Point of sale management

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Point of sale management

How Did You Find Us?

POS SOFTWARE

How did you find us?

This is a handy function in our software and easy to set up. We are now doing some enhancements to it.

What is beneficial information is to find out and then record how did a person come to find your business? This can help, among other things with your marketing, deciding on your new physical location, etc. 

What you are trying to do here is know from the source of how did your customers found out about you and what led them to your shop. Once you have this you also need to consider what sort of customer each of these sources are giving you e.g. say a customer came to your shop as you have a dry cleaning drop off service, now its a question not only what is the dry cleaning worth to you but also what else has this customer purchased off you. So you may want to create a category here for how did you find us which is "dry cleaning drop off". 

If you are going to do this, you need to do is ask when interacting with your customers this question. Although often you can guess. If the first purchase of your client is the dry cleaning drop off, it is a reasonable assumption its the "dry cleaning drop off".

Currently, you can get figures and trends.

The new enhanced reports will give you more options to select from and better analysis of your lead sources. This can help you by getting higher profits and more clients.

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Psychology with price labels

POS SOFTWARE

Jurek Leon is an Australian consultant in retail, he certainly knows his stuff, often talks on TV and puts out a very good monthly newsletter for retailers which I recommend you subscribe too here.

His current edition has a fascinating post. 

Say we have an item in your shop which was $9, now maybe you buy a whole lot at a low price or perhaps you want to get rid of them, so you decide to reduce the amount to $5.99. Note like many good retailers you are not going at $6, but $5.99 plus you are not going to say 33% off because you know that dollar amount discounts work better than percentage discounts.

So you make a label to sell them and say you have these two options.

Two price labels compared

Option A: The reduced price is shown in big letters

Option B: The old price is shown in big letters.

Now, have a good look and decide which one is better?

Please, after you have worked out which one is better and decide why you think its better scroll down to the answer below. 

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Most people go for the first one, I did too as its the new price I want people to see, but studies show that it Option B that works better.  Why? Well according to the study 

"It’s because the discounted price is literally smaller than the original. Behavioural economists like Bri Williams call this the ‘size-congruency effect’. She says you are better to go with your marked down price in smaller font (Option B) than the conventional stand out (Option A), proving yet again that our assumptions about how best to influence customers can often be incorrect."

This is an example to her that retailers need to test and measure results. I agree with that too, how else are you going to find what works best with your business.

 

 

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Basket size by hour

POS SOFTWARE

There is a lot of info in your point of sale software, that is interesting to know and cost you nothing to get. Its a freebie so to speak. Here is one.

Basket size by hour

 

Go to End of day > Reporting > Average Basket size by hour

Now put in a date 

See how the basket size varies in your shop by the time of day.

We have broken it down by retail sales and account; generally, we see that the account sales have higher basket sizes. 

Put in a range of dates and I am sure you will find much interesting.

 

 

 

 

 

 

  

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Alipay now available

POS SOFTWARE

What they are doing now more are paying by debit card and the new alternative methods. Of the alternative methods, the fastest growing is Alipay. Although I have no current figures, about a year ago in 2018 10,000 merchants around Australia were offering Alipay as a payment method. 

What has been happening is that consumers in Australia have been rapidly changing from cash to other forms of payments. 

Payment_method

Look at the alternative payment figures, Alipay it is the fastest growing segment in this category. What Alipay is, is the largest online payment platform in China. It has been snowballing in China for years and now is the preferred payment method for Chinese students and tourist in Australia.

Studies have shown that  99% of Chinese tourists in Australia have Alipay.  In 2018, Alipay transaction volume in Australia increased by 110% and using Alipay the amount spent per person was up by 40% and its a wide range of products that they buy here. 

The Alipay fees are comparable to many VISA and Mastercard transactions now, and there is no cost to switch on so for our clients, I cannot see it as anything else but a no-brainer to try it out.

So we are pleased that we are offering a direct integration of Alipay. It will work through Tyro EFTPOS which as Tyro has no fees or contracts, so it is easy for any of our clients to add this payment type if they want it. If you are interested, let me know.

 

 

 

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Backing Up To Cloud

POS SOFTWARE

Cloud_point_of_sale.jpg


What it enables you to do is backing up your data, to an online storage service. Popular services include Dropbox, OneDrive (which is my favourite) and Google Drive.

When I first started talking about low-cost or free online backup for point of sale available, many of my competitors were negative. I suspect as they wanted to sell the dearer one. 

Today almost all my clients use such a service, and most of my competitors offer such services in their software. 

Some of the pluses would be 

  • Your backup can be largely automated.
  • It is safer as it is off-site so even if the shop burnt down and every backup was lost; you would still have a copy.
  • Data can be easily transported from one computer to another say at home.

However, we recommend all our clients use cloud back up *ONLY* as a secondary and last emergency service as some of the minuses would be 

  • Online storage services sometimes do lose data, do not believe just because Microsoft has your data that it is safe. One of my clients lost most of their backups when one staff left and removed the store's Microsoft 365 licence from her home computer. You still need to watch it.
  • It can take a long time to do the backup. A 1.5 Gigabyte point of sale date file at 512 Kps (which is a good rate) will take about 7 hours. While it is happening, your internet will slow down dramatically. 
  • People tend to take it for granted once it is back up to the online site that it is okay. Not necessarily. I have seen corrupt backups from the cloud. The data can be faulty just like any other backup system. The backups still need to be checked.
  • The free cloud services probably will not provide you with an automated solution from what is today a significant problem - ransomware attacks.  

 

Keeping aside a few bad experiences and errors it has always been a smooth experience for me and my company while backing data on cloud. It saves you the unnecessary hardware and gives a sense of security that the data is in safe hands. I have been using cloud for a long time now. Giving commands over the cloud to my Fuji Xerox C2270 is something that has made my life easy as I can provide my staff with the necessary documents for approvals.

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Excessive discounting

POS SOFTWARE

Sale by discounting

One trap that many retailers fall into is discounting too much to sell product. In my experience retailers often start the discounting to maintain sales levels when the items sales performance drops. Unfortunately, the increase in sales volume produced by discounting is not enough to maintain profits but it can be misleading as it looks like it is selling well. As this continues after a while, there is a real danger to the business. 

We have a terrific report that can alert you to this problem early.

In the reports,> Go to Discounted Items Sales Summary 

It is shown marked with a green arrow below.

Discount menu item

Fill in the appropriate responses and here is the basic report that appears.

 

Discount report

What it is showing is sales and most importantly for this question here the selling discount history. 

Note the large discount that had to be given to the Clemens Bears here to sell them. 

 

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Short term Product Placement 

POS SOFTWARE

As a rule, top-selling items should be at eye level in the shop in the highest selling areas. This helps to encourage even more sales. The problem is that many items are only short-term sellers and are difficult to identify. For example, I am sure over the next three weeks, Game of Throne products will sell well but once the series is over product sales of these items will fall off.

And they do fall off, for example, our research shows that in most shops, that six out of the top ten sellers today will be in the top ten sellers list tomorrow. You better have a look at those items today and be aware that almost half will experience dramatic falls in sales tomorrow. 

This is how you analyse your POS software information so you can determine which items are selling the most in the short-term. 


Go to Register reports

Now select "Top N Stock Sales for a Given Period"

 

Now put in yesterday dates and out comes a report with the top sellers for today.

Now, these need to be checked that they are in the highest selling areas in the shop.

Tips for placing top-sellers

Shoppers start looking at a shelf at eye level and they look from left to right, so what you want to make sure is that your high selling products in the shelf are on the left at eye level. 

Think of placing complimentary goods near your best sellers to grow basket size and drive impulse purchases. This product strategy works well as people once they decide to buy something will often buy more. 

All things being equal, give preference to brand and quality items. For some reasons which I am not sure, these do better and they give your shop a boost as it is seen as a quality shop. Let the bargain shoppers work a bit harder in your shop for their bargains.

 

 

Thanks for this post.Top N stock sales by period want more details?

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Your sales security indicators

POS SOFTWARE

Because retailers often have multiple cashiers at the register, the POS system, a retailer needs each operator their own user profiles so tracking individual sales and monitoring sales goals becomes possible. If you give each operator their own till then all the operator needs to do is log in at the start of their till and balance at the end. Otherwise, each operator should be logging in with each new sale.

Now once that is done you can use your sales security indicators. What these indicators do is gives you a detailed breakdown for each operator on no sale, voids, count, totals, refunds, negative items and discounts. What you are doing here is looking for something that an operator is doing unusual. For example, one operator is doing a lot more nosales than anyone else.

It is easy to do.

Go to cash register reports

posbrowser menu

Open Staff and click on "Sales security indicators"

Website under attack sample log file

Select the required period, in this case, the last twelve months.

Sales security indicators

See how you go.

The report comes out in excel so you can edit it.

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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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