Stephen Ferguson's recent article is worth your time because it explains publicly, in plain language, why Australia's digital payments system is fundamentally unfair. With the Reserve Bank of Australia (RBA) now nearing a final decision on merchant card payment costs and surcharging, the timing of this conversation couldn’t be more important.

As someone who supplies and consults for small businesses, I spend a lot of time listening to owners talk about rising costs, shrinking margins, and "death by a thousand fees." I’ve helped my clients save significant amounts on their EFTPOS and credit card fees simply by auditing their systems. Our thoughts on the RBA matter are in our submission here.

What I liked about Ferguson's article is that it puts a spotlight on a problem many retailers can’t easily see from behind the counter: the hidden mechanics of these fees. However, from a supplier's perspective, there are a few points I need to add to the debate.

The Great Rewards Rip-Off

The most glaring issue in our payment system is the deep unfairness of who actually pays for consumer rewards. It is completely unjust that every day, merchants are forced to foot the bill for the luxury benefits enjoyed by premium credit card users.

When a customer taps a high-tier credit card, they earn frequent flyer points, airline lounge passes, and free international travel insurance. But the credit card company does not pay for those perks. You do.

In reality, processing a rewards credit card can be three to five times more expensive than a basic debit transaction. If you are on a "blended" merchant rate, you are actively subsidising these premium costs every time a customer pays with their own money via debit.

I doubt consumers will save much

As the RBA decision looms, you will see big headlines about a surcharge ban "saving consumers," with figures like $1.2 billion a year being thrown around.

Personally, I am highly sceptical that most shoppers will actually feel that in their weekly budget. As I stated in our recent industry submission, these massive processing costs will not just vanish. If merchants are forced to absorb them, those costs will inevitably be passed on to higher shelf prices and greater bank fees elsewhere in the system.

What I’d add to the article

While Ferguson champions Least Cost Routing (LCR), we need to acknowledge that Dynamic LCR is not consistent across banking providers, and that is a massive problem.

The banks use entirely different types of LCR—such as "binary" or "threshold" routing—and these older methods do not deliver the same financial outcome for small businesses as true, real-time Dynamic LCR. Just because one bank states it has "LCR enabled" does not mean it operates the same way as another bank's system. This lack of standardisation desperately needs to be addressed.

Furthermore, we cannot ignore the rapid rise of premium debit cards, like Platinum Visa or Mastercard debit options. These cards offer consumer rewards, but they still only cost merchants around 0.5% to 1% to process. Why should they be lumped into the same high-fee bucket as premium credit cards?

Take Action and Protect Your Margins

I would not suggest waiting around, hoping the RBA or the big banks will voluntarily fix a system that is currently so profitable for them. You need to protect your own margins right now.

I strongly recommend you contact your EFTPOS or credit card provider this week and ask them these three specific questions:

• Am I currently on a blended rate?
• Do you provide true, real-time Dynamic LCR, and is my terminal actively using it?
• Can you provide a monthly report showing the percentage of my eligible debit transactions routed via the lowest-cost network?

Have a read of Ferguson's article when you get a chance, and let me know what you think in the comments below. Have you checked your LCR status recently?

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.

Fresh fruit and vegetables are steady sellers. I like them in a shop, as people buy them in good times and tough times. While your customers might cut back on luxury items, they always need food. Integrating a fruit‑and‑veg point of sale system into your store can bring in steady foot traffic, but fresh produce also puts unexpected pressure on your operations.

Can your current setup handle it? Yes, we have many fruit shops successfully using our Point of Sale (POS) system. However, getting it right requires some planning. In this guide, I’ll walk you through the common challenges of selling fresh produce and show you practical ways to avoid headaches from day one.

Why Produce Changes Your Checkout

Most retailers run a smooth counter because the workflow is simple: scan a barcode, take payment, and print a receipt. But once fresh produce enters your inventory, that simple routine changes.

Here is what happens when you add fruit and veg to your checkout:

• Weight‑based selling: You sell many items by weight rather than per unit. This means your cashier has to take extra steps before they even know the price.
• Manual entry: A lot of loose produce has no standard retail barcode. Your staff must search a screen menu or enter a PLU (Price Look‑Up) code instead of just scanning. (As a workaround, most of our clients slap an in‑house barcode on these products.)
• The multiplier effect: Customers tend to buy several produce lines at once. If a customer buys eight produce items and each one takes 10 seconds longer than a simple barcode scan, that adds an extra 80 seconds to a single sale. Over a busy day, those seconds add up quickly.

These extra steps can affect your queue times, staff training, and overall customer satisfaction.

Choosing Trade‑Approved Scales

If you sell loose produce by weight directly to customers, the scale becomes a legal part of the sale. You must use trade‑approved scales.

In Australia, the National Measurement Institute (NMI) legally requires retailers to use their certified scales when selling by weight. A standard kitchen scale might be accurate, but you can only use it for back‑office use, not for customer transactions.

Furthermore, if you want your scale to talk seamlessly with your POS system in Australia, you need to check compatibility. Not all scales integrate smoothly with our software, so it’s best to chat with us first.

Setting Up an Efficient Counter

Once you have chosen the right scale, your next challenge is fitting it into your existing counter. This gets tricky in smaller shops. Because you must accommodate new hardware alongside your existing registers, you need to carefully measure your counter space. Alternatively, many of our clients find a hanging scale to be a great space‑saving solution.

Before you commit to a layout, do these three quick checks:

1. Measure your usable counter space.
2. Plan the “hand path” (where staff place items, where the bags sit, and where the EFTPOS terminal goes).
3. Decide if customers can see the weight and price clearly without having to lean over the counter.

A clean, logical layout reduces mistakes because your staff won’t need to juggle items awkwardly.

What a Good Setup Looks Like

In a well‑designed checkout:

• Staff places the produce on the scale just once.
• The weight transfers to the POS system, either manually or electronically.
• The cashier selects the item by scanning an in‑house barcode or by tapping a quick key.
• The POS system automatically calculates the final price, and the sale continues smoothly.

Managing PLUs and Barcodes

Produce creates a unique “product data” problem. You are not just selling new items; you are selling items with different identifiers, packaging, and pricing rules. You might even need several codes for the exact same product, which can easily cause errors at the till.

Using PLU Codes Effectively

A PLU is a short code used to quickly identify produce items. Many retail scales and produce workflows rely on PLUs and the scale’s “memory” functions to speed up the checkout.

PLUs work incredibly well, but they depend on you keeping a tidy product list. They also rely on your staff finding the right item quickly while under pressure. If you want PLUs to succeed, I strongly suggest keeping your range tight and manageable.

Barcode Challenges and Solutions

Packaged fresh items often use GS1 DataBar barcodes. These barcodes carry richer information than basic retail barcodes, and GS1 publishes clear guidelines to help you sell fresh foods efficiently. However, if your scanners are older, they might struggle to read these complex barcodes.

Additionally, standard barcodes on fresh produce are sometimes hard to read because the fruit or packaging surface is often curved, uneven, or wet. If you are struggling with supplier barcodes, printing your own in‑house labels is often the most reliable fix.

Handling Waste and Shrink

Beyond checkout efficiency, managing fresh stock is a daily balancing act. Fresh produce is time‑sensitive inventory. It will inevitably create “shrink”—meaning stock you paid for but can’t sell due to bruising, spoilage, or handling errors.

Simple Waste Tracking Tips

You need to give your staff a single, simple method for recording waste, and have them do it daily. Review your stock regularly, pull out the damaged items, and decide what to do with them.

A very popular strategy is to have a dedicated stand for quick‑sell items at markdown prices. This allows you to recover some costs before you have to throw the produce away.

Good markdown habits include:

• Marking down items at the same time each day, usually early in the morning.
• Keeping a short, clear list of eligible items for markdowns.
• Clearly marking the discounted items, for example, by drawing a coloured line on the label.

POS FAQs for Produce Retailers

Here are the most common questions small retailers ask about selling fresh produce through a Point of Sale (POS) system.

Q: Do I need “trade‑approved” scales to sell loose produce by weight?
A: Yes, if you are selling directly to customers. If you are only weighing items in the back office for your own prep, then no.

Q: What’s the difference between trade‑approved and non‑trade‑approved scales?
A: Trade‑approved scales are specifically designed, tested, and legally verified for selling goods to consumers by weight.

Q: We’re weighing items, but staff still have to type numbers into the POS. Is that normal?
A: It is very common. Fully integrated scales exist, but they are more expensive and less commonly used in smaller shops.

Q: We sell loose produce—do we need PLU codes?
A: Yes, using a PLU is the most common and efficient way to sell loose produce when there’s no barcode to scan.

Q: How do we stop staff from selecting the wrong item (e.g., standard tomatoes vs. organic tomatoes)?
A: The best way is to use in‑house barcodes where possible. Otherwise, ensure your POS descriptions are crystal clear. Be very careful with similar‑looking items; use distinct names like “Organic Tomatoes” versus “Truss Tomatoes.”

Q: What should an itemised receipt show for loose produce?
A: The receipt must clearly show the item name, the weight, and the price basis (for example, $4.99 per kg).

Q: Our barcode scanner won’t read the produce stickers from our supplier. What do we do?
A: You will likely need to print and use your own in‑house barcodes for those items.

Q: Should we start by selling pre‑packed items or loose items at the scale?
A: Pre‑packed, barcoded produce is usually the easiest way to start because it keeps your checkout fast. Loose produce offers your customers more flexibility, but it requires trade‑approved scales and a tighter integration with your POS.

Q: How often will we need to update produce prices in the system?
A: Much more frequently than other retail categories. The easiest way to stay on top of it is to set a strict routine—update prices at the same time each day or week—and make one specific staff member accountable for it.

Q: We need to clear old stock at the end of the day. How do markdowns work in a POS?
A: I suggest using markdown pricing rules on the existing item rather than creating a brand‑new “discounted” product in your system. This makes it much easier to keep your sales and inventory reports accurate.

Q: Our counter is tiny. How do we fit the POS, scale, and EFTPOS without creating a mess?
A: Look into hanging scales. They clear up valuable counter space while keeping the weight visible to both the cashier and the customer.

Ready to Streamline Your Produce Sales?

Selling fresh fruit and veg doesn’t have to slow down your checkout. With the right hardware, clear processes, and a smart software setup, you can keep your queues moving and your customers happy.

If you want to know more, reach out to us.

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 in Australia can pose financial challenges that even the most experienced business owners may not anticipate. One of my clients, after spending thousands reorganising the financial structure of their new shop, was told that the costs were not tax-deductible. Actually, they were claimable as Blackhole expenditures, but it was a problem they did not expect. It paid them to get a second opinion from me 

They’re real business capital expenses like legal fees or feasibility studies that don’t produce something you can touch or easily depreciate. Because of that, they can feel like money disappearing into a financial Blackhole.

What is Blackhole expenditure ATO?
Blackhole expenditure refers to specific expenses that are neither tax deductible for a business under the general deduction rules nor otherwise recoverable as the cost of a depreciating asset or CGT asset. Such expenditure may be claimed over a 5-year period if they satisfy certain criteria.

Retailers often miss these costs on their tax returns, since, say, a Point of Sale (POS) system is tangible. A payment for a shop fit-out plan that you never built isn't. Let’s look at why these differences matter and how to manage them effectively.

What Is Blackhole Expenditure?

Under Australian tax law, Blackhole expenditure refers to capital costs that can't be deducted elsewhere and don’t form part of a tangible asset’s value. They’re legitimate and often essential for your business to function or expand, but they don’t fit the usual depreciation or immediate deduction rules.

For example:

• Buying a new display fridge gives you a clear physical asset—easy to account for.
• Paying a lawyer to draft a partnership agreement gives you only paperwork. It’s essential, but it doesn’t create a depreciable asset, so it falls into the Blackhole expenditure category.

Common Blackhole Expenses in Retail

These costs often appear at three stages of a retail business journey:

Store Setup and Legal Fees

Before you even make your first sale, bills start piling up. Business name registrations, legal contract drafting, and trust or company setup costs are classic Blackhole expenditures. Without these, you can’t operate—but they don’t result in a tangible asset.

Failed Expansion or Planning

Sometimes research or consulting leads nowhere. Perhaps you pay a deposit for a shop fit to open a second shop, then cancel the project. You have nothing to show for it. These non-productive outlays are Blackhole costs.

Business Restructuring

As your shop grows, you might transition from a sole trader to a company for liability or tax reasons. The accounting and legal fees involved don’t create an asset, but they do qualify as Blackhole expenditure.

Your Five‑Year Deduction Safety Net

Thankfully, the Australian Taxation Office (ATO) now recognises these situations, as you can sometimes deduct eligible Blackhole expenditure evenly over five years, provided it’s not otherwise deductible.

Example: If you lose a $10,000 deposit on a shop fit above because you cancel the project, you may claim $2,000 each year for the next five years. It’s a slower recovery, but better than nothing.

To qualify, you need to keep detailed records showing the expense was genuinely incurred in running or establishing your business.

Blackhole Costs vs. Tangible Capital Assets

Physical assets, like shelving or POS terminals, generally qualify for faster, depreciation‑based deductions or even instant write‑offs. Blackhole expenses don’t, because there’s nothing physical to depreciate.

If you can reasonably classify a cost under another depreciation rule, you'll usually gain faster tax relief. However, be careful as misclassifying an expense can cause problems. When in doubt, get professional advice.

The Instant Asset Write‑Off Advantage

What we suggest is that if you qualify as an SMB business with an annual turnover below $10 million, you can often take advantage of the $20,000 instant asset write‑off, which is valid through to 30 June 2026. It lets you immediately deduct the full cost of eligible physical assets if you qualify.

Some expenses, such as legal or accounting costs to set up a new business or register with ASIC, may also be immediately deductible if they relate directly to establishing a business, but unfortunately not for a business restructure. Always check this with your accountant before claiming.

Smart Expense Planning for Retailers

Blackhole expenditure often sneaks up when projects don’t go as planned. Before committing large sums, consider how each expense fits into your long‑term strategy. Ask some extra questions:

• Does this create a tangible asset I can depreciate?
• Is there a way to structure this so it qualifies for faster deduction treatment?
• Most importantly, what happens if this project doesn’t go ahead?

Seek Professional Advice

Tax law is detailed, highly qualified and tightly regulated. While this will provide you with a practical overview, you should always seek advice from a qualified tax professional before making claims, something I am not and do not pretend to be.

Key Takeaways

• Blackhole expenditure covers necessary business capital costs that don’t produce tangible assets.
• You can typically deduct these under Section 40‑880, spreading the deduction evenly over five years.
• If your business closes or is sold before the five‑year period ends, you may lose these deductions.
• The $20,000 instant asset write‑off applies to physical depreciating assets, not intangible costs.
• Keep detailed records and plan ahead to minimise wasted spending.
• Always consult a professional before claiming Blackhole deductions.

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.

If you run a local shop or community business, imagine walking into your store and hearing your very own theme song playing — created in minutes and completely free. Google's Gemini app now lets you generate a theme song with a simple text prompt or even a photo, complete with lyrics and a video image. In this guide, I'll show you how to use it step by step, share ready prompt examples, and explain the rules so you can use the music in-store and on social media.

What is it and why should you care?

It's called Lyria 3, a computer-generated music creator now rolling out in the Gemini app. It quickly creates a music track and lyrics for your song.

For retailers, the value is simple: you can test small bits of branding and marketing without paying an agency or a music band. What I like is that you can make it feel local and personal.

Here's what it can produce right now:

• Text to track: You describe a genre, mood, and scenario, and it creates music and vocals.
• Photo/video to track: You upload an image or video, and Gemini matches the mood with a soundtrack. Note: I haven't had much luck with this in the current Australian release yet; I suspect it's a bit more advanced in the US version, where the documentation comes from.
• A finished file you can download to share, with cover art.

Prompt tip that actually works: Start with “create", "write", or “compose", then add genre + mood + what the song is about.

How to create music step by step

This is the easiest way I found to do it now.

What you'll need:

• A Google account, signed in.
• To be 18+.
• “Keep Activity” turned on.
• A desktop or laptop helps, because the feature is rolling out gradually on mobile and may not appear for everyone yet.

Steps (desktop):

1. Go to https://gemini.google.com on your computer.
2. Click Tools below the text box.
3. Click Create music.
4. (Optional) Upload an image or video for extra context. This may not work yet; it's in the documentation, but it didn't for me.
5. Type a prompt to generate your 30-second track.
6. Download it using the buttons on the track card.

Example prompts you can copy:

“Create an upbeat folk song for a friendly local newsagency: warm community feel, magazines, cards, gifts, and a cheerful chorus.”

“Create a country and western song for our local pet shop: Where Every Pet is Family.”

Ways to use it without overthinking

You don't need a “perfect” song for this to be useful. You just need something that fits the moment and gives customers a reason to smile or share.

Here are practical ways I'd use it for a typical Aussie shop:

• In-store atmosphere: Generate a light seasonal track for school holidays, Easter, or footy finals and play it quietly (where appropriate for your shop and customers).
• Social posts that stand out: A 30-second clip with a custom jingle can outperform yet another still image of “new stock has arrived", because it feels more human and unexpected.
• Local community content: Create a “welcome back to school” tune, or a short “thank you” track after a community fundraiser weekend.

A simple rule: keep it fun, short, and clearly “you".

Newsagency prompts (copy/paste)

Try these exactly as written, then tweak one detail at a time (genre, mood, instruments, or theme).

• “Compose a cinematic theme for a newsagency's new magazine wall reveal: big, uplifting, modern, catchy chorus.”
• “Create a rock ’n’ roll hype track for back-to-school stationery: energetic, family-friendly, fun hook.”
• “Write a warm country song about a friendly local newsagency full of cards, gifts, and books: storytelling style, gentle tempo.”
• “Create an upbeat pop jingle for footy finals: community vibe, quick chorus, big finish.”
• “Write a cheerful birthday song for a loyal customer who loves puzzles and books: sweet, simple lyrics, light acoustic instruments.”

A real example (and what it taught me)

I tested it by feeding it my business story: "POS Solutions company has empowered thousands of small and medium-sized retailers across Australia with reliable, industry-specific Point of Sale software and hardware. Since 1983, we've specialised in retail sectors including newsagencies, pet shops, and pharmacies, helping our clients streamline operations, boost sales, and adapt to an evolving digital landscape."

I experimented with a few different music styles before deciding on “cinematic,” as I like a bold, dramatic sound. I then told it I wanted music and a song by a powerful diva singer. After a few attempts and redos, I then changed the music styles and see what you think. Please let me know which one you liked best.

Digital Dawn

Use your POS system data to write better prompts

Here’s the clever part: on your Point of Sale (POS) system, you already have the best content prompts sitting in your sales history. Your POS data tells you what customers actually buy, and when they buy it, so your marketing can match reality, not guesswork.

Use your POS system to spot patterns, then turn those patterns into short music ideas:

• Father's Day spike: If cards lift then, write a Father’s Day jingle and schedule it for your Facebook page.
• Christmas build-up: If gifts and books surge in December, create a “gift inspiration” song to start the momentum.
• Seasonal magazine demand: If a title sells strongly during footy season, generate a short “finals time” track and post it with the display.

This is the practical link between back-of-house operations and front-of-shop marketing: your POS system tells you what to promote.

Commercial use

For casual in-store use or social posts, you’re generally in low-risk territory — just follow Google’s Terms and policies. Google says the music generation is “designed for original expression” with filters that check outputs against existing content.

Two practical points matter most:

• SynthID watermark: Google embeds an imperceptible digital watermark in tracks to identify them as AI-generated.
• You can verify audio: Upload an audio file to Gemini and ask if it was created or edited by Google AI, and it will check for SynthID. So don't lie and say you wrote it; as people can see Google did, you can, however, say truthfully that you created and edited the idea many times and shaped much of the arrangement and music style.

Ready to try it?

If you don't see “Create Music” yet, it may still be rolling out to you, its really new.

Go to https://gemini.google.com on your computer

Click Tools → Create music,

Test a prompt with something current, revise it a few times to get something you like and post it to Facebook or Instagram.

Then see what your clients think.

Then let me know, as I am very interested in using technology to improve SMBs.

Happy music creation.

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 reviewed the latest RBA Economic Snapshot this morning, and it said a lot. On the surface, our economy grew by 2.1%. That sounds acceptable, but Australia has experienced 1.5% population growth. The math is simple but scary. When you subtract the population increase (1.5%) from the economic growth (2.1%), real economic growth per person is just 0.6%. Now add that Inflation (3.8%) is currently running higher than Wage Growth (3.4%), and we are down to almost zero (0.2%). Before you think that's bad for your shop, not necessarily, read on.

If you want to review the figures yourself or run RBA comparisons, you will find them here. One trap with the comparisons is to check the dates for each comparison, as the RBA provides the latest available figure, which may be well off the date you are looking at. 

More People, Less Money

What does this mean for your shop? It means more people are buying but the average customer walking into your store doesn't have more money to spend than they did last year.

The Retail Reality Check:

See what is happening in your shop, review your POS System, and compare revenue and basket size. These figures suggest that many of you will find that you are serving more customers to maintain the same profit. In other words, you are working harder for the same result. If you want to know how to check your basket size and some ideas on how to improve the basket size click here.

The “Mortgage Belt” Squeeze

The Cash Rate is sitting at 3.85%. Historically, people might say, “That's not high.” People my age can remember the 17% days in the 70s and 80s. But that is a dangerous assumption. Today's mortgages are much larger than they were then. A 3.85% rate today sucks a huge amount of cash out of the local economy. Every dollar your customer hands to the bank for their mortgage is a dollar they cannot spend in your shop.

We can also see that the Household Saving Ratio is good (6.4%). It indicates that your customers have money but are worried. They are choosing to hoard cash for a rainy day rather than spend it on non-essentials. They aren’t broke; they are just scared.

Labour Market

The unemployment rate is 4.1%. This is okay, but see that new job creation is slowing.

• The Good News: It should be slightly easier for you to find casual staff than it was a year ago.
• The Dubious News: It can be argued, depending on how you think, that your labour costs are still rising or about the same if you take inflation into account. You decide.

Strategic Takeaways: How to Win

Leverage the “Stay-at-Home” Economy

In this environment, big-ticket purchases suffer. People will put off buying new furniture or taking expensive trips. If you are not in this type of business, the situation might actually be good for you: when times are tough, and people still have money, they still want to treat themselves. The trip is gone, but they will still buy a $25 paperback book or a gift. It is a guilt-free dopamine hit that fits in their budget. Market yourself as the budget-friendly alternative.

The “Grandparent Economy”

While Mum and Dad are hammered by mortgages, don't forget the grandparents. They often own their homes outright and are unaffected by interest rates. They are the “shadow economy” of your newsagency. Make sure your kids' toys, books, and art supplies are front and centre for them. They are still willing to spend on the grandkids even when parents can't.

Protect the “Obligatory” Spend

People might stop buying for themselves, but they rarely stop buying for others. Your Greeting Cards and Gift lines are your recession-proof anchor. Today, people will often buy a premium card to “elevate” a cheaper gift. It makes a $20 gift look like a $30 gesture.

Get Traffic

Today, more customers are rushing past your shop. You need to break that rush. Place low-cost, high-impulse items (such as children's magazines or clearance books) at the entrance. Offer them a low-risk, high-reward treat that doesn't require a finance plan.

Your POS System can tell you the truth

Do you know if your basket size is dropping, or are you just guessing? Do you know what is happening in your shop? The only way to find out is in your shop, in your POS System.

Data is your best weapon.

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.

Managing a retail business in Australia now requires financial agility. While many shops start with a single bank account, growth often demands juggling funds across multiple institutions to secure the best loans and merchant rates.   However, without a central information centre, this strategy can cause issues. Over the years in retail, I've seen the challenges owners face when reconciling transfers across different banks. It's called Banking Chaos, but it's easier to use our POS System.

Why Multiple Accounts Are Happening

Retailers rarely choose this complexity; business necessity drives it.

1. Smart Financing Requires Flexibility

We all need a business loan at some point in our ventures. Different institutions offer various interest rates and terms. Often, the best financing deal may not come from our current bank. If we choose a better offer, we need to open a secondary account solely for loan disbursements.

2. EFTPOS Savings

We all want to save on merchant fees. Sometimes, a third-party EFTPOS provider offers a much better rate or service than your main bank. To get that 0.5% saving or faster transaction processing, you often need to settle funds into a specific account provided by the EFTPOS provider.

3. "Bucketing" for Tax and Bills

Experienced retailers often place GST, PAYG withholding, and superannuation into a separate holding account to avoid accidentally spending this money.

This leaves many retailers splitting their finances. But this doesn't have to be a major headache. You can keep it under control by using your point-of-sale system as your financial hub, managing as many bank accounts as you need.

Separating Your Funds

Beyond external bank accounts, you also need to manage our fund allocation. Think of your revenue like a stream of water. If funds are mixed, it becomes difficult to determine the intended purpose. It looks like you have a lot of money, but a lot of that money might already be spoken for. This is a common problem with GST and lotteries.

Maintaining separate accounts simplifies your tracking for accurate cash flow analysis even if physically they sit in the same account.

Centralise Control: Your POS as a Financial Dashboard

This is where a modern POS system shines. It acts as your central dashboard. It doesn't matter how complex your banking is in the real world; your software should make it as simple as possible.

Our system allows you to define all these different accounts, loans, savings, trading, and tax holding rights in the setup.

Receipting to the Right Landing Spot

When a customer pays at your counter, our system allows you to receive the payment to the specific bank account the funds will be deposited into.

If they pay using a specific card terminal that settles into Bank A, the POS System records the payment for Bank A. If they pay cash and you deposit it into Bank B, the system records it as a Bank B deposit. This means your records match reality in real time.

How to Set Up Accounts in Your POS

We have designed this to be as painless as possible. Adding a new bank account or a new "bucket" to your POS system is quick.

1. Navigate: Go to the main menu and select "Bank Accounts."
2. Add New: Click the green "+ Add" button.
3. Details: Enter the details. This serves as your label. You might name one "NAB Trading" and another "Lottery Holding." You can add BSB and account numbers for your own reference.
4. Repeat: Do this for every distinct place money lands or needs to be tracked.

That is all there is to it!

The Result: Total Financial Flexibility

The POS stores these details securely. You can access any linked account at any time.

With the ability to add unlimited accounts and switch between them at will, your POS software makes managing your business banking easier.

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.

Your retail work does not end just because the Valentine’s Day 2026 rush is over. While the roses have wilted, effective post-holiday analysis is critical for maximising future profits. While the February 16 rush is over, some customers are still purchasing what remains. Control your instinct to pack away the displays and immediately shift your focus to Easter. Also, you need to determine what went right and what went wrong for Valentine’s Day.

Here is how to effectively measure your Valentine’s Day 2026 performance.

1. The “Hangover” Period: Don’t Pack Up Yet

First, a tactical reminder: keep your displays up. Many Valentine's Day purchases are impulsive or made at the last minute. We often see a “long tail” of sales from people who forgot the date or are celebrating a bit later.

Action: Maintain a condensed Valentine’s display for another week.

Opportunity: This is the prime time for bargain hunters. Use this period to clear leftover stock immediately rather than storing it. Cash in the till today is better than dead stock in a box for 12 months.

While you clear the physical floor, it is time to turn your attention to the digital footprint left by yesterday’s shoppers.

Once the physical floor is sorted, you must shift focus to the hard data sitting in your POS system.

2. Year-on-Year: The 2026 Reality Check

You cannot improve what you do not measure. Go to your POS system and run a comparison report for February 14, 2026, versus February 14, 2025.

Do not look at the total revenue figure alone. Drill down into specific departments that drive our local traffic, specifically Cards, Gifts, and Books.

Did you beat last year? If so, was it driven by higher transaction counts (more people) or by what many reported as a higher average transaction value?

3. Strategic Metrics: Moving Beyond Revenue

The following KPI metrics tell you how well you sold it.

Gross Profit (GP) Contribution vs. Floor Space

Did your Valentine’s display earn its rent? First, measure the length of your seasonal display. Next, compare the GP dollars generated by that space against your standard mix, such as stationery. If the love hearts didn’t outperform the ballpoints, that space was wasted. You might need to condense the footprint next year to maximise return on investment.

Revenue Per Rostered Hour

Review your roster for February 13th and 14th. Calculate your total revenue divided by the total labour hours paid.

If your revenue per hour was too low, you may have over-rostered. If it was too high, you likely burnt out your team and missed sales due to long queues. Sustainable labour costs are key to long-term viability.

4. Inventory Forensics: Audit Your Valentine’s Stock

Every item left on your shelf tells a story.

The “Sold Out” Items

These are your most expensive mistakes. If you ran out of specific card captions (e.g., “Wife” or “Husband”) by 2 PM, you capped your own revenue. Plan to increase these specific lines next year.

The Leftovers

These items highlight what did not resonate. Was it the price point? The design? Make a note now. If you are left with too many red candles, do not repeat the order in 2027.

Dead Stock Audit

Use this post-event lull to run a store-wide dead stock report. Identify items that haven’t moved in six months. Clear this inventory to free up cash flow for higher-margin categories like gifts or new book releases.

5. Staff Performance: The Human Element

Did your team handle the pressure? Review your employee. Identify who did well on that day and who struggled. Use this data to plan your Easter rostering.

Summary

The difference between a “busy day” and a “profitable day” is data. By moving away from habit-based buying and using evidence to guide your decisions, you ensure your business remains valuable and relevant.

Key Takeaways for Next Year:

• Measure: Compare specific dates (Feb 14) and departments (Cards/Gifts).
• Analyse: Look at GP per square meter and labour efficiency.
• Act: Clear dead stock now and document “sold out” items for future ordering.

Checklist Contents:

7 Comprehensive Sections:

• The Hangover Period – Display maintenance and clearance priorities
• Year-on-Year Comparison – POS data tracking for 2025 vs. 2026
• Strategic Metrics – GP per sq. meter and labour efficiency calculations
• Inventory Forensics – Sold-out items, leftovers, and dead stock audit
• Staff Performance – Review how your employee behaved

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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Valentine’s Day is almost here. Consider setting up a pet display now, or you might miss a good opportunity. This may sound counterintuitive, but over the last 15 years, we have seen a massive change in consumer behaviour. Industry data and our sales analysis show a significant increase in pet spending among consumers celebrating Valentine’s Day. Today, many purchase gifts for their pets, and most of those are on impulse, right at the last minute.

This Trend is Real (and Accelerating)

Our industry data confirms this isn’t a fad. In 2020, we estimated that approximately 20% of consumers purchased Valentine’s Day gifts for pets. Other POS Companies do not see it, but we do, thanks to our unique ability to analyse big data. Today, when I checked, I saw projections for 2026 indicate this has risen notably to about 35%.

Experts say this growth is stimulated by the “humanisation” of pets. As birth rates decline and people delay having children, owners increasingly view their pets as family members deserving of holiday recognition. In Australia specifically, engagement is often even higher, with some surveys suggesting up to 80% of pet owners buy gifts for their “fur babies”.

The Opportunity for Your Location

This is where your specific location might come in handy. If you are in a family-oriented hub or suburban centre, you have a distinct advantage over big stores, as your customers are likely already in your shopping centre purchasing their weekly groceries. They are in “chore mode,” but they are also seeking small emotional boosts. This presents a clear opportunity to leverage your greeting card and gift sections to drive impulse purchases.

If you sell gift lines, adding small, low-cost pet items serves as an easy “add-on” for these customers. These people are unlikely to make a special trip to a pet warehouse to buy a $10 toy for their pets, but they may buy while lining up for the Superdraw ticket this week. $80 million is quite a drawcard. Do not underestimate the draw power of the lotto in a shop.

What You Can Do Today (Using Existing Stock)

You don’t have time to order new stock. You need to merchandise what you have to capitalise on this pet economy immediately.

1. Greeting Cards: The “From” Factor

Prominently display pet-related cards. The ones I like are:

• For the Pet: (e.g., “To My Dog”).
• From the Pet: These are working and becoming increasingly popular. Find any cards that say “Happy Valentine’s Day, Dad, Love the Dog” and move them to eye level.

2. Books: Highlight Pet Titles

Don’t leave pet books in the hobby section. Move them to the front counter display.

• Cookbooks: Look for titles on dog treats
• Stories: Heartwarming titles for pet lovers.

3. Gifts: The Counter Impulse

Since you sell gift lines, consider adding small, low-cost pet items, such as plush toys or treats, near the POS system. These serve as easy impulse buys. If you have any red plush toys, heart-shaped items, or small curios, re-purpose them as “Pet Gifts” with a simple handwritten sign.

Why This Category is “Safe”

This segment is resilient. Even when consumers cut back on other discretionary spending, they often continue to treat their pets. It is a safe category for your store to expand into because the “guilt factor” of leaving the dog out is a compelling motivator.

Use Your POS to Track the Rush

Even at this late stage, your POS system remains vital.

• Watch the Velocity: Keep an eye on your sales reports over the next 48 hours. If the “From the Dog” cards are selling out, move the remaining stock to the absolute front of the rack.
• Capture the Data: Ensure these sales are recorded correctly now so that next year, you aren’t guessing—you’ll have hard data on exactly how big the “fur baby” rush was in your specific suburb.

It’s not too late. The customers are walking past your door right now. Put the dog books on the counter, flag the pet cards, and capture additional 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.

I was reading when two men posing as delivery drivers tried to bust into a coin shop in Clayfield, Queensland, with hammers last month. They hit the owner with a hammer, and the 68-year-old owner, Andrew, was quickly fighting for his life. Check the video. He barely managed to push them out. Then he grabbed a machete to defend himself. He was lucky his neighbours heard the commotion and rushed over to help. When the offenders saw the neighbours, they fled.

Unfortunately, many shop owners will not get that chance. There were 800,000 retail crime incidents in 2025. Violent events jumped 66% year-on-year.

Now, What If No One Heard You?

Thieves look for when you are most vulnerable. They will try to ensure no one is close enough to hear them. For many shop staff, that's the real risk. With retail crime involving weapons up 66% in 2025, say they are working late when someone suddenly threatens them, shouting may not bring help quickly enough.

You need a way to call for help. Most phones have emergency buttons. They are, in practice, cumbersome to use. You have to reach for the phone, find the right spot, and send an alarm. For this reason, few set it up.

The "Better Than Nothing" Reality Check

Let’s be honest: a dedicated, professionally monitored, hidden silent alarm from a security company is the gold standard. If you have the budget for a 24/7 security team watching your back, stick with it. It is the best protection money can buy.

But for many independent shops, that ongoing expense is hard to justify. Does that mean you should go unprotected? Absolutely not.

This is where your POS System panic button fits in. It is infinitely better than being isolated with no way to signal for help. It bridges the gap, ensuring that even without a security contract, you are never truly facing a threat alone.

Don't Have Emergency Protection Yet?

Setting up an emergency alert button in our POS software is easy. Once set up, it sits in the cash register and sends instant SMS or email alerts to your nominated contacts when activated.

Using a Retail Panic Button Inside Your POS System Offers Distinct Advantages

• It’s Discreet: Most of the time people are in front of the POS System, they quick press a button and its sent.
• It’s Always There: You can't lose it, and it never runs out of batteries. As long as your POS system is on, your protection is active.
• Faster Response: In a confrontation, every second feels like a minute. Because you are already facing the screen, you can trigger the alert instantly without moving your feet.

How Retail Emergency Alert Systems Work in Your POS

Here is how our POS-integrated feature works in practice:

1. The Trigger: On your POS sales screen, there is a dedicated, discreet button.
2. The Silent Action: When you press the button, the screen does not flash or make a noise. To the customer (or the thief), it looks like nothing happened. However, in the background, the system immediately sends a digital "duress" signal via your internet connection.
3. The Response: Your nominated contacts, such as the business owner, a manager, or neighbouring shop, receive an instant notification (via SMS or email) that the duress alarm at "Register 1" has been activated. They can then call 000 or come to check on you.

Practical Tips for POS Safety

To get the most from your panic button for small business safety, follow these simple tips:

• Staff Training: Train your staff to know where the button is on the screen. Make sure they know when to use it.
• Network Checks: You need a decent internet connection to make it work.
• Test the system regularly: Run a test alert regularly to make sure it works.

These simple steps ensure your system works when it 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.

Beyond standard navigation, I find it very useful in a mapping program to visualise the route before departure, including turn-offs and the final destination.

However, for business owners, another plus is vetting the people you are about to do business with. I might be ordering stock from a wholesaler in China or arranging delivery to a new customer I have not visited. It is invaluable to review them in advance.

Using mapping software isn't just about finding your way; it allows us to virtually “visit” a location before we commit to anything:

• Route Visualisation: I can see the destination and the immediate turn-offs well in advance.
• Logistics Verification: Can we actually deliver there? One of my clients sent a 3-tonne truck to a new customer located in a narrow, dead-end laneway. The truck could not physically fit inside.
• Due Diligence: Is this supplier legitimate? A fancy website can hide the fact that a “major distributor” is actually just a residential garage overseas, as I did. A quick check on a map reveals the truth.

To help you perform this due diligence effectively, we first tested mapping software with our POS Software back in 2009. That was a long time ago, so I decided to revisit the market to see what has changed and what is best mapping tools for retailers today.

I tested the top six free mapping tools currently available. My goal was simple: to find the best free mapping tool for my clients. Here is why most failed, and why Google Maps, the one we picked, is still the undisputed leader.

The Showdown: Consumer Apps vs. Satellite Tech

I looked at a mix of the six most highly rated mapping apps today:

• Google Maps
• Apple Maps
• Bing Maps
• Copernicus Browser
• World Imagery Wayback
• ArcGIS Viewer

I quickly rejected the professional tools: Copernicus Browser, ArcGIS Viewer, and ArcGIS World Imagery. While these are incredible pieces of technology for earth observation, they fail the retail test.

Why they don't work for you:

• Blurry Resolution: You can't see the loading dock or front door; you just see a grey smudge.
• No Data: I could not see the building well. They are not designed for this use.
• No Routing: You can’t ask them for driving directions.

You can safely ignore these professional tools for retail purposes.

The “Big Three” Comparison

This is where the real battle lies.

1. Google Maps: The Undisputed King

Years ago, we integrated Google Maps into our POS software. It was a move that compelled our competitors to emulate us; rather than doing their own research, they simply copied our approach. We used it because it worked the best. Today, I feel Google Maps remains the best all-rounder for business use, and it comes down to three key factors.

• Street View Verification: The coverage is unmatched. You can look almost anywhere in Australia and instantly verify an address.
• The Power of “Real People” Reviews: This is Google's killer feature. Unlike Apple Maps (which is playing catch-up) or Bing, Google has a massive army of “Local Guides.” These are actual people visiting these businesses.
  • Why this matters: A supplier can fake a website, but it is much harder to fake a 5-year history of reviews from real drivers and customers. If a supplier claims to be a bustling hub but has zero reviews or user photos, proceed with caution.
  • The “area” Check: User reviews often mention specific logistical details, like “easy parking around the back” or “tight squeeze for trucks.” The client I mentioned above, whose truck couldn't fit down the lane, would likely have avoided the issue by reading the reviews first and sending a small van.
• Accessibility Data: Google allows users to update accessibility info. I find the “accessible parking” label very useful. When I took my Mum, who has limited mobility, out for dinner, knowing in advance that the restaurant had wheelchair access was very helpful.

2. Apple Maps: A Case of Form Over Function

I noticed that Apple Maps has improved significantly. Its “Look Around” feature is visually stunning, often smoother and clearer than Google’s Street View. It will certainly get you where you want to go.

However, it falls short on business intelligence.

• Missing Details: It often lacks the granular business info retailers need.
• Navigation First: Apple Maps is designed to be a great driving experience, not a research experience. It will get you there beautifully, but it won't help you, I think, to figure out who is there as effectively as Google.
• Older Info: When I tested it, I found the map data was often older than Google Maps. In one instance, the Apple image was two years old, while the Google Map was only six months old. A lot can change in two years. I also did not like that, unlike Google, it did not provide an image date.

3. Bing Maps

Bing ranks third in general use. I generally find that Google has much more information about Australia than Bing does. This is a real problem for Aussies. On the plus side it does use the google maps for business information. 

But it has one function I really liked: Bird's Eye View. Unlike standard satellite views that look straight down, Bird’s Eye looks from a 45-degree angle. This lets you see a building's height and the layout of its side entrances. If you can’t get a clear look at a supplier on Google, try Bing’s Bird’s Eye view. It might reveal a loading bay or side door that was hidden on other maps. I recommend checking it out; it is very good.

Practical Advice for Your Business

So, how should you use this in your daily operations?

Although Apple and Bing are both usable, I would recommend:

1. Stick with Google Maps as your “Database." It is the real winner for business data.
2. Look for the Human Element. Don't just look at the star rating; also consider the user comments. On the business side, for research and verification, Google remains the best in the market.

If you are using our software, here are instructions for using it integrated with our POS Software.

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 supplier review every now and then is fine, but we are focused on the RBA card reforms decision, which is due in March 2026. Our submission is here. Now I can guarantee you, your margins are under attack from both hidden supplier costs and the likely ban on surcharging, which will result in many of you seeing a drop in margins.

If you are not careful, your best-line costs can creep up quietly, leaving you stuck with products that no longer cover their costs. This guide shows you how to use supplier analysis and your POS system to protect profit and reduce risk.

How to do a supplier analysis

What you are looking for is a supplier that delivers strong sales and profits.

Go to register sales reports and then go to "Sales comparison by supplier"

I recommend using the previous 12 months for comparison with the last 12 months.

For the initial run, use the percentage.

Then a report like this pops up.

Try it now, it only takes a second.

Your POS system has an invaluable tool for managing supplier relationships and improving operational efficiency. I suggest running it again with absolute figures as well. 

Look at the profit figure. Today, we are seeing significant downward margin creep. This report is an excellent place to see it. Downward margin creep has many causes, often a mix of changing customer habits and supplier price shifts.

Action: Identify underperforming suppliers and address concerns directly. Then, strengthen relationships with high-performing suppliers.

Put supplier analysis first (do not use supplier loyalty)

Do not measure your supplier by how much you buy from them; instead, focus on what they deliver to your business: profit, sell-through, reliability, and support.

I think it's best that you clarify your relationship with your supplier. Understanding your position can help you tailor your approach, such as negotiating better terms and/or diversifying your supplier base.

Suppliers tend to prioritise larger retailers because of their greater spending power. This often leaves Small to Medium Business (SMB) retailers struggling to secure favourable terms. The other issue is that they know SMB retailers often lack the accounting expertise of larger chains and try to capitalise on this. You need to verify their figures. As a general rule, the information they give you is the information they want you to know. This is where your POS System is a big help, as it knows your figures and has no agenda in what it shows you.

Card payment reforms: why margin visibility matters now

A major financial change is on the horizon, making it urgent to know your margins.

With the Reserve Bank of Australia (RBA) due to make its final decision on card payment reforms in March 2026, you should prepare for a likely change: that you will almost certainly be banned from adding surcharges on debit cards, and possibly credit cards too.

If surcharging is banned, the impact is immediate:

• Merchant fees become a direct business cost rather than a pass-through to the customer.
• Shelf prices must rise to cover this gap.
• Safe pricing becomes impossible if you don’t know your exact margins right now.

You cannot make safe pricing decisions if you don’t know your exact profit numbers by product and supplier.

Verify the “margin help” promises.

Some suppliers are already aware of these changes and may promise to adjust their pricing structures to increase your margin to cover these costs. Do not just take their word that they will do this they do not tend to see it as you lose a percent but that they have an extra percent. You must verify that this actually happens, because based on past experience, I rarely see suppliers do it, and if they do, it's only partial. If they do it, it will come through a “margin adjustment” that you need to check to ensure it delivers the extra percentage points you need.

What you should do:

• Measure your card costs: Work out exactly what you pay in merchant fees as a percentage of sales.
• Track the change: If a supplier claims they have improved your margin to cover these fees, run your “Sales Comparison by Supplier” report for the period after the change.
• Compare the reality: Did your profit margin on their line actually go up? If the data shows the margin has dropped, you are absorbing those card fees yourself and may need to raise your prices immediately to compensate.
• Document your reason: You may possibly need to justify price rises later. Knowing your data now will allow you to say: “We adjusted prices to keep the business viable as costs shifted.”

Diversify to reduce risk.

Relying on a single supplier puts your business at considerable risk, including stock shortages or price hikes. You should consider diversifying your supplier base.

The benefits of diversification are clear:

• You reduce dependency risks.
• You gain leverage in negotiations by having alternative options.
• You ensure consistent product availability.
• You have a wider selection of products.
• You’re not left stranded if one supplier faces disruptions.

Actionable Step: Use your POS system to track supplier sales performance. Could you identify which suppliers are underperforming and explore alternatives to fill gaps?

Negotiate beyond “just price”

Sometimes you may find the salesman has little flexibility on price, but they typically have room to manoeuvre on other points. Negotiation isn’t just about securing the lowest price; it is about more. Often, the seller has more flexibility than initially disclosed; you must be willing to ask.

• Quality
• Range
• Extended payment terms (e.g., 30-day credit).
• Bulk discounts or promotional pricing.
• Marketing support.
• Shipping Terms.

For example, I once told our supplier that we were going to a show. In exchange for showcasing their products, they provided me with their advanced UPS.

Conduct independent research

Suppliers may present information that benefits their agenda, but verify everything independently. Ask your customers, visit similar shops, examine the advertising, use your POS reports, and do Google searches.

I find that Amazon's top-selling lists in Australia are a valuable resource for seeing what is actually trending, regardless of what a rep tries to sell you.

These are some items to check:

• Compare sales data for similar products between Supplier A and Supplier B.
• Assess whether each supplier's margins meet your financial targets. Some suppliers hide their margins, which can be a problem.

Is your POS ready for March 2026?

We do not have much time, so don't wait for the RBA decision to catch you off guard. Log in to your POS today, run the ‘Sales Comparison by Supplier’ report, and verify your true margins before costs shift.

Don't guess your margins. POS Solutions gives you the exact reporting tools you need to negotiate with confidence.

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.

Cafe owners nationwide are pushing prices to $7 a cup for newsagency coffee, claiming $5–$5.50 leaves them unable to survive. Customers hate it, and many simply won't pay. For Australian newsagencies, convenience stores, and boutiques, this backlash creates a massive opportunity. You can capture frustrated caffeine seekers, boost foot traffic, and lift impulse sales on magazines, gifts, books, cards, and stationery, as they do not have the crippling cafe overheads, which are killing them. This practical guide explains the cafe crunch, why retailers might win big, and delivers a 6-step checklist to launch a profitable coffee department that complements your business.

The Cafe Cost Reality

Overall, Australia's $3.5–4B coffee market rivals the books market ($3–5B) and dwarfs the newspapers market ($2.9B). 

Yet Australian cafes today face severe economic conditions in 2026.

Labour now accounts for about 35–45% of every revenue dollar. What hurts is the weekend/public holiday penalties.

Rent/utilities take 20–25%.

Ingredients cost 20–30%

The $200k–$500k setups incur $0.30–$0.80 in depreciation per cup.

Raw flat white ingredients run ~$0.90 (beans/milk),

Full costs hit $4–$6.60

Break-Even Pressures

At $5.50 per cup, it's insufficient to cover 300–400 cups per day. They are looking at $6.50+ to survive.

The problem is that many will walk away from $7.

Why Retailers should look at this.

You skip cafe killers: no massive fit-outs, no barista wages, no seating headaches, and this position you perfectly to capture $ 7 shock shoppers, funnelling people your way for value.

The Winning Traffic Shift:

• Pre-$7: Shoppers linger at cafes, some spilling to your shop.

• Your Win: Capture an estimated 25% shift; 20–50 cups/day at $4 yields $15k–$38k extra profit yearly (70% margins).

High street newsagencies near bus stops and railway stations are in the perfect position. 

Your 6-Step Launch Checklist

Skip supplier hype. I've seen retailers thrive (and crash) on these.

1. Permissions: Can You Add Coffee Legally?

Centre leases or council rules often block food additions. Check first. 

• Action: Email: "Low-volume coffee machine as counter add-on, no seating, minimal waste."

• Reality: 1–2 sqm + 10–15amp power.

2. Price Smart: Scout Competition

Checkout the prices and availability in your area. What you are looking for is whether a $4 coffee is viable. 

3. Machine Reality

Skip pods, Aussies want proper coffee.

Check which machines are available to you. I would suggest going into a partnership with a coffee supplier. Make sure you have an exit path, even if it costs slightly more. Most coffee machine suppliers offer a trial period; make sure you take advantage of it.

4. Operations Truth

What I suggest you look at is 2 to 6 cups per hour.

Your staff will need about 30 minutes to operate the coffee machine.

Daily setup is about 5-minutes

Probably another 10 minutes for cleaning.

Waste disposal takes another 10 minutes.

5. Quality Test

For some unknown reason, coffee made with the same ingredients can taste different; you need to monitor the taste.

6. Maintenance

Please review the maintenance terms for the machine carefully. It's the biggest problem most of my customers with such machines tell me: the machine has been out for ages. Ask whether they provide replacement machines while yours is being repaired.These machines break down a lot.

Loyalty Boosts: Your Profit Multiplier

Loyalty Hack: The coffee costs $2, but customers perceive it as worth $4–$7.  That is a powerful combination.

Coffee bundles can build loyalty, such as 

• Family: coffee and a magazine

• Gift: Coffee + greeting card ($4.50).

• Reading: For newsagencies say $7 for a coffee and 30 minutes free browsing of magazines. Why not let them browse for free if they buy coffee?   They may actually buy a magazine too at the end.

Monitor your coffee sales

As with everything, monitor your coffee sales in your POS System. You need hard facts!

While many of you will be busy with the BBQ and the beach, our office will be staying busy behind the scenes. So even though it's a public holiday for many, our support team is online to ensure your business stays secure and your POS systems stay smooth.
 

During our 2025 survey, we found that many of our POS System users see real AI risks, including hallucinations that invent facts and privacy breaches under the Privacy Act. Our 2025 survey revealed a clear split: about a third were really positive, about a third were neutral, and the rest were deeply sceptical, with comments like "Hell No," "Don't trust AI," and fears of privacy invasion or AI "making stuff up."

Let us discuss these concerns with real examples, to help people to protect their operations while exploring AI's potential.

Hallucinations: AI's Plausible Errors

Everyone makes mistakes, your accountants, your electricians, etc. AI stands out because it makes so many errors (hallucinates). The problem is that it delivers its advice so confidently with so much information that it's hard to disagree with the wrong answers that sound right. No AI system eliminates this fully; claims to the contrary are misleading.

Real Retail Impacts:

• One of our clients faced copyright issues over a gift design card. Their AI advised sending a letter and including that they would take this issue to the Small Claims Tribunal if the people continued. When they checked with a lawyer, they were told it was pure nonsense, as copyright falls under the Federal Court. That letter would have made it worse. Much worse.
• In 2025, a legal case in the US involved an Agentic AI that deleted a company database, created 4,000 fake user records, and covered up the mess with false reports.
• I heard of an AI that was set to tidy up stock; it wiped many slow-selling greeting cards from the POS System files. The physical items were in the shop, but the POS System had no record of them because they had been deleted.
• I set an AI to examine one of our e-commerce client sites, which reported false stock sold on its invented promotions that never happened.

Always treat AI as a draft and verify manually to reduce problems if you are using an Agentic AI. Never let the AI act until you check the answer.

Privacy Invasion: Data Slips Out of Control

Survey users flagged "invades privacy," and they're spot on. Sending customer details, like say a book buyer's habits, to AI often means exporting data beyond your reach. This risks breaching Australia's Privacy Act.

Now, once that data hits US or Chinese servers, which is where most Australian AI is going, your control ends, and if you get into a privacy legal problem, I doubt the large AI providers will try to shield you. On the contrary, I am sure they will do everything they can to pass the blame onto you.

If you are sending user information, I strongly recommend avoiding your clients' names; instead, use their account numbers. You know their account numbers; no one else does.

Legal situation

Your data legally remains yours, but AI firms host it abroad, and those records are considered their property. US companies may hand it over to Australian courts without telling you if asked. If you use a Chinese system, this further complicates legal matters for the Australian Courts.

I doubt that relying on "privacy settings" will protect you from legal orders related to employee disputes, supplier contracts, or customer lists. Secret AI accounts and VPNs might help if you want privacy.

Human-in-the-Loop: The Essential Safeguard

AI is still new. We are all experimenting with it; currently, we view AI as a time-saver, not a replacement. You need human oversight to supervise.

Simple Steps for Your POS:

• Start with aggregated data only, no names, limited addresses and no emails.
• Always review AI suggestions.
• Measure how AIs work for you.

AI does work; our clients who use our free AI stock inventory system report massive benefits.

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.

Are you wondering whether to open your store on Australia Day, Monday, January 26, 2026? I've spoken to a few of my clients across Australia facing the same dilemma. Some told me that they would skip trading due to high penalty rates. Others will open. One told me that my business cannot afford not to open, but it will be staffed by family only. Another told me that, as they are a licensee near an official Australia Post office, which will close on January 26, they expect to get some of that traffic.

If you are unsure, use your POS System to run a few reports to see what your traffic and profit are on such days. The dissection profit report is worth looking at, as it shows traffic, sales, and profit.

Lessons from the Big Players

I had a few laughs at Woolworth's Australia Day backflip. In 2024, they ditched flags after low sales, with what I thought was one of stupiest retail marketing decisions ever, which sparked boycotts and even vandalism. Now, they've stocked up on an "Australia Day section". Woolworths is now highlighting "Aussie-made" food products and specific Aussie-made flags.

If you do not intend to sell Australian Day items, say nothing; there is no point in offending 70% of the Australian population. But I think that most retailers can put together some Australian items on a stand and post a sign that reads "Gifts for Australia Day," at no cost.

Tailored Tips to Maximise Sales

If you are going to be making Australia Day work for your store.

Start planning 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.

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What You Told Us

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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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Everyone says to "get more customers," good advice. This is both time-consuming and costly. A faster way is to increase profits by selling more to existing customers, increasing the basket size.

Why Basket Size

The retail basket size is a well-known KPI that measures the average number of items a customer buys in a single visit.

Get 1 in 10 customers to add an extra $5 item to their basket, and your bottom line grows immediately.

The Psychology of the "Second Item"

Getting the first sale is hard work; you have to win their trust. But the second item? That's pure psychology. Remember, it's often not just them, as often people come as families, and the first item and the second item are usually an impulsive buy by another person in that family, a treat for a child.

1. Turn "Service Anchors" into Sales

A Service Anchor is anything that brings people into your shop purely for a task. This includes:

• Lottery tickets.
• Parcel collection and returns.
• Public transport
• Bill payments.

While these services drive foot traffic, they often yield low direct margins. Your goal is to convert this 'few-second' service interaction into a retail sale. Check your POS Companion reports to see which anchors currently convert best, then optimise the others.

The Strategy:
Still, if these customers walk in, do their task, and then walk out, you do not want them to walk out.

• Line the queue: Place high-margin, impulsive items right where they wait.
• Interrupt the path: If they are coming for a parcel, they are likely in a rush. Place a "Gift of the Week" display near the collection point so they can solve a future problem (like a birthday gift) right now.

2. Master the Art of Companion Selling

What helps is to identify products that naturally go together. In retail, we call this Cross-Merchandising.

You need items that sell with other products. What you will see are these products in your companion reports. Consider these recommendations.

Navigate to Sales-Register > Dissection Companion Sales by Period in your POS software.

Try looking for the items that sell more than other products. You should ensure that these items are prominently displayed. To maximise sales, major retailers often display these items across many locations under different categories. For example, a Christmas Card can be shown in the Card department and the Christmas section.

Finding these Companion items

In your POS software

Go to Sales-Register > Dissection Companion Sales by Period.

Look for items that sell well with other departments. It is beneficial because it can help you select a product to display prominently near a department. This is a well-known method of increasing incremental sales that all majors use.

You take items that sell well with that department and place them in that department's area. There is nothing wrong with a good seller having a few spots in the shop.

Also, moving products by type rather than supplier, e.g. moving some of the chocolates other businesses produce closer to Darrel Lea Chocolates, could result in many more sales. Darrel Lea might not like that, but...

As you can see here by the green arrow, the books should be close to the stationery.

Now, if you've found these things, you should look at the following:

The Reader's Bundle

Don't just shelve books. Try other products near the book. You aren't selling a book. What about some bookmarks?

The Gift Station

This idea works well. Often, people buy items as gifts; if so, they need a birthday card, maybe some gift wrap, or a small gift bag. Put these items on a stand.

How to find your companions:
You don't have to guess. Your POS system holds the answer.

Run a "Companion Sales report" in your software. This will tell you exactly which items are frequently sold together.

• Example: If your data shows that 30% of people who buy a children's magazine also buy a packet of stickers, move those stickers right next to the children's magazine rack.

Once you have the right products next to each other, the next challenge is keeping the customer in the store long enough to notice them.

3. Create "Dwell Time"

You must compete on discovery.

The longer a customer spends in your store (Dwell Time), the more they are likely to buy. Studies show that a 1% increase in dwell time can drive a 1.3% rise in sales. You want to create a "sanctuary" where they can slow down.

Create Browsing Zones

Ensure your book or gift section has wider aisles.

Lighting Matters

Brighter lights work for transaction counters, but in the shop, softer lighting encourages browsing.

Curate, Don't Clutter

Too much stock can be overwhelming. Research indicates that reducing assortment clutter by 15% can actually increase basket size by up to 23% by making decisions easier for the customer.

4. Use "Speed Bumps" in Your Shop Design

If your store layout is too "clean," customers might walk straight to the counter without looking left or right.

You need Visual Interruptions, which we call speed bumps.

These are small displays or tables placed in the middle of a walkway that force the customer to slow down and walk around them.

• Use a "Staff Favourites" table.
• Use a "Top Sellers" table
• Highlight a "New Arrival" product.
• Showcase a seasonal bundle (e.g., Back to School or Mother's Day).

By physically slowing their walk, you reset their attention and give them a chance to see something they didn't know they wanted.

5. The Power of Bundling

In 2026, customers love a deal but also value convenience. Bundling solves both.

Product bundling is when you group related items and sell them as a single unit, often with a slight discount or just for the convenience of "grabbing and going."

• The "Ready-to-Give" Bundle: A mug, a packet of tea, and a gift bag wrapped together.
• The "School Starter" Pack: Essential stationery items pre-packed in a pencil case.

This automatically increases the basket size because the customer is buying three items instead of one. It feels like a better value to them, and it moves more stock for you.

6. Train Your Team on the "Helpful Ask"

Your staff are the final line of defence for basket size.

Many are afraid of being pushy. You need to teach them that suggesting an add-on is actually good customer service, particularly if you can show product knowledge, e.g., "People tell me you need a good battery with that toy; I suggest you consider ...".

Simple scripts to try:

• "Did you manage to find a card to go with this gift?"
• "We have a special on [Item X] today, it's half price"
• "Have you seen our new local chocolates? These are really nice."

A handy rule I find here is to ask people why they bought the product and what they thought of it; often, that will give you something to discuss.

7. Measure, Rinse, Repeat

You cannot improve what you don't measure.

Modern point-of-sale systems are powerful tools. They are not just for ringing up sales; they are for analysing them.

Navigate to End of Day > Reporting > Average Basket Size by Hour.

Then enter a date to see how the size of a retail basket changes throughout the day at your store. The time can be significant. Find out why?

We've broken it down by account and retail sales. Generally, we observe larger basket sizes in account sales.

Make it a habit to check your numbers weekly.

Conclusion: Start Small, Win Big

Pick ONE of these strategies to test this week. Check your POS report in a week; if it worked, keep it. Consider the next.

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 we enter 2026, for planning purposes, I created this calendar to show key retail holidays month by month, based on last years list adding a few more and taking out some that did not work and added some merchandising and signage ideas. I based this on actual sales data from some clients.

January 2026: Fresh Starts & Back to School

Key dates:

• 1 January – New Year's Day (public holiday).
• 26 January – Australia Day (public holiday).
• 28 January – Schools Return (Most regions).

Merchandising actions:

• Expand your "Back to School" zone: pens, glue, exercise books, book coverings, labels.
• Run a "New Year, New Habits" table: diaries, planners, journals, puzzle books.

Signage that sells:

• Window/A-frame: "Back to school top-ups here."
• Feature table: "Get organised for 2026."
• Counter: "Forgotten items: pens, labels, glue sticks."

February 2026: Valentine's & Lunar New Year

Key dates:

• 14 February – Valentine's Day (Saturday).
• 17 February – Lunar New Year (Year of the Horse). It represents energy, freedom, independence, vitality, and perseverance, symbolizing forward movement, ambition, and a strong, hardworking spirit.

Merchandising actions:

• Valentine's isn't just couples. Stock cards for friends, kids, and "from the dog"—these drive volume.
• Lunar New Year: Red/gold colour story, luck-themed gifts, strong gift presentation.

Signage that sells:

• "Cards for every kind of love."
• "Lucky gifts + celebration cards."
• "Gift bundles under $25 / $50."

March 2026: Long Weekend & Easter Build

Plan ahead: Easter display materials needs to be ready by mid-March.

Signage that sells:

• "Easter is early this year so don't leave it late."
• "Premium Easter gifts inside."

April 2026: Easter Peak, Holidays & ANZAC

Key dates:

• 5 April – Easter
• 25 April – ANZAC Day (public holiday).
• Term 1 ends 2 April (school holidays begin most regions).

Merchandising actions:

• Easter display discipline: Messy looks like "sold out." Keep it tight.
• School holidays: Puzzle books, activity books, craft kits.

Signage that sells:

• "Ready-made Easter gifts."
• "Screen-free fun."
• "Lest we forget" (respectful for ANZAC).

May 2026: Mother's Day & EOFY Prep

Key dates:

• 10 May – Mother's Day.

Merchandising actions:

• High-margin bundles: cards + gift + wrap + add-on.
• Train staff: "Candle or book with the card?"

Signage that sells:

• Window: "Mother's Day gifts from $10."
• Table: "Mum bundles: card + gift + wrap."
• Counter: "Last-minute cards here."

June 2026: EOFY Rush

• Stocktake sales starts

Key dates:

• 30 June – End of Financial Year

Merchandising actions:

• Tax deductions: diaries, office supplies, filing, printer ink.
• Start signage mid-June.

Signage that sells:

• "EOFY essentials."
• "Clearance while stocks last."
• "Stocktake sale."

July 2026: New FY Reset

Key dates:

• 1 July – Stocktake sales continue

Merchandising actions:

• Stocktake clearance: Reset shop standards.

Signage that sells:

• "New financial year reset."
• "Clearance end of line."
• "New arrivals here."

September 2026: Father's Day & Finals

Key dates:

• 6 September – Father's Day.
• 26 September – AFL Grand Final

Merchandising actions:

• Father's Day: One table, clear categories.
• Finals: Party supplies impulse.

Signage that sells:

• "Father's Day Sunday—don't forget."
• "Funny cards + small gifts."
• "Finals party supplies."

October 2026: Halloween & Christmas Staging

Key dates:

• 31 October – Halloween.

Merchandising actions:

• Halloween front display: Tight range.
• Christmas floor space now.

Signage that sells:

• "Trick or treat ready."
• "Christmas cards now in."
• "2027 diaries arriving."

November 2026: Christmas Launch & Big Sales

Key dates:

• 27 November – Black Friday official start of the Christmas season.

Merchandising actions:

• Christmas cards fully out by early November.
• Black Friday signage competes with majors.

Signage that sells:

• "Christmas starts here."
• "Cards by recipient."
• "Black Friday deals inside."

December 2026: Christmas Peak & Boxing

Key dates:

• 25 December – Christmas Day.
• 26 December – Boxing Day.
• 31 December – New Year's Eve.

Merchandising actions:

• "Grab-and-go" counter zone.
• Repeat visits for cards.

Signage that sells:

• "Christmas."
• "Last-minute easy."

Don't Let This Page Get Lost

Download the One-Page 2026 Retail Planner PDF

Ready to track it all effortlessly? Book a demo of our POS system to automate seasonal ordering and print shelf labels in seconds.

Additional Retail Opportunities

Remember to check out fun retail days that align with your brand. For example, 29 January is Puzzle Day, an ideal day to market themed promotions on puzzle books. Visit here for more ideas to spice up your retail calendar.

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.