Bernard Zimmermann's blog

Examine your real-time profit position

POS SOFTWARE

You can know how you are doing financially with daily figures from your point of sale software.

This will show you some of the most crucial retail KPIs to give you a detailed insight into your shop. These insights provide you with better business decisions and let you know exactly how you are doing.

Go to cash register reports

Select in sales

Dissection Sales /Profitability for a given period

Now run this report for the day

Quantity some call it a customers vote. What it shows is what people are coming into your shop to buy. As a rule, the higher, the better. Some people consider this KPI to be the most important stock one as it is it what brings people into your shop.

Gross profit is why the shop exists.

What is also important here is to check that your margins are right, as if they are lower or higher then expected then there is something wrong.

Lastly, I highlighted the last row. This shows you the problems with your scanning. 

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Speed of Mobile wallet vs contactless Cards

POS SOFTWARE

Many smaller businesses are now using tap-and-go terminals for financial reasons as customers are much more likely to do small transactions, e.g. $2 using contactless more convenient and quicker as they do not need to enter in any PINs.

For this reason, I think mobile wallets will work even better in SMB businesses as people tend to be reluctant to go to their wallet to take the card out and since most people have their mobile handy, it will be extremely convenient for them to use the mobile instead like here.

Now here is it being used in practice these mobile wallets and look at the speed of the new mobile wallet over the contactless in speed for EFTPOS and Credit card transactions!

 

 

 This is 4x faster than contactless!!!!

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AUSTRALIAN PAYMENT CARD FRAUD 2018

POS SOFTWARE

AUSTRALIAN PAYMENT CARD FRAUD 2018

This report now available makes quite interesting reading.

The most common type of credit card fraud occurs is called *Card-not-present fraud* and makes up about 87.5% of all payment card frauds. Sometimes the card company will not reimburse you for this type of fraud, so it is worth being aware of the problem.

Here are two examples but there are many more.

1) Someone buys and then quotes a valid card detail either online, by telephone or mail order and then later the owner of the card, calls and says "Hey what is this about?" I would suggest that if you take over the phone credit card details, you do so only with customers you have dealt with before,

2) I have heard of a merchant that got burnt when a person used a card in the shop that for some reason did not when he did a swipe work. The merchant then manually entered in the card details. Only later did the merchant discover that the card was counterfeit. In this case, I would suggest that you have a policy in the shop that if a card does not work, ask the customer for a different payment method or card but do not enter the card number manually.

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Safety Stock

POS SOFTWARE

Safety stock is an additional quantity of an item held in the inventory to reduce the risk that the item will be out of stock. It acts as a buffer stock in case sales are greater than planned and/or the supplier is unable to deliver the additional units at the expected time.

Safety stock

According to Wikipedia, safety stock is:

Generally, it is a small, surplus stock that you maintain on hand, to protect from variability in market demand and your supplier lead time. You carry it because you do not want to run out of stock which might both severely impact your bottom line and also do untold damage to your customers’ view on you.

The theoretical formula used to calculate safety stock:

Safety Stock = (Max Daily Sales x Max Lead Time in Days) – (Average Daily Sales x Average Lead Time in Days) 

You can calculate this using our software, click here.

The other point I recommend is running this report which will give you a feel of what the actual problem you are facing here.

Go to reports > stock > Sold Out or Selling Out Stock Lines

In theory, this report only shows items that are selling well in the nominated period, but that you are running out of, so you need to check on them ASAP. This can help you make sure you have adequate stock.

However, it does much more, what it also alerts you is whether items are not properly entered into your system as the stock on hand figure is negative as you can see by the example below.

 

 

I would recommend running this report regularly as it will alert you to both out of stock situations and errors in invoicing.

 

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Facebook, Instagram, Whatsapp all down

POS SOFTWARE

facebook down

I am trying to figure out what to do with my life since Instagram & Facebook are STILL down

 

I am not addicted of facebook

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Tabcorp commissions to its agents?

POS SOFTWARE

the lotto

The Lott is changing their commission structures, the following organisations

Australian Lottery and Newsagents Association (ALNA)
Lotteries Retailers Associations (LRA)
The Victorian Associations for Newsagents (VANA)

are now busy explaining to their members what is happening.

The best one explanation, I thought was the one done by tatts and distributed by VANA

Retailer_Information_Pack_Tatts

I would suggest if you want to know what is happening, have a look at this one. This is the one I am going to quote here by pages.

Here are some more documents that have been released

Explaining-the-new-retailer-model-for-ALNA-members_FINAL.pdf

New-model-for-lottery-retailers_12-March-2019.pdf

New_model_for_the_Lott_12_March_2019_FINAL.03.pdf


So here are my thoughts, on the first reading, it is clear that lotto sees a tremendous future online 

Here is there retail only customer vs a retail and digital customer chart.

Digital comparsion

 

That is a big increase alright.

The new commission structure is to help this movement by rewarding the agent for helping this move.

What is not explained is what is the effect on the retail agent shop sales as the Retail Registered account becomes a Registered & Digital Account?  Does it based on current figures goes up or down? It is not stated. This would be my first question! It is an important question as almost all of the commission increase is in shop sales and the figures supplied assumed in the Tatts and ALNA documents that it is as in 2018, something I am not sure it will not be.

Now it clearly does have some immediate positives, e.g. the DigiPOS fee will be removed, and for those that have brought it, that money will be refunded, but it does have some negatives, e.g. the player card commission is gone.  Overall it did appear to give the agent more in fees. According to the ALNA figures, an agent doing $22,000 a week in sales can look forward to $220/week extra profit based on the financial year 2018 figures. 

Reading further however it that it works on cycles which are about 17 weeks. What an agent needs to do is every cycle is to carry out a lot of new conditions to get the increase in commissions. This increase is not automatic. Most of these new conditions are reasonable and I think fair and I do not see them being a problem. I would agree that it is the responsibility of a Lotto agent to keep up to date with what is happening and to inform Tatts of what is happening.

Some, however, seem harsh, for example, if accidentally in your nominated account one time it does not quite have enough money for settlement which can happen, then you have blown your increase in commissions this cycle.  Better luck next cycle.

Another condition is very puzzling listed on page 8 and which I have no idea of how hard or easy it is to do, here it is and I will let you decide.

 

Extra conditions

Now 1% in a stable established market is not easy to get.  Worse if you are an agency in a tourist or sporting area, where you have almost no control over your players so I would not be surprised if some agents go up and down on this figure every cycle. Maybe an agency should make a rule only registered players can buy in this agency.

Lastly, on page 14, I would like to see the calculation sheets on how these were derived. I cannot get all these figures, so I am not sure what they are telling me. 

You have my thoughts overall, I will say that I am not against it, but I do have concerns. 

 

 

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How long does a lifetime software license last?

POS SOFTWARE

Just a quick question?

Say you brought some software with a lifetime licence, how long would you expect that this software will work for you? 

This question has been puzzling us since a client of ours brought it to our attention yesterday. They purchased some software over the net, subject to the laws of the "State of New York, USA" and paid extra for a lifetime warranty.  After six (6) years it has stopped working. 

When they argued with their supplier that they had a lifetime warranty and so it should still work, they were informed yes they purchased the item with a lifetime warranty and that the "End-User License Agreement" clearly stated

End-User License Agreement

so apparently their lifetime warranty on this software is six years. 

I have verified that this was the "End-User License Agreement" when they did buy it.

I decided to do some investigating on their behalf and discovered that the term *lifetime* in "lifetime warranty" has several different meaning 

It may mean

a) Forever

b) No matter how long the original purchaser owns the product.

c)  For how long that product can be reasonably expected to perform based on the way the buyer uses it.

d) The lifetime of the manufacturer

e) Three years

f) But this was the kicker; however, the seller defines it as long as he conspicuously discloses what ‘lifetime’ means. 

In some states in the US, I saw that could be something like as long as we sell that version of the software. For example, if they sell version (2) and now version (3) comes out, so they drop version (2), well version (2) lifetime is over and so is your warranty.

Note in Australia, under ACCC guidelines action can only be taken ten years maximum after purchase, which I suppose puts its own limit on the goods warranty.

I suppose like always remember the saying "Let the buyer beware."

 

 

 

 

 

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Minimum requirements on a receipts

POS SOFTWARE

 

 

Some queries on yesterday post, it is mandatory for a business to issue a receipt if requested by the client.

It is an ACCC requirement that all receipts must include the following

    * Your business name and either the ABN/ACN number
    * The date of supply of the goods
    * Information on the product or service supplied
    * The price of the item provided

These do not have to be issued by the shop POS system but generally, are, and it looks much more professional if you do issue them through your system. Today many people prefer emailed receipts which our system can be programmed to email directly to your clients. We suggest if you have a customer's email that you automatically email them a receipt. This speeds up the processing and saves paper use. It can also be a very good marketing tool, here is an idea.

 

 

 

 

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