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

How Does a POS System Manage Inventory for Greeting Cards?

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

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

Identifying Slow-Moving Stock

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

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

How Can Retailers Compete with Supermarkets?

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

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

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

What Are the Best Cross-Merchandising Strategies for Retailers?

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

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

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

How Do Retailers Target Local Demographics?

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

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

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

How Can Retailers Use POS Data to Boost Customer Loyalty?

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

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

What Tools Optimise Store Layouts for Better Sales?

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

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

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

What Are the Ensuring Steps for Retail Business Owners?

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

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

Conclusion: Maximise Greeting Card Sales Today

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

FAQ

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

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

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

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

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

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

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

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

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

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

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

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

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

Written by:

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

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

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

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

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

Key Takeaways

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

What is the 2026 RBA Surcharge Ban?

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

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

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

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

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

The problem of Premium Credit Cards

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

American Express

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

Will the Surcharge Ban Cause Retail Price Inflation?

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

How to Manage Fixed-Price Inventory

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

Why Are Cash Discounts the Best Alternative to Surcharging?

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

Automating Real-Time Margin Calculations

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

What Steps Should Retailers Take now?

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

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

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

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

FAQ
 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Written by:

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

Key Takeaways

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

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

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

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

Why This Case Matters

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

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

Handling Wholesale Cost Increases

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

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

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

Documenting Pricing Compliance

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

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

Next Steps for Retailers

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

Written by:

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

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

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

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

Key Takeaways

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

Why Does Tracking Freight Surcharges Matter for Your Store?

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

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

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

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

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

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

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

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

What Are Your Next Steps for Retail Margin Protection?

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

Written by:

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

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

Key Takeaways

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

What is Retail Cash Flow?

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

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

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

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

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

What Are the Most Common Cash Flow Problems in Retail?

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

The Trap of Dead Inventory

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

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

Over-Ordering Without Data

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

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

Use Automatic orders do not kid yourself the computer will win

How Do Overdue Customer Accounts Restrict Retail Cash Flow?

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

The Myth of the "Safe" Corporate Client

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

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

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

Introducing Proactive Credit Warning Thresholds

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

How Does a POS System Automate Credit and Inventory Tools?

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

Assessing Traditional vs. POS-Automated Cash Flow Management

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

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

Following Steps for Retail Cash Flow Management

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

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

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

Stop Guessing and Start Controlling Your Retail Cash Flow

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

Written by:

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

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

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

The Reality of Retail Reporting Today

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

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

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

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

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

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

1. It Understands Your Normal Baseline

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

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

2. It Focuses on Profit, Not Just Foot Traffic

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

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

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

3. It Highlights Cross-Selling Failures

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

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

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

4. It Respects Your Operational Limits

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

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

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

5. It Aligns Data with Your Strategic Goals

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

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

How to Build Your Commercial Operations Profile

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

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

Section 1: Business Identity and Premises

First, we need to establish the physical asset.

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

Section 2: Location and Traffic Mechanics

Next, we define how people move around your store.

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

Section 3: The Revenue Engine

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

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

Section 4: The Customer Base

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

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

Section 5: Digital Footprint and Promotions

We need to establish your current marketing baseline.

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

Section 6: Operations, Competition, and Goals

Finally, we set the AI's boundaries.

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

The Secret to Great AI COP

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

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

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

Narrative Formatting (How humans write and read):

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

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

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

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

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

Formatting your COP this way gives you two major advantages.

Memory space

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

AI hallucinations

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

The Magic Prompt to Generate Your Profile

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

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

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

Input Data:
[Paste your completed questionnaire answers here]

What Your Final Profile Will Look Like

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

Commercial Operations Profile: Parkmore Newsagency

1) Business Identity & Premises

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

2) Location Mechanics & Traffic

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

3) The Revenue Engine

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

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

4) Customer Personas & Digital Health

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

5) Competitors & Operational Constraints

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

6) Top Growth Opportunities (Tied to Goals)

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

The Final Step: Putting Your Retail Analytics Software to Work

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

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

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

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

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

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

Written by:

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

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

The Daily Struggle of Setting Prices

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

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

What Are AI Price Look-ups Supposed to Do?

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

Checks your pricing history

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

Calculates a suggested price

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

The AI scans the local market

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

This sounds like magic, and it is not true.

Firstly, how AI Actually Thinks

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

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

The Hidden Danger of the AI Illusion

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

A real-world example

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

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

\

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

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

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

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

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

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

When Confident Answers Lead You Astray

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

How to Use AI Price Look-ups Safely

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

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

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

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

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

Rule 2: Focus on Broad Patterns, Not Exact Numbers

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

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

Rule 3: Always Verify Your Own Data First

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

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

Rule 4: Do Your Own Human Scouting

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

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

The Final Word

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

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

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

Written by:

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

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

Why Two Years of Data Beats 12 Months

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

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

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

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

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

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

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

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

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

Turn Data into Real Retail Wins

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

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

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

Why "POS System Australia" Retailers Love This

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

Two years of data reveal what one year hides.

Common Mistakes to Avoid

Don't just glance and go. Dig deeper:

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

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

Ready to Unlock Your Sales Insights?

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

Written by:

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

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