Point of Sale Software

Here are some Articles from the Blog Subject - Retail Analytics -

What sells in my shop during Halloween?

POS SOFTWARE

Kids in Halloween spirit

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:

Halloween spending categories explained

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

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.

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.

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

How to black mark a stock item?

POS SOFTWARE

One particularly frustrating issue that often crops up when dealing with stock items is that some items that you do not want keep coming back. These products linger on your shelves, occupying valuable space and tying up your capital. Here is a nifty trick in our software worth looking into: how to blackmark a stock item.

What is Black Marking?

Before diving into the mechanics, let's clarify what "black marking" means. Black marking flags a stock line in your point-of-sale (POS) system as a product you no longer want to receive. It's like putting that item on your "do not order" list.

Why Would You Want to Black Mark an Item?

There are several reasons why you might want to blackmark a stock item:

  1. Poor sales performance: The item needs to move off the shelves.
  2. Quality issues: You've received so many complaints about the product that you feel bad about stocking it. For example, I now refuse to sell a range of printers. They have great reviews, but they are terrible.
  3. Supplier problems: Supplier problems are always a problem; there are just some people you want to avoid dealing with.
  4. Seasonal items: You want to prevent reordering Christmas decorations in July!

    reasons why you I blackmark a product

How to Black Mark a Stock Item

Here's how you can blackmark an item in your POS system:

Method 1: During Stock Receiving

  1. Open your stock receiving screen.
  2. Press the edit button.
  3. Look for the column indicated by the red arrow (in your POS system, this will be labelled "Do Not Receive" or something similar).
  4. Mark the checkbox for the item you want to black mark.

    How to censure  a stock line

Method 2: In Stock Maintenance

Alternatively, you can black-mark an item directly in your stock maintenance screen:

  1. Navigate to your stock maintenance section.
  2. Find the item you want to black mark.
  3. Look for a "Do Not Receive" or similar option.
  4. Toggle this option on for the item.

What Happens After You Black Mark an Item?

Once you've black-marked an item, a couple of things will happen:

  1. No Automatic Ordering: The system will no longer automatically order this product, even if it falls below your usual reorder threshold.

  2. Instant Return File: If the item somehow ends up in your receiving list (maybe a colleague ordered it manually), it will be moved to a separate list—often called the "Instant Return File." You can then deal with it promptly, perhaps by returning it to the supplier or finding an alternative solution.

My Personal Experience

I first learned about black marking in my grandfather's shop. Grandfather was so happy when he finally sold a stock line. Mum was doing an order, seeing we were out of it, and ordered some more. Soon, every time Grandfather turned around, he said that these products were mocking him from the shelves.

Best Practices for Black Marking

While black marking can be a powerful tool, it's essential to use it wisely. Here are some tips:

  • Regular Review: Periodically review your inventory list. The problem with computers is once you do something, it is there forever. Yet market trends change, and a product that did not sell last year might be the next big thing this year.

Communication: Ensure your team understands what black marking means and how to do it.

  • Data-Driven Decisions: Don't black mark items on a whim. Use your sales data to decide which products to blackmark.

Conclusion

Black marking for stock items is a simple yet powerful method to enhance inventory management. It prevents the gathering of unsold stock, liberates capital, and enables you to prioritise products that foster business growth. Remember, staying ahead in inventory management is crucial, and black marking gives you that edge. I encourage you to experiment with it as you will find it as helpful as I have over the years.

Happy retailing!

FAQ: Black Marking Stock Items in Retail

Q: What is black marking?

A: Black marking is a process in your point-of-sale (POS) system where you flag a stock item as one you no longer want to receive or reorder. It creates a "do not order" list for specific products.

Q: Why would I want to blackmark an item?

A: You might want to blackmark an item for several reasons:

  • Poor sales performance
  • Quality issues with the product
  • Problems with the supplier
  • Seasonal items you don't want to reorder out of season

Q: How do I blackmark an item in my POS system?

A: There are typically two methods:

  1. During stock receiving:

    • Open the stock receiving screen
    • Press edit
    • Find the "Do Not Receive" column
    • Mark the checkbox for the item
  2. In-stock maintenance:

    • Navigate to stock maintenance
    • Find the item
    • Look for a "Do Not Receive" option
    • Toggle it on

Q: What happens after I blackmark an item?

A: Two main things occur:

  1. The system won't automatically reorder the item
  2. If the item appears in your receiving list, it'll be moved to an "Instant Return File" for you to deal with promptly

Q: Can I undo a black mark?

A: Yes, you can typically undo a black mark by following the same process you used to mark it and unchecking the "Do Not Receive" option.

Q: Should I review my black-marked items?

A: It's a good practice to review your black-marked items periodically. Market trends change, and a previously unpopular item might become in demand.

Q: Will black-marking an item remove it from my inventory?

A: Black marking doesn't remove the item from your inventory. It only prevents future orders of that item.

Q: Can my staff black-mark items?

A: This depends on your POS system's settings and business policies. It's essential to communicate with your team about the black marking process and who has the authority to do it.

Q: Is black marking the same as discontinuing an item?

A: Not necessarily. Black marking prevents reordering, but the item may remain in your inventory. Discontinuing usually involves removing the item from your product list entirely.

Q: How often should I use the black marking feature?

A: Use it as needed, but always base your decision on data and careful consideration. It's a tool to help manage inventory, not a solution for every slow-moving item.

 

Father's Day 2024

POS SOFTWARE

Father's day 2024

Father's Day is almost here. I hope you are prepared as it retails a golden opportunity, so please do not waste it. Let's dive into how you can use your point of sale (POS) software to maximise your sales.

Background this Father's Day

According to recent data, Australians are set to spend a lot. $820 million on their dads this year. That's a lot of potential sales to go around! Here's what people are buying now:

  1. Alcohol and food (34%)
  2. Clothing, shoes, and sleepwear (15%)
  3. Books, games, and music (15%)

While that's exciting news, the figure itself is slightly down last year, with the average person shelling out $101 instead of $112, but last year's figure was outstanding, so don't worry. 

At the GiftFair in Melbourne. Suppliers seemed to be pushing items for Father's Day, these items:

  • Beer steins and unique drinkware: Perfect for dad's favourite brew!
  • Quirky socks: Because who doesn't love fun feet?
  • Male grooming items: Help Dad look his best. I do not know how it will go in Australia, but retail publications in the UK are now saying they are doing well in retail shops.

Using Your POS System to Boost Sales

Check What Worked Last Year

The fact is that we are creatures of habit. What worked well last year often works this year. Do you remember last Father's Day? What sold well but didn't work? Your POS Software does! Use the "Top N Stock Sales for a Given Period" report to see last year's sales. 
 

Go to Register Reports.

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

In the form, put in today's and day-a-week's search and check it out. That will give you what worked last year. Make sure that these items are noticeable in your shop now.

Create Irresistible Bundles

Use your POS to create and track gift bundles. Maybe a "Beer Lover's Bundle" with a fantastic Stein and local brews? 

Offer Early Bird Specials

Did you know that 10% of shoppers have already bought?  The odds are now people are buying for Father's Day.

Making Shopping a Breeze

Remember, stressed-out gift buyers are your friends. Make their lives more accessible, and they'll love you for it. So, set up a "Father's Day Favourites" stand in your store and

  • Put your good sellers on the stand from your POS System data
  • Create staff picks based on sales data

Wrap It Up

Father's Day might be a short season, but it can significantly impact your bottom line. By using your POS system smartly and focusing on what shoppers want, you can turn this day into a real winner for your store.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Your KPI, Labour Costs in Your Shop

POS SOFTWARE

Labour costs in a shop

This is one of the most used KPIs is labour cost with our restaurant clients yet it can be used for any modern business. In my years of experience working with point-of-sale systems, I've seen many retail shops firsthand how proper labour cost management can make or break a small business. 

Labour costs

The labour costs encompass all expenses related to your employees. This includes:

  • Wages and salaries
  • Overtime pay
  • Superannuation contributions
  • Payroll taxes if applicable
  • Employee benefits 
  • Paid time off (holidays and sick leave)

You probably have this figure in our profit and loss accountant, which the accountant prepared for you for the ATO. So, these calculations should only take you a few minutes to complete.

Revenue-based Labour Cost KPI

The labour cost ratio is a critical metric that measures the proportion of your revenue spent on labour expenses. It's calculated using this formula:

Labour Cost Ratio = (Total labour cost / Total revenue) x 100

If your shop's total labour costs for the year were $100,000. If your revenue is $500,000, then your labour cost ratio would be:

($100,000 yearly labour costs/ $500,000 yearly revenue) x 100 = 20%

So here it means you're spending 20% of your yearly revenue on labour costs.

Time-Based Labour Hour KPI

Although not part of the typical Labour Cost KPI, I suggest calculating it by week.

Labour cost a week = (Total labour cost / Number of weeks) 

If, for example, using the above, we say it is open 52 weeks a year

Labour cost a week = ($100,000 yearly labour costs/ 52 weeks )  = $1923 a week we need for labour costs in a typical week.

Why the Labour Cost Ratio Matters

Understanding your labour cost ratio is crucial because it:

  1. It helps you evaluate how efficiently you're using your staff
  2. Shows the impact of labour costs on your overall profitability
  3. Allows you to compare your performance with industry benchmarks

Industry Benchmarks

In the retail industry, labour cost ratios typically range from 15% to 20%. However, because all shops are unique, they have different benchmarks. It's essential to research specific benchmarks for a shop similar to yours in your area. Many labour costs by industry are listed here, unfortunately not all, so what people often do is look for some industries that are close to theirs and see what those industries offer.

Tips to Optimise Labour Costs

Based on my experience working with various retailers, here are some effective strategies to manage your labour costs:

Use a Modern POS System

Your point of sale system has plenty of items that can do tasks that use labour, e.g. AI stock ordering management features. Use it to monitor your labour costs:

  • It can also do rostering, allowing you to track your employee hours accurately
  • Generate reports labour
  • Allow you to forecast your staffing needs based on historical sales data
  • Identify peak hours and adjust staffing accordingly
  • Reduce overstaffing during slow periods

Employee Management

For example teaching your staff multiple skills, you can reduce the need for specialised roles to create a more flexible workforce. If you can reduce the need for someone extra to come to do a task, well that is a saving.

Monitor and Adjust Regularly

Keep a close eye on your labour cost ratio and adjust as needed. If it's creeping up, look for ways to increase efficiency or reduce costs.

Conclusion

Are you ready to take control of your labour costs? Start by calculating your current labour cost ratio and see where you stand. With the right strategies and tools, you can master labour costs and set your shop up for long-term success.

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Using science for Smarter Retail Inventory management

POS SOFTWARE

Economic Order Quantity

Economic Order Quantity(EOQ): A Deep Dive into the Science of Inventory Management

Over many years, I've seen firsthand how crucial effective inventory management can be. One tool that started the science of modern inventory management is the Economic Order Quantity (EOQ) formula. Since I received an enquiry about it last week, I thought I would explore the concept and show how it can benefit retailers.

The Origins of EOQ

A bit of history: in 1913, a mathematician named Ford W. Harris was pondering a theoretical shop stock control. He wasn't thinking about colourful products or bustling aisles. Instead, Harris was fixated on a more fundamental question: How often should a shop order its stock to keep costs down and do inventory optimization?

He derived his formula called EOQ, and modern inventory management was born.

Breaking Down the EOQ Formula

The formula he derived is this:

EOQ = Sqr(2 x D x K / h)

Where:

  • D = is how much you sell in a period.
  • K = Cost per order
  • h = Holding cost per unit (how much it costs you to have the stock sit in your shop for a period)

Generally, it's over a year, so let's break this down with a real-world example and see what it can tell us.

A Real-World Example: The Stationery Shop

So I took a stationery shop that uses our POS System. Here's how we would use the EOQ formula to find how many times we should order to give us the best profit.

Annual Demand (D)

It sold 60,575 items last year in the shop. That's a lot of pens and paper!

Cost per Order (K)

I asked the woman who was in charge of the stationery order, and she told me that each order there was about

  • 3 hours to place an order @ $25/hour
  • 4 hours to pick up the order @ $25/hour
  • $10 for petrol
  • $20 for delivery fees

Total: $205 per order

Annual Holding Cost per Unit (h)

This is where things got eye-opening. We included:

  • Bank fees and overdraft: 2.5%
  • Shrinkage (a polite way of saying 'theft'): 1.5%
  • Portion of rent: $15,000 a year
  • Other costs from profit and loss: $10,000

When we crunched the numbers, it came to $1.08 per item per year. That's a lot if you think about it.

Let us do the calculation.

Now we have the figures, let us calculate the following:

EOQ = √[(2 x 60,575 x 205) / 1.08]

Let's break down the calculation step by step:

  1. First, multiply 2 x 60,575 x 205 = 24,835,750
  2. Then, divide this by 1.08: 24,835,750 / 1.08 = 23,014,583.33
  3. Finally, take the square root: √23,014,583.33 = 4,797.35

Rounding to the nearest whole number, we get 4,797. That is a lot of ordering. 

Interpreting the Results

When we plugged all this into our EOQ formula, it suggested ordering 4,779 times a year. That's many times every day!

I don't know about you, but I've never met a retailer who wants to place orders daily. It's just not practical.

Practical Tips from EOQ

While the EOQ formula does not here give you a perfect ordering schedule, it does highlight some crucial points:

  1. Holding stock is expensive: $1.08 per item per year adds up quickly. Our total inventory of 60,575 items is $65,421 annually, just in holding costs!

  2. Frequent, smaller orders can be cost-effective. This approach aligns with many successful retailers' formula of order to do its' "little and often" philosophy. 

  3. One size doesn't fit all: What works for our stationery shop might not work for a pet shop or a newsagency. 

How do you derive your figures using POS Solutions?

Calculating a simple EOQ requires three variables, which I will discuss point by point, quoting two departments as an example for you to work with as an example of stationery that I used above.

The demand quantity (D)

This is the quantity of goods moved.

There are two ways of doing this: the top sales report will give you this figure.

Cost of ordering (K)

I just asked about the procedure used in the shop and then costed it.

Holding costs (h)

Your profit and loss will help you here. If you are doing it by department, take a reasonable percentage of the total costs. 

I got the average stock holding to calculate my holding costs. So I went to the stock turn report in the stock reports. 

The Bottom Line

Executive summary

Here are some practical tips:

  1. Calculate your holding costs: You might be surprised at what you find. Include all inventory costs, such as warehouse space, insurance, and potential depreciation. Your profit and loss will tell you most of this.

  2. Review your ordering process: Write a typical order scenario in your shop. While doing so, I suggest you streamline this process to reduce costs. Maybe bulk ordering certain items could lead to discounts that offset increased holding costs. 

  3. Consider a mix of strategies: Perhaps you should place frequent orders for fast-moving items and less frequent orders for others. Use EOQ as a starting point, but adjust based on your business's unique needs.

  4. Use technology to your advantage: Our POS system can help you track inventory and make smarter ordering decisions frequently and accurately.

EOQ does not offer a flawless ordering plan. It indeed confirms certain crucial aspects of inventory management. 

Over the years in retail, I've seen that the most prosperous retailers use data and their gut feelings. So, while you should crunch the numbers, don't discount the value of your gut feelings.

Frequently Asked Questions (FAQ)

What is Economic Order Quantity (EOQ)?

Economic Order Quantity is an analytics formula for determining the optimal number of times to order stock to maximize profit.

How is EOQ calculated?

The EOQ formula is: EOQ = √[(2 x D x S) / H], where D is annual demand, S is setup cost per order, and H is holding cost per unit per year.

What are the benefits of using EOQ?

EOQ is a theoretical construction that helps balance ordering and holding costs, minimise total inventory costs, and optimize stock levels.

Can EOQ be used with seasonal products?

Probably not. EOQ becomes less effective if, over some time, you have fluctuating demand.

What's the difference between EOQ and reorder point?

EOQ determines the best number of times to order, while the reorder point is an inventory management system that concerns inventory levels. The EOQ may help you to derive this reorder point.

How can I implement EOQ in my business?

Your profit and loss statement and your POS System will give you the information you need to calculate your shop's EOQ. If you do so, please let me know what you get.
 

 

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

How to get your Stock Shrinkage figure

POS SOFTWARE

Here is how you can calculate your stock shrinkage in just a few minutes. You do have the information now.

The Importance of Calculating Stock Shrinkage

Regular stock shrinkage calculations are essential for the following:

  1. Identifying inventory loss trends
  2. Implementing effective inventory control techniques
  3. Optimising your retail operations
  4. Improving your overall profit margins

How to Calculate Stock Shrinkage

Follow these steps.

Using the figures for the 2023/24 year:

  1. Determine your recorded inventory value: According to your records, this is the total value of stock. Your accountant should know this now.

  2. Conduct a physical inventory count: You should know this from your stocktake.

  3. Calculate the shrinkage rate:

    The Shrinkage Rate formula = (Recorded Inventory Value - Actual Inventory Value) / Recorded Inventory Value x 100

     

For example, if your recorded inventory value is $100,000 and your actual inventory value is $97,000, you have lost $3,000 of stock.

However, as stock shrinkage is commonly expressed in percentages, let's calculate this figure.

Shrinkage Rate = ($100,000 - $97,000) / $100,000 x 100 = 3%

Common Causes of Inventory Shrinkage

Understanding the reasons behind shrinkage is crucial for implementing effective inventory loss prevention strategies. These are the common reasons:

  1. Shoplifting
  2. Employee theft
  3. Administrative errors
  4. Supplier fraud
  5. Damage or spoilage

    When I did it for a client, I used departments, and we came up with this chart, which looks about right.

    Typical inventory shrinkage chart

The Role of Technology in Small Business Inventory Tracking

Investing in the right technology can significantly improve your inventory management:

  1. POS systems: Offer real-time inventory tracking and sales data.
  2. Camera: This is one of the few items that courts do accept.
  3. Security system: You do not need everything, just a sample, to significantly affect shoplifting.

Conclusion

Mastering stock shrinkage calculation and implementing effective inventory reduction strategies are crucial for optimising retail profit. By utilizing the right tools, such as a robust POS system for businesses and implementing vital inventory control techniques, you can minimize losses and maximize profitability in your brick-and-mortar store.

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Get your stock turns now!

POS SOFTWARE

different stock turn rates.

Did you know that boosting your stock turn rate by just 20% could dramatically increase your profits? 

What Are Stock Turns?

Stock turns, or Inventory Turnover, measure how often you replace your inventory over a given period. It is a crucial indicator of your shop's performance.

The Basic Formula:

Manually, it is calculated by

Stock Turn = (Cost of Goods Sold) / (Average Inventory Cost)

Step-by-Step Guide to Calculate Stock Turns Manually

Calculate your Cost of Goods Sold (COGS) for the period.

Determine your Average Inventory Cost
Add your beginning and ending inventory values
Divide by 2

Divide COGS by the Average Inventory Cost

For example:

COGS for the year: $100,000
Start of the year inventory: $25,000
End of financial year inventory: $15,000
Average Inventory: ($25,000 + $15,000) / 2 = $20,000
Stock Turn = $100,000 / $20,000 = 5

The Impact of Stock Turns on Profitability

Cash Flow Management: Higher turns mean you're not investing in the slow-moving stock. This improved cash flow allows you to reinvest in your business.

New stock: Moving your inventory faster keeps your stock current, reducing the risk of obsolescence.

Space Efficiency: You can use your valuable retail space better by keeping fast-moving items on hand.

The Magic Number: 12

Many retailers aim for a stock turn of 12. Why? It's simple:

You're likely paying suppliers monthly
A turn of 12 means you're selling out monthly
This means you do not pay for the stock you sell.

How to Check Your Stock Turns with POS Software

Our POS software has made inventory analysis more manageable than ever. Here's how to check your stock turns:

Open your POS software
Navigate to Main Menu > Cash Register > Register Reports
Expand the 'Stock' section
Select "Show Stock Turn by Dissection and Item"

​Here is the sample I produced showing the stock turns by department.

As a general rule, the higher the score of your stock, the better. This, however, is not always true; a stock turn that is too high often shows that you are understocked. For example, you have an item you could sell once daily, but you order one weekly. So every week, you have sold one, so at the end of the year, you have a score of 50, which is a great score, but you have lost 250 sales that you could have had because you could have sold one a day and all you have sold is one a week.  

High Turns (8+): Great! But are you missing sales due to running out of stock? 

Mid-Range (4-7): Good, but room for improvement.

Low Turns (1-3): Time to reassess. Are prices too high? Quality issues?

Common Pitfalls to Avoid When Optimizing Stock Turns

Over-optimizing: Pushing for extremely high turns can lead to being out of stock.
Ignoring seasonality: Some products naturally have different turn rates at various times of the year.
Neglecting customer service: Don't sacrifice having enough stock to meet customer needs to improve your turns.
Forgetting about lead times: Consider how long it takes to restock when planning your inventory levels.

Our POS systems offer a range of features to help with inventory optimization:

Real-time tracking: Get up-to-the-minute data on your stock levels and turns.
Automated reordering: Set up automatic purchase orders when stock hits a certain level.
Predictive analytics: Use AI-powered (FOCUS) forecasting to predict future stock needs. Our software includes this feature for free.

FAQ: Common Questions About Stock Turns

Q: What's a reasonable stock turn rate? 
A: It varies by industry, but generally, a turn rate of 4-6 is considered good, while 6-12 is excellent.

Q: How often should I calculate my stock turns? 
A: Monthly calculations are ideal for most businesses.

Q: Can stock turns be too high? 
A: High turns may indicate that you're losing sales due to running out of stock.

Q: Should I use the same stock turn goal for all products? 
A: No, different product categories may have different optimal turn rates. Use our POS data to set appropriate goals for each category.

Wrapping Up

Take time to analyse what these scores are telling you. This will help you to identify the actions required to improve profitability and return on investment.

Now, you need to analyse your stock and check each department to see what is working and what is not. A score signals bad sales and that you are more stock than you realistically need at any given time. Maybe you have a pricing or quality issue, but that department has a lot of obsolete stock. If so, move the obsolete stock to a different department, as it will not give you fair figures here.

A high score indicates greater profitability and a good return on investment, although, as I stated, it may also mean that you are not ordering enough.

Remember, every figure has a story.

 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

See the movement of sales by your suppliers over time

POS SOFTWARE

Are you tired of feeling behind in trying to keep up with the latest retail trends and changing customer preferences? One key to staying ahead is your supplier sales data.

Monitoring your suppliers' performance can be a key differentiator. This often overlooked strategy works by pigging on the backs of your suppliers. You look to see which supplier is working and then move to them while using fewer of those that are not working. This can revolutionise your inventory management.

In today's retail battlefield, knowledge truly is power. Here's why keeping tabs on your suppliers' performance is a game-changer:

  • Spot emerging trends before they hit the mainstream: Be the first to stock the next must-have item.
  • Make inventory decisions backed by hard data: Say goodbye to guesswork and hello to optimised stock levels.
  • Negotiate like a pro: Use sales trends to secure better deals and terms with your suppliers.
  • Align your shop with market shifts: Stay nimble and adapt to changing customer preferences.

Let's explore how your POS software can unlock these powerful insights.

Supplier performance tracking

  1. Open your POS system's reporting module
  2. Go to the register sales reports and call up the "Sales Comparison by supplier"
  3. Set your date range (e.g., current financial year vs. previous year)
  4. Choose to view results as percentages for easier trend-spotting

Supplier options

I prefer to look at percentages as it shows trends.

Hit "View Report" and watch the magic unfold!

Supplier report

What You Might Discover: Retail Market Trends

Imagine stumbling upon this eye-opening data:

Key Takeaways:

  • ABC supplier is on fire! Their products are resonating with your customers.
  • The drink supplier is losing ground. Is it time to review their range? My advice would be to start some negotiations with their reps. The existing strategy is not working. 
  • Eco Essentials is gaining traction. Riding the sustainability wave?
  • The card supplier has taken a significant hit. Economic factors at play?

Digging Deeper

Your POS Software here offers a treasure trove of additional metrics:

  • Profit margins: Your profit, both in absolute and percentage, as well as the change.
  • The average price you sell: Check what price you are getting and check to see what others are getting. In my experience, it is interesting if there are wide changes between what you sell at and what others do.
  • The number of sales: I consider each sale to be a vote, check how your customers are voting for your products

From Data to Action: Supercharging Your Retail Strategy

  1. Schedule supplier check-ins: Share insights and brainstorm ways to capitalise on trends.
  2. Retail inventory management: Boost stock for rising stars and pare back on underperformers.
  3. Retail sales optimisation: Highlight products from trending suppliers.
  4. Supplier negotiation strategies: Use data to drive better deals and partnerships.

Your Turn: Unleash the Power of Supplier Insights

Don't let this data goldmine go to waste! Dive into your POS reporting features today and start uncovering the stories your suppliers' sales are trying to tell you. Your shop's future success might depend on it.

Remember: Your POS is more than just a fancy till – it's your crystal ball for retail success. Use it wisely, and watch your business thrive!

 

Your sales performance

POS SOFTWARE

What you do not measure, you cannot control

Imagine if, in a few minutes, instead of guessing how last year's sales went, you knew this. Sounds like magic, right? Well, that's the power of your modern POS software at your fingertips!

Why Analyse Your Sales?

In the bustling world of retail, staying on top of your sales performance isn't just bright—it's essential.  Knowledge is power. Understanding your sales trends through retail data insights allows you to make smarter decisions and drive your business forward.

Point of sale reporting

Before we dive into the nitty-gritty, let's quickly spotlight why your POS software is the unsung hero of your shop:

  1. Real-time tracking: You need to know what is selling now!
  2. Inventory management: Never run out of your bestsellers again.
  3. Customer insights: Understand what the customers in your shop want.
  4. Data-driven decisions: Make decisions based on data.

The Dissection Comparison Report: Your Retail Crystal Ball

Our point-of-sale software offers a powerful tool called the Dissection Comparison Report. This intelligent feature allows you to compare your sales performance across different periods. It's like having a time machine for your business!

How to Access Your Sales Comparison Report

Follow these simple steps to unlock your retail data insights:

  1. Go to the Main Menu
  2. Click on Cash Register
  3. Select Register Reports
  4. Under the Select Report tab, expand the Stock folder
  5. Choose "Dissection Family Class Period Sales Comparison"

Comparing Year-on-Year Performance: Your Business Time Machine

Let's dive into how you can use this report to assess your annual performance:

Then you will see this screen. This is what you will get.

POS Comparsion report options

 

  1. Set the left side dates:

    • From: 01/07/2022
    • To: 30/06/2023
  2. Set the other side dates:

    • From: 01/07/2023
    • To: 30/06/2024

This comparison will show how your business has grown over the past year. It's like searching past photos of your business.

What to Look For in Your Retail Sales Analysis

  • Overall sales growth: Has your total revenue increased?
  • Top-performing categories: Which product families are your stars?
  • Underperforming areas: Where might you need to make changes?
  • Seasonal trends: Do certain products shine at specific times of the year?

Zooming in on Quarterly Performance: The Recent Snapshot

To get a more recent snapshot of your business, let's look at the last quarter:

  1. Set the left side dates:

    • From: 01/04/2023
    • To: 30/06/2023
  2. Set the other side dates:

    • From: 01/04/2024
    • To: 30/06/2024

This comparison is used to spot recent trends. It's like having a magnifying glass for your most recent business performance!

Questions to Ask Yourself for Better Business Insights

  • What products or categories have seen considerable growth?
  • Are there any surprising declines in sales?
  • How do these quarterly results compare to your annual trends?
  • Is your inventory management aligned with your sales patterns?

Data-driven retail management

Now that you have the information, here are some tips to turn your retail data into action:

  1. Celebrate wins: Did a particular product category smash it out of the park? Give yourself a pat on the back, and consider expanding that line!

  2. Investigate dips: If sales dropped in an area, ask yourself why. Was it a change in customer behaviour or perhaps a supply issue? Your POS software can help you dig deeper.

  3. Spot opportunities: Are there growing categories you could expand? Use your data to guide new product decisions.

  4. Plan: Use these insights to guide your inventory management and marketing efforts. Stock up on what's trending before your competitors do!

  5. Customer focus: Look for patterns in what your regulars are buying. Can you create bundles or promotions based on these insights?

  6. Staff training: Share these insights with your team. Knowing what's selling can help them provide better customer service.

Business growth strategies

These reports are your numbers – they are your story. Regularly checking your sales performance gives you the knowledge to make intelligent decisions.

Your Action Plan:

  1. Log into your POS software today
  2. Run your first Dissection Comparison Report
  3. Identify one area of improvement and one area of success
  4. Make a plan to address the improvement area
  5. Share your success with your team to boost morale

Ready to Supercharge Your Retail Success?

Don't let valuable insights slip through your fingers! Your POS software is ready to reveal the secrets of your shop's performance. Why not dive into your Dissection Comparison Report today? You might just uncover the key to your next big business breakthrough!

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Master retail pricing in your shop

POS SOFTWARE

Master retail pricing in your shop

Bad pricing can be a death sentence in retail. It would be best to have the right pricing strategy to operate in this ultra-competitive landscape. Here is the game-changing solution to help you achieve that.

The Pricing Predicament: Challenges Galore

  • Customers question your prices, leaving you scrambling for justifications.
  • Suppliers are inquiring about your price, and you're unsure how to respond transparently.
  • Endless hours spent analyzing historical pricing data to determine what works for you.

We've developed a cutting-edge solution that puts you back in control of your pricing strategy.

Introducing the Game-Changing Pricing Tool

Our innovative Point of Sale (POS) software boasts a revolutionary "Price Change" feature that revolutionizes pricing management. With just a click, you gain access to:

  • A comprehensive pricing history for every product
  • Effortless cost and retail price comparison (displayed in red and blue)
  • Historical data to inform your pricing strategy

This will set you apart from the competition.

How to use this price-changing tool

Price changes history

 

You will find a Price Change screen in green above in the stock item. 

Now when you click that, you get another screen with the cost price shown in red and see the blue arrow, you have your retail price. 

Now, you have a complete history of the costs and retail prices and can sort by date. This can help you determine your retail pricing strategy and the right product price.

With just this click, you gain access to:

  • A comprehensive pricing history for every product
  • Effortless cost and retail price comparison (displayed in red and blue)
  • Historical data to inform your pricing strategy

In my experience, the process is quick to do. Also, what I find very useful is assessing the price vs. sales. There is no point selling too cheap if you can get more.

Elevate Your Retail Success to New Heights

Don't let pricing hold your business back any longer. Take control of your pricing strategy today and unlock a new level of retail success. Your business's future is in your hands.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

People Counting Technology for your shop

POS SOFTWARE

People counting in Apple shop

This is the sort of report managers in major retail shops look at weekly. Now, understanding foot traffic is excellent for retailers. Knowing how many people enter your shop can give you a lot of information. This is commonly called your footfall. Let's dive into it and see how it can benefit your business.

Why People Counting Matters

People counting technology provides valuable insights that can help retailers. The primary use is to determine the correlation between foot traffic and sales. Let's explore four results.

High Foot Traffic, Low Sales

  • Analysis: Many people are entering your store, but sales are not happening for this traffic.

  • Possible reasons:

    • Your stock is not what the people drawn to your shop are looking

    • Often, this is caused by not having enough staff.

    • Unengaging store layout or customer experience.

  • Actionable insights: Review product placement, marketing strategies, and store layout to identify areas for improvement.

Low Foot Traffic, High Sales

  • Analysis: Fewer people enter your store, but sales are higher than expected.

  • Possible reasons:

    • Targeted marketing campaigns are attracting the right people.

    • Effective product placement and inventory management.

    • Engaging store layout and customer experience.

  • Actionable insights: Continue refining marketing strategies and focusing on customer experience and product placement. Consider how to get more of these people.

High Foot Traffic, High Sales

  • Analysis: Many people are entering your store, and sales are strong.

  • Possible reasons:

    • Effective marketing campaigns and promotions.

    • Engaging store layout and customer experience.

    • Good product placement and inventory management.

  • Actionable insights: Well, clearly, you are doing the right thing.

Low Foot Traffic, Low Sales

  • Analysis: Fewer people enter your store, and sales are lower than expected.

  • Possible reasons:

    • It would be best if you considered how to get more people into the shop

    • Poor product placement or inventory management.

    • Unengaging store layout or customer experience.

  • Actionable insights: Review marketing strategies, product placement, and store layout to identify areas for improvement and develop targeted campaigns to attract more customers.

It also gives other information. 

Understand Foot Traffic Patterns:

  • Analyse the number of people entering your store to identify peak hours, busy periods, and slow days.

Optimise Staffing and Inventory:

  • Use foot traffic data to adjust staffing levels, manage inventory, and restock shelves during peak periods.

Account for External Factors:

  • Understand how weather, sporting events, and other external factors impact foot traffic.

Types of People Counting Technologies

There are two main types of technology used by my clients

Beam Sensors

Beam sensors are the earliest, cheapest, and simplest people traffic counters. They consist of an infrared emitter and detector positioned on either side of a doorway. When a person walks in or out, the beam breaks, and the counter registers a count.

Pros:

  • Simple and Cost-Effective: Break beam sensors are cheap and easy to install.

Cons:

  • Unidirectional: They can't distinguish between people entering and exiting.
  • Barrier Perception: The beam can act as a barrier, making some customers reluctant to enter.
  • Accuracy Issues: They may count two people walking together as one, making the results questionable in a full shop. Also, they tend to miscount families and people with prams.

WiFi Counters

These use the WiFi signals from smartphones to detect and count people. This technology is said to be more accurate as almost everyone carries a smartphone.

Pros:

  • Accurate and Advanced: Most people have smartphones, providing reliable counts.
  • Hidden: No one knows that you have them. This has proven to be a huge plus.
  • Advanced Capabilities: Potential to identify repeat visitors or known shoplifters and exclude staff from counts. For privacy reasons, few do this, though.

Cons:

  • Higher Cost: WiFi counters are more expensive.
  • Bluetooth Dependency: Individuals may not be counted if Bluetooth is turned off. This is a big problem. 
  • Overcounting: Many people today have smartwatches. These can be counted twice.

Overall, I think Beam is better, but many would disagree. 

Integration: Manual vs. Automated

When it comes to integrating people counting technology with your POS system, there are two main approaches:

Manual Integration: Most small retailers opt for manual integration. Each morning, they check the people counter, record the number, reset it, and then enter the data into a spreadsheet. While this method is cost-effective, it has a significant downside: It's messy, time-consuming, and does not give hourly traffic data.

Automated Integration: Although more expensive, investing in an integrated solution provides continuous, real-time data. This allows for detailed foot traffic analysis by the hour, offering deeper insights for better decision-making. I think the extra cost is worth it. 

Conclusion

People counting technology is a powerful tool for small retailers. It provides invaluable data to enhance staffing, inventory management, marketing strategies, and overall store performance. 

If you consider this technology to unlock the power of people counting technology for your business, worth investigating, please get in touch with us to learn how people like yourself use it to help their retail businesses. 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

How to do a Price Increase in Your Retail Business

POS SOFTWARE

Calculating price rise

 

This is risky, and be cautious. Price rises are signals to people to drop you.

People leap after they see a fee rise. However, the fact is that during the business, there can also come a time when you want to elevate your fees. A price increase is often required to maintain profitability and your operations, whether due to inflation, multiplied provider costs, or a strategic shift for your commercial enterprise version. Here are a few ideas that will help you do it.

Understand the Reasons for a Price Increase

Before diving into the method, it's essential to understand the different factors that may necessitate a price adjustment. Here are a few common motives why groups choose a charge increase:

Rising Costs: If your providers have raised their costs or are facing extended operational charges, such as rent or utilities, price growth can be necessary to maintain your earnings margins.

Inflation: As the price of goods and services rises due to inflation, you could want to alter your costs to keep up with the changing economic climate.

Product Enhancements: Perhaps you're transferring your commercial enterprise closer to a more premium market section. A consumer decided to drop many cheap motorcycles and focus on more expensive bikes. With this technique, he lost all his clients.

Conduct Market Research

Before imposing a price rise alternate, it is vital to apprehend your competitive landscape and client perceptions. Consider the subsequent study steps:

Analyse Competitor Pricing:

Examine the prices of similar services or products your competitors provide. This will help you gauge the marketplace fee and ensure your new costs remain competitive.

Survey Your Customers: 

Gather feedback from your customers. This will offer insights into their willingness to pay more for your offerings and assist you in expecting capacity reactions to a growth rate.

Review Historical Data: 

Analyze your sales statistics and purchaser behaviour from preceding fee adjustments. This can help you identify patterns and predict the ability impact of the approaching rate exchange. In your POS System call up the product and see the effect of price increase on these prodycts.

Prepare a Plan B:

Consider what to do if your clients reject the new rate upward push too strongly. 

Develop a Pricing Strategy

Once you have accumulated the critical information, expanding a properly-idea-out pricing approach is time. Consider the subsequent methods:

Gradual Increase:

Instead of enforcing an extensive charge hike, you could choose a more minor, incremental increase over time. This technique may be much less jarring in your customers and extra handy for them to adapt. It works nicely if only a few items pass up at a time.

Bundle Offerings:

Remember to bundle complementary products or services at a reduced fee rather than increasing the rate of personal objects. This approach can lower your clients' perceived price while growing overall sales.

Communicate

 There are two views here. 

Option 1: Provide notice

This allows your clients to regulate their budgets and expectations. It also demonstrates transparency and builds acceptance as true among your consumer base. Explaining the reason behind the charge boom is allowed, but it gives your clients time to consider alternatives. In my experience, most customers do not pay much interest until it happens.

One massive plus is that it can set off a few customers to buy before the rate increases, quickly impacting your revenue. This is why so many humans do it.

Option 2: Provide no warning

This permits you to implement the trade swiftly without a prolonged notification period, but it risks unexpected or alienating customers who feel blindsided during the exchange. If not treated cautiously, it could damage purchaser trust and loyalty. It also leaves less time for customers to alter their budgets or expectations.

Whatever approach you take, it's important to explain the motives behind the charge boom simply and transparently. Highlight the cost and blessings your products or services offer your clients, and remember to offer loyalty rewards or reductions to your current customer base as a gesture of appreciation for their patronage.

Monitor and Adapt

After enforcing the price change, closely monitoring the impact on your income and consumer pride is critical. Be prepared to make modifications if necessary:

Analyze Sales Data:

Track and compare your sales figures to pre-growth ranges. You can also reevaluate your pricing method if you note a sizable decline.

Gather Customer Feedback:

Encourage your clients to provide remarks at the price trade through surveys, social media, or in-man or woman conversations. This treasured input will let you perceive regions for development and make essential adjustments.

Remain Flexible:

If your initial pricing approach is not yielding the preferred results, be open to adjusting it. Based on the information you have gathered and client remarks, adapt and refine your technique.

Implementing an increase can be delicate, but you can navigate this transition efficiently with cautious planning, effective communication, and a patron-centric technique. Remember, a nicely completed charge growth can enhance your profitability and strengthen the perceived price of your services in your clients' minds.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Know your actual Gross Margins now!

POS SOFTWARE

Find your gross margins

Ever feel like your profit margins are a bit of a mystery? You know the numbers your suppliers give you, but those rarely show what is happening in your shop. That's where actual gross margin comes in – a true reflection of your operating efficiency.

For example, here at POS Solutions, we realize that running a successful store in the brick-and-mortar world requires knowledge. Therefore, our point-of-sale software makes monitoring your gross margins incredibly easy, giving you valuable insights to make informed decisions that can boost your bottom line.

Why Actual Gross Margins Matter More

While suppliers often provide "quoted" gross margins, these figures might not tell the whole story. Here's why:

  • Markup vs. Margin Confusion: Suppliers might quote a markup percentage (e.g., a 42% figure), which sounds more impressive than a gross margin of 30%. Plus, getting an actual feel of your business profitability will be tough if some items you have are markup and some are gross margin.
  • Selective Sharing: Sometimes, suppliers provide margins only for most products and then claim the rest they ignore. Yet even the rest of the items can impact your overall profitability.
  • Discounts and Deals: Let's face it, discounts and promotions are a part of retail life. But these can significantly impact your actual gross margin compared to the quoted figure.

Get Instant Insights with POS Solutions Sofware.

Imagine having a real-time snapshot of your actual gross margins at your fingertips. With our user-friendly POS software, that's precisely what you get! Here's how it works:

POS Software gross margins

  1. Access Your Cash Register Reports: Head over to your POS software's cash register reports section.
  2. Navigate to Sales: Locate the sales reports within the cash register reports section.
  3. Unlock the Power of Dissection: Look for a report titled "Dissection Sales / Profitability for a Given Period." 
  4. Run the Report: Select the desired timeframe (e.g., the last year) and generate the report.
  5. Find Your Profit Percentage: Within the report, you'll see a magic column – % Profit. This displays your actual gross margin, broken down by product or category.

Your actual gross margin

See the Difference for Yourself!

It's that simple! Monitoring your gross margin with the POS Software System takes seconds. Stop relying on guesswork and hidden figures—take control of your profitability today!

Want real-time insights? Contact us today to learn more. We can show you how our POS software can give you the information you require to help you run your business.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Out of stock

POS SOFTWARE

Out of stock in retail

How to Avoid Losing Customers

It is frustrating when a customer comes in looking in your shop only to find you're out of stock. We all now how we feel when this happens. What is your customer now thinking, maybe of going to your competitor? 

The good news is this common issue can be largely avoided with our POS system. 

So here is how you can use the inventory features in our POS to avoid out-of-stock and keep customers coming back.

What is "Out of Stock"?

Out of stock means a product is unavailable for purchase because you don't have any left in your store. It is said here to account for about 8.3% of all shopping trips. It's a lot.

What we have now is a missed sale and a disappointed customer.

This is extremely common when

- An obscure holiday is occurring that some of your customers follow and you have forgotten to buy stock for them

-If have run out of stock and not realised it.

Use the "Sold Out or Selling Out Stock Lines" Report

Our POS system has an extremely handy report called "Sold Out or Selling Out Stock Lines".

It will take you seconds to run and save you thousands.

Here's how to use it:

  1. Go to Reports > Stock
  2. Select "Sold Out or Selling Out Stock Lines"

What you want is to pick a period last year of the same date as now to compare.

 

These products need to be checked ASAP. This can help you make sure you have adequate stock.

Moreover

It also alerts you whether items are not properly entered into your system as the stock-on-hand figure is negative, as shown in the example below.

 

 

I recommend running this report weekly to stay on top of stock levels.

The Risks of Out-of-Stock

Why go to such trouble to avoid out-of-stock issues? Well, the fact is that your customers will tolerate this situation only a few times before taking their business elsewhere.

Well, most of your regular customers tend to follow a "three strikes, and you're out" pattern:

  • Strike 1: The first time a product is out of stock, the customer substitutes 70% of the time, and 30% go elsewhere.
  • Strike 2: The second time, they may substitute, not buy anything, or go to another store.
  • Strike 3: The third time, they switch stores 70% of the time—losing you their business.

Today, customers have little patience for out-of-stock. They will quickly take their business to retailers that reliably stock what they want.

So stay on top of your inventory with our POS system! Run stock reports weekly, keep high-demand products well-stocked, and avoid frustrating your customers. 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Why use your stock companion report?

POS SOFTWARE

Running a successful retail business means ensuring every product on your shelves earns its keep. This is not easy. You know the items are ringing up the most sales. What is more challenging is to see if the slow sellers are boosting revenue by selling other products. This is where your point of sale software's Stock Companion Report can help.

Measure An Item's True Value

Go to Cash Register Reports > Sales Register > Stock Companion Sales by Period. See the green arrow below.

Select the stock item, put in the last 12 months, and you will get a detailed report listing profit, numbers, etc. 

You'll get a detailed report showing the item's profit, sales numbers, and more. With this data, you can evaluate whether a slower-selling product with low direct sales attracts customers who purchase other higher-margin items.

Insights for Smarter Merchandising

One client used the Stock Companion Report for dry cleaning. This service had low profitability, so they debated whether to keep it, but they found it brought in good customers who bought other products. So they kept offering it.

The Stock Companion Report is just one example of how our POS software arms you with the insights you need to optimize your product mix. Slower-selling items may be necessary to attract foot traffic and complementary sales. Understanding these hidden contributions lets you make informed merchandising decisions that maximise your total store revenue.

Let our POS system provide the robust reporting you need to understand what's driving your sales. 

This is just another example of how our POS System provides you with stuff you can use. Call us to learn more.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

How did you travel in 2023?

POS SOFTWARE

As a retail business owner now, it will be many months before you know how your business travelled in 2023. Here is a quick method to check and compare your yearly sales figures.

Year-over-year comparison

First, pull total sales reports for the past few years. For example:

Go to register reports.

 

Now select the item marked "Sales Comparison for a Given period".

Note you can do it by a supplier, but that can be done later when you have more time for detailed analysis. What we are doing here is getting a quick idea.

1) Put in here the dates 

01/01/2022 to 31/12/2022 AND 01/01/2023 to 31/12/2023

This will take you a few seconds. Then you will get detailed information showing how you went in 2022 compared to 2023.

Write down some key figures. on the report that you wish to measure.

2) Now go back in and run the report with 

01/01/2020 to 31/12/2020 AND 01/01/2021 to 31/12/2021 

You now have four years of information to study. This should give you a pretty good idea of how your business travels now. I find drawing a graph of sales shows me a clear picture. I hope these figures went well for you.

Sales trends

Say, for example, I have figures like this 

  • 2020 total sales: $450,000
  • 2021 total sales: $485,000
  • 2022 total sales: $510,000
  • 2023 total sales: $560,000

Compare the totals to identify upward or downward sales trends over time. Steady yearly growth suggests your efforts are working.

Evaluate Suppliers Sales

Use the same method except this time to break down sales by your suppliers month-by-month.

See how the supplier is doing for you.

Compare Operational Factors

Now, some questions to ask yourself.

  • Did you expand hours, staffing, space or inventory?
  • Did you run more promotions or advertising campaigns?
  • Did you add or remove product lines or services?

Data-driven decisions

Use this to make data-driven decisions for your business to move forward. See what is working, what’s not, and where your retail business needs to head next. Let data guide your strategy. Turning those sales insights into concrete actions to improve your future performance is vital. Let the data direct you toward new opportunities for sales, traffic, and profit growth in 2024!

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Quick retail sales comparison

POS SOFTWARE

examining financial reports

How to Quickly Measure Your Christmas Sales

The holiday season is the most critical sales period for many retail businesses. With the right point of sale (POS) software, you can quickly analyze your Christmas sales trends and product performance to make data-driven decisions for the future.

How to quickly compare

One simple yet powerful profitability analysis compares this year's Christmas sales to the same period last year. Here's how to do it in just a few steps using your POS system's Register reports:

  1. In your POS system, go to Register Reports
  2. Select "Sales Comparison for a Given Period."
  3. Choose the date range for this year's Christmas season (ex., December 1 - December 25)
  4. Compare it to the same date range last year (ex., December 1 - December 25)
  5. Review the sales data and variance between periods

 

This is another example of how powerful our point-of-sale software is for retail management.

 

This is just the start. You can use the reports there to show you sales trends for key metrics like quickly:

  • Overall revenue and profit gains/losses
  • Best and worst-selling products
  • Average transaction sizes
  • Customer traffic patterns
  • Effectiveness of promotions
  • Inventory needs and stockouts

Compare Multiple Christmas Periods

Run the same sales comparison report for multiple holiday seasons for an even broader view. This can reveal longer-term trends and opportunities.

For example, compare:

  • This year (Dec 1 - Dec 25) to...
  • Last year (Dec 1 - Dec 25) to...
  • Two years ago (Dec 1 - Dec 25)

Look at 3-5 years of Christmas sales data to spot patterns and anomalies. The longer the time frame, the more business intelligence insights you can gain.

Turn Insights into Action

The key is acting on the sales insights uncovered. If a product dropped in sales this year, update its marketing. If a promotion worked well, expand on it next year: address stockouts, staffing issues, and other operational impacts.

Use your POS system's sales data to make data-driven decisions.

If you want to know more, contact us about our retail analytics capabilities.

Tips to get organised with your diaries

POS SOFTWARE

Retail Store Diary Sale 2023

 

Unbelievable as it sounds, we are getting close to the new year, the years gone so fast, and this often inspires people to get organised and plan ahead. Diaries can be a great product to help your customers achieve their goals in 2024.

Your point of sale (POS) software is the perfect tool to help maximise diary sales in your shop.

Your POS software has reporting features that can provide valuable insights into your diary sales from previous years. Specifically, your software can show you:

  • Which diary designs, sizes, and types sold well at different times of the year
  • Tell you last year's sales, which will indicate what this year's sales will be. Make sure you have sufficient stock on hand to meet customer demand.
  • Related products that customers tend to purchase alongside diaries (e.g. cards, nice pens) use your companion reports.

Prominently Display Diaries In-Store

It would help to ensure customers can easily spot your diary selection in-store. Here are some display tips:

  • Dedicate prime real estate, like a front counter display, to diaries
  • Arrange diaries attractively
  • Highlight top sellers; people are drawn to such products
  • Put signage and posters to indicate that you sell diaries.
  • Do not count on people knowing you have diaries. When serving them, tell them you have them.

Getting diaries front-and-centre maximises the chance of catch-up sales from customers coming in to shop for other items.

In addition to standard diaries, consider that you can boost sales by also promoting related products such as:

Travel Planners

Help customers plan their dream trips and holidays with travel diaries and journals.

Health and Fitness Planners

Tap into New Year's resolutions with diet, exercise, and wellness journals. 

Work Planners

Appeal to professionals getting on top of their workflow with work-specific planners. Display alongside nice pens, highlighters, and notepads.

Get Organised

You can organise a successful diary sales campaign this year by utilising your POS software to understand diary sales trends, effectively displaying and promoting diaries in-store, and talking to customers. 

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Black Friday You Can't Manage What You Don't Measure

POS SOFTWARE

Black Friday sales

You Can't Manage What You Don't Measure

The Christmas holiday shopping season has just officially begun. This is one of the year's busiest and most critical sales periods for retailers.  Many of our clients will do half their trade this year in the next two months. But you can't manage what you don't measure. Going into your biggest sales event blind is a recipe for disaster. It would be to examine the key metrics (KPIs) to understand the impact on your bottom line.

Here, we'll explore two essential key performance indicators (KPIs) to measure this Black Friday to show you how they are used going forward:

Foot Traffic

Understanding how many potential customers walk through your doors is crucial. Converting that foot traffic into actual sales is the name of the game.

You have a few options to monitor your store's foot traffic:

People Counters

If you have followed this blog, you will know that a simple people counter is an inexpensive way to determine how many shoppers entered your store. It should be positioned near the entrance and recorded at the start of each day. A basic, manual counter for a shop is cheap nowadays. 

Centre Foot Traffic (If Applicable)

If you are in a shopping complex, you will find that many of these do monitor the foot traffic numbers. You can use this, but remember, in our experience, these centre traffic numbers are rarely reliable. Use them as directional guidance only.

Daily Sales & Profit

While foot traffic shows customer interest, your sales and profit figures reveal actual spending and earnings.

Your point-of-sale (POS) reporting will tell you the net daily sales and profit. 

Focus on two key profit metrics and compare them to last year's Black Friday. That will give you an idea of how you are travelling.

Number of Transactions

How many sales transactions did you ring in for Black Friday? 

Total Daily Profit

Gross daily profit is ultimately what pays your bills.

Use KPIs to Assess Performance

Armed with foot traffic and profit data, you can now calculate store performance metrics to measure Black Friday's impact.

KPI-Foot Traffic Conversion Rate

Divide your number of transactions by the total foot traffic. 

Rate = (Number of Sales) / Traffic 

This conversion rate reveals how well you translated store visits into actual sales.

Professional marketers commonly do this sort of analysis.

Benchmark to last year's Black Friday. If conversion drops with higher foot traffic, you may need help with sales, e.g., understaffed or poor shop windows.

KPI-Average Transaction Profit

Here, divide your total daily profit by the number of transactions. The result helps you determine the average profit margin per sale. Now, is Black Friday pulling down your averages due to heavy discounting?

Average transaction profit = Profit / Number of sales

Doing Sales Performance Analysis

Now you have POS Software, so you can do most of this and more automatically. I find analyzing sales data by department, product category, and customer segment can help retailers identify areas for improvement and make strategic adjustments.

You will find it here:

Main Menu > Cash Register > Register Reports > Under the Select Report tab, expand the Stock folder > select the report “Dissection Family Class Period Sales Comparison”.

Then you will see this screen.

 Now, put in the dates to compare.  Now, it will pop out a wide range of KPIs, including quantity, cost, sales, profit, and GP%, with a breakdown by amount and percentage. I think besides the two KPIs above, you will find many others useful. Note that these are your actual figures, not what your suppliers tell you.

I would also suggest that you look at your 

Retail department optimization

Consider tracking your sales performance across different departments to identify the most profitable channels and allocate resources accordingly.

Summing up

Implementing key performance indicators is critical for effectively managing your business during the hectic holiday shopping season. At a minimum, start by tracking the metrics of Foot Traffic and gross profit.

Compare these KPIs to prior years.

Don't fly blind - measure performance daily. Spot shortfalls early so the course can be corrected quickly. There's no better tool for managing through the wild ride of this holiday sales season than your POS System.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.

Speed up the cash register queues - seven tips

POS SOFTWARE

Queues of people in a shop

Long queues at the checkout can drive customers away and cost you sales. Customer wait times,  studies show the average time a person will wait is 6 to 7 minutes in checkout queues before walking out. For retailers, slow cashiers can have a big financial impact. 

The Cost of Customer Frustration

When customers wait too long at the registers, many will leave your store. Some studies estimate that 10% or more of potential sales are lost to customer walkaways. And for those who do stick it out, the memory of queues will linger in their minds.

To crunch some numbers of lost sales - if your business has one walkout a day with an average sale of $30, you have lost $11,000. If it is two, you have lost $20,000+  - that is money you could have kept if your checkouts moved faster.

The risk goes beyond the immediate lost sales, too. Think of your customer satisfaction if you have frustrated customers. They often don't return quickly if they associate your shop with long waits. Slow registers cost you transactions today and cost you customer experience value in the long term. Is it any wonder why major retailers like supermarkets invest heavily to speed up checkouts? You need to take note and make changes, too. 

Average time to complete a transaction in a shop

The industry standard to do this is about 40 seconds for transaction time plus about three seconds for each item to be scanned and rung up. So if you need to ring up four things, the time taken is expected to be about 40 seconds, plus four items in their basket at 3 seconds each, so it's almost 52 seconds.

Calculating The Cost to Your Bottom Line

To figure out the cost of long queues, here are two key metrics to analyse in your store:

Average transaction time: How many seconds does it take to process each sale?

Look at your POS software's " find transactions " screen to see what typical speeds you can achieve. For comparison, I've included some transaction speeds that my clients have achieved with our POS system. 

On this cash register number, they were doing a transaction every three (3) seconds.

Here as you can see, they did transactions from two (2) seconds onwards.

On this page, it was four (4) seconds onwards. Interestingly, the $431.80 transaction that would have required scanning many items was completed in about forty (40) seconds.

Customer defection rate: What % walk away after seeing line lengths?

What you need here 

  • Number of lost sales from your Retail sales
  • Sales value per abandoned basket
  • Profit margin lost

I would suggest looking at both weekly and yearly figures

How to reduce checkout queues

Here are some proven ideas to try in your store to keep the registers moving faster:

1. Restructure Queue Layout

Research shows a single queue line feeding multiple checkout points is perceived as fairer by customers than individual lines per register. It also helps even out speeds so no single operator bogs down line length.

2. Hide Long Lines

Retail store planning experts talk about the power of “inflow angles”. What this means is when a customer enters your store, carefully analyse sight lines to any queues - long lines early in the shopping journey can trigger an early walkway. If they see a long queue, many people looking to shop in your shop will not go in.

3. Entertain Waiting Customers

Don’t let waiting customers dwell on queue length. Distract them with something; banks often use a TV. What works in shops are items that are hot sellers. It is not the sales to just consider but the distraction value. A magazine that a customer can look through while waiting works, too.

4. Keep Registers Clear

A common complaint is when customers have already committed to queuing but see unused registers not being opened despite staff floating nearby not helping ease waits. Make sure your staff, top priority is to jump on a register when lines start to develop.

5. Scan Whenever Possible

Barcode scans are proven 3 times faster than keying in product codes. So ensure everything sold has usable barcodes - even make barcode labels for loose goods or frequently sold combos. Bundling items that often go together also minimises scanning actions at the register.

6. Integrate EFTPOS

Many of you do not use it for cost, but consider that you can save seconds on each sale by integrating EFTPOS into your point-of-sale system. Avoiding re-keying in amounts slashes transaction times and reduces miscues when switching between the terminal and register. It is also more accurate.

7. Cashier speed

When queues are long, having your fastest operators active becomes critical. Slow cashiers bantering with customers may be helpful for engagement at quiet times, but focus on processing transactions fast at peak times. Knowing checkout rates for each staffer also enables good roster decisions.

Conclusion

Even implementing a few quick wins here pays dividends through higher converted transactions and improved customer loyalty. Getting checkout queues moving faster is necessary for any retailer serious about sustaining growth. Reach out if we can help analyse your current state or provide advice beyond what was covered today.

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.
CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Image CAPTCHA
Enter the characters shown in the image.