Bernard Zimmermann's blog

How to use the location information to increase profit

POS SOFTWARE

A lot of your data is in your POS Software and this is another example of how you can use it to boost your profits and give you a competitive advantage.

Go to cash register reports > Sales stock > Sales by Store location for a given period.

Now for this exercise, I put in the last quarter which is what you would do usually, although not much is normal now. You want this exercise a reasonable time frame.

Out will come a report with a lot of what I am sure you will find interesting information.

Here look at the locations with

1) High holding costs and low profits. (Problems)

2) Low holding costs and high profits (Stars)

These are two of the best metrics for gauging the performance of the locations in your shop to see how well you using your retail space.

Now you can experiment.

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REVENUE IS VANITY. PROFIT IS SANITY. CASH FLOW IS REALITY.

POS SOFTWARE

Revenue in itself does little for you. It looks good but does nothing for the business as such. Generally all you are doing is working for the wholesaler.

Profit is in the long term the best indicator of business robustness.

But profit is often a fairy tale. You cannot pay bills with a good financial statement, to pay these you need cash. Run out of cash and generally if you are lucky you will be working for the bank.

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How to tie a Professional ribbon bow!

POS SOFTWARE

If you want to sell gifts in your shop, you need to know how to tie a proper ribbon on a gift box. You want to look professional!

 

I remember my grandfather in his shop, teaching me. It took me quite a few attempts to get it right. Like so many things, it is easy to do once you get the hang of it. Note it would be best if you did it a few times as in retail you will need to be able to do it quick under pressure.

 

Your customers will often take it very seriously, so you need to do it right!

 

Here is a youtube that explains it very well a simple and good knot for you to start learning.

 

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Do people know that you are open for business?

POS SOFTWARE

 

Do your customers know that you are open for business? 

If you are open during this period, you need to make sure that people know about it. 

This became clear to one of my clients when he realised that many of his customers were walking past. They did not know they were open. Now he has a big OPEN sign in the front window. 

Passers-by need to know that you are open and when. 

If you are closed and intend to re-open, you need to tell them clearly when exactly you are opening up again. If you do not know then try to make it as clear as you can. 

Also, post regular updates on your social media.

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How to set up your software For better Debt Collection

POS SOFTWARE

 

I did not expect my recent article on credit limits to get so much traction. So here are a few more tips for how to use your system better to collect debts.

1) Automate as much as possible your debt collection process. Use the technology that you have as much as possible.

2) Make sure that the customer details in your system are correct. If they do not get it or if it is not correct, what you are sending out is a potential argument.

3) Identify your difficult customers. Try to offload their debt problem to other people. VISA, Zippay etc. Why should you have problems let others have it? Trade with them with VISA, then let them argue with VISA. It may cost you a percent or so, but you get paid with no argument and most little friction.

4) Use our software late fee system, after a few times. This will send a strong message to your customers that you have firm credit practices in place.

5) Make it easy for your clients to pay, have several different payment types. The more, the better.

Hope this is of use and as always let me know how it works for you.

 

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Here is a mistake people make when issuing stamps

POS SOFTWARE

One of the most popular and successful loyalty programs in our software is issuing stamps. 

Here is a typical offer. A person comes into the shop and buys something. Every time they buy, they get a stamp in our case an electronic listing too so here after ten (10) visits on the next trip, they get something. 

This sort of offer works for anything, greeting cards, coffee, pet food, haircuts, etc.

Now follow where the problem arises

At first, the customer comes in and buys a product. They are notified of the offer, so they get a card. One item stamped so they are 10% into it (1 stamp out of ten), and they work their way to ten. But here is the issue, once the person has their free article, they start again from zero. Starting from zero does not motivate people much.

So here is a better way to do it.

Make program active on the 12 visits. 

Here is how it should be done.

- When the person first comes into the shop and buys something, they get one stamp for joining. They then get a stamp for their first buy. So they are starting with two stamps. This gives them the feeling that they are getting closer to their reward as now they are 17% (2 stamps out of 12) through it. 

-Once they redeem their free item, they get a new card with one stamp credited for rejoining the program. They get another stamp for the free offer they redeemed. This overcomes this problem of them starting with zero as now they are at 17% again.

Give it a try and see how you go. Then let me know.

 

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How To Find Your Slow And Dead Stock In The Shop

POS SOFTWARE

This is a common problem in retail having:

Slow stock does sell but only slowly.

Dead stock does not sell at all.

Both cost money to the retailers, costs cash flow, money and takes up space that should have stock that sells better.

Now in identifying your products that are slow or dead go to register reports > stock titled "Old Stock on hand by Date last received"

I tend to do it in two parts. I check the overall problem in the shop to see the scale of the problem. Then I go by department in detail as its people find it better to examine this way.

This gives you a listing of your stock based on when you received it. This stock is rarely doing you much good. As I stated, it costs you to keep it.

Now once you identified it, what are you going to do about it?

I would suggest firstly move it because maybe it was in the wrong area. Good clean and a nice presentation can do wonder.

If your decision is to minimise your losses on this stock by slashing the price and to move the stock here are some options.

1) Offload them on sites such as eBay.

2) Use it to make a bundle. Put an old stock item that does not sell with something that does sell and turn it into a bundle.

3) Make a bargain bin.

4) Use the stock for your loyalty marketing program.

5) Use them as specials when you have a marketing season.

 

 

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THE MAN WHO MOVES A MOUNTAIN BEGINS BY CARRYING AWAY SMALL STONES - Confucius

POS SOFTWARE

People tell me that it is too hard to get the point of sale software going. But to accomplish any task, we all start with a small step. I was 15 years old when I went in front of a computer, and I just stared at it, not knowing what to do. Then I pressed a button. I had started.

The most important thing is we START.

 

 

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