BLOGS AND ARTICLES FROM THE POS SOLUTIONS TEAM

Point of Sale Software

Excessive discounting

POS SOFTWARE

Sale by discounting

One trap that many retailers fall into is discounting too much to sell product. In my experience retailers often start the discounting to maintain sales levels when the items sales performance drops. Unfortunately, the increase in sales volume produced by discounting is not enough to maintain profits but it can be misleading as it looks like it is selling well. As this continues after a while, there is a real danger to the business. 

We have a terrific report that can alert you to this problem early.

In the reports,> Go to Discounted Items Sales Summary 

It is shown marked with a green arrow below.

Discount menu item

Fill in the appropriate responses and here is the basic report that appears.

 

Discount report

What it is showing is sales and most importantly for this question here the selling discount history. 

Note the large discount that had to be given to the Clemens Bears here to sell them. 

 

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Wholesale liquidation ** Flash sale

POS SOFTWARE

Wholesale clearance

 

If anyone is interested please let me know as we have about $12,000 worth of Hallmark stock from a former newsagent that closed down, in brand new condition that we want to unload. Any reasonable offer is acceptable. FOB Melbourne.

Hallmark cards

Hallmark Wrap

Hallmark Pens AFLcards

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Short term Product Placement 

POS SOFTWARE

As a rule, top-selling items should be at eye level in the shop in the highest selling areas. This helps to encourage even more sales. The problem is that many items are only short-term sellers and are difficult to identify. For example, I am sure over the next three weeks, Game of Throne products will sell well but once the series is over product sales of these items will fall off.

And they do fall off, for example, our research shows that in most shops, that six out of the top ten sellers today will be in the top ten sellers list tomorrow. You better have a look at those items today and be aware that almost half will experience dramatic falls in sales tomorrow. 

This is how you analyse your POS software information so you can determine which items are selling the most in the short-term. 


Go to Register reports

Now select "Top N Stock Sales for a Given Period"

 

Now put in yesterday dates and out comes a report with the top sellers for today.

Now, these need to be checked that they are in the highest selling areas in the shop.

Tips for placing top-sellers

Shoppers start looking at a shelf at eye level and they look from left to right, so what you want to make sure is that your high selling products in the shelf are on the left at eye level. 

Think of placing complimentary goods near your best sellers to grow basket size and drive impulse purchases. This product strategy works well as people once they decide to buy something will often buy more. 

All things being equal, give preference to brand and quality items. For some reasons which I am not sure, these do better and they give your shop a boost as it is seen as a quality shop. Let the bargain shoppers work a bit harder in your shop for their bargains.

 

 

Thanks for this post.Top N stock sales by period want more details?

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Dual touch screens

POS SOFTWARE

 

Dual screen touch

What most people like about them is they are ideal for places where space is at a premium. What people like is that they can quickly be adjusted to provide an optimal viewing angle for the people serving and the customer.

For Point of Sale software, one problem in retail is that computers are designed with airconditioned offices in mind where people tend to be gentle with them. Shops are dirty, often they are not airconditioned and often people are not gentle with them. I have clients that have tire shops, their hands are covered with grease and they use the computers all the time with a bang, bang and bang.

So we recommend these Dual Touch Screen Terminal. The cases are much tougher  then normal computer cases, since they do not have vents, they have no dust problem and so can take grease and  liquid spills too.

Check them out.

 

 

 

 

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Having a fast till

POS SOFTWARE

Many retailers at the Point of Sale have a till which is the fast till. On this till,  they discourage any slow transactions. For example if you want to ring up items on account, you are encouraged to use another till.

At my pharmacist, I was surprised that now on their fast till they have this sign

EFTPOS only  

 

As I was going to pay by cash, I had to go to the other till, the slow one. In a way I am not surprised as this is a graph of the average speeds of EFTPOS in our point-of-sale system using tyro by type and day of the week. The lower the bar, the faster it is. The times are listed in thousands of a second, and as you can see with a standard (ethernet) connection in light blue, we are doing an acceptance in just over a second. That is faster then cash plus more secure. No one can take money, calculate the change and give it to the customer in a second. 

So the proprietors of this pharmacy have made the fast till EFTPOS only. 

 

Currently, we do about 50% EFTPOS/Credit cards and 50% cash. When that figure goes up to about 70%, then we will do it too. What is surprising me, is just how fast our cheque payments have dropped. We now have heaps of people that cannot pay by cheque.

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ANZAC Day today

POS SOFTWARE

Please be advised that our after-hours and emergency support will be running at non-stop on ANZAC Day today. It is available both for urgent and standard calls.

 

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Australian Retail Cannabis Market

POS SOFTWARE

US state cannabis laws


This is a map from the Wikipedia of the legality of cannabis by states now in the USA. On October 17, 2018, Canada became the first G7 nation to legalise recreational cannabis fully.  In both places the retail market is enormous. The legal US Cannabis industry grew by about 25% a year to $10.4 billion in the U.S. in 2018, and it now employs more than 250,000 people.

So many retail experts think that soon will come a cannabis boom to Australia. I know I just spoke to one of these experts. To give you a feel of how big they think it is going to be the Australian legal cigarettes sales are about 6 billion dollars, the Australian Cannabis Market he was expecting to become about $22 billion. That may be long term and include cannabinoid-based medicines which are predicted to make a significant impact on the pharmaceutical business. 

Based on the US figures, for retail and using their tobacco industry sales as a base which are 125 billion U.S. dollars, so based on that in Australia, as a first level approximation, I would expect about 500 million dollars and such an industry would employ about 12,000 people. That, of course, would grow as time moves on. You can see why these experts are excited.

What I do know is that currently, medicinal cannabis farms are sprouting up around Australia, with demand for the product ramping up. 

Is it coming for recreational use in Australia, I think so but when I have no idea. It certainly does, however, give food for thought. 

 

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Uptake of a loyalty program

POS SOFTWARE
VIP members customers marketing promotions

In the retail point of sale, one problem seen with loyalty programs is that retailers want new customers, but often the primary users of the loyalty programs are the existing high users. So when they are starting a loyalty program what they tend to see is that they are giving a discount to customers that they already have. So I was engaging in reading a report by Paytronix Systems, a provider of reward program solutions, what they had to say about this.

Their conclusions seem to have a ring of truth as it appears to match our clients' experiences.

They tended to find as we do that that the high-frequency then the medium-frequency customers were the first to join a loyalty program. They are the ones that can most easy justify doing it. It took about four months for the proportion of new members when we start to see the existing medium- to high-visit frequency to drop to one-sixth.

They conclude that if you are doing something like this, you need to run it for at least four months of actively trying to get new customers to join your program and that you need to be continually enrolling new members during this period. After that, the program tends to get a life of its own.

Overall their conclusion, I think it is valid that customers on a loyalty program tend to come much more often and buy slightly more and you need to budget about four months.  

This is one very successful programs that we are actively involved with that you may want to examine.

 

 

 

 

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Your sales security indicators

POS SOFTWARE

Because retailers often have multiple cashiers at the register, the POS system, a retailer needs each operator their own user profiles so tracking individual sales and monitoring sales goals becomes possible. If you give each operator their own till then all the operator needs to do is log in at the start of their till and balance at the end. Otherwise, each operator should be logging in with each new sale.

Now once that is done you can use your sales security indicators. What these indicators do is gives you a detailed breakdown for each operator on no sale, voids, count, totals, refunds, negative items and discounts. What you are doing here is looking for something that an operator is doing unusual. For example, one operator is doing a lot more nosales than anyone else.

It is easy to do.

Go to cash register reports

posbrowser menu

Open Staff and click on "Sales security indicators"

Website under attack sample log file

Select the required period, in this case, the last twelve months.

Sales security indicators

See how you go.

The report comes out in excel so you can edit it.

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Your Privacy in Windows 10

POS SOFTWARE

Here is a famous picture of the Facebook CEO Mark Zuckerberg showing his Facebook likes here.

 Mark Zuckerberg

What happened is that when people blew up the picture where I put the arrow in what they found was this.

Mark Zuckerberg covering the camera and mic 

What he had done is put some tap over the camera and microphone of his laptop. Obviously despite having some of the best I am sure computer security professionals in the world, to check his computer he still feels he needs to do this too.

It is certainly the sign of the times as privacy has never been more under threat as it is now with computers and the internet. Although the Australian goverment with both sides approval has taken admirable action on private companies abusing people'e privacy, it certainly has expanded dramaticly the power of its own abuse of privacy again with both sides approval. 

Now if you're concerned what kind of data is collected by Microsoft in its latest Windows 10 at least there is something you can do to increase your privacy.

The problem is that Windows 10 requires to send information to Microsoft so that it can serve us better. Now where do we draw the line on what we are prepared to give will be different for everyone?

If you are concerned about this, I suggest that you download this free program and checkout the trade off between what you need and what information you are sending that you feel  goes too far. It is available here.

 

 

.

 

 

Thanks for this post.Need more content for pos software in legal privacy.

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Easter Break

POS SOFTWARE

Easter greetings

We would like to wish everyone a safe and happy long weekend.

Our office is currently staffed by a limited group but our team is on call for all of your emergency Point of Sale Software needs. 

 

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A Sign to Speed up your Checkout

POS SOFTWARE

Cash only

 

All bags inspected

A quick way to often speed up and make rules in the shop is to put a sign-up. 

It can be very frustrating for you and your staff to keep answering questions. Often what you will find is common in-store questions can be answered quickly with a sign. It may give quite a relief from having to repeat the same answers over and over.

Not only that but it will save you a lot of time. 

Here is a good site where you can make free, a professional looking sign, print it out and stick it on the wall.

 

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Large cameras on the tills

POS SOFTWARE

 Woolworths is now following Coles’ lead in installing large security cameras and screens on the top of self-serve checkouts.

This is being done worldwide. Here is a picture of Tesco, a large chain in the UK doing it too.

Camera over a till

The public does not like it, but there is no choice. Shoplifting is now such a big problem. The figures quoted for Australia range from about 1.3% to 3% of retail sales depending on who you talk too. Among my clients, I have seen numbers when we calculate it between less than 1% to over 4%. The 4% guys did not last very long. 

If you want to know how to calculate your figures, I have written here a step by step approach.  Using this approach in less than an hour, you should be able to get a pretty good feel of what size of a problem you have. If you cannot use current figures, use last financial year and do not be too concerned if some values are a guess. In my experience as long as you are reasonably sure, it should be good enough to give you a decent feel. Trust me, doing nothing and being ignorant of the figure is not better.

I would also recommend that you seriously consider following Coles and Woolworth's lead in putting up such large security screens.

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Thinking of a website, what is the name?

POS SOFTWARE

Selecting a website name

With our POS Software, you can have an integrated website. That is a big plus.  Then what you will have is a shop that can take orders all the time. 

Now what you need to consider is a name for your online shop. Here are some points I recommend for an Australia shop.

1) Do not try and save a few dollars by selecting .NET, .BZ, .COM, .ORG, etc extension. Australians want to see your website with a .COM.AU extension. 

2) The shorter and easier it is to remember the name, the better. If it complex, it will be harder to find. 

3) Make it relevant to online. Say for example your name was Simon White and you owned a stationery shop in the suburb of Moorabbin.  If your business name was "White Stationery shop", how is that going to help your business? On the other hand, a name like "Moorabbin Stationery shop", would alert Google and Bings search engines that you sell stationery in the Moorabbin area. It would come up in people's searches. 

4) Keep it as short and simple as possible. I suggest that you pick a name that is easy to spell and simple to pronounce. 

5) Do not be too clever in your name eg haveagr8tday is not good nor is komputer.

6) Check your proposed name that you do not get in trouble eg if your name is McDonald and you open up a hamburger shop, there may be problems.

Bonus tip

For most SMB, I suggest looking at your location and what you do to make your name.  See point (3).

There are my tips, 

 

 

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Use technology to use Your Shelf Space Effectively

POS SOFTWARE

What retailers need to do is identify the stock that their customers want and can see when they come into the shop.

If the customer does not see it, then many will not buy it.

What you need is your hot stock in a prominent display that shows off this product so that your customers know exactly where to go to find it.

Let us find them  

Go to your cash register reports

 

Select Top N Stock sales for a given period

Now select a reasonable and ask for a report by profit.

 

This gives you a list of your most profitable items.

Check stock levels

Now, the first point is to look through the list to make sure that you have sufficient stock on hand (SOH). The big question here is do you have highly profitable items but no stock?

Review items

Check these items to see what makes them so great, could be the position or is it the item. Check to see if they are in the best position? Are they adequately displayed? Maybe they should be in more than one location. As a rule double the size of the display in retail is said to increase sales by 50%. A good item with double the display will probably sell more than a good stock and a marginal one. 

Another possibility is to make them a bit more noticeable to your shoppers by moving them at the entrance or the checkout counter, where they can produce more.   

Position stock

Now start rearranging. The most profitable items should be front and noticeable.

Try it out

Dramatic improvements in sales can be made by using technology to improve your performance.

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Promotion ID

POS SOFTWARE

John Wanamaker is credited with the saying that "Half the money, I spend advertising is wasted; the trouble is I don't know which half".

This is a common problem in business. We go to a lot of trouble and money making some advertisements. We sell some goods now the question asked is did the advertisements have much to do with it? It can be very hard to tell.

For example, I have a client that sells about 12 of an item a week but sales from what we can see regularly range from 10 to 20 every week. There was a big promotion on the goods, they got into the spirit of things by doing a display, and they sold about 18 items. This is well over average but based on this it is difficult to determine whether the promotion and their presentation helped or not. See they had weeks when they sold more without doing anything.

One practical tip is to try to measure as much as possible the success of a promotion.

For example in the advertisement put in a rarely used phone number and/or email address. For example, both Outlook.com and Gmail support disposable addresses without needing to register them first which is perfect for this work. Another tip which often works well is to ask people. 

Often all people want is an idea, that some interest was generated. 

The next point is that if you know that they did respond to your promotion how do you mark it into your system. Our point of sale software has a very advanced system for doing this. What you need to do is enter into the POS system a Promotion ID.

Firstly you need a Promotion ID here are some tips:

- Make a unique ID for each different promotion. This will allow you to distinguish each promotion. Don’t reuse or recycle these IDs for different promotions. If you feel you must use the same ID  add a date or year after it, eg add Feb2019, if it ran in Feb 2019.  

- Once you make an ID, don't change it. 

- Do not use spaces, it can be confusing, e.g. a person was looking at Jan  2019, and it sometimes worked, and sometimes it did not. What we found was the ID was Jan 2019 (One space no, two spaces which he sometimes used)

Now go here to Detailed Transaction Entry see red arrow, click on the image below for more details.

Purchase Order Numbers

Now you see the Promotion ID. 

Enter the appropriate code when putting in the sales.

Now you can monitor the transactions. This may help you to alleviate the nagging feeling in the back of your mind over whether you are getting value for your advertising

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Keep your POS software information right

POS SOFTWARE

Retail dashboard

Today business is all about information and control.

When I talk to large organisations they know what they are you selling, they know their margins, their basket size, etc. The essential information though, is that they know their trends of what it is that is selling. Ultimately they know where their business is going NOW.

Knowing what is happening is should be one big advantage an SMB business has over a larger one. In practice, often it does not appear so.  What you need to do is set up KPIs that you are comfortable with and select some reports out of your POS system once a month to review your business formally from an information perspective. 

However, to get the maximum benefit of your point of sale information, you should make sure that your POS information is correct. Only if you do this can you get accurate and up-to-date reports! 

 

 

 

 

 

 

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Finally the elections coming

POS SOFTWARE

2019 Federal Elections

Unless the press is wrong again on May 18, it looks like we are going to an election. It could not happen quick enough in my view, I have never seen the economy brought to such a halt over an election. Clearly to business the issues are not minor here.

 

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Investment allowance and the elections

POS SOFTWARE

The tax writes off as it works for an SMB currently if it wanted to buy a point of sale system for $5,000.

Now it does not cost a business $5,000 as it can claim the GST. So 10% of this is GST which will be coming straight back, so the proposed cost is $4,545.45

- 100% of this would be allowed as depreciation

- If the company tax rate says 27.5%, which means the business will get back $1,250 in income tax credit.

 Which means that the business needs to fund this purchase in the first year needs $3,295.45 

Now the Labor proposal is to reduce the depreciation allowed to 20% if the asset is over $20,000 which this is not so 

- As the government does allow depreciation of computers now at  25% so most people would use that.

- If the company tax rate says 27.5%, which means the business will get back $312.50 in income tax credit.

Which means that the business needs to fund this purchase in the first year needs $4232.95

** Which means that the business needs to fund this purchase in the first year requires an extra $937.50 **

As the current government did not make the investment allowance permanent despite many requests to do so and it appears that the Labor party has indicated that it will be replacing it with their own scheme.  This may be your last chance to take advantage of this scheme.

If you want to take advantage of the instant asset write off, I suspect it is very dubious that you will get as good a deal as this later. So if you are looking to acquire or upgrade a point of sale system from us, NOW is the time.

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Low cost way to speed up your computers

POS SOFTWARE

Computer RAM

 

Point of sale computers needs to run fast particularly at the front counter. If you’re thinking about a cheap way of speeding up your computers, then almost certainly adding more RAM to your computer will do more to speed up your computer than any other upgrade you can make. 

 

 

 

 

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