Point of Sale Software

Why Loyalty Programs Do Not Work for All Australian Retailers?

POS SOFTWARE

Loyalty programs are on the rise in Australia. Most major retailers now offer a loyalty program, which most Australian consumers use. Most of our clients have some loyalty marketing.

Australian loyalty scene

However, loyalty programs are only a solution for some retailers. Besides requiring careful planning and investment, they may not make good business sense for some retail situations. Here we'll outline a few key reasons why in my experience people do not use them:

Financial

As a rule, loyalty programs give about 1% more sales. If a shop has a $500,000 turnover with a margin of 30%, then we are looking at a gross profit of 1% x $500,000 x 30% = $1,500. This may not justify the work of running such a program; even though the software is free with our POS Software, it still requires work to run it.

Low-Frequency Purchases

Loyalty programs work best when customers make frequent repeat purchases. For example, grocery stores, newsagencies and coffee shops see regular business. Frequent interactions give customers opportunities to earn and redeem rewards. 

But retailers like bedding shops only see customers occasionally. A typical consumer will buy maybe every ten years. With limited opportunities to earn rewards, loyalty programs are less enticing. These retailers may be better off using **referrals**, **reviews** and **social media** to maintain relationships between big purchases.

Tight Margins

Some retailers operate on very slim profit margins. For example, lotto shops can average a few percent profits on sales. For them, the discounts and rewards required to run a loyalty program would wipe out margins entirely.

> "We calculated the cost of rewards would eliminate our whole profit margin. Loyalty programs don't work with our tight margins and high costs." - a Lotto shop owner told me.

I have spoken a lot about it here under the heading price cannibalization.

Small Customer Base  

Loyalty programs require upfront and ongoing costs. To benefit, retailers need at least 150+ active members in their program. Without enough customers, costs outweigh rewards.  For example, say you get a 1% response rate, which is pretty standard nowadays in advertising. If you send out 150 newsletters that took you an hour to write, that is now 1 or 2 extra sales. Was your time worth it?

Lack of Interest

Some retailers are passionate about their niche, not just profit maximization. Loyalty marketing will backfire if the owner, even if interested, lacks the skill. Unless there's someone else enthusiastic to run it, retailers may be better off focusing on the in-store experience rather than loyalty programs. 

Conclusion

The bottom line is loyalty programs are only sometimes applicable to Australian retail. Carefully evaluating your situation first. 

What are your experiences with retail loyalty programs? Let me know your thoughts below!

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What is DSI and How Can It Help Your Retail Business?

POS SOFTWARE

Person doing retail inventory anaylsis

For retail, inventory management is crucial; having too much inventory ties up cash while having too little risks stockouts and lost sales. One KPI gaining in popularity is Days Sales of Inventory (DSI). It is now often quoted for gauging inventory performance. Banks often use it today. I think readers here will find it helpful. 

From your accountant's figures which you are getting, it is easy to determine. So now is the time to look into it.

What is DSI?

DSI measures how many days a company's current inventory stock will last. It is calculated by dividing the average inventory by the cost of goods sold per day. The formula is:

DSI = (Average Inventory) / (Cost of Goods Sold) x (365 days)

when (Average Inventory) = ((Opening stock value in last Financial year)+(Closing stock value in last Financial year))/2

and the (Cost of Goods sold) you will get from your accountant.

Generally, the lower the DSI, the more efficiently you turn over your inventory and convert it to sales.

The kicker is that about 45. Most suppliers give 30 days, so 45 means you do not pay for your stock.

Why DSI Matters

DSI directly impacts cash flow and liquidity. The faster inventory turns into sales and cash, the sooner money can be reinvested or used to pay expenses. Slow inventory turnover ties up working capital.

DSI also reveals operational efficiency. Well-managed inventory aligns with demand forecasts and optimises stock levels. Comparing DSI over time or against industry benchmarks shows room for improvement.

DSI Across Industries

DSI varies widely between sectors based on product categories and sales cycles:

  • Grocery stores have a very low DSI, often less than ten days. Food products sell quickly with high turnover.

  • Electronics and appliances may have a DSI of around 45 days.

Factors Impacting DSI

Several factors influence DSI:

  • Sales Volume - Higher sales volume reduces DSI by turning over inventory faster. Declines in volume can lead to excess stock and higher DSI.

  • Inventory Levels - Keeping inventory aligned with demand lowers DSI. Overstocking increases inventory days on hand.

  • Pricing - Price reductions or discounts can temporarily boost sales volume and lower DSI.

  • Supplier Terms - Delaying payments to suppliers raises short-term working capital but may increase long-term costs.

DSI vs. Other Inventory Metrics

While DSI measures days of inventory on hand, other key metrics include:

  • Inventory Turnover Ratio (ITR) - Annual COGS divided by average inventory. Higher ratios indicate better efficiency.

  • Cash Conversion Cycle (CCC) - Days inventory outstanding + days sales outstanding - days payables outstanding. Lower CCC improves liquidity.

I will discuss these in a future post if there is enough interest.

Best Practices for Inventory Management

To optimise inventory performance and DSI, leading practices include:

  • As I have discussed many times, automating stock ordering using your focus AI system here.

  • Better stock ordering

  • Push high-volume stock items.

In Sum

Monitoring DSI helps gauge inventory turnover, sales efficiency, and cash flow. It provides actionable insights into stock levels.

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Picking a Large Print Keyboard for people with Low Vision

POS SOFTWARE

We have had to help a few of our customers who now need a large print keyboard in their shops. If they have low vision, they are going to love these keyboards.

Based on feedback from our customers, here are some pointers

> The large print keyboard should have high contrast. Choose light letters on dark keys. I find that this combination above of yellow on black works great. You'll want to avoid low-contrast colour combinations that are hard to see. 

> The letters have a habit of rubbing off. You are doing well if these keyboards last two years.

> Ensure the keyboard has large, clear lettering that's easy to see. Try getting the person to be about where they will be when in use and check them out. Make sure the characters are bold and straightforward.

> Pay attention to key size and shape as well. I find bigger keys can help these people avoid missed keystrokes. On the other hand, as they are big, they are awkward to use.

> Since the keyboard will be used in a shop, you need a sturdy and durable build. Avoid flimsy lightweight plastic ones that break easily. 

> Be sure to get a keyboard for Australian standards. Many of these keyboards are made for Europe and have characters we do not need.

> Expect an adjustment period for people to get accustomed to them. They do take some getting used to them.

> Make sure it is a water-repellent keyboard as coffee and tea tend to get dropped on these keyboard.

> Make sure it's quiet; the click on some of them is really annoying.

> Check that the connecting cable is long enough to reach your computer. For some reason, many have only short cables and need extension cables.

With the right large print keyboard, low-vision computer users can type comfortably and accurately.

Let me know if you have any other questions about them.

 

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Streamline Invoicing with your Invoice Business Software

POS SOFTWARE

Invoice

Invoicing is a crucial process for any small business. Manual invoicing can be highly time-consuming. Your invoice business software provides your businesses an easy way to quickly create, manage, and track invoices to get paid faster.

Benefits of Using Invoice Software 

Invoicing software provides many advantages over creating invoices manually:

> Legal information automatically generated - Invoices must specify some details like ABN, which are automatically produced for you.

> Save time - Invoice software drastically reduces the time it takes to create and send professional invoices.  It has templates that make it easy to fill out.

> Track payments - Once in your software, you can easily track the status of invoices and know when clients view and pay them.

> Go paperless - Save some trees. If you want, you can send it by email to reduce postage.

> Automate reminders - Our software can automatically send payment reminder emails to clients.

> Generate reports - Track income, expenses, and profit with our software reporting. 

> Access anywhere - The cloud allows you to create and send invoices from any device.

> Look professional - Professional invoices make your business look more legitimate and build credibility.  This, in practice, is one of the most critical factors.

> Receipts and statements automatically produced - This is all done automatically.

Out will come an A4 receipt:

Key Features

> Customizable templates - Our pre-made templates make invoice creation fast and easy. 

> Recurring invoices - It is easy to schedule invoices. 

> Miss less - As a rule, people forget to enter, much less if entered into a computer. Our clients have picked up a lot of money from this factor alone. With manual much was missed on the billing.

> Invoice automation - Set terms, reminders, and follow-ups to automate your workflow. 

>Integration - Integrate with many accounting software like QuickBooks or Xero.

Take Your Invoicing to the Next Level

Our Invoice software provides an affordable solution to save time, get paid faster, and streamline financial workflows. Take your invoicing to the next level with a professional touch. Try it out on our top-rated software.

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Save Time and Money with Automated Inventory

POS SOFTWARE

stock in a shop

This is part of a proposal I will be releasing for POS Solutions on the benefits of using  Automated Inventory, I hope you like it. 

Keeping on top of inventory levels and movements is one of the biggest challenges retailers face. Manual approaches to tracking stock and purchase orders can be extremely time-consuming and prone to human error. This often leads to lost sales from empty shelves, bloated inventory carrying costs, and unnecessary labour expenses.

Fortunately, POS Solutions provides powerful automated inventory management tools that save retailers time and money.

Real-Time Visibility into Inventory

POS Solutions integrates directly with inventory databases, pulling out real-time stock count data. This gives retailers now their inventory levels across their entire business as stock quantities are updated automatically as items are sold.

Accurate and Automated Purchase Orders 

With an accurate inventory picture, POS Solutions can automatically generate purchase orders as stock levels fall below predetermined or computer-estimated focus AI levels. This prevents out-of-stocks while removing the guesswork from ordering. Orders are precisely matched to demand, avoiding overstocking.

Reduced Out-of-Stocks and Better Customer Service

POS Solutions significantly reduces missed sales opportunities from out-of-stocks by monitoring inventory in real-time and allowing reordering when stock gets low. Customers get reliable access to the products they want.

Optimized Inventory Levels and Carrying Costs

Granular analytics within POS Solutions provide insights into fast versus slow-moving inventory. This allows retailers to optimise stock levels in each location. Excess stock can easily be transferred to meet demand elsewhere in the business. The result is leaner inventories across the board. 

Decreased Labor Costs

Automated inventory management with POS Solutions eliminates employees' need for frequent manual cycle counts and stocktakes. Retailers save on labour while focusing staff on more value-added tasks.

Insights into Shrinkage and Theft 

Unusual inventory activities are flagged by POS Solutions, allowing potential shrinkage and theft issues to be spotted in real time. Problems can be addressed before inventory losses grow.

Streamlined Supplier Relationships

Automated purchase orders and inventory tracking via POS Solutions improve supplier communication and coordination. Deliveries arrive when needed.

The Bottom Line

Automating inventory management via POS Solutions delivers game-changing benefits for retailers, including reduced out-of-stocks, lower carrying costs, optimized inventory, decreased labour spending, and minimised inventory shrinkage.

By implementing POS Solutions stock control, you can manage your stock more efficiently, improve customer service, and boost profitability.

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Latest NAB Consumer Sentiment Survey Q2 2023

POS SOFTWARE

NAB Consumer Sentiment Survey

You will find here the latest  NAB Consumer Sentiment Survey Q2 2023 report.

Unfortunately, it does not state how many people they interviewed, but looking at it, my estimate is they had at least 1,000 respondents nationally. 

The conclusion is what I think we know for retailers is that the cost-of-living crisis is squeezing Aussie wallets. Many households are now making hard choices about where to cut spending. 

But there are some essentials Australians remain reluctant to cut, no matter how high prices rise.

Education Tops the List 

Education remains untouchable despite cash-strapped consumers slashing spending on dining out, entertainment and travel. Australians view education as a top investment priority, the foundation for their children's futures.

Kids' Activities Next  

After education, children's extracurricular activities like sports and hobbies were the second most protected area, with only 12% of parents cutting back on these enrichment pursuits. Maintaining regular routines and social connections becomes even more critical for children's well-being in worrying economic times.

Aussie parents aim to keep providing for basic needs like food, clothing, childcare and education supplies. A net 2% foresee spending more on children in coming months - cutting costs elsewhere before reducing kids' necessities.

Beloved Pets 

In third place was spending on pets, with only 18% reducing pet outlays. For most Australians, pets are cherished family members more than possessions. So pet food, grooming and healthcare remain priorities to keep furry companions happy and healthy.

Groceries Gathered 

Grocery budgets are stretching, but consumers are still finding ways to gather their usual essentials. While switching brands more, a net 3% intend to spend more on groceries, likely due to non-discretionary needs.

Debt Paid Down

Aussies intend to spend less to pay our sharply rising interest rates. This Australia sees their debt as an urgent priority.

So other interesting facts

Local Small Businesses

While support has dropped compared to pandemic peaks, a net 13% of consumers still aim to shop local small businesses. This channel retains backing.

Australian-made is important.

Consumers still want to buy Australian-made goods.

To summarise

This quarterly survey shows Australian consumers are increasingly worried about rising living costs, with 1 in 3 reporting very high stress and the majority expecting high inflation to persist. To cope, shoppers are becoming more discerning, researching carefully, pursuing deals and switching to cheaper brands. Fewer are trying new products or stores as the focus turns to value. This pressures retailers to highlight affordability and savings, streamline to popular items, and build loyalty incentives. Consumers are hunting bargains. With household budgets stretched thin, success will come to retailers who understand the current mindset and creatively adapt pricing, assortments, channels and promotions to deliver what today's highly cost-conscious Australian shopper now seeks.

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U-Shaped Checkout Counters

POS SOFTWARE

The checkout or front counter is the best and most profitable area to display stock for most clients. Just ask your suppliers where they want their stock. I am sure they will say put it on your checkout counter. 

Because it is so vital the checkout counter is, its design requires careful thought. 

I like these U-shaped checkouts, which offer many benefits compared to traditional straight counter layouts.  

Here is an example.

 U-Shaped Checkout Counters

Here are some advantages of this key selling area

> The checkout line is the best place for impulse sales. Shoppers there have selected items already and are ready to make purchases. U-shaped counters keep more customers in this mindset across multiple queues. This leads to greater impulse sales.

> Maximised Merchandising Display as it has more space around the counters. This extra space allows stores to merchandise more products in the high-traffic checkout zone.

> Increased Queue Capacity as the design will enable customers to line up on three sides rather than just one. This triples the queue capacity plus presents them with many products to consider. 

> Increases impulse buys, as the U-shaped counters provide the perfect space to display high-margin secondary items. Things like batteries, candy, magazines, and phone chargers can catch the eye of waiting shoppers. More open space means more opportunities to entice add-on purchases.

> The U-shaped counters allow supervisors to observe all registers quickly. The layout makes the checkout team more cohesive and coordinated. From both a sales and operations standpoint, U-shaped checkouts maximise productivity. 

> Makes it much easier to put many computer terminals together 

Conclusion

The checkout or front counter is a crucial area for retail businesses to showcase their products and increase sales through impulse sales. It is essential that you carefully plan and design this key selling area to maximise its potential. I think you will find that a U-shaped checkout layout offers several advantages over traditional straight counter designs.

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Why make a stocktake sale now?

POS SOFTWARE

 

You might wonder if running a stocktake sale now is worth it. After all, you’ve just finished counting your stock and are busy preparing the documentation for the financial year. But before you put away your inventory sheets and relax, consider the benefits of making a stocktake sale now.

A stocktake sale is a promotional sale commonly used to clear out excess or outdated inventory now by retailers.

Here are some reasons why you should make a stocktake sale now:

>Advertisers are getting pushing stocktake sales. People are primed to buy old items cheaply. Customers now are more likely to shop for bargains and deals. You can use this opportunity to capture their attention and interest with your stocktake sale.

>You have counted your stock. You would certainly have found stock items that should be cleared out. A stocktake sale is a great way to get rid of such products.

> You can make room for new inventory.

>A stocktake sale increases your sales, cash flow and improves your inventory management. 

Tips

>A good stocktake sale should be short and limited to create a sense of urgency among customers. Limiting the duration and availability of your stocktake sale can make it more appealing and exclusive to customers. Your regular customers will be suspicious if they go on too long.

>Promotion is cheap and easy to do. All you need is a sign on the window and on a stand with the goods in your shop. You don’t need to spend much money or time promoting your stocktake sale. Use simple and effective methods. If you have a social media account for your business you can use it free to spread the word.

Conclusion

Making a stocktake sale is great to clear old stock, boost sales, and promote your business.

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Plan Your Business for the Next Financial Year

POS SOFTWARE

Business person planning

We have now ended the fiscal year. This is the best time to take a moment to evaluate your business to make plans for the future, as you now have the most accurate information regarding your company's financial standing, inventory levels, profitability, and other metrics. Using this to make well-informed choices about your business direction.

Initial aspects to consider when planning for the next financial year: 

>Employees: This is crucial in driving your business forward.

>Customers: Look at your client's preferences and what they want in your business.

>Competitive landscape: Look at industry trends, particularly your competition's strategies.  Go into your competition shop, look around and ask yourself why are they doing this?

>Technology: Ensure your technologies will do the job. Technology is constantly changing.

Now make a budget for next year.

Not hard, generally.

We estimate future figures by comparing current financials against those from the previous year, plus adding some experience. Your accountant should be able to provide a Profit and Loss statement outlining income and expenses for this year and last year; even better if they can do it with five years. To predict future earnings, look at the previous history for each item and now make an educated guess of the changes, e.g. add 5% to the current figure or subtract 2%.

You now have a budget to check out. 

Have a chew

So how is your business travelling? 

Do you have enough cash flow to cover your expenses? 

Are you profitable?

Conclusion

Now you have these factors. Develop your path to set your business up for success in the coming year.

Happy planning!

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Ideas to review discrepancies in your Retail Stock Inventory now

POS SOFTWARE

Now most of you have done a stocktake, why not use your POS Software stocktake reports to analyse the discrepancies in your stock figures?

discrepancies in your stock figures

Effective inventory management is crucial for the success of a retail business. Nevertheless, it can be challenging to monitor. A mistake made now often will not be noticed till next year.

Starting off

>Go to your stocktake section

>You will find reports showing the discrepancies (variances) in the stocktake.

>Highlight the discrepancies that have occurred.

These discrepancies will be due to many reasons, and to determine the cause, you need to know what is missing.

Some of the most common sources of discrepancies in retail stock inventory are:

Staff Theft

Retail studies almost always put it as number one. Please make no mistake. It is a severe problem. It appears motivated by various factors, such as dissatisfaction, revenge, financial need, or greed. For whatever reason, once an employee starts, they continue it. 

- Stealing products: Employees might steal products from the store.

- Mate rates: Employees might not ring up goods that a friend or family member wishes to take from the store or falsely give their store discount to them.

Human error

Human error is another common source of inventory discrepancies. It can occur at any stage of the inventory process, from receiving goods, picking orders, entering them into the cash register and doing the stocktake. For example, in stocktakes, a person might accidentally count an item twice. 

To prevent human error, you should implement robust inventory control procedures. 

Inventory shrinkage

Stock theft, damage, and fraud by customers are all too common today. 

Supplier errors and fraud

Supplier errors and fraud are another great source of inventory discrepancies that occur. It is all too common today for a supplier to deliver fewer products than what they invoiced. One of my clients just brought 3 lots of 100 gift sheets. The first lot had about 90, the next was about 87, and the last was about 95. The supplier stated that the lots were only approx, but why were they all under if so?

You should carefully review all incoming shipments and invoices to prevent supplier errors and fraud. They should verify that the products delivered match the purchase orders and invoices. You should conduct regular audits and reviews of supplier performance and contracts. One of the reports above is the stock discrepancies by suppliers. Supplier errors are a big problem with my clients. Some have told me the total cost of their point of sale system paid for itself by this saving alone.

Mismanaged returns

Mismanaged returns involve handling returned products without proper inspection, verification, or documentation. Retailers should have a clear and consistent return policy to manage returns effectively. You should inspect and verify the returned products for quantity. You should update the inventory system accordingly after processing a return. A good way of reviewing these figures now is to look for discrepancies by department.

Conclusion

You can find many problems in your stock control for less than an hour of work. These discrepancies are common in retail businesses but can be avoided or minimised by implementing effective inventory management practices. By identifying and addressing the most common sources of differences, retailers can improve their operational efficiency, customer satisfaction, and profitability.

 

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EFTPOS/Credit Card Outage: A Nightmare for Retailers:

POS SOFTWARE

Experiencing an EFTPOS/credit card processing outage means your business cannot accept card payments resulting from a system malfunction. Such occurrences can be aggravating and financially disastrous. 

Payment cards are the most commonly used retail payment method in Australia, and debit cards are increasingly preferred to credit cards for many transactions.

Based on my experience, such an outage can cause a typical retailer to lose about 50% of their business. Many people today do not have cash on them. They cannot buy if they cannot use the electronic funds available.

You should be prepared for that, as although such outages are rare, they are actually more common than many realise. Here are the ANZ outages recorded yesterday. Many of these will be EFTPOS and Credit Card problems. If I made a bet with you that next week, someone would report a problem with EFTPOS, and I would probably win.

ANZ Bank outages yesterday

 

They can occur due for many reasons; in our experience, the most common reasons are: 

>Power outages 

>Telephone and Internet service disruptions, do not believe the Telecom quoted figures; they go down much more than they say.

>Hardware or software failures, ultimately, the EFTPOS works through mechanical devices, and it is only a matter of time before they fail.

>Human error, a dropped EFTPOS unit broke a few days ago.

Whatever the reason, having such an Outage can affect your sales, customer service, and reputation. 

The leading three EFTPOS providers we work with are, so these are the most important to our clients so that I will quote these as examples.

> Tyro

> WestPac through MX51, although now the MX51 interface is so popular it is moving into other banks.

> UrPay

How to Prepare for Such Outages 

Here are some points you can prepare:

Make sure you have alternative methods of accepting payments, such as cash or checks. 

Local mode 

This means the unit can work when the internet or mobile data goes down. We had a client in an area where the internet and telephones went down, but the EFTPOS kept working as it could use mobile internet for electronic payments.

So check with your EFTPOS provider if they have given you local mode. Note that not all local modes are the same WestPac; for example, has automatic switching so often in an outage you will not even know it's happening. Tyro has a local mode, but it's manual, and you will almost certainly need their support to activate it. The other advantage I like is that WestPac is everywhere with local support. Not having to send units to the head office in Sydney for replacement by post is a big plus if you are not in the CBD in Sydney.

UPS

If power is a problem, consider investing in a UPS (Uninterrupted Power Supply) to keep your system running during power outages. These as well protect your electronic devices from power issues. Today, UPS units are more affordable than ever, providing excellent value for money. Please consider this to keep your system running smoothly during power outages.

MOJO Payments

In addition to cash and checks, consider having an option like MOJO payments. Although this comes with additional costs, it can be helpful in emergencies.

Spare EFTPOS units.

Often the problem is on one terminal. The others may function correctly. It may be worthwhile to have more than one terminal. Urpay, for example, offers EFTPOS terminals with no fees on many of its plans. having an extra terminal can be a plus, in everyday operations.

Here are some steps you can take to handle credit card processing outages:

When an outage occurs, you must act quickly and calmly to minimise the impact on your business. Try to establish where the actual problem is:

> If it is the computers, contact us.

> If your computers are working, they are probably the internet/mobile or the EFTPOS provider. 

>Communicate with your EFTPOS processor. 

They can tell you if the problem is them and whether it is local or widespread, and how long it might take to fix it if it is them. They can also advise you on offline terminal options.

>If it is the internet/mobile well, contact these people and ask for an ETA 

>Communicate with your customers. Let your customers know about the outage. Explain the situation and offer them other ways to pay, such as cash or check. 

> Keep detailed records of the incident, including when it occurred, its duration, and whom you spoke with. Insist on being quoted the incident number for your reference. Large companies are notorious for losing track of your problem.

Conclusion

Handling credit card processing outages requires proactive planning and quick response. 

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Determine your Shrinkage and Damaged rates for your shop

POS SOFTWARE

 

Calculating shrinkage and damaged goods can help retailers understand their inventory management and make necessary improvements.

Obtaining Perpetual Stock Value

This is your theoretical stock value before you start the stocktake. This figure is stored in your POS Software in stock reports; if you prefer, use your best estimate.

Physically Counted Inventory Value

This is the stock value you actually had after doing the stocktake.

Sales of Stock Product

Use your total report to get this figure. You need to take out the non Stock item sales, e.g. lotto.

Calculating Shrinkage

The Shrinkage is calculated by finding the difference between (Perpetual Stock Value) and (Physically Counted Inventory Value). This is commonly expressing it as a percentage of Sales of Stock Products. Use the following formula:

Shrinkage% = ((Perpetual stock value) - (Physically Counted Inventory Value)) / (Sales of stock product) * 100

A typical shrinkage rate in 2020 was stated as about 1.4%, but it was found to range from 0.1% to 6%. Higher than-average shrinkage indicates inventory loss or waste. I suspect they figure today would be similar.

Calculating Damaged Goods

What I suggest you do is also calculate your Damaged Stock Value.

Your stock sheets should be able to give you these figures.

Percentage of Damaged Goods% =(Damaged stock value) / (Sales of stock product) * 100

High levels of damaged goods indicate issues with quality control or carelessness. A common reason is goods left too long in the sun in the window.

Conclusion

After determining the overall measurements of your inventory shrinkage and damaged goods, you might want to dive deeper into specific departments by performing this analysis across departments and also consider doing it by key items and locations. Using this, you can pinpoint areas of concern. With this knowledge, you can set achievable targets and monitor progress against industry benchmarks or personal goals, ultimately enhancing your overall inventory management performance.

 

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Gift shows are now on.

POS SOFTWARE

Melbourne Gift Fair 2023

Many of my clients are focusing on gift products today; their regular items, like the lottery, attract customers to the store, but they typically have small profit. Gift sales is a department where good profits can be made.

Based on my experience attending numerous gift fairs, I recommend visiting them if you plan to sell gifts in your store. While I advise purchasing directly, which is easy to do with the internet today and will save you money, finding the right gifts can be challenging. The gift fairs are crucial for this reason. You should use these events to discover new products and suppliers for your shop. It's also good to test the waters by purchasing a few products to seed first rather than committing to a large order directly.

Early this year, the NSW Gift Fair received a positive response from most attendees in my experience. Although some issues were reported, such as limited parking and long lines at some booths, my clients were satisfied with the event overall. It was well-attended, and I recommend you check out the Victorian Gift Fair if you're in Victoria.

-Attending these shows offers valuable networking opportunities. You'll have the chance to connect with your current gift suppliers, meet new ones, and often discuss business with senior executives. So remember to bring plenty of business cards.

-Many vendors require a minimum purchase, so they only deal with businesses that can buy in bulk. If you find something you like, let them know your budget and promise to raise it if possible. However, if the response is negative, moving on is best.

-Prices at gift shows are often not bargains. They tend to fall between wholesale and retail prices. Consider the show an opportunity to get seed stock and evaluate new, innovative products.

-It's essential to be well-prepared. Understand your customers' needs and budgets, and research their desired products. Don't assume you know what your customers want based on your preferences. What I do recommend is to visit a few local gift shops to see what they stock and at what prices. They've likely done their research for your area.

Follow these steps, and you'll clearly understand the gift items that work well.

Go to Register Reports.

POS System menu to find Gift items

Now pick "Top N Stock Sales for a Given Period."

 

Report to find top selling gift lines

Now in the form put in the last three months, the gift department and a report comes out with gift items that work in your shop.

> What usually works in gift lines is specialisation. Instead of buying many different lines, concentrate on a few lines.

> The last day of a gift show is typically a market day. Gift suppliers are looking at what they have and often would rather sell it than carry it back. This could be your chance to get an expensive item at a lower price. Often they are out of stock, too, so this plan may backfire.

Remember, your customers often buy gifts for:

Parents

Our parents have always been there for us. Gifts made by hand, recipe books, and personalised photo albums are popular for parents to receive as presents. Consider buying building blocks or art supplies so they can spend quality time with their grandchildren.

Gifts for Partners

It can be challenging to help people here select the ideal present for their partner. Gift certificates for unique experiences, personalised gifts and alcohol are all excellent choices.

Gifts for Friends

Consider friends hare as members of the family that people choose. Alcohol, personalised gifts, and gift cards to their favourite stores are popular options for this group. What about what I spoke about earlier here, fancy toiletry?

Gifts for Children

Books, art supplies, and building blocks are popular for children's gifts. It is also a good idea to stock board games and puzzles. The parents will like that as it helps them spend quality time with them.

Gifts for Children's Friends

This is one of the most popular sections. Again building blocks, art supplies, and books are all popular choices here. Sticker books and colouring books are also good.

Gifts for Pets

Pets today are an essential part of many people's lives, and buy they do. Treats and personalised gifts like toys or collars are popular choices here. Then there are grooming supplies, pet beds, fancy toiletry, etc.

Gift for themselves

Last but not least, people indulge themselves. Ideas here might be gift certificates for a massage or spa treatment, personalised gifts, alcohol, candles or skincare products.

Keep these categories in mind.

Conclusion

Going to a gift show is a fantastic opportunity for anyone who wants to sell gifts in their shop. There you can find unique products for your customers. You will make valuable connections and gather information. Ensure you have a diverse gift lines for your customers so you are well-stocked with thoughtful and marketable gifts.

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World Chocolate Day in Your Shop

POS SOFTWARE

World Chocolate Day is celebrated in Australia on the 7th July.  It’s a great opportunity for you to celebrate this delicious occasion in your shop to boost your sales and attract more customers. Over the years it has proven to be a successful event in the shop.

You will probably find that your chocolate supplier can help you with this. Haig Chocolates, for example, has this promotion going for its chocolates. One point is that the chocolate products for this festival are marketable after the festival.

 

It is not hard to get involved, Create a unique display for chocolate, it does not need to be that big only noticeable. Decorate your shop with some chocolate-themed signs. Create bundles or packages that include different types of chocolate. Maybe include as well some complementary products, such as wine, cheese or nuts.

Whatever you do on World Chocolate Day, make sure you too enjoy it with chocolate, it is always great to get into the festive spirit.

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Cake Shops and Bakeries at the Cake Bake & Sweets Show 2023

POS SOFTWARE

 

As a software provider for cake shops and bakeries, I wanted to see how our clients who use our product to manage their business. Our software helps them with bookings, production, stock, ingredients, costs, and nutrition. I also go to see the latest trends in the industry where it is going.

That’s why I attended the Cake Bake & Sweets Show, a showcase of Australia’s finest chefs, cake decorators, and pastry chefs. The show offered live demos, workshops, and shopping stalls. The show's highlight was the World Food Championship Australia, where skilled bakers vied for the world champion title.

I was amazed by the cake finalists, which looked like masterpieces. Some might think these cakes are too expensive, but they don’t realize how much work goes into them. What it appears is that the costs are going up a lot.

Here are some photos I took of some stunning cakes!

High wedding cake
Statue cake
Salad cake
Ship cake
Modern design cake
Frog cake
Coffee machine cake

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Save on the new EFTPOS/Credit rates

POS SOFTWARE

 

The best time to get EFTPOS/Credit deals is usually now around EOFY. This is because now is when companies face reality. They have many costs to pay for the next financial year and must show their stakeholders how well they did in the current financial year. So they have to close sales and increase their revenue. So we are talking some pretty good deals as it comes from the top. That’s why they are offering our clients some fantastic offers. These offers could help you save a lot of money on EFTPOS. But these deals rarely last long, so you must act fast if interested.

If you are our client, call me. If you want more information, please get in touch with us. See it we can help you save money on EFTPOS.

I have noticed that an integrated FREE EFTPOS deal is the most popular now with our clients. 

Comments

Hi
What are the rates that Tyro are currently offering?

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Preparation and webinar on the end of year reporting 2023

POS SOFTWARE

Today is the EOFY, the last day of the financial year. So it is the last day to review your bookkeeping. Then make some last-minute adjustments.

As a minimum, I would suggest you get these reports in order:

Sales reports

Stock Valuation (this may depend on when your stocktake is done)

Customers Outstanding Subagents Outstanding (if relevant)

Creditors Outstanding (if you do it from the point of sale software)

It would be best to consider what can be written off in the debts and stock to claim a tax deduction for this year. Otherwise, these will be profit this year.

Click here for a webinar on End of Financial year reporting from your point of sale software. It discusses in detail these reports.

 

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Backup your EOFY data

POS SOFTWARE

 

I suggest that come the end of the financial year, you save a backup of your financial data for this year and store it somewhere safe, even though our system does not require it. Over the years in my experience, this has proved to be very handy in the future. I suggest you use a USB stick.

If you do not want to do this, run your financial reports and send them to your personal email accounts. These reports include:

Debitors
Creditors
Stock
Payroll reports

 

 

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Learn the Features and Functions of Our POS Software for StockTake

POS SOFTWARE

Stocktake webinar

Before you begin using our POS Software for this year’s stocktake, I recommend reviewing the guidelines for conducting a stocktake. This webinar will help you familiarize yourself with the features and functions of our software and help ensure that you can perform the stocktake accurately and efficiently.

Video file

You can access the latest detailed help document within the POS Software if you need further assistance or clarification. Click the Help button on the software Welcome page. Then, navigate to the Stocktake section, where you will find step-by-step instructions and tips on how to use the software for your inventory management.

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Benefits of Sending Invoice and Statements now

POS SOFTWARE

The end of the financial year is fast approaching, and for many businesses, it's time to start thinking about tax planning. One important consideration is the timing of your invoices. The date on your invoice can affect when the income is deemed to be earned. If you use accrual accounting, which most of my clients use, then invoicing a customer before June 30, 2023, will mean that the payment will be taxed in the 2022-2023 financial year, even if the customer doesn't pay the invoice until July 2023. This increases your tax liability for this financial year.

However, here are some other reasons why you should consider sending their invoices before the end of the financial year:

-To improve your cash flow. Getting paid sooner can help you cover expenses and avoid late payments.

-Give your customers a chance to take advantage of tax deductions or credits. If your customers are cash basis taxpayers, which most of them are, they may be able to deduct the cost of your services in the current financial year if they pay the invoice before June 30.

Of course, there is a potential downside to sending invoices before the end of the financial year, as if you invoice a customer before they've received the goods or services, they may not be happy to see it immediately. To get over this, add a note to the invoice to say we send this early account to help you get a head start on your bookkeeping and tax returns and to make it easier to prepare your books and taxes.

This is why many of you are getting your invoices early now, and ultimately, whether or not to send your invoices before the end of the financial year is your call. You only have a little time if you do it, so get to it.

It would also be good to talk to your accountant for professional advice. They can help you understand the tax implications of your decision and ensure you comply with the law.

If you have any questions, please feel free to contact me.

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