Point of sale management

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Point of sale management

Large cameras on the tills

POS SOFTWARE

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

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

Camera over a till

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

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

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

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Use technology to use Your Shelf Space Effectively

POS SOFTWARE

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

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

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

Let us find them  

Go to your cash register reports

 

Select Top N Stock sales for a given period

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

 

This gives you a list of your most profitable items.

Check stock levels

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

Review items

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

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

Position stock

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

Try it out

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

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Promotion ID

POS SOFTWARE

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

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

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

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

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

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

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

Firstly you need a Promotion ID here are some tips:

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

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

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

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

Purchase Order Numbers

Now you see the Promotion ID. 

Enter the appropriate code when putting in the sales.

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

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Analysing your customers

POS SOFTWARE

Customer reports

In your point of sale software in the menu, you will find a series of reports under the heading Customers. 

Now start dividing your customers into four groups.

I recommend that you go through these to find the one that you like. At the very least generate a “sales by customer” report. This will allow you to identify your top customers as well as those who are not engaging with you.

The next point to do is to look at the profits you are making from your customers.

Customer turnover vs profit

Those with low turnover you do not see much so there is little you can do here with them in the short term, so the analysis concentrates on those with the high turnover.

For this analysis, the ones you are most interested in are those circled in green, the ones that are a low profit but have a significant turnover with you. If you think about it those in the green circle, you see regularly, but they are not worth much to you. Generally, its because they are buying low margin items. 

These people are prepared to spend money in your shop which is positive, but the challenge here is to get them to buy higher margin items. 

Is your product mix correct for these people? What do they want?

 

 

Thanks for this post.

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Cash Handling Expenses 

POS SOFTWARE

Recently we have seen great deals on EFTPOS being made available for our clients. Now by the nature of how EFTPOS works, it is easy to determine its costs to your shop but have you ever asked yourself what the cost of cash is? These costs are often hidden. 

The problem is that cash handling is very labour intensive. The big cost is that it requires the most expensive employees in the shop to prepare the float, balance the count and transport cash back and forwards from the bank, which of course means that these employees are not available for profitable customer-facing transactions. 

If you are interested, I think you will find this interesting report. They estimate that it costs about 4.7% of the takings which is I think on the low side. They do however have a spreadsheet so you can use it to determine your figures. Please add a few other items like security cameras and safes to determine your figures. Then let me know.

 

 

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Parcel deliveries by weight

POS SOFTWARE

Parcel deliveries

A point that surprised me when I went to the New Retail ’19 conference which is considered  Australia’s largest retail gathering was the importance of parcel delivery in retail today. here were some figures.

In 2017/8 there was a 10% increase in the number of parcels being shipped by Australia Post. To give you a feel of how many parcels are now being shipped, Australia population is 20 million and everyday Australia Post ships out 1.3 million parcels. Australia Post is the largest but by no means the only parcel deliverer in Australia. 

What I found particularly interesting was this chart by Australia Post of weight by percentage

up to (KG)         Percentage

2                          66%

5                          19%

10                          7%

25                          7%

25 kg +                  2%

As you can see the high number of very light parcels shows that it is not because the public cannot carry it. It is convenience. 

I think that this highlighted the growing demand by the modern-day consumer who wants fast and flexible delivery plus if you have any plans of going online then delivery is a necessity.

Delivery is something you must consider. 

 

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Counterfeiters are printing fewer notes but they are better quality

POS SOFTWARE

Australian counterfeit found per state

I found this article very interesting about the state of counterfeiting in Australian dollars. 

I tend to agree with the writer that small business with small profit margins is most at risk, how much for example does a lotto dealer have to do to make up of accepting one counterfeit $100 dollar. 

The problem is now getting worse as the counterfeiter have now solved the problem of duplicating the polymer note. What did surprise me is that the problem is so high in Western Australia! 

The main problem that SMB retailers face is if one of their staff has access to counterfeit dollars, and say they can buy it at 70% of face value. They then can replace say six $50  in the till every day with the counterfeit stuff. It is almost impossible to find out as no retailer checks what goes out only what comes in. 

Anyway, have a read here, and I would love to hear your comments.

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Omnichannel vs. multichannel retailing

POS SOFTWARE

Omni-channel retailing is now all the buzz in retail, a recent example I spoke about here was from Tabcorp which in their  Retailer_Information_Pack_Tatts in their future marketing plans show this diagram to show how much extra business they get from a retail customer if they can get him to go online too.Digital comparsion

Figures although not as large as this is being quoted for Omnichannel retailing from other sources. Our clients through their websites are showing significant increases too although again not as big as this. Still, it is a decent increase, and so we are seeing a steady movement with our clients moving online.

What we are moving into the older multichannel retailing which many of my competitors still sell, where you keep using their point of sale software for the shop and something else for an online shop to the newer Omnichannel marketing where you have one software system, and it handles both.

The advantage of this from the retailers perspective is that your information in this omnichannel approach is in one spot, not two or three different systems, eg you do not have one customer three times in each system, you do not have a stock order three times, you do not have to do your pricing three times, etc.  Plus you do not have to do a lot of work to match up information in two or three different systems which is quite difficult as different systems behave differently.

This is why a truly unified commerce system like ours which has the POS software and the website in one system is much better. Using it you can track financials along with stock, sales, customer, etc. all the pieces of retail all in one system.  It’s the next step in retail technology.

Contact here our experts to discover how our unified commerce retail platform, can help you deliver the customer experience of tomorrow.

 

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Warning on your laybys

POS SOFTWARE

Lay-by sign

Our point of sale software has an extremely powerful layby system, which many of our clients use. It does everything in laybys.

One problem that came up a few days ago was a customer took a layby from one of our clients. They then paid a deposit, over the next two weeks they came and paid off a bit more. A few days ago they came to make a final payment and to pick up their product.

The problem started when they looked at the item and then claimed that this was not the item they had agreed to purchase. What they wanted was a different model which was much dearer. An argument started. As it a good customer and retailer did not want any trouble, in the end, they refunded the total amount paid and left it at that. Not that I think they had much choice, in fact, they may have been lucky as the customer could have claimed that the retailer changed the terms and demanded the newer model.

My tip If you are going to offer your clients layby, which I am not sure is a good idea now when products like Zip are available to make sure the product’s is packed in front of the customer preferably in a sealed bag with our label stuck on to the bag. This will reduce the problem.

 

 

 

 

 

 

 

 

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Examine your real-time profit position

POS SOFTWARE

You can know how you are doing financially with daily figures from your point of sale software.

This will show you some of the most crucial retail KPIs to give you a detailed insight into your shop. These insights provide you with better business decisions and let you know exactly how you are doing.

Go to cash register reports

Select in sales

Dissection Sales /Profitability for a given period

Now run this report for the day

Quantity some call it a customers vote. What it shows is what people are coming into your shop to buy. As a rule, the higher, the better. Some people consider this KPI to be the most important stock one as it is it what brings people into your shop.

Gross profit is why the shop exists.

What is also important here is to check that your margins are right, as if they are lower or higher then expected then there is something wrong.

Lastly, I highlighted the last row. This shows you the problems with your scanning. 

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