Bernard Zimmermann's blog

Grow your store with our powerful POS Reporting

POS SOFTWARE

All major retailers, when you meet them one report that you see that they use all the time is a comparison report of what they did in the last previous period, to the same period last year. So what they will show you now is a report that shows the year 2018 Q1 compared to 2019 Q1 and a column of percentage changes. Then the question they will discuss what was different, why did these figures change?

We have written a report almost exactly the same as one produced by a major retailer to give our clients this report. It is called the dissection comparison report.

What it does is compares by several measurements of the sales of stock items in different period.

Go to 

Main Menu > Cash Register > Register Reports > under the Select Report tab, expand the Stock folder > select the report “Dissection Family Class Period Sales Comparison”.

Now you will see this screen.

 

What I suggest you measure the first three months of this year with the first three months of last year to see how your sales are changing over time. The two measures that I recommend that you check are the quantity and profit percentage changes. There are many other key performance indicators (KPIs) listed too there, which can make interesting reading. From this, you can determine whether the problem is prices, your margins, your sales quantities etc. If you want you can check your figures to the Australian Bureau of statistics but do not use the seasonally adjusted figures as you have the actual figures here.

 

Now once you have bedded down that part of the report, check out the More Criteria tab marked with a green arrow. There is a lot more there.

 

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ABC Analysis and 80/20 Rule

POS SOFTWARE

You have probably come across the ABC inventory analysis called often the 80/20 rule or sometimes the Pareto Principle.

What it is, is that no matter what you measure, website hits, advertising expenditure, pilot kills in war, shop sales, political influence, etc. It all seems to come down to something like this that somewhere about 20% of the total gives about 80% of the results.

So everyone wants to find the 20% because that is giving almost all the results.

* 20% of your customers will bring you 80% of your business

* 20% of your products will bring you 80% of your business 

* 20% of your staff give you 80%

* 20%  of your advertising gives you 80% of the results.

* 20% of the shop fittings give you 80% of your business 

And so.

Now in inventory control, the ABC method identifies this and divide all your stock into three groups.

The first we call the category A-lines. They are the most valuable stock items you have. These are 20% of your lines that give you your 80% sales and profits.

 We then have the category B lines. They do pay for themselves but not a lot.  As a rule, they are about 30% of your lines and account for about 20% of your sales and profit.

Finally, we have the category C lines, which typically are about 50% of your stock lines and give about 5% of your sales and profit. They also usually take up most of the shop's funds.

Now the idea of the ABC stock control method is to identify your A, B and C items and then 

* A lines should be monitored all the time. You do not want any out of stock situations with them. 

* Your C-lines should be pruned if possible if they must be kept then, reduce the stock holding on them

* Your B-lines do pay their way, but you would not go out and order a lot.

Now if you go to stock reports > select stock N sales for a given period, choose now as a number of items 30,000 as we want every item.

Now run this report with a decent period. I would suggest running the report by profit, but this may depend on your business philosophy as some may prefer a number of units sold.

Now the first two pages of the report will be your A-lines, on those you need to concentrate. 

The last 80% of the pages, you should ask yourself, do I need these lines?

I did some reports recently for one of our clients a lottery agency, and I used excel to produce some graphs that will show you I think quite dramatically how it works as it makes interesting reading. They had in the shop 21,000 stock lines.

 

The number of sales ranked in order of top selling lines.

20% of the sales were from 2 stock lines about 0.01% of the stock lines 

50% of the sales came from 45 stock lines about 0.21% of the stock lines 

80% of the sales came from 4615 lines approximately 21.76% of the stock lines 

 

Here is the profit percentage by stock lines

 

20% of the profit was from 135 about 0.64% of the stock lines 

50% of the profits came from 1,873 about 9.35% of the stock lines 

80% of the profits came from 7,374 approximately 34.78% of the stock lines 

See how you go and as always let me know if you find something interesting.

 

 

 

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Boarding pass to Mars

POS SOFTWARE

NASA boarding pass

NASA's Mars 2020 Rover is heading to the red planet and if you click here you can submit your name and it will be stored on a memory chip in Mars when it arrives.

Makes a nice gift for someone.

It is a shame we cannot convert these frequent flyer points to QFF or Virgin?

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Retail Inventory - Buying

POS SOFTWARE

Price changes history

 

One of the most time-consuming tasks and daunting tasks in retail is setting the right price, the next is trying to justify your prices to a customer who comes in and suddenly makes an issue as what the price of a product was and why now is it different. Another example would be a supplier rep who is now in the store or phone, and you need to check old costs.

So we have made a unique screen to help you so you can get the answer instantly. 

In the stock item, you will find a Price Change screen marked in green above. 

Now when you click that, you get another screen with the cost price shown in red and see the blue arrow, you have your retail price. 

Now you have a full history of the costs and retail prices, and you can go up and down by dates. This can help you determine your retail pricing strategy to use in determining the right price for your products.

Note: You also get a lot more information on the screen and on the bottom which I will discuss later.

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Alipay now available

POS SOFTWARE

What they are doing now more are paying by debit card and the new alternative methods. Of the alternative methods, the fastest growing is Alipay. Although I have no current figures, about a year ago in 2018 10,000 merchants around Australia were offering Alipay as a payment method. Image removed.

What has been happening is that consumers in Australia have been rapidly changing from cash to other forms of payments. 

Payment_method

Look at the alternative payment figures, Alipay it is the fastest growing segment in this category. What Alipay is, is the largest online payment platform in China. It has been snowballing in China for years and now is the preferred payment method for Chinese students and tourist in Australia.

Studies have shown that  99% of Chinese tourists in Australia have Alipay.  In 2018, Alipay transaction volume in Australia increased by 110% and using Alipay the amount spent per person was up by 40% and its a wide range of products that they buy here. 

The Alipay fees are comparable to many VISA and Mastercard transactions now, and there is no cost to switch on so for our clients, I cannot see it as anything else but a no-brainer to try it out.

So we are pleased that we are offering a direct integration of Alipay. It will work through Tyro EFTPOS which as Tyro has no fees or contracts, so it is easy for any of our clients to add this payment type if they want it. If you are interested, let me know.

 

 

 

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Make a simple hamper pack name

POS SOFTWARE

Research indicates that customers want simple rather than complex and if it starts to get too complicated that many people tend not to choose, so giving you a no sale rather than a purchase.

Now with this in mind, consider if you make a hamper or pack name.

In stock pricing, you will find this under hamper packs. See the green arrow.

Hamper description

Naming your hamper or pack is a good idea (see red square) as long as you make the name understandable and straightforward. Say you are in office stationery why make a name like "The flying carpet pack". Besides this name telling your customer nothing and so confusing them with something meaningless, it makes it complicated.

Make it simple with something they can identify with, eg "Secondary Student Plan", "Home Office Plan" or "Kindergarten Pack."

Another idea that works very well is to make a "Starter Pack", "Small Pack", "Medium Pack" and a "Large Economy Pack". 

The same idea applies to syndicates.

It is a great way to upsell.

 

 

 

Does POS Browser allow for a fee when accepting International Cards only

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Australian Federal Election 2019

POS SOFTWARE

 

I have a question!

 

This is a prediction made from an *expert* the day before the election.

Labor to win by about 11 seats! This was a typical prediction.

 

Australian Federal Election 2019

Okay this is my question how could the polls, from every company, the private polls done, the polls done from the political parties and the exit polls on the election day all get the same result which is so badly wrong?

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Shopify

POS SOFTWARE

Today in modern retail, a shop can make many extra sales by extending itself into the online space. This is because many modern customers want to choose when they want to buy?

This is where modern retail is heading!

To do that a shop needs a consistent customer experience between your online and brick-and-mortar shop. Customers have to interact with the shop in both places. They need to view online as part of your brick-and-mortar shop one company.

What is very popular today and what you need is Click and Collect

Where they buy online but pick it up in store? 

One popular solution is to combine the power of the point of sale software with Shopify this we can help.

What to know more click here.

 

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