In business or life, we face many tasks that demand our time and attention. Managing inventory, handling customer service, marketing your products, keeping the books—the list goes on and on. With so many responsibilities, how do you decide what to focus on and when? The most popular and best method I have found is prioritization, which is now in your Pos Software.

I will discuss how it works and how it can benefit your retail operation.

Overview of the P0-P4 Framework

Tasks are listed; they can be on paper or in your diary, but nowadays, most people use some software. I find Google Calendar practical, which is free. However, now I will explain the concept as it used to be done on paper, as most of you can relate to it easily. 

Now, you list your tasks and assign them for each event on the day you think you will work on them so you have a list for each task.  A weekly task planner can be useful for listing your tasks throughout the week, helping you prioritize what needs to be done first and break down larger tasks into smaller ones. So if a task will take a few days, it is best to break it up into small tasks that can be done in a few hours or less. 

I recommend that you use the following notation for each of these tasks is assigned a number from 0 to 4 based on priority:

• P0. Your Mum is dying, the kids are in trouble, a guy just had a heart attack in the shop, and nothing else matters. This P0 block everything else and stops all thought of scheduling. 
• P1. The system is down and is needed now
• P2. Some important function needed now is not working, but we can operate
• P3. Some important function is required soon, but it can wait
• P4. A non-urgent question that can wait.

This is how it would look on paper: a person goes through the list, prioritises each task and ticks off what they have done.

The general rule is to complete P0 tasks first, then proceed sequentially to P4 tasks as time allows.

This creates an organised method for tackling your most crucial work first. Now, keep reading to see how P0-P4 can make order amid the chaos of retail management.

P0 - Crises Requiring Immediate Action

P0 designates emergency tasks that demand your urgent attention. In retail, P0 situations don't come up daily, but quick action is essential when they do.

Examples of potential P0 crises:

• Your point of sale system crashes during peak business hours
• A pipe bursts and floods your store
• Mum is sick, and you need to run to the hospital

These crises require you to stop everything and address the situation. You cannot waste a minute. 

Luckily, these events are rare.

P1 - High-Priority Goals 

These are important tasks that require your primary focus. Often, they are very important tasks or tasks that have a closing date that is near.

Daily P1 priorities for a retailer may include:

• Handling a customer now with an issue and complaint
• Last day to order stock for the holiday season
• Balancing the till at the end of the day
• Managing tomorrow's staff schedules

These P1 tasks keep your store operating smoothly. Make time for them before tackling less vital work. Use your point-of-sale system's inventory and reporting tools to stay on top of P1 retail tasks.

P2 - Important but Less Time-Sensitive Tasks

P2 tasks are still integral to your business but aren't as immediate as P1 items. You have some leeway in when you complete them.

Retail P2 tasks could include:

• Updating store displays and signage
• Planning for holidays or seasonal inventory
• Collecting stock for return to a supplier.

Focus on these P2 priorities after handling urgent P0 and P1 tasks. Use your POS system to collect data over time that aids P2 analysis and planning.

P3 - Tasks That Can Wait

P3 contains helpful and non-urgent tasks.

P3 retail tasks may include:

• Filing old inventory paperwork
• Rearranging the shelves
• Analysis POS reports 

Do these when you have time after higher-priority tasks. Avoid letting less important P3 work distract you from critical P0-P2 activities.

P4 - Nice Extras If You Have Time

P4 holds optional tasks that are beneficial but not truly necessary right now. Only tackle these if all other work is complete.

Retail examples include:

• Learning more about your computer system
• Cleaning the warehouse in the back
• Researching new products

These extras can wait until everything else is done. Don't let non-essential P4 work detract from important tasks.

Benefits of P0-P4 Prioritization

Consistently using P0-P4 classification to prioritize your retail workload offers many upsides:

Increased Focus - Provides structure so you know what requires attention now versus later. It prevents you from getting overwhelmed.

Higher Productivity - Helps ensure you complete urgent critical work first. It avoids wasting time on less relevant tasks.

Reduced Stress - Gives confidence that you're focusing where needed most. Minimizes anxiety. I find myself often worrying about remembering my tasks now; putting it in a systematic order calms me down.

Time Savings - Enables getting the right things done faster. I know what I have to do each day.

Orderly Operations - Keeps your business running smoothly by tackling the most pressing issues first. It avoids problems from neglected tasks piling up.

Better Decisions - Clarifies priorities so you can make intelligent choices on time allocation and task delegation. Enables data-driven analysis of what matters most.

The overall impact is optimizing your productivity and performance. Your business operates better when consistently completing P0-P2 tasks before less vital work.

Implementing P0-P4 Prioritization with paper

Putting P0-P4 into practice takes some upfront planning, but soon it becomes second nature. Follow these steps to apply it:

1. Review your tasks - Make a master list of your current to-do.

2. Classify using P0-P4 - Review each task and assign a priority level based on importance and urgency.

3. Schedule time - Allocate time on your calendar to match the prioritized order.

4. Execute and revisit - Work through tasks starting with P0 and adjust as needed if new urgent tasks emerge.

Don't let the labelling Classify using P0-P4 overwhelm you; it rarely matters if you muck it up in practice. Use a combination of urgent, work time and essential. It produces a p0-p8 category. Look at each task for today, and then set 

Urgent tasks: Are the tasks urgent, or can they wait? Urgent tasks cannot be pushed back. As a rule, if not done on time, you cannot do the task.

Important: If they are more important, I will do them first.

Where I disagree with many people, e.g. the Eisenhower matrix, is I believe that Urgent and Important are distinct 

For example

1) The news TV show is happening at 6 pm today. If you miss the deadline, no point switching on the TV at 6:20 pm.  Yet if you miss it, it's not the end of the world. You can always catch up on the news later. So I would mark this as Urgent and Unimportant. Catching up on the news is now a new task that is NOT Urgent (P8) and Unimportant. 

2) Picking up my kid from school at 3:30 pm today is Urgent and Important. If my kid has an after-school activity she is happy to do until I come, the task may NOT be Urgent (P8) but its still Important.

Workload/Duration: Will it take a lot of time? I give preference to those that I can do quickly. Ideally, I want to get as many tasks off my lists ASAP so Small gets preference. The other plus of doing the Small tasks is that it boosts your ego that you have done something today.

If I have only a little time spare, I will often go through the list for tomorrow, look at the small items, and do these tasks depending on how Urgent and Important they are.

This ordering works for me. 

The Drawbacks of Paper-Based Prioritization

Now, many retailers use a paper planner, notebook, or simple to-do list to organize their workload. While better than no system at all, this paper-based approach has problems:

This P0-P4 framework, which, as you have possibly noticed, is actually a p0-p8 system, provides an excellent structure for prioritizing your tasks and responsibilities. However, managing your master list on paper has some practical challenges.

Repetitive Tasks Are a Hassle

Around 40% of your tasks are typically recurring, like daily register balancing, weekly inventory checks, and monthly rental payments. Using project management tools can automate these repetitive tasks, ensuring efficiency and reducing the risk of oversight. It is easy to forget, hey, on the 15th I was supposed to send the rent money.

Tasks that cannot be done

Often, you have to do a task and suddenly discover that it cannot be done through no fault of your own, e.g., you are waiting for someone else to do something. In which case, how do you reschedule it? It is now in limbo.

No Visibility of Outstanding Work

Paper lists only show one day at a time. What will happen on a future date is unknown. There is no way of telling that next Thursday, for example, you are going to be flat out.

Messy

With a paper system, tasks get crossed off, rescheduled, and shuffled around. This obscuring what you need to focus on today and making your diary look unprofessional is not good. 

No Progress Tracking

Paper alone cannot analyze time spent on tasks, spot workflow patterns, or identify recurring time-wasters. Missing this data limits your ability to improve your operations.

Pain to Share Priorities

A paper list in the back is useless for communicating priorities to others.

Paper gets lost or left at home.

It is all too typical to work everything out on paper, know precisely what must be done and then suddenly discover you have lost or left that paper somewhere and cannot access it when needed.

I recommend using software, but this post is getting too long for a blog. Stay tuned for my next post in a few days on how I recommend you handle and do this.

FAQ

What are Priority Levels?

Priority levels is a system for categorizing tasks or issues based on their importance and urgency. They help you focus on the most critical work and manage your resources effectively.

What is the P0-P1-P2-P3-P4 Priority System

This is a standard priority system most commonly used.

1. P0 (Critical): These are the highest priority tasks that require immediate attention. They are often described as "drop everything" issues. 

2. P1 (High): These are urgent and essential tasks but not as critical as P0. They must be addressed quickly to prevent significant disruption.

3. P2 (Medium): These tasks are necessary but not immediately urgent. They often contribute to long-term goals.

4. P3 (Low): These tasks are neither urgent nor highly important. They should be done but can be scheduled for later.

5. P4 (Lowest): These tasks have minimal impact

What is the Priority Rating Scale 1-5?

I do not recommend it. ome organizations use a 1-5 scale, where 1 is the highest priority and 5 is the lowest, instead of 0 to 4.

What is the importance of Prioritization?

Prioritization is crucial for several reasons:

1. Resource Management: It helps allocate resources effectively to the most critical tasks.
2. Stakeholder Alignment: It ensures that work aligns with business goals and objectives.
3. Customer Value: It keeps teams focused on the most valuable tasks.

Implementing Priority Levels

To effectively use priority levels:

1. Define Clear Criteria: Establish guidelines for each priority level.
2. Regular Review: Continuously assess and adjust priorities as needed.
3. Customize for Your Industry: Adapt the priority system to your specific needs.
4. Use Prioritization Frameworks: Consider using frameworks like the Value vs. Effort matrix or Value vs. Urgency to help determine priorities.

Consistency is critical to effective prioritisation. Regularly reviewing and adjusting priorities ensures that you remain focused on the most essential tasks.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to 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.

We are all balancing inventory—excess stock ties up capital, while insufficient stock can result in lost sales opportunities.

Here is a simple key to improving your stock control that is available now, and it will boost your bottom line.

Understanding the Power of Historical Data

Big suppliers don't just guess about stock control—they rely on historical data. They compare monthly sales year over year to identify trends and patterns. They tend to use 24 months of your data, which helps them account for seasonal fluctuations and make more accurate predictions.

But with a modern POS system, you've got all the tools you need to play in the big league.

Why Your POS Data is Gold

Your POS system isn't just for processing transactions, it full of valuable information. Here's why it's better for you than your supplier's information:

Real-time sales data

Unlike your suppliers, who only see what you've ordered, your POS system shows exactly what you've sold.

Seasonal insights

By comparing data from the same months across different years, you can spot seasonal trends specific to your business.

Stock level optimisation

With accurate sales data, you can decide how much stock to hold.

How to Use Your POS Data for Better Stock Control

Let's walk through a practical example of how you can use your POS data to improve your stock control:

Access your sales report

You'll find this under 'Reports'> 'Sales'> 'Stock Sales Details 24 Month Trend'.

Filter your data

For this exercise, we'll keep it simple:

Exclude inactive stock Filter by department or supplier

Analyse the trends

Look for patterns in your sales data. Are certain items consistently selling well? Do some products have seasonal spikes?

Evaluate stock levels

Compare your current stock levels with your average monthly sales. Do you need to be more overstocked on slow-moving items?

Case Study: Spotting Overstock Issues

Let's look at a couple of examples from our report:

Product A

Average sales: 2 per month Current stock: 6 units Stock cover: 3 months. If you can reorder this product weekly, holding three months of stock might be excessive. Consider reducing your stock levels to free up capital.

Product B

Average sales: 0.5 per month (1 every two months) Current stock: 16 units Stock cover: 32 months (nearly three years!) This is a clear case of overstocking. Unless there's a specific reason for holding so much stock (like a bulk discount or upcoming promotion), you should look at significantly reducing your inventory of this item.

Turning Insights into Action

Now that you've got this knowledge, here are some steps you can take:

Adjust your reorder points

Use your sales data to set more accurate reorder points for each product.

Negotiate with suppliers

Armed with solid data, you can better negotiate order quantities and frequencies with your suppliers. In my experience, most suppliers will listen to you if you have an issue.

Plan for seasonality

If you spot seasonal trends, plan your stock levels accordingly.

Clear out, slow movers.

Identify products that aren't selling well; now you have something to think about and what to do with them.

Focus on your winners

Make sure you're well-stocked with these winners.

The Bottom Line

Leverage your POS data; don't guess. Make informed decisions about your inventory. This approach can help you: Reduce tied-up capital Minimise storage costs Avoid stockouts of popular items With your cash flow

Your POS system is a powerful tool that gives you the information you need to compete.

Our POS software makes it easy to access and analyse sales data.

Contact us to learn how we can help you optimise your stock control and boost your profits.​

I understand how frustrating it can be when suppliers change hands. I've been there myself many times. It is a common occurrence that can cause problems for retailers. Let's explore how our POS system can help you navigate these changes smoothly.

The Supplier Takeover Dilemma

When another company takes over a supplier, it often leads to a cascade of changes for retailers. You probably find yourself dealing with:

Account details often need to be updated during a supplier takeover. It is best to obtain the new account details directly from the new supplier's official communications.

However, the most annoying aspect is the potential loss of your sales history with an old supplier. This historical data helps make informed purchasing decisions.

The Importance of Sales History

Your sales history with a supplier is more than just a record of past transactions. It's a goldmine of information that helps you:

• Forecast future demand
• Identify seasonal trends
• Negotiate better terms based on your purchasing volume
• Quickly reorder popular items

Losing access to this data or splitting between the old and new supplier accounts can be a headache as you constantly switch between screens, trying to get a complete picture of your ordering patterns.

The Solution

Luckily, your POS system has a solution. It safely puts the old supplier's information in the new supplier's account. Here is how to do it:

1. Navigate to the Creditor Maintenance section of your POS system.
2. Look for the Merging option.
3. Enter the details for both the old and new supplier accounts.
4. The system will move the relevant information to the new creditor account.

The account details will only be automatically transferred with your explicit approval.

Benefits of Merging Supplier Information

By using this feature, you'll enjoy several benefits:

Consolidated History

All your historical data will be in one place, making it easier to analyse and use for future ordering.

Time Savings

You won't have to flip between screens to get a complete picture of your ordering history.

Improved Accuracy

With all information in one place, you're less likely to miss important details when placing orders.

Better Reporting

Your reports will now include the entire history of this supplier, giving you more accurate insights.

Best Practices When Merging Supplier Information

To make the most of this feature and ensure a smooth transition, consider these tips:

Double-Check Information

Before merging, verify that you have the correct supplier details for the old and new accounts.

Communicate with Your Team

Ensure your staff knows about the change and how it will affect their use of the POS system.

Keep Old Records

You never know when you will need information on your old supplier records.

Please get in touch with our support team if you need assistance managing supplier changes in your POS system.

We're here to help you.

Enjoy.

As someone in retail my whole life, let's dive into how our POS software can give you a crystal-clear view of your business performance.

Monthly Comparisons: The Traditional Approach

Most people do their sales comparisons by month, and it works, but comparing sales periods can be a headache that way if trying to compare retail sales:

• Weekend wobbles: Some months have four Saturdays, others have five. This can throw your figures out of whack.
• Holidays: Not all holidays are celebrated on the same date in different years. For example, most religious festivals follow the lunar calendar.

Still, it does have some advantages:

• Alignment with financial cycles: Most businesses operate on monthly accounting cycles.
• Simplicity: Everyone understands what a month is, making it easy to understand.
• External benchmarking: Many industry reports are released monthly, allowing for easier comparison with broader market trends.
• Seasonal patterns: Most seasonal patterns align well with calendar months.

The Four-Week Comparison

I've found that comparing the last four weeks of sales to the same four-week period from the previous year is great for retail. Here's why:

• Smooth out daily hiccups: You iron out any unusual spikes or dips by looking at four weeks.
• Captures recent trends: This method gives you a snapshot of your most recent performance.
• Accounts for seasonality: Comparing to last year's period helps you factor in seasonal variations.
• Flexible timing: You can run this comparison whenever possible, not just at the month's or quarter's end. This is a massive plus for me.

Our POS System: Flexibility is Key

We've designed our POS system with these challenges in mind. Here's how it helps you cut through the confusion:

Custom Comparisons at Your Fingertips

Our POS Software lets you choose custom comparison periods. You're not stuck comparing fixed calendar months or years. Pick any date range that makes sense for you:

• Last Fiscal Year
• Last Year
• Last Quarter
• Last Month
• Last four weeks

Rolling with the Changes

One of our most powerful features is the ability to use rolling or moving time frames. For example:

• Compare the last 30 days to the same 30-day period last year
• Check how you're doing this year compared to the same point the previous year

Why Accurate Comparisons Matter

Having this flexibility in your sales reporting can be a game-changer. Here's why:

• Smarter decisions: Accurate comparisons help you make better calls on inventory, staffing, and promotions.
• Realistic goals: Understanding your actual performance helps you set achievable targets.
• Trendspotting: You'll see patterns in your sales data that calendar quirks might otherwise hide.

Making Your POS Data Work for You

To squeeze the juice out of your POS system's reporting capabilities, try these tips:

1. Regular check-ins: Set aside weekly or monthly time to analyze your sales data. Most people do this monthly.
2. Mix it up: Try different comparison periods to gain new insights. Doing it in the long and short term is a good idea.
3. Look beyond the numbers: Use the data as a starting point to understand the story behind your sales.

Wrapping Up: Your Data, Your Decisions

Remember, the goal isn't just to have data – it's to use that data to drive your business forward. With the right tools and approach, you can turn your sales figures into a roadmap for success.

Whether you choose four-week comparisons, monthly analysis, or a combination of both, the key is understanding each method's strengths and limitations. By being aware of factors like the varying number of Saturdays a month, you can make more informed decisions, set more realistic targets, and get an actual picture of your business performance.

So, dive into your data, experiment with different comparison methods, and watch your business thrive.

Frequently Asked Questions (FAQ)

Q: Why is comparing sales by month sometimes problematic for retailers?

A: Monthly comparisons can be tricky due to varying numbers of weekends and shifting holiday dates. This can lead to inconsistent data when comparing different months or years.

Q: What's the advantage of using a four-week comparison method?

A: Four-week comparisons provide more consistent data by constantly comparing the same number of days of the week. This method smooths out daily fluctuations and accounts for seasonality while offering flexible timing for analysis.

Q: Can I still use monthly comparisons with your POS software?

A: Absolutely! Our POS software allows for monthly and custom period comparisons. Choose the method that suits your needs.

Q: How often should I analyse my sales data?

A: We recommend regular monthly. However, with our flexible reporting, you can analyze your data as frequently as you need.

Q: What's a "rolling time frame" in sales comparison?

A: A rolling time frame allows you to compare a recent period (like the last 30 days) to the same period from a year ago, regardless of calendar months. This provides a current view of performance trends.

Q: How can accurate sales comparisons improve my business?

A: Accurate comparisons lead to more thoughtful inventory and staffing decisions, help set realistic goals, and allow you to spot trends that might otherwise be hidden by calendar quirks.

Q: Is switching between different comparison methods in your POS software difficult?

A: Not. Our POS System is designed for flexibility. You can easily switch between monthly, four-week, and custom period comparisons with a click.

Q: Can your POS software help with external benchmarking?

A: While our software focuses on your internal data, the flexible reporting makes it easier to align your data with external monthly reports for industry comparisons.

Q: How does the POS software handle seasonal patterns in sales?

A: Our software allows you to compare periods year-over-year, helping you account for and analyze seasonal patterns in your sales data.

Q: Is training provided on how to use the comparison features in your POS software?

A: Yes, we provide comprehensive training on all features of our POS software, including how to use our flexible sales comparison tools effectively.

Exciting Hallmark Cards Trial: Enhance Your Retail Experience

As a retail and POS systems expert, I'm thrilled to share information about an innovative trial involving Hallmark Cards and POS Solutions that could benefit your small retail business. This collaboration aims to enhance customer engagement and boost sales by uniquely integrating Hallmark technology into our POS system.

The Hallmark Cards Trial: An Exciting Opportunity

How It Works

When a customer purchases a Hallmark card at your store, our POS System captures the barcode during the sale process. We then trigger the Hallmark system to present an engaging competition on its screen, which offers your customers a chance to win a prize by selecting a card.

You can see what it looks like here.

Benefits for Your Business

Enhanced Customer Experience

This interactive element excites the purchase process, potentially increasing customer satisfaction and loyalty.

Increased Foot Traffic

As word spreads about the competition, more customers may visit your store to participate.

Greeting Card Competition

The competition could encourage additional purchases of Hallmark cards and other products in your store.

Costs

No cost. Registration is free.

Trial Locations and Requirements

Your stthat it is must already sell Hallmark cards to be eligible.

We are currently seeking participants in Melbourne and metropolitan New South Wales. NSW offers more flexibility than Victoria. Once we have settled in, we will expand the area.

Why Consider Participating?

Retail Innovation

By participating in this trial, you're positioning your business at the forefront of retail innovation.

Gather Valuable Data

The trial will provide free insights into customer behaviour and preferences, which could help you in future business decisions.

Strengthen Partnerships

We hope collaborating with established brands like Hallmark will open doors for future opportunities and partnerships.

Final Decision by Hallmark Cards

While expressing interest is the first step, Hallmark Cards will ultimately decide whether your store is accepted for the trial. Even if you meet the initial criteria, Hallmark will have the final say in selecting the trial participants.

Next Steps

If you want to participate in this exciting trial, please act quickly. Here's what you can do:

Assess Your Eligibility

Confirm that your store is in Melbourne or metro NSW and that you sell Hallmark cards.

Contact POS Solutions

Reach out to express your interest and ask to be put on the trial

Please understand that the selection process is by Hallmark, which reviews all potential participants.

The trial offers a unique chance to enhance your POS System capabilities and customer engagement at no cost.

It's an opportunity to test innovative retail technology that could give your store a competitive edge by offering a unique experience.

Frequently Asked Questions (FAQ)

Q: How much does it cost to join the trial?
A: Nothing

Q: What equipment is needed to participate?
A: You'll need our POS system. Our team will work with you to ensure your current system can integrate with the Hallmark technology.

Q: Will this slow down my checkout process?
A: The system is designed to be quick and efficient. I doubt it will add any time to a typical transaction.

Q: How will this affect my existing Hallmark card sales?
A: The trial aims to boost engagement and potentially increase sales.

Q: Can I opt out of the trial if, for any reason, it is not working?
A: Yes, you can opt-out at any time. We value your feedback and will work with you to address any concerns.

Q: How will my customer data be handled?
A: It will not be, and in any case, all customer data is handled in compliance with Australian privacy laws.

Q: Will I receive training on how to use the new system?
A: Yes. We provide comprehensive training for you and your staff before the trial begins.

Q: What happens after the trial ends?
A: Based on the trial's success, we hope it continues and that they expand the program.

Update: When this was first published, as it was new, we did not know if there were any costs to join the program; we have received confirmation that there is no cost. The article was updated.

​

The right pricing strategy can make or break a shop's success. Have you ever considered dynamic pricing?

What is Dynamic Pricing?

Do you know how petrol prices change when you drive past the service station? That's dynamic pricing in action. It's all about tweaking your prices based on current events. That's dynamic pricing in action. It's all about tweaking your prices based on current events. Our POS system makes it dead easy to change prices on the fly.

It is all about being flexible

Real-World Applications

Here are some examples of what my clients do:

A Cafe

Let me illustrate a common scenario for a café owner. It's 2 p.m., and you've got sandwiches that will soon be binned. What do they do?

Here's what one of my clients does:

• Before 2 pm: Sandwiches sold at regular price
• After 2 pm: Offers a special deal on sandwich + coffee at a discounted rate

The result? Instead of binning unsold sandwiches with no margin, they turned potential zero into profit. It's a win-win: customers get a bargain, and the cafe boosts its afternoon sales.

A Hairdresser

• Morning Special: Discounted haircuts for seniors

This simple change increased foot traffic during slow hours and built loyalty among a key customer demographic.

Implementing Dynamic Pricing

You might think, "Sounds great, but isn't it a hassle to keep changing prices?" That's where modern POS systems come in. With the right software, price changes are a breeze.

The Power of POS

Here's how easy it can be:

1. Open your POS system
2. Navigate to the price change menu
3. Select the items you want to adjust
4. Enter the new price or discount
5. Set the time frame for the special
6. Hit apply

And voila! Your 'Happy Hour' special is ready to go.

The Benefits of Dynamic Pricing

From my experience, implementing dynamic pricing can lead to:

• Reduced waste: Sell perishable items before they expire
• Increased foot traffic: Attract customers during slow periods
• Higher overall profits: Maximise revenue by adjusting to demand
• Improved customer satisfaction: Offer value to price-sensitive customers

Tips for Success

Here are some lessons I've learned along the way:

1. Start small: Test dynamic pricing on a few items first
2. Communicate clearly: Make sure your staff and customers understand the specials
3. Analyse results: Use your POS data to see what works and what doesn't
4. Be flexible: Don't be afraid to adjust your strategy based on results

A Word of Caution

While dynamic pricing can be helpful, it's essential to use it properly.

FAQ: Dynamic Pricing in Australia

Q: What is dynamic pricing?

A: Dynamic pricing occurs when businesses adjust their prices based on current market demands, customer behaviour, and other factors. It involves changing prices in real time to maximize profits and stay competitive.

Q: What is an example of dynamic pricing?

A: One of the best-known examples is petrol pricing. Petrol stations adjust their prices based on time of day, traffic levels, and customer demand. During peak times or high-demand periods, prices can surge.

Q: Is dynamic pricing legal in Australia?

A: Yes, dynamic pricing is legal in Australia. The Australian Competition and Consumer Commission (ACCC) states that while forms of dynamic pricing exist in some markets, businesses must be clear about consumers' prices.

Q: Why is dynamic pricing considered good?

A: Dynamic pricing can be beneficial for several reasons:

1. It can increase revenue by maximizing the value of each sale.
2. It helps businesses grow market share by attracting more customers.
3. It gives businesses more control over their pricing strategy.
4. It can help prevent ticket scalping in event ticketing.

Q: Where is dynamic pricing commonly used in Australia?

A: In Australia, dynamic pricing is used in many businesses, including:

• Airlines
• Taxis services
• Hotels

Suppliers occupy a unique position in our business ecosystem. They're crucial – after all, they provide the products we sell. However, their priorities may not always mirror our own. Navigating this paradox is a skill that can set your business apart.

Pros: The Supplier

Suppliers often hold a wealth of knowledge about:

• They know a lot about the products.
• Suppliers' agents travel, and they know what is happening in the market and the trends.
• Suppliers are better briefed as to what is happening with their market
• They know what your competitor's strategies are and what they are doing.

They may be able to offer you a better deal.

This information can be precious, but it's up to us to tap into it effectively. Whether you are planning a business trip or organizing your supplier interactions, having the best planner app can help streamline your process by tracking key details and optimizing your time management.

Cons: The Supplier

• A supplier rep will tend to prioritise their company's interests over yours, potentially leading to biased advice or recommendations.
• They do not have a comprehensive view of your business needs
• Over-reliance on a supplier might limit your ability to negotiate effectively with other suppliers.
• Managing relationships with supplier reps can be time-consuming

It's important to note that these are potential drawbacks and the actual impact would depend on how the relationship with the supplier representative is managed within the broader context of your supplier relationship management strategy.

Supplier Relationship Management

This requires supplier relationship management (SRM), which isn't just some fancy term by business consultants.

It's a critical strategy for any business, but we need to answer one crucial question:

What importance does each supplier hold for your organisation?

The Data Goldmine of Your POS System

Here's where your POS system becomes your secret weapon. In seconds, you can determine this information about your suppliers' performance. Here is how you do it:

1. Open your POS system.
2. Navigate to Cash Register Reports > Sales - Stock > Supplier Stock Sales for a Given Period.
3. Select the last financial year
4. Hit that 'Generate Report' button

In seconds, you'll have a detailed summary of sales by supplier. You can see precisely how each supplier contributes to your bottom line.

Here are the key areas to focus on:

Quantity Kings: Bringing in the Crowds

Look for the suppliers topping the 'Quantity' column. These are your traffic drivers whose products people are coming to buy from your shop. This is what is bringing customers into your shop.

Profit Champions: Paying the Bills

Next, check out the leaders in the 'Profit' column. These suppliers might not sell the most units but contribute significantly to your bottom line. They're the ones keeping the lights on, and the staff paid.

Putting the Data to Work: My Personal Experience

When I ran this report for a customer, they were shocked to discover that one of their small suppliers was so profitable. They had been focusing all their energy on others and neglecting this hidden gem.

Armed with this information, they actually:

1. Renegotiated terms with this top profit-generating supplier
2. Allocated more shelf space to their products

The result? A 14% increase in profitability in just a few months.

In Conclusion: The Data-Driven Path to Supplier Success

In our current retail ecosystem, instinct-based decisions are increasingly obsolete. Leveraging your POS system's data with relationship-building solid prowess can elevate supplier interactions from mundane necessities to crucial differentiators.

Don't underestimate your POS system – it's not merely a cash register. It is so much more. Consider it a powerful business intelligence platform. Take the plunge, run those reports, and unveil unexpected supplier insights. You might stumble upon a hidden asset.

Frequently Asked Questions about Supplier Relationship Management (SRM)

What is meant by supplier relationship management?

Supplier relationship management (SRM) is a systematic approach to evaluating and partnering with suppliers. It involves assessing suppliers' strengths, performance, and capabilities to your overall business strategy. SRM aims to maximise the value of supplier interactions by creating closer, more collaborative relationships with key suppliers to uncover new value and reduce the risk of failure

What are the 5 key points of SRM?

While there isn't a universally agreed-upon list of 5 key points, we can identify these crucial aspects of SRM:

1. Supplier segmentation and classification
2. Supplier strategy development and execution
3. Performance measurement and feedback
4. Collaboration with suppliers
5. Continuous improvement of your dealings with your suppliers

What are the five types of supplier relationships?

1. Buy the market relationship
2. Ongoing relationship
3. Partnership
4. Strategic alliance
5. Backward integration

What are the three basic components of supplier relationship management?

We can here identify these core elements of SRM:

1. Supplier evaluation and segmentation: Assessing suppliers' strengths, weaknesses, and strategic importance to your business

2. Relationship development and management: Cultivating personal relationships with suppliers and building trust and mutually beneficial partnerships

3. Performance monitoring and improvement: Continuously tracking supplier performance, providing feedback, and working collaboratively to enhance the relationship and outcomes

It's becoming evident that retailers across Australia are already gearing up for the festive season. 

Analysing Christmas Interest Trends

To measure public interest in the upcoming holiday season, I turned to Google Trends (www.google.com/trends), a valuable tool, I find for measuring Australian interest over time. The results paint an interesting picture:

• Consistent Interest: Over the past four years, Australian public interest in Christmas-related searches has remained stable.
• Slight Increase: There's a small but noticeable uptick in Christmas-related searches compared to past years.
• Long-Term Stability: Extending the analysis to cover an eight-year period shows little variation, indicating a consistent level of holiday enthusiasm among Australians.

This data shows that despite the current economic conditions, Australians' interest in Christmas celebrations remains constant. For retailers, this presents both opportunities and challenges as we approach the busiest shopping season of the year.

As the holiday season approaches, we must be well-prepared to capitalise on the busiest time of the year. Here is an interesting report

Understanding the 2024 Christmas

Here's what we're seeing:

Consumer Sentiment and Spending Patterns

Cautious Optimism

Despite economic pressures, most (76%) of Australian consumers plan to spend the same or more than in 2023.

Value-Seeking Behaviour

A whopping 70% of shoppers state sales promotions and discounts as the main factor in purchasing.

Early Bird Shopping

55% of Aussie consumers have started their gift shopping by October, indicating your need to be prepared now.

November Peak

63% of consumers plan to complete their Christmas shopping in November, particularly late November.

Black Friday Boom

Black Friday sales are rapidly increasing in importance in Australia, marking the start of the Christmas shopping season.

Category-Specific Trends Expected for Christmas 2024

Clothing

This category has emerged as the most popular gift choice for 2024, overtaking gift cards and electronics for the first time in nearly a decade

Books

Books are among the top gift choices

Gift Cards:

While no longer the top choice, gift cards remain popular, ranking, but the margins are so low that it might be questionable in this category. Many of my clients tell me they feel it costs them money as people spend more on gift cards than on their products.

Food:

Food spending is expected to dominate the peak season; no matter how times may go up or down, people have to eat.

Electronics

While specific figures aren't provided, electronics appear to have dropped in popularity compared to previous years, no longer being among the top gift choices

Overall, most expect a shift towards more practical gifts.

Toys

One category that is not being discussed but I think is worth looking into is kids, people now are not cutting down on their kids. I think you will find strong interest in toys, look at movie-inspired toys, what about toys like the Barbie Rewind 80s edition Career Girl Doll, Wizarding World Harry Potter Interactive Dobby and Batman Mega Mech Playset. Lego is trending on social media exposure. With the predictions of a hot summer water toys are expected to be popular. Learning toys with educational aspects, particularly those focusing on STEM education, are a priority for many parents

Preparing Your Retail Business for Holiday Success

Your POS System

Your point-of-sale system is the backbone of your holiday operations. Here's how to ensure it's ready:

Hardware Check

Test all POS computers, including backup registers. Ensure proper cabling and network connections. This cannot be stressed too much. Make sure everything works now.

Software Updates

Install any necessary updates to your POS software well in advance. You do not want to experiment over Christmas. It is highly recommended that over Christmas, you do not update your computers.

Strategic Inventory Management

Use your POS system's data to inform your inventory decisions:

Analyse Past Sales

See what sold over last year's Christmas period to identify products that sold in your shop.

Supplier Communication

Discuss expected order volumes with suppliers to avoid shortages.

Seasonal Stock

Ensure adequate stock of holiday decorations, gift sets, and greeting cards.

Financial Planning

Proper financial management is crucial during this high-stakes period:

Budget for Increased Expenses

Plan for higher inventory costs and seasonal staffing.

Cash Flow Projections

Use your POS data to forecast cash flow and plan accordingly.

Step 4: Staff Preparation and Scheduling

A well-prepared team is essential for a smooth holiday season:

Analyse Staffing Needs

Review last year's data to inform this year's staffing levels.

Create Flexible Rosters

Use your POS system's staff management tools to create efficient schedules.

Step 5: Marketing and Promotions

Effective marketing can significantly boost your holiday sales:

Social Media Engagement

Start early with holiday-themed social media content to build excitement.

Store Layout

Plan your product placement to maximise the visibility of holiday items.

Festive Decor

Use holiday signage and decorations to create a cheerful shopping environment.

Prepare for Peak Shopping Events

Be ready for high-volume shopping days:

Black Friday

Ensure you can handle increased transaction volumes.

Extended Hours

Plan for extended store hours during peak shopping.

Holiday Preparation Checklist

Use this comprehensive checklist to ensure you're fully prepared:

• [ ] Update and test all POS hardware and software
• [ ] Review inventory levels and set up automatic reorder points
• [ ] Analyse past sales data to inform stock ordering
• [ ] Communicate with suppliers about expected holiday volumes
• [ ] Plan store layout and product placement for holiday items
• [ ] Review and adjust financial projections for the season
• [ ] Create staff rosters and hire seasonal staff if needed
• [ ] Conduct staff training on POS, customer service, and product knowledge
• [ ] Develop and schedule holiday marketing campaigns
• [ ] Prepare holiday-themed store decorations and signage
• [ ] Consider a gift wrapping services
• [ ] Ensure adequate stock of gift cards and packaging materials
• [ ] Plan for extended store hours during peak shopping periods

My personal view

The holidays are just around the corner. We have to shine. I've seen firsthand how a well-used POS system can turn a good season into a great one. It's not just about ringing up sales - it's your secret weapon for managing stock, keeping your team on track, and creating a shop that customers love. Trust me, your POS is more innovative than you think - use it to make your life easier and your business stronger this Christmas.

The government has announced plans to ban debit card transaction fees, potentially starting January 1, 2026. This proposed ban, however, doesn't extend to credit card transactions.

A Global Trend in Payment Practices

In truth, this banning of debit surcharges was expected. Many countries, including the European Union and China, have implemented similar bans. Australia is now catching up with this global trend in consumer protection and payment fairness.

The Current Landscape: Widespread Surcharges

Today, many organisations, including government authorities, charge these fees. For instance, the Australian Taxation Office (ATO) imposes surcharges on card payments. This practice is widespread across various sectors and affects consumers daily.

Consumer Frustration: The Hidden Costs of Convenience

Many consumers, myself included, are frustrated with the current situation. It's common to hear complaints. I know I am not the only one who doesn't like that a $7.50 coffee and doughnut is charged at $8.00. If I am told it's $7.50, I get a receipt for $7.50, and in the bank, I see $8.00.

This sentiment is extreme here when the surcharge seems disproportionate to the transaction amount. From my extensive research into bank systems, I can confidently say that the cost of processing a $7.50 debit transaction is nowhere near 50 cents. Taking money from one account and putting it into another cost the bank no more than a few cents.

Potential Impacts on the Retail Scene

The ban on debit card surcharges will likely have far-reaching effects on retail. Here are some potential economic points to consider:

Increased Consumer Spending

By removing a barrier to debit card use, we might see a slight increase in overall consumer spending. The absence of surcharges could encourage more frequent use of debit cards, potentially leading to more transactions.

Acceleration of Cashless Trend

Australia is rapidly becoming a cashless society, and this ban will accelerate this trend. What is keeping cash going is the lower fees to the consumer. If debit cards become even more cost-effective for consumers, they will use them more.

Potential Price Increases

Some businesses might have to increase their prices depending on how this is implemented. We already have too much inflation that refuses to go away, potentially exacerbating the issue.

Changes in the Banking Sector

Today, these fees play a significant role in banking pricing. If banks are not making money from these fees, what adjustments will they make to their business charges? This is a crucial question that needs addressing.

Retailers' Concerns: Questions That Need Answers

Here are some questions that I think retailers need to ask now while people are talking about these changes, If they miss this opportunity, what you will find is that the banks will talk, consumer groups, government and since retailers are not talking what will come out of it?

1. Costs: Who will pay for these costs if fees are eliminated? Retailers should be concerned about who will absorb these costs if surcharges are banned.

2. Fee discrepancies: There's a noticeable difference in processing fees charged to small businesses compared to large corporations. Why are small businesses often charged up to twice as much? The costs surely are not that much more!

3. Premium Card Fees: Retailers are often charged higher processing fees so the bank customers can get benefits like Qantas points. Is this justifiable?

4. Card-Specific Surcharges: Retailers cannot charge different surcharges for different types of cards. The ACCC is wrong to make it mandatory to charge the same fee for a standard Visa card and a premium Visa card.

5. Bank Fees: Why are our debit and credit card fees so much higher than those of many European countries and China? This deserves a thorough investigation.

6. Unfair fees: Unlike large retailers who can negotiate better rates with banks, small businesses often pay double the fees for card processing. Besides being unfair, it means that the effect of these costs will have more impact on them.

Moving Forward: The Need for Dialogue

As we approach the potential implementation date, consumers and businesses must stay informed about these changes. Retailer representatives should engage with the government to address their concerns.

Moreover, this presents an opportunity to review and potentially overhaul Australia's card payment system.

The Future of Payments in Australia

Today, about 12% of transactions are made using cash, down from 27% five years ago. We're rapidly moving towards a cashless society.

Conclusion: A Complex Issue Requiring Careful Consideration

In conclusion, while the proposed ban on debit card surcharges is generally positive for consumers, other stakeholders have legitimate concerns. The government must carefully balance consumer protection with the financial realities retailers face.

Frequently Asked Questions (FAQ)

Q: Are there any exceptions to the debit card surcharge ban for specific industries or transaction types?

A: As of now, I have heard no talk of any exceptions being announced. The government will likely provide more details as the policy is developed.

Q: What measures will be taken to ensure businesses don't increase prices to offset the loss of surcharge revenue?

A: I am guessing here, but I suspect the Australian Competition and Consumer Commission (ACCC) may monitor for unfair price increases.

Q: How will the ban impact digital wallet payments and mobile payment platforms?

A: I am wondering about this. Apple, for example, has a special fee. This is an overseas fee, so it's unclear whether it's covered here. So, we do not know whether this ban applies to all debit card transactions made through digital wallets and mobile platforms.

Q: How will this affect loyalty programs or cashback offers tied to card usage?

A: The ban may affect these programs. I am worried that if the banks face reduced revenue from merchant fees, they might move to a retailer-pay model.

Q: What support or resources will be available to help small businesses adapt to these changes?

A: The government hasn't announced specific support measures yet; retailer associations should investigate.

Q: How might this affect international transactions or tourists using foreign-issued cards in Australia?

A: Who knows? In this situation, the merchant may be charged the fee.

Q: How will this impact the competitiveness of different payment methods in the Australian market?

A: It makes debit cards more competitive compared to credit cards and probably cash.

Many details will need to be developed and implemented.

Using PLU and SKU Numbers 

Managing your stock and inventory efficiently is crucial for retail. This is where PLU (price look-up) codes and SKU (stock-keeping unit) numbers come in. Implementing these tools can help streamline your operations, saving you time and money.

What Are PLU and SKU Numbers?

Before we dive into the benefits, let’s define what exactly PLU and SKU numbers are:

PLU codes are universal identifier numbers assigned to products, often produce items and other goods sold loose without barcodes. For example, a PLU code for a Granny Smith apple might be 4152. Suppliers assign these 4-5 digit codes and allow retailers to look at pricing and inventory data for produce.

Retailers can optionally use a range between 3170-3269 to create their own internal PLU codes for produce items. Please do not count on them being available, though. Many suppliers are idiots and will occasionally supply items with these PLUs. Interestingly, this happens in newsagencies despite standard stock file standard requirements explicitly forbidding this practice.

SKU numbers are unique ID codes that retailers assign to track stock-keeping units. They allow you to monitor specific product variants in your inventory. For example, say you assign:

SKU #101 to Coca-Cola Can 375mL

SKU #102 to Coca-Cola Bottle 1L

etc.

These 1-3 digit codes help differentiate product sizes, colours, flavours, etc.

Key Benefits of Using PLU and SKU Numbers

Implementing PLU codes and SKU numbers offers several advantages that can help streamline operations and boost efficiency:

Faster Checkout and Fewer Errors

PLU and SKU numbers speed up the checkout process by allowing cashiers to enter a code instead of searching through the system for the product. This is especially helpful for loose produce items that don’t have barcodes.

Fewer steps mean fewer opportunities for mistakes. Cashiers won’t have to guess which cucumber or apple variety they select. Quickly entering PLU and SKU codes results in faster customer service and shorter checkout lines.

Better Inventory Tracking

When each product variant has its unique SKU number, you gain much tighter control over inventory tracking. Your point-of-sale system can generate detailed reports by SKU showing exactly which items are in stock, which are selling fastest, and which need reordering.

This granular data makes it easier to minimize excess inventory and stock the right amount of each item. No more guessing how many of each t-shirt size or colour to order. The sales velocity by SKU tells you exactly what’s moving.

Increased Efficiency for Purchasing and Receiving

Standardizing your SKU system dramatically improves efficiency when purchasing inventory and receiving deliveries. Purchase orders, delivery paperwork, and item labels must only display the SKU to identify each product variant.

Employees will immediately know which item or size is being ordered or received by glancing at the SKU number, speeding up processing time considerably.

Improved Data and Analytics

With all inventory uniformly tracked and identified by SKU, your sales reports and analytics become much more helpful. POS reports can break down sales and profits by specific product variants rather than just lumping all similar items together.

You can see which SKUs have the highest profit margins, fastest inventory turns, or slowest sales velocity. This allows you to make smarter purchasing and promotion decisions. You can also identify underperforming items that may need to be discounted or discontinued.

Setting it up is very easy.

1: Open Stock Maintenance and look up the item.
2: Click on the "Prices" tab
3: Scroll to the far right on the pricing grid to see the "PLU" field.
4: Click EDIT and enter a number here (for example, 101 for an SKU and 4152 was the PLU for the apple above)
5: Click SAVE

When you are ringing up a sale in the cash register, enter the PLU into the "price entry" box and press ENTER, and our point of sale will find the item immediately!

PLU and SKU Best Practices

To maximize the benefits of using PLU codes and SKU numbers, keep these best practices in mind:

Keep SKU numbers short and straightforward - Long, complicated SKU codes lead to errors when entering the POS and paperwork. Stick to 1-3 digits if at all possible.

Be consistent—Decide on a standardized format for your SKU numbering and stick to it (e.g., category letter + sequence number). Please don’t make it overly complex. For example, we have a client that sells T-shirts and uses SKUs. They start with #1 for the small size of a V-neck T-shirt, SKU #2 for the medium, SKU #3 for the large, etc., to track each inventory item.

The main advantage of SKUs is that retailers can customize them for their needs. For example, they might encode specific attributes into each SKU.

For example, they started SKUs with a "B" for blue products, "R" for red products, or "S" for small, "M" for medium," and "L" for large. This can help employees quickly identify products.

Assign unique codes - Never reuse SKU numbers, even for discontinued items. Your retired products should still show their historical sales data.

Print SKUs on labels - Printing the SKU on product packaging, shelves, or item tags makes it fast and easy for cashiers to enter.

Cross-train staff - Don’t just train cashiers. Ensure everyone, from inventory managers to purchasers, knows how to use and apply SKUs.

Conclusion

As a retailer, implementing PLU codes and SKU numbers requires some initial work but pays off tremendously through savings in time and money. Your business will benefit from faster checkout, tighter inventory control, increased purchasing efficiency, and improved sales data.

Contact our team to learn more about setting up and using PLUs and SKUs in your retail operation. We would happily advise you on the best practices and system options to boost productivity. Investing in these simple tools will streamline your business for years.

FAQ

What is an SKU?

A stock-keeping unit (SKU) is an alphanumeric code created internally by retailers, manufacturers, or businesses to identify and track specific products in their inventor

SKU vs PLU

SKU (Stock Keeping Unit) and PLU (Price Look-Up) are inventory identification systems, but...

SKU (Stock Keeping Unit):

• Alphanumeric code assigned by retailers to track inventory
• Customizable and unique to each retailer
• Used for a wide range of products across various industries
• Provides detailed product information, including size, colour, and variations
• Primarily used for inventory management and sales tracking

PLU (Price Look-Up):

• Numeric code, typically 4-5 digits long
• Standardized across retailers
• Primarily used for fresh produce and bulk items
• Mainly used for pricing and essential identification
• Originated in the grocery industry to expedite the checkout process

Product Number vs SKU Number

Product Number (also known as Item Number or Part Number) and SKU Number have some key differences:

Product Number:

• Assigned by the manufacturer
• More stable and less subject to frequent changes
• Used for broader purposes like manufacturing and distribution
• May follow industry-standard formats
• Provides less granular information about the product

SKU Number:

• Assigned by the retailer
• It is more dynamic and can change over time
• Primarily used for internal inventory tracking and retail management
• Customized according to the retailer's needs
• Offers more detailed product information

PLU vs Barcode

PLU codes and barcodes are both used for product identification, but they differ in several ways

PLU:

• Numeric code, typically 4-5 digits
• Often used for fresh produce and bulk items
• Manually entered at checkout
• Standardized across retailers
• Limited data capacity

Barcode:

• Visual representation of data (usually UPC or EAN)
• Used for a wide range of packaged products
• Scanned at checkout
• It can contain more detailed product information
• Unique to each product and manufacturer

Can two items have the same SKU number?

It is not recommended that you give two items the same SKU number. Each SKU should be unique to avoid confusion during sales and restocking.

However, there are some scenarios where retailers might use the same SKU for closely related items:

1. Different sizes or colours of the same product (using variations)
2. When transitioning between suppliers for the same product
3. For tracking the same product across different locations

The best practice is maintaining unique SKUs for each distinct product to ensure accurate tracking and avoid potential inventory management and sales process errors.

A reliable internet connection is essential for businesses. It's not a luxury anymore. If the internet goes down in a shop, EFTPOS stops, and that often affects half the business's trade.

Here are some valuable lessons about choosing the right Internet Service Provider (ISP) that I have learnt from my personal and business experience, both personally and from my many clients Australia-wide.

1. Internet Speeds: The Need for Speed

Today in business, slow internet is just not going to cut it. Here's what I've found works best:

**Minimum speed: Aim for a download speed of at least 25 Mbps; this is the bare minimum for basic operations today.

• Suitable range: 50-100 Mbps for most small businesses. This range allows for multiple devices and more demanding tasks.
• Video conferencing: If you're planning on Zoom calls (and who isn't these days?), you'll want to be on the higher end of that range. 100 Mbps gives a smooth experience even with multiple video calls happening simultaneously.

Today, high-speed internet for business is a positive plus.

You can use online tools like wifispeed.io to check your internet speed.

2. Reliability: The Backbone of Business Internet

Reliability is so important when it comes to business internet. A dropped connection can mean lost sales and frustrated customers. Today, EFTPOS stops often. Many clients have lost half a day trading just over that! So what I suggest is:

Ask around

Chat with neighbouring businesses about their experiences. When I moved to a new location, the cafe next door saved me from making a big mistake by warning me about their unreliable ISP, whose local cable was causing them many problems.

Check reviews

Look at Google reviews, but be smart about it:

- Aim for providers with ratings around 4.2 stars. This sweet spot often indicates a reliable service with realistic customer feedback. I am wary of perfect 5-star ratings—everyone has terrible reviews; if I see no bad reviews, I think they're scamming me.

- Read what people say about their average response times. The faster, the better for your business.

- Focus on recent reviews—last month's feedback is more relevant than last year's. ISPs can change quickly, for better or worse.

Uptime guarantees

I will discuss this in another post. I would not take these Service Level Agreements (SLAs) with guaranteed uptime too seriously. They're often more about marketing than actual service quality.

3. Data Limits: To Cap or Not to Cap?

Unlimited data plans are becoming more common and often cost the same as capped plans. My advice?

-  If you need more clarification about your usage, go unlimited. It's better to have too much than too little.

- If you're on a tight budget, a capped plan might work, but be careful. I once exceeded my cap and faced a bill triple my usual amount!

- Look out for hidden fees or charges for exceeding data limits. Read the fine print! Some providers slow your internet down rather than charge extra if you exceed your limit.

Pro tip: Look at your current usage; it should give you a clear picture of your needs and help you choose the right plan in the long run.

4. Price and Fees: Balancing the Books

We're all watching our bottom line, especially in retail. Regarding internet costs: -Research first, then set a realistic budget based on your business needs.

- Remember, the cheapest option is only sometimes the best value.

-The dearest is only sometimes offering the best service; one of my clients took one of the biggest ISPs to court for lousy service. That one was certainly costly.

- Consider the cost of downtime. A slightly more expensive but reliable service can save you money in the long run.

- Business internet providers tend to be dearer but claim to be better. I am not convinced that they are better.

5. Customer Service: Your Lifeline When Things Go Wrong

Good customer service can be a lifesaver when your internet goes down. Here's what to look for:

- 24/7 availability is becoming rare, but it's gold if you can get it.

- Multiple support channels: Phone, email, and chat options give you flexibility. Even today, with chat and emails, I often prefer phone support.

- Local support: A physical store nearby can be a huge plus. I've had a problem with my internet, which the modem could have caused. As I was with an Optus reseller, I grabbed the modem and went to my local Optus shop. They tested it, told me it was faulty and sold me a new modem. I was up and running in an hour!

6. Technical Support: The Devil's in the Details

When it comes to tech support, not all ISPs are equal. Make sure you understand:

- What's covered in their support package? Some only cover connection issues, not device problems.

- Do they only support their modems? You could have a problem if you do not use their modem. I once spent hours troubleshooting a connection I used, only to find out my ISP didn't support the business-grade router I was using. Always clarify these details upfront!

- Are there limits on the types of issues they'll help with? For example, some won't assist with Wi-Fi setup or network configuration.

- Do they offer on-site support for complex issues? It can be invaluable for serious problems.

7. Local Availability

Having a local presence can be a game-changer.
They can quickly replace faulty equipment without waiting days for a new modem to arrive by post.

8. Scalability: Growing with Your Business

Your internet needs will change as your business grows. Look for an ISP that:

- It offers a range of plans you can easily switch between. I started with a basic plan and upgraded three times as my business expanded.

- Look at the business NBN plans first to give you an idea of what to look for.

- Allows you to your grade or downgrade without penalties. Flexibility is key in the ever-changing retail landscape.

- Provides business-specific plans that can grow with you. Features like static IPs or multiple lines might become necessary as you expand.

- It offers add-ons like additional data or speed boosts, which is nice.

9. Connection Type: Choosing Your Digital Highway

Connection Type

The two leading players in Australia are NBN and 5G. Here's my take:

NBN is generally more reliable for business use and will probably be the best internet for small businesses. I've found it to be more consistent, especially during peak hours.

5G: It has great speeds but can be less consistent. I have clients who use 5G and often have problems when it rains. It's improving rapidly, though, and might be the future.

Starlink: I have a client who uses this. It has excellent speeds, but it's dearer. It is good.

Tip: Check what type of NBN is available in your area. Some regions use wireless NBN, which can be less reliable than fibre.

10. Contract Terms: Flexibility is Key

When it comes to contracts, shorter is often sweeter. Be wary of long-term contracts with hefty termination fees. One of my clients had to pay to exit a three-year contract early. Know what you're committing to. Pay attention to automatic renewal clauses and price hike conditions. Look for contracts with a satisfaction guarantee or trial period. You have a safety net if the service doesn't meet your expectations.

11. Bundled Services: More Bang for Your Buck?

Many ISPs offer package deals. These can include, among other things, a small business phone and broadband deals.
-If you need these services, the bundle can save you money.

12. Security: Protecting Your Digital Assets

In all my years, I have had only one client complaining about it. Most Australian ISPs take security seriously.

Conclusion: Making the Right Choice

A solid internet connection is the foundation of modern business. Take the time to choose wisely.

Kaizen is a successful management technique focusing on continuous improvement through small changes. Instead of reinventing what you have, it asks, "How can I improve just a little on what I have?" The idea is that it is much easier to work on something that is already there than reinvent the wheel.

It works well in retail and massively impacts your business's bottom line.

Kaizen in Action

Using data from the Australian Taxation Office (ATO) benchmark study, let's examine a real-world example. We'll focus on a typical stationery shop simply because it's a business that most people can easily relate to.

I took the average figures from these benchmark studies, and what they produced is in this table.

I made three scenarios: the first is nothing changes (Now), the second has a 0.5% improvement, and the third case is a 1% improvement.

Look here.

The results are staggering! A mere for this slight improvements. A 0.5% improvement shows a 2.6% to 5.1% improvement. A 1% improvement leads to profit increases ranging from 5.3% to 10.2%.

I must stress here that most organisations work towards having a 2% increase a year. This 1% is very conservative. 

These small changes have led to significant results.

Harnessing the Power of Information

So, how do we achieve this 1% improvement? One answer lies in leveraging information. In my years of experience, I've found that the following strategies can help you unlock that crucial 1%. Here are some examples:

Optimise Product Placement

Use your sales data to identify your best-selling items and place them in high-traffic areas. If you notice, supermarkets continuously display their best sellers on unique stands in front of their customers. Good sellers are often on several stands.

Improve Inventory Management

By implementing this approach, better buying decisions based on accurate sales data can reduce overstock and stockouts while maintaining sales levels. POS software provides real-time tracking of inventory levels, allowing you to:

• Set up automatic reorder points to prevent stockouts
• Identify and reduce slow-moving items
• Buy more frequently but less so, reducing carrying costs and increasing cash flow.

Implement a Loyalty Program

Implement a loyalty program to encourage repeat business.

One idea that works well is a simple birthday offer, which has been seen to work wonders. It is easy to do it with a basic loyalty program. I am yet to see a more effective VIP program then a birthday offer. If you do not have such a retail program, its costing you.

Monitor your shrinkage

Keeping a close eye on theft rates can help you implement targeted prevention measures. Use your information to reduce shrinkage by addressing problem areas.

Improve Debtor Management

Implementing credit limits, automated reminders, and more explicit payment terms can improve cash flow and give you better control over your accounts receivable.

Generate Actionable Reports

Use your POS reporting capabilities to:

• Identify top-selling products and peak sales times
• Track employee performance
• Analyse profit margins by product/category

These insights can help you make data-driven inventory, staffing, and pricing decisions.

Conclusion

Use the power of minor improvement. It's not about making drastic changes overnight. It's about consistently seeking out those minor improvements and letting them compound over time to transform your retail business.
 

FAQ Frequently Asked Questions

Q: What is Kaizen?

A: Kaizen is a management technique focusing on continuous improvement through small changes. It emphasizes improving existing processes rather than reinventing them.

Q: How effective is Kaizen in retail?

A: Very effective. It is used by many organisations, as a rule they look for having about a 2% increase a year.

Q: How can I achieve a 1% improvement in my retail business?

A: You can achieve this by leveraging information and implementing strategies to exploit it.

Q: What's the key takeaway about Kaizen in retail?

A: The key takeaway is that minor, consistent improvements can significantly transform a retail business. It's not about drastic overnight changes but continuously seeking and implementing minor enhancements.

I think retailers must verify orders with photos today. It is a simple yet powerful technique that is revolutionising how we handle orders. It involves photographing packed orders before shipping.

The Power of a Picture

Today, it's an all-too-familiar scenario: a customer claims they didn't receive all the items they ordered or got nothing. You have a shipping dispute. Without concrete evidence, these situations often boil down to an "I said, she said" dilemma.

A photo can help with your case. The courts do accept photos as evidence. Can taking a picture show evidence of what was in the parcel when it left your shop? Another picture of you sending the parcel. These photos can strengthen your case.

Photographs as evidence are extremely powerful when shown in court. People tend to believe what they ‘see’.

That's where the smartphone camera comes in. You're creating a visual record that could be used later by snapping a quick photo of each packed order before it's sealed and sent.

Personal experience

I was shocked when I sent some goods to a client. He replied that he never got them. The post office said they were delivered, but I needed help to prove what was in the box, which I could not. It was a wake-up call. Clearly, I needed some order verification.

Implementing the Photo Verification System

Here's how we've incorporated this practice into our order fulfilment process:

1. Pack the order as usual, laying out all items.
2. Take a photo using your smartphone.
3. Attach the photo to the invoice in our POS system so you have a record.
4. Seal and ship the parcel with confidence.

It's that simple. This small step has become an integral part of our shipping process, and the benefits have been immense.

A Word of Caution

While this system has been a game-changer for us, it's important to remember that it's just one part of a comprehensive order fulfilment strategy. It doesn't replace the need for careful packing, accurate inventory management, and excellent customer service.

So, why not give it a go? Grab your smartphone, take that first photo, and join the ranks of retailers using this simple technique to revolutionise their order fulfilment process.

Retail surcharging on public holidays sparks much debate. It's not for every business, but let's explore this complex issue.

What is a Public holiday surcharge?

A public holiday surcharge (retail surcharging) is an extra fee added to a customer's purchase to cover increased costs on the public holiday. It's gained more attention lately, especially on public holidays, with the astronomical growth of salaries.

Although it is commonly seen as an issue in hospitality and service industries, it does come into other sectors. For example, I recall a heated debate when newspaper companies introduced Sunday papers. Many newsagents argued that newspapers should have a consistent price daily, viewing them as products, and doubted customers would pay more because it was Sunday. Despite this pushback, the newspaper companies implemented a higher Sunday price. This higher cost is part of the reason Sunday newspapers sell less.

The Rationale Behind Public Holiday Surcharges

Cost of Labour

Businesses face significantly higher labour costs on public holidays. Today, the average hourly rate for a shop assistant in Australia is $30.38. You could look at 250% of the base rate for full-time and part-time employees at public holiday rates. Using this average hourly rate of $30.38, you can estimate that $30.38 x 250% = $75.95 an hour on public holidays.

It's a lot of money that can quickly eat into your profitability. This is why many shops close on public holidays. Many of my clients work themselves on those days; otherwise, it's not worth it to open.

The Balancing Act

Implementing a surcharge is about more than covering costs. It's about finding a delicate balance between:

• Staying open to serve customers

• Covering increased operational expenses

• Maintaining profitability

• Not upsetting customers

The Nuts and Bolts of Surcharging

Surcharge Rates: Finding the Sweet Spot

In my experience, most businesses charging surcharges use 10% to 15%. If you levy 10%, you might as well go to 12.5%. If you will make it 15%, I suggest considering 17.5%.

Although I have seen it, I think 20% to 25% is too high for most customers.

Retail surcharge laws

I am unaware of any legal limit on surcharge percentages in Australia. However, businesses must display the surcharge, e.g., at the point of sale, as they must disclose prices, including surcharges.

Besides, it's critical to maintaining customer trust.

Industry Variations: Who's Surcharging and Who's Not

Where You'll See Surcharges

Surcharges are most common in the hospitality sector. Restaurants and cafes often lead the charge due to high labour costs and the expectation of being open on holidays.

Where You Won't See it.

You're unlikely to see surcharges in many other sectors, including:

• Essential services

• Public transportation

• Online services

• Banks

• Government services

The Customer Perspective: What's the Verdict?

In my interactions with my clients, they have reported to the public a range of reactions to surcharges:

• Some flatly refuse to pay it.

• Many accept the necessity, especially if the surcharge is reasonable.

The Role of Technology: How POS Systems Can Help

As someone now in the POS software business, I can't stress enough how important the right technology is in managing surcharges effectively. Our POS System has a function that allows you to charge the surcharge.

In the cash register

You can make the surcharge here as a percentage or amount; it is your call.

As it automatically calculates, it reduces the chance of human error, so you can change any figure you like, e.g., 12.5%, which is hard to do manually. More about 12.5% later.

• Display surcharges on receipts and customer-facing screens

• Provide reports on surcharge revenue to help with decision-making

• Offer flexible options for implementing different surcharge strategies so you can do what we call an A/B strategy, say, charge 10% this public holiday and 15% on the next and then compare the results.

Note:

-If you have a customer who objects too much to the surcharge, you can choose not to charge them for this transaction.

Clear Customer Display

Our POS systems with customer-facing displays will clearly show enhanced transparency.

Detailed Reporting

Our advanced reporting features can help businesses analyse the impact of surcharges on sales and customer behaviour.

Conclusion: Finding Your Balance

As retailers, we need to balance our operational costs with customer satisfaction. My advice? Whatever approach you choose:

1. Be transparent

2. Be fair

3. Always prioritise your customers' experience

FAQ

Q: Can businesses charge a public holiday surcharge?

A: In Australia, you can legally charge a public holiday surcharge.

Q: What is the average public holiday surcharge in Australia?

A: The most common range for public holiday surcharges is 10% to 15%

Q: What is the public holiday rate in retail Australia?

A: Public holiday penalty rates for retail employees are typically 225% to 250% of their base hourly rate.

Q: Can you charge a weekend surcharge?

A: Yes, you charge weekend surcharges.

Q: Why do businesses implement surcharges?

A: Generally, businesses implement surcharges to offset increased costs, notably higher labour costs due to penalty rates on public holidays and weekends.

Q: Consumer rights regarding surcharges?

A: Consumers have the right to be informed about surcharges before purchasing, so businesses must display surcharge information.

Q: Alternatives to surcharging for businesses:

A: Not many.

• Absorbing the additional costs

• Raising regular prices to account for occasional higher costs

• Closing the shop

Note: I am not a lawyer, so you may consider getting proper legal advice before proceeding.

As a retail security group member, I recently got a disturbing incident that's been making waves in the US. On October 6th morning, a 7-Eleven store in Los Angeles fell victim to a violent "flash mob" robbery. A lone staff member at the store tried desperately to shut the doors as a mob of masked individuals approached. He was able to, till he threatened the clerk with a concrete slab, and the mob forced their way inside. Once in, the group attacked the employee and looted the store.

The video footage is genuinely shocking, so user discretion is advised here. Look at that girl filming the robbery for her memories.

It isn't an isolated incident in America; similar "flash mob" robberies have targeted over a dozen 7-Eleven stores across Los Angeles in recent months.

The incident sparked a heated discussion on Twitter which I thought was interesting over: 

1. Public Safety Concerns: Many users expressed shock and worry about the rising crime rates in urban areas.
2. Political Commentary: There was significant criticism of current leadership and policies.
3. Skepticism of Crime Statistics: Several comments sarcastically referenced official claims about crime reduction. Something that is true in Australia to, as most reatil crimes are not reported.
4. Cultural and Demographic Discussions: Some users drew connections between crime rates and demographic changes.
5. Proposed Solutions: A few comments suggested arming clerks or closing stores in high-risk areas.

The overall tone of the Twitter responses was frustration, concern, and criticism of the current social and political conditions related to crime and public safety.

I have never seen anything like it in Australia. But, it's worth considering in Australian retailing as it's not just about loss prevention but also the broader impact on our community and the retail industry here. I know in the UK a few years ago, no-one was worried about it and now its a major issue in their retail shops.
 

I've seen firsthand the challenges people face with GST auditing. That's why I ensured that someone could audit their GST when we designed our POS system.

The GST Auditing Dilemma

We've all been there—trying to reconcile figures, often scratching our heads over what our accounting software tells us. It's a headache we could all do without.

Our Built-in GST Compliance Tools: Your New Best Friend

Our POS software has a powerful GST auditing tool. This makes your life easier. Here's why it's a game-changer:

1. Integrated Solution: No more jumping between programs.
2. Speed and Accuracy: Powered by Microsoft SQL for lightning-fast results.
3. User-Friendly Interface: Designed with retailers in mind, not tech gurus.

GST reconciliation method

What you are trying to do is find a mistake.

Let me walk you through how simple it is to use:

1. Go to Register Reports > Sales > GST Summary
2. Select your desired period
3. Review the detailed report, including a comprehensive GST breakdown.

This will give you a detailed report that includes this.

It's that straightforward. There are no complex procedures, just precise, actionable data at your fingertips.

When Numbers Don't Add Up: Your Problem-Solving Ally

Even with the best systems, discrepancies can occur. Here's how our POS software helps you track them down. What you are trying to do is find a wrong transaction. Then, study it.

1. Narrow the time frame: In your accounting program, do the first half of the period and then compare the same period with your POS System.
2. Compare Systems: Easily check your POS report against your accounting software for this period.
3. If it is okay, go to the next period. If it's in error, half again go to 1

Keep going until you have a day; if both periods are wrong, pick the period with the most significant error and return to 1.

If both are okay, you are in the wrong period.

Dive Deep: Once you've identified the day, scrutinise individual transactions.

A Real-World Example: The $2000 Mystery

I couldn't determine why $2000 was missing from our GST. Using this software's auditing process, I discovered it was an insurance claim wrongly recorded as a sale in the accounting software.

Embrace the Future of GST Auditing

Don't let GST auditing be the bane of your existence.

It's not only compliance; it's about running your business more efficiently and profitably.

Common Questions about GST Reconciliation

Q: How can I reconcile GST at the end of the year?

A:  Do the following steps

• Gather all financial records for the full year.
• Check the GST report in your accounting software from the start to end of the financial year.
• Compare filed GST to collected and paid GST.
• Research any differences in reported and actual GST amounts.
• Make adjustments to ensure accuracy.

Q: How do I match GST to my balance sheet?

A: Do the follwing steps.

• Generate both a Balance Sheet and a GST Summary report.
• Compare the GST liability on the Balance Sheet to the liability on the GST Summary.
• Investigate any discrepancies.
• Check for unpaid invoices or unclaimed GST credits.
• Make changes as required so the liability amounts match on both reports.

Q: What does GST reconciliation involve in Xero?

A:  For some reason, I get a lot of questions about GST in Xero. It is easy in Xero to do GST reconciliation:

• Compares filed returns to actual collected and paid GST

• Make a report showing the differences

• Review of potentially missed or miscoded transactions

• Helps ensure accurate, compliant GST reporting

Q: How can I reconcile GST in Excel?

A: To reconcile GST in Excel:

• Export GST data from your POS system

• Create separate sheets for each return type

• Set up columns (Invoice Number, Date, Taxable Value, GST Amounts)

• Use formulas to calculate reported vs actual GST differences

• Highlight discrepancies with conditional formatting

• Review and research highlighted differences

Q: What are some best practices?

A: Some best practices:

• Reconcile regularly - monthly or quarterly

• Document process and findings

• Use accounting software features to automate and streamline

• Review reporting trends and investigate variances

• Have manager oversight for large deviations

• Keep a clear audit trail of adjustments

Follow these FAQs and best practices for accurate GST reporting and compliance.

Please consult a tax accountant for business-specific advice, as I am not an accountant.

Once a fringe holiday, Halloween has now become a significant retail event in Australia.

The Rise of Halloween Down Under

Halloween has become a frighteningly big business in Australia. This year, expected: 

• A whopping 21% of Australians are expected to celebrate Halloween
• Total retail sales are forecast to reach $450 million
• The average Aussie Halloween enthusiast is set to spend $93

Who's Driving the Halloween Craze?

Interestingly, it's not just kids fuelling this trend. Adults aged 35-49 are the most enthusiastic Halloween celebrators, with 40% planning to join the fun—a 3% increase from last year!

Top-Selling Halloween Categories

The retail industry expects these categories to sell, so look for top Halloween products here:

What sells in your shop

Go to your POS system into Register Reports

Select "Top N Stock Sales for a Given Period"

In the form, put in the following dates: 25/10/22 to 31/10/22. A report will come out with what is sold over that week. 

As time is running out, could you do it now?

This data-driven approach has helped you avoid overstock nightmares and check that you have the products sold in your shop on Halloween.

Here are some more ideas to consider.

Devilish Decorations

The trend is now that Aussies are getting more creative with their Halloween decor each year, turning their homes into haunted houses.

How about considering:

• Halloween paper plates, cups, and napkins
• Spooky banners
• Balloons
• Creepy cocktail accessories (skull ice moulds, witch's brew punch)

Trick-or-Treating Essentials

The tradition of trick-or-treating has taken off in Australia, so you may want to consider:

• Plastic pumpkin buckets for collecting treats
• Glow sticks and light-up accessories for safety
• Halloween-themed bags and baskets
• Face paint and temporary tattoos for quick costume touch-ups

Navigating the Challenges of Halloween Retail

In retailing, Halloween can be challenging. Here is what I've learned over the years:

Start Now

There is a limited amount of time to begin planning your Halloween stock. Look for something original.

Manage Stock Carefully

Many Halloween items have a short shelf life. You do not want to be stuck with difficult-to-sell Halloween-specific items after October 31st. The odds are you have to put them in storage for next year or sell them at a discount.

Advertise

Put up signs or stands in front of the shop. If you have an Instagram or Facebook page, use it to show your Halloween products and create buzz.

Conclusion: Embracing the Halloween Spirit

Halloween is worth looking into.

FAQs about Halloween in Australia

Q: How big is Halloween in Australia?

A: Halloween is growing in popularity across Australia. Over 5 million Aussies, or about 1 in 5 people, celebrated Halloween this year. Social media and fun family activities fuel interest, so we can expect the numbers to keep rising.

Q: How big are Halloween sales?

A: Halloween spending totaled $430 million in 2022 and jumped to $490 million in 2023. Early estimates for 2024 put spending around $450 million.

Q: How much money do Australians spend on Halloween?

A: Halloween retail trends are up. Today's average spending for a person celebrating Halloween is expected to be $93, an increase of $7 (8.1%) from last year.

Q: What sells the most for Halloween?

A: Halloween sales Australia, top Halloween categories that Australians spend on include:

1. Trick or treating (45%)
2. Treats for trick-or-treaters (38%)
3. Halloween costumes (37%)
4. Home decorations (32%)
5. Attending or hosting events (18%)

Q: Which product category has the most sales for Halloween?

A: The top-selling product category is trick-or-treating gear, with 45% planning to buy these supplies.

Q: What age group spends the most money on Halloween?

A: Australians aged 35-49 comprise the biggest spending age group at 40%, followed by those under 35 at 25%.

Q: Is Halloween getting more popular in Australia?

A: Yes. This year, 300,000 more Australians will celebrate than last year, and it is showing steady growth in popularity.

We have all experienced inventory nightmares. The most persistent one is dead stock. It sits there, and you see it everywhere in the shop. It is a silent killer of profits, a space hogger in your shop, and a constant reminder of a wrong purchasing decision. Here are some battle-tested strategies used. Often, they are painful, but they do work.

What is Dead Stock

Dead stock is stuff that's not selling. It's inventory that is now growing roots in your shop. I recently saw a shop with items on the shelf that were a few years old. They did not even look sellable.

What is the dead stock analysis?

Deadstock analysis involves:

-Identifying non-selling inventory

-Calculating the cost of holding this inventory

-Determining reasons for lack of sales

-Assessing the impact on profitability and cash flow

-Developing strategies to prevent and manage dead stock

The Hidden Costs

Tied-up capital

That money could be working for you instead of gathering dust.

Rent costs

You are paying for every square metre of your shop; here, you are paying for space for nothing as the stock there is not selling.

Opportunity cost

You could be stocking items there that sell instead.

Other costs

You are paying for shoplifting, insurance, staff cleaning, etc. All for stock that does not sell.

How do you determine dead stock?

Here's how you spot dead stock: Set up specific criteria. Different retailers use different rules.

Time

Items that haven't sold in 6-12 months (varies by shop and industry)

Excess inventory beyond reasonable selling expectations

Products with little to no customer interest. Your staff will know this.

Outdated or obsolete products

Also, check for obsolescence; the sale cycle is only a month in fast-moving stock lines on movie toys.

Quantity

Selling less than 60% of purchased inventory

Damaged or unsellable condition

Look at your shelves for outdated, damaged, or low-quality items. Listen to your staff as they often know these items.

What is a dead stock register?

A dead stock register is a record-keeping system that tracks an organisation's movable property or assets that are no longer in use or have no sales potential. It includes product name, buy date, quantity, and current condition. Your POS system should have one, and its weight should be gold for tracking dead stock. If you have our POS System, follow the instructions here. It will take seconds to give you the result. I have seen results of over $50,000 of dead stock coming out. 

Regular stock reviews.

I make it a habit to review my inventory quarterly.

Strategies for clearing Dead Stock

Alright, you've identified the dead weight. Now what? Here are some tactics I've used successfully:

Discount, But Do It Smart

Slashing prices is the go-to move, but be strategic. I want it out.

How do you clear stock quickly?

Nothing beats flash sales to clear stock quickly. In my experience, end-of-financial-year and stocktaking sales work very well.

Bundle It Up

This is my go-to method. I find that pairing my dead stock with an item that sells and then using the item that sells as a push for a dead stock item works well. I offered my clients some monitors with a screen filter. From my client's point of view, they were getting a monitor and screen filter together at a beautiful price; from my point of view, I was moving monitors with something that had no value to me. It was a win-win situation.

Try a new sales channel

If it's not selling in your shop, try online marketplaces. I've had success moving dead stock on eBay. You could also try Facebook Marketplace.

Use it yourself

Sometimes, you can use the products yourself. You do not need them, but consider them something you got for nothing.

Donate

Sometimes, it is best to cut your losses. I donated to a charity, which bought a pile of old computer parts for free. We got a tax deduction, and we felt good about doing something for the community.

Preventing Future Dead Stock

The best way to deal with dead stock is to prevent it. Here's how:

Improve your forecasting

Use your POS data to predict trends and seasonal fluctuations

Implement just-in-time inventory

To reduce risk, you want to keep your stock levels lean, so buy in small quantities and regularly rather than in large orders. Your automatic ordering in our POS System can handle small orders over a short period.

Can you get a sale or return

It is often worth giving up some margin if you can get this, If, say, you were to buy ten items and be stuck with an item in dead stock at a 50% margin, your actual margin is now 44% If, say, you were to buy ten items and be stuck with two items dead at a 50% margin, your actual margin is now 37.5% If, say, you were to buy ten items and be stuck with three items dead at a 50% margin, your actual margin is now 28%

The Role of Technology

A robust POS system with inventory management features can help. Here's why:

Real-time tracking

Know what's in stock and what's selling at any given moment.

Automated reordering

Set up alerts for low stock to prevent stockouts of popular items

Sales reporting

Identify trends and slow movers before they become dead stock

How do you write off dead stock?

If you do not get rid of it but want to write it off, you need to ensure proper documentation to your accountant for tax purposes

-Identify the items you will write off

-Determine the book value of the dead stock. Your POS System should have that.

-Note a journal entry to the accountant to remove the value from inventory assets. 

-Do not adjust the cost price in your POS data unless you intend never ever to order that item again. 

Conclusion

Deadstock is a retail reality but doesn't have to be a business killer.