Executive Summary

The following analysis examines retailer experiences with EFTPOS systems in Australia, based on survey data collected in April 2025. Before addressing the detailed findings, several critical insights deserve immediate attention:

Key Findings Highlight

• Integration Landscape: Linkly (most major banks) dominates with 43% market share, followed by Tyro (26%) and non-integrated solutions (23%).
• Reliability Crisis: Despite being the highest-rated factor (9.6/10), reliability remains a problem, with 68% of retailers experiencing at least one outage in the past year.
• Provider Comparison: Tyro users report significantly better reliability (45% with no outages) compared to Linkly users (21% with no outages), with Linkly users experiencing disruptions three times more frequently (31% had three or more outages vs. 10% for Tyro).
• Fee Handling Divide: 72.5% of retailers absorb EFTPOS fees rather than passing them on to customers, despite being cost-sensitive.
• Factor Correlation: Reliability and fast settlement to retailers are seen as operational necessities.

Survey Methodology This report analyses responses from 120 Australian retailers, not all of whom are our customers, who were surveyed in April 2025. Data includes integration types and importance ratings, with 10 being the highest. We asked them in our newsletter if they could fill out our online survey. It did take a long time to go through the analysis below. I want to thank Garth for his help in this survey.

Detailed Findings

What EFTPOS Integration Do You Use?

What it’s about:
This question asked retailers which EFTPOS system they use and whether it’s integrated with their POS (Point of Sale) software.

What retailers said:

• 43% use Linkly (the system behind most major banks’ terminals)
• 26% use Tyro
• 23% don’t integrate their EFTPOS with their POS at all
• The rest use smaller providers like Verifone or Spice/Simple.

What does it mean:

Linkly dominates despite being generally the most expensive system because it’s bundled with most banks. 

How Important Is Integrated EFTPOS to You?

What it’s about:
Retailers rated how important it is for their EFTPOS to be connected directly to their POS system.

What retailers said:

• Integrated users: Gave it a 9 out of 10 or higher score.
• Non-integrated users: Only 2.3 out of 10.

What does it mean:
If you have an integrated EFTPOS system, you love it mainly because it saves time and reduces errors. If you don’t, you probably can’t justify the cost.

How Important Is Reliability (No Downtime)?

What it’s about:
Retailers rated how critical it is that their EFTPOS always works.

What retailers said:

Average: 9.6 out of 10
Reliability is the highest-rated factor.

What does it mean:
Retailers can’t afford for their payment systems to go down. It was the most critical issue. 

How Many EFTPOS Outages Have You Had in the Past Year?

Now, let's look at reliability in detail.

What it’s about:
Retailers reported how often their EFTPOS system stopped working in the last 12 months. What we found interesting here is that everyone remembered the outages.

What retailers said:

Outage frequency across all respondents shows major reliability issues; 68% of retailers experienced at least one outage in the past 12 months, with nearly a quarter suffering frequent disruptions (three or more outages). This is particularly problematic, given the top importance rating assigned to reliability above.

Integration method significantly impacts outage experiences:

Tyro users report substantially fewer outages than Linkly users, with more than twice the percentage experiencing no outages at all. Linkly users suffer from the highest rate of frequent disruptions, with 30.8% experiencing three or more outages, three times the rate of Tyro users (9.7%). This suggests significant reliability advantages for Tyro. 

What does it mean:
Outages are common across all retailers and can seriously disrupt business, especially for those relying on Linkly.

Tyro users:

• Nearly half (45.2%) of Tyro users reported no outages, the best among the three options.
• Only 9.7% of Tyro experienced two or more outages, significantly lower than other options.
• This suggests Tyro is the most reliable integration type in terms of uptime, aligning with its reputation for robust, integrated EFTPOS solutions in Australia.

Non-integrated users:

• 42.9% reported no outages, similar to Tyro and much better than Linkly.
• The proportion of users experiencing three or more outages (14.3%) is comparable to Linkly.

Linkly users:

• Only 21.2% of Linkly users had no outages, the worst on the list.
• A significant 30.8% experienced three or more outages, which is not good.

If reliability and minimising payment outages are your top priorities, Tyro appears to be the superior choice among the options compared. Non-integrated systems performed reasonably well, while Linkly, despite its dearer cost, showed a higher risk of outages based on this data.

How important is it that your bank offers EFTPOS?

What it’s about:
This asked if it matters whether their EFTPOS comes from their current bank.

What retailers said:

• Average importance: 6 out of 10.
• Only 38% rated it as “critical.”

What does it mean:
Retailers are open to using non-bank providers and are prepared to consider other providers if they offer better features, such as reliability.

How Important Are the EFTPOS Rates (Visa, Mastercard, Debit)?

What it’s about:
Retailers rated how much they care about the fees charged for EFTPOS transactions.

What retailers said:

• Average rating: 9.2 out of 10

What does it mean:
Transaction fees were among the top concerns for retailers, where every cent counts today.

How Important Is Accepting Amex or Diners?

What it’s about:
Retailers rated the value of being able to accept American Express or Diners Club cards.

What retailers said:

• Average rating: 3.7 out of 10

What does it mean:
Most retailers here are not that concerned with Amex/Diners

How Important Is Having No Lock-In Contract?

What it’s about:
Retailers rated how much they care about being free to leave their EFTPOS provider at any time.

What retailers said:

• Average: 7.6 out of 10

What does it mean:
Flexibility matters; retailers don’t want to be tied down.

How Important Is Fast Settlement (Same/Next Day)?

What it’s about:
This asked how much retailers value getting their EFTPOS money quickly.

What retailers said:

• Average: 9.3 out of 10
• 87% want funds within 24 hours.

What does it mean:
A fast cash flow is vital; retailers want their takings in the bank as soon as possible. No one likes large sums of money somewhere in the banking cloud. They need it now, where they can use it.

How Important Is a No-Cost EFTPOS Option?

What it’s about:
This asked about the appeal of “no-cost” EFTPOS systems. Although generally dearer, it passes the cost from the retailer to the customer.

What retailers said:

• Average: 8.1 out of 10

What does it mean:
Retailers like the idea of not paying fees themselves, but there are trade-offs: It raises their prices. Overall, it was not highly rated.

How Important Are Terminal Rental Fees?

What it’s about:
Retailers rated how much terminal rental costs matter.

What retailers said:

• Average: 8.5 out of 10

What does it mean:
Ongoing device costs are a consideration, but other issues are more critical.

Are There Any Other Factors That Matter to You?

What it’s about:
This was an open-ended question for anything not covered.

What retailers said:

• Only 17% filled in this question here
• A few mentioned things like terrible customer support and Telstra's coverage in their area. We could see no pattern.

What does it mean:
The low figure and many responses here suggest we covered most mainstream issues.

How Do You Handle EFTPOS Fees?

What it’s about:
Retailers explained whether they pass EFTPOS fees to customers, absorb them, or consider a change.

What retailers said:

• 72.5% currently absorb the fees 
• Of those absorbing fees, 32.1% are thinking about charging

What does it mean:

Most retailers absorb card fees, but many consider passing them on to customers. Now this was surprising, which was not expected when we looked in detail, that although Linkly is generally the most expensive system, our analysis reveals an unexpected relationship between EFTPOS providers and fee-passing behaviours:

Tyro Users:

• 57% currently absorb the fees 
• Of those absorbing fees, 67.4% are thinking about charging

Linkly Users:

• 80% currently absorb the fees 
• Of those absorbing fees, 25% are thinking about charging

Why should a dearer EFTPOS have a lower charge rate? You tell me. I think it might be because this ability is inbuilt in Tyro, but this needs more research. 

Summary Table: What Matters Most to Retailers

The disparity in technical performance across integration types is significant. Tyro demonstrates superior reliability, with 45% of users reporting no outages compared to just 21% of Linkly users. Conversely, Linkly users report the highest rate of frequent disruptions, with 31% experiencing three or more outages, compared to 10% for Tyro and 14% for non-integrated solutions.

Satisfaction Drivers Analysis

The survey data indicates a clear hierarchy of factors that drive retailer satisfaction with EFTPOS systems:

The ranking reveals retailers prioritise operational efficiency (reliability, settlement speed), followed closely by financial considerations (rates, fees). The relatively low importance of Amex/Diners acceptance suggests most retailers view this as optional rather than essential.

Analysis of Key Metrics

This is done to see if any overriding themes emerge from the survey; the closer the value to 1, the more they fit into a theme.

The extremely high figure for reliability with fast settlement indicates that retailers view these as the most critical points.

Other factors, although important, fall into the optional category. 

Conclusion

The survey data reveals critical insights.

• Reliability and fast settlement times are non-negotiable for most retailers.
• Integrated EFTPOS is highly valued by those who use it.
• Outages are common, especially for Linkly users. Our poor electronic infrastructure will cause problems in cloud solutions.
• Most shops absorb card fees, but many are considering passing them on.
• Cost matters, but not at the expense of reliability and fast settlement.

If you’re a retailer, reliability and quick settlement will guide your system choice, even before considering transaction fees or rates.

If you’re an EFTPOS provider, the strongest levers for market share are minimising outages, offering transparent and competitive rates, and settling quickly.

If you’re a bank, bundling with Linkly may not be a long-term defence against competitors' better reliability and feature offerings.

Final note

I want to thank those retailers who helped us make this survey.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Every retail business faces urgent situations, such as crashed POS systems during peak sales periods and sudden staff absences. But what happens when procedures and systems aren't in place to address these urgencies?

This real-world example illustrates how poor password management turned a "VERY urgent" matter into a seven-month saga with significant business implications.

Inaccessible Financial Records

In December 2024, our team received a concerning call from an accountant regarding one of our clients, Louis, who had unexpectedly fallen ill and moved to a nursing home. The accountant needed to access Louis's financial records stored on his computer to finalise his affairs. Unfortunately, the computer was not working. As the accountant said, it was "VERY urgent."

So we immediately offered assistance. We asked him to send that shop's computer to our engineering bay for immediate repair. What followed was a series of delays and complications that transformed this "urgent" situation into a long ordeal:

Week 1

We heard nothing from the accountant after our initial conversation.

Week 3

The accountant's assistant arrived unannounced with the computer. Upon examination, we discovered that the operating system had been deleted. So we said it would take a few hours to see the damage. The assistant left and said to contact them as soon as possible when we had an answer, as it was urgent.

We got the computer working but discovered that it was protected by many passwords, which was unsurprising, as most financial computers are similarly protected. We recommend it; click here. 

We notify them of this promptly.

Week 5

After notifying them about the password issues, we finally received some passwords. However, during our investigations, we discovered we needed additional credentials for several protected areas. We told them this.

Week 9

We received a follow-up for them. The accountant acknowledged the urgency but mentioned he was going on holiday soon and would be gone for a week.

Week 13

The accountant provided more passwords, which again proved insufficient.

Week 17

We received a USB stick with some information. It helped, but the accountant announced he was departing soon for a month-long European holiday.

Now

What began as a "VERY urgent" matter was now guaranteed to extend beyond seven months, potentially having profound implications for Louis's financial affairs.

What hurt is that it was entirely preventable.

Password management best practices

This scenario highlights one of the most significant vulnerabilities in many retail businesses: the single point of failure. In Louis's case, he was the only person with access to critical financial information. This common but dangerous practice leaves businesses extraordinarily vulnerable when that person becomes unavailable for any reason.

For retailers, I have seen this risk extend beyond financial data to include:

• POS system administrator credentials
• Supplier portal logins
• Banking and payment gateway access
• Inventory management system passwords
• Customer relationship management data
• Cloud storage accounts
• Social media and online marketplace logins

If only one staff member can access these systems, your business is one unexpected absence away from significant operational disruption.

Consider the potential costs of password-related business disruptions.

Crisis management for businesses

The other revealing aspect of this situation was the disconnection between the stated very urgent and the actual response time. While the accountant consistently emphasised the urgency of resolving Louis's affairs, somehow, I did not see it. Cynically, I wonder if the accountant did not benefit from this delay.

Business continuity

The best emergency response planning isn't seen in what happens, but in what doesn't happen.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

We're pleased to announce to our readers that POS Solutions has been officially recognised as the #2 Best Point of Sale Blog in Feedspot's prestigious "40 Best Point of Sale Blogs & News Websites. We think that this recognition reflects our ongoing commitment to delivering valuable, actionable insights for Australian retailers seeking to optimise their operations through practical POS Systems technology. I think it shows that, unlike other blogs, we supply information you can use.

Feedspot is a vast site that 6 million individuals use to stay up to date and current. Its expert panel evaluates thousands of blogs worldwide based on relevance, content authority, social media following, and information freshness before awarding us this significant recognition in what is claimed is the most comprehensive list of Top 40 Point of Sale Blogs on the internet.

We are honoured to have you as part of this!

This acknowledgement validates our team's focus on providing Australian retailers with practical, locally relevant guidance addressing your business challenges.

What This Recognition Means for Australian Retailers

Being ranked second among the world's top POS blogs demonstrates that our Australian-focused approach resonates locally and internationally. This recognition confirms that our content strategy, addressing the unique needs of Australian retail businesses, delivers exceptional value to our readers.

At POS Solutions, we've dedicated ourselves to supporting thousands of Australian businesses with specialised point-of-sale systems designed specifically for local market requirements. Our targeted expertise in key retail sectors has been instrumental in this achievement:

• Newsagencies requiring efficient inventory and subscription management
• Pet shops need integrated loyalty and stock control solutions
• Pharmacies balancing compliance with streamlined customer experiences
• Specialty retailers across diverse Australian markets

Thank you again for being part of our journey.

We're proud to serve Australia's retail community and look forward to continuing with you more.

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Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults for various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Dead stock is inventory that hasn't sold within its expected timeframe. For most retail businesses, non-selling inventory is typically classified as slow stock after 6 months, and after 12 months, any inventory that doesn't turn over is officially considered dead stock.

An accountant can then legally put them as a liability on your balance sheet, as it silently drains your profits by tying up valuable capital and retail space.

Too many people I see make the costly mistake of placing dead stock with a significant discount in prime selling locations, hoping for a quick sale to get rid of it. This diminishes the overall shopping experience. It also lets your customers think that you are a discount shop. Let us not make that mistake.

Understanding Dead Stock

Officially, dead stock is merchandise that hasn't sold within 12 months. Still, it can include seasonal items that missed their peak selling period, trend-based products that never worked for you, such as the recent examples of Snow White dolls after the movie flopped, or items that don't sell in your shop.

Financial Burden

Based on our experience, our installers report that about 20% of the stock is dead when our POS system is installed in a shop. That's a lot, considering that 20% of the shop is closed.

Identifying Dead Stock

Modern point-of-sale systems should provide you with tools to identify dead stock, hopefully before it becomes a significant problem. Additionally, insights from a proficient SEO agency like Nine Peaks can help optimize product visibility online, reducing the chances of inventory stagnation.

Our POS system can analyse sales data and highlight items that haven't sold within a specified timeframe, enabling you to take proactive action. This technology-driven approach lets you identify potential issues early and implement strategic solutions. I have discussed this here.

Data-Driven Inventory Decisions

With this comprehensive sales data at your fingertips, you can:

• Set automatic alerts when items haven't sold within a specified timeframe
• Track sell-through rates by category, supplier, and season, we call that the inventory turnover rate.
• Analyse which displays and locations generate the highest sales
• Forecast optimal stock levels based on historical performance
• Generate markdown recommendations to maximise recovery on slow-moving items

The Psychology of Effective Retail Displays

Understanding why dead stock accumulates is only half the battle; what you have retail merchandising strategies o get rid of it. It involves insight into how customers navigate and interact with your retail space.

It involves creating what retail experts call the "treasure hunt" experience, using this dead stock to draw shoppers progressively deeper into your store and encourage exploration and discovery. Research shows that customers typically spend 15% more time in stores when they are arranged to facilitate this journey of discovery.

Now, suppliers advocate for their products to be displayed together, which makes it easier for them, but this rarely aligns with how customers shop. Shoppers don't typically think, "I need something from supplier X today." Instead, they think, "I need something for my kitchen" or "I'm looking for a birthday gift." Retailers should use theme-based displays as they work directly to their customers' needs and shopping patterns.

Common Mistakes in Dead Stock Display

Retailers' most frequent error is ignoring it.

However placing dead stock in prime selling locations is the next. What is the point of putting stock that does not sell in the best part of the shop? These areas should be reserved for your best-selling, full-margin products.

When you place dead stock in these premium positions:

• You're using your most valuable retail real estate for your least valuable products
• You're training customers to look for discounts first
• You're creating a "discount store" impression that can devalue your entire brand
• You're reducing the visibility of products that sell well and are reasonably priced.

The next big mistake is creating a large clearance sections that dominate your store's visual landscape. When clearance merchandise takes centre stage, it sends a powerful message to customers that your merchandise isn't worth buying at full price.

Rather than falling into these common traps, implement these proven display strategies that balance clearing dead stock with maintaining your store's visual appeal and professional image.

Strategic Approaches to Dead Stock Display

The Strategic Attention Zone Approach

A more effective solution for displaying dead stock is implementing a strategic attention zone approach. This method involves:

• Placing clearance merchandise in less-trafficked areas of your store
• Using attention-grabbing elements (like distinctive signage or lighting) to draw interest
• It forces people to look at your shop more.

Customers seeking bargains will venture into these less prominent areas to check out potential deals. This approach does not devalue your stock or shop. It preserves your prime selling space for high-margin items while giving dead stock visibility and the opportunity to sell.

Bundling Opportunities

Another effective strategy is bundling dead stock with complementary products that sell well. For example, if a particular item isn't selling, rather than discounting it heavily and placing it in a clearance bin, try bundling it with an item that does sell.

This approach can help you sell items using dead stock sales. I have a customer who took a recipe book that didn't sell and bundled it with a recipe book that did sell, then sold them as a bundle. It worked.

When to Apply Strategic Discounting

While maintaining margins is essential, strategic discounting has its place in managing dead stock. The key is timing and implementation:

• Implement progressive discounting rather than immediate deep discounts, and slowly work on the discount to find its price.
• Create time-limited promotions to generate urgency. I only have four left, and we won't get them back once they're gone.

Rotation and Refreshment

Put some of your dead stock in this area. After a while, pull out the items that don't sell and put in new dead stock. People are always looking for something new. Now you have another category of stock items, "the truly dead stock."

Creating a Dedicated Clearance Strategy

About 20% of your stock is dead. You need a deliberate strategy for handling dead stock to maximise recovery while maintaining your store's professional appearance.

The Clearance Calendar

Establish a regular clearance calendar that aligns with your business cycles. This might include:

• Monthly "refresh" evaluations, where slow-moving items are identified
• Quarterly deeper clearance events for items that have truly stagnated
• Seasonal transition periods, where remaining seasonal merchandise is cleared, are the perfect time for the Australian stocktake sale.

The Clearance Zone

Designate a specific area of your store for clearance merchandise. This space should be:

• Consistent in location, you want the bargain-hunters to know where to look
• Distinct enough from your main displays to maintain separation, so it does not cheapen your shop.
• Organised not to look like a jumble sale - Deep in your shop to drag people in.

The key is that this area shouldn't occupy your prime retail space but should still be accessible and professionally presented to shoppers.

Measuring Success with Key Metrics

To evaluate the effectiveness of your clearance strategy, track these key performance indicators (KPIs):

• Inventory turnover rate before and after implementation
• Average time to sell dead stock items
• Recovery percentage on original cost
• Impact on overall store margins
• Changes in new inventory sell-through rates

These KPIs provide objective feedback on your strategy's effectiveness and areas for refinement.

Implementing Your Dead Stock Strategy: Action Steps

Take action now, to find your slow and dead stock using our POS reports will only take seconds. 

Audit your stock

Use your POS system to generate reports of items that haven't sold in the past 6 months and stock that hasn't sold in the past 12 months. Calculate the size of the problem.

Examine other shops' clearance areas.

See what works for others. See how they use it.

Create a Dedicated Clearance Zone

Designate an area for clearance items that doesn't dominate your store layout but still provides visibility.

Visual merchandising techniques

Typically, a red sign works well in Australia, for example, here.

Set Review Period

Schedule regular reviews of inventory performance. You want to catch slow-moving items before they become dead.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

One of AI's great promises is to take data and produce advanced information. The problem is that today, we have too much information that is hard to process; it's just too much. So, let's see what happens when we take real point-of-sale software data and put this promise to the test.

So, we decided to test the AI's understanding of a typical SMB retail shop from its customer's sales report. Knowing your customers is essential for retail success, and we will check whether an AI customer data analysis can help us make informed decisions about them.

The added question is which free AI tools can perform this task most effectively. Only a few SMB retailers have paid accounts for AI ChatBots, so we decided to restrict our tests to the free version. As you will see, we immediately ran into problems with this during this test.

Okay, let's test that and see.

Our Test

We have already established a comprehensive evaluation process to determine which AI systems deliver the most actionable insights here.

So, we challenged six leading free AI systems to analyse real customer sales performance data from 2023 and 2024.

Each AI system received identical instructions: "Using data from the attached CSV files, analyse and compare sales performance and visit frequency for top customers in an Australian Newsagency between 2023 and 2024. Identify key changes in behaviour for the highest-value customers."

For a fair assessment, we evaluated each system's customer analysis report using nine key performance indicators and scored out of 10:

Evaluation Framework

Quality of Information

How accurate was the data presented about customer behaviour and trends? If it's not correct, it's worse than useless.

Usefulness

Do these insights improve a retail business? We do not need useless information.

Clarity

Was the analysis presented straightforwardly and clearly?

Actionability

Did the report provide clear, implementable recommendations?

Accuracy

Were the calculations and conclusions drawn from the data correct? AI is known for giving wrong results. This is a common problem of AIs.

Adaptability

Did the analysis take into account specific retail contexts and customer demographics?

Depth of Analysis

Did the report go beyond surface-level observations to uncover meaningful patterns?

Creativity

Were there innovative suggestions for addressing the identified changes in customer behaviour?

Customer-Centric Approach

Did the analysis effectively segment customers and provide tailored approaches?

Testing Limitations

Unlike our pricing study, we encountered several practical limitations with free AI access immediately:

Claude and Chatgpt required paid accounts to process our instructions, so they failed the free test. However, as they are very important AI chatbots, we decided to test them with our paid accounts, but they failed immediately.

QWEN would only process our prompt by editing it in the window's notebook, so we had to redo the tests with consolidated data. Doing this with QWEN requires some computer skills, which others do not need. We marked it down for this.

All the other AI systems could process our request without issue using their free tier offerings.

Immediately, we saw that when we analysed the solutions, not all of them offered the same ability.

Results Summary

The performance rankings revealed interesting shifts from our previous pricing analysis:

Interestingly, while Google AI topped our previous pricing study, it ranked last for customer analysis.

Detailed Analysis of Each AI Tool

ChatGPT (Score: 78/90)

On the paid version, and I stress the paid-only

Strengths

• We thought it showed exceptional clarity. The report was well-organised, with sections in a logical progression We liked its innovative customer segmentation framework, which includes categories like "Growth Champions" and "Frequent Shoppers."
• We all liked its analysis and felt it was comprehensive
• What we liked was its tailored recommendations for different customer segments

Problems

• There was nothing we thought was innovative, but it worked by the rules. It ignored the location, that we were in Australia, and the same problem we had in the previous test.

Overall

ChatGPT transformed customer data into strategically actionable segments that you can use in your marketing and sales approaches. It saved time but gave us little originality.

Grok (Score: 68/90)

Since it's now free, this is a brilliant AI. You should be delighted with it.

Strengths

• We notice that it is outstanding in its accuracy and attention to detail
• The report was an in-depth and comprehensive analysis
• We liked its comparative analysis of individual customers
• It came up with a category, and we liked the emerging high-value customers

Problems

• We thought that most of the insights were limited in actionability; it's nice to know something, but what is the point of telling us if you cannot use it?
• Also limited in creative solutions
• The report sections did not follow a logical order.

Overall

Grok provided an excellent analysis and identified some subtle patterns in customer behaviour. It would be good to investigate why, though you'll need to develop action plans based on its findings.

DEEPSEEK (Score: 67/90)

Strengths

• Excellent formatting and visual emphasis that make your information accessible
• We liked that it had specific, implementable recommendations tied to analysis findings.
• It was accurate in its data presentation, with correctly identified trends
• Effective customer segmentation approaches

Problems

• Did not give a detailed customer-by-customer examination
• Not that good in a specific Australian retail context
• Recommendations were sound but somewhat conventional

Overall

DEEPSEEK struck a good balance between analytical depth and practical recommendations.

QWEN (Score: 66/90)

Do not underestimate this AI. The only reason it did not win was that it required some advanced computer skills to use. It was not just a simple matter of using it. 

Strengths

• We liked its brevity, which offered highly actionable recommendations
• We liked its concise format, clear headings and bullet points
• It provided good creative thinking in recommendations for improving customer visits
• We liked its suggestion for improving a loyalty program and bundling.

Problems

Small report: Now, this may not be a problem for you. Some of us liked that it produced a good condensed report. They felt they did not want a book; the quicker it could be said, the better. I disagreed; I wanted to know as much as possible. Let me know your thoughts on this below. We thought it didn't consider that we were talking about retail.

Overall

Many people like QWEN's concise, action-oriented approach, which provides quick and practical guidance without requiring extensive analysis.

Claude (Score: 59/90)

It was a paid version, yet its score was bad. You expect it to be better if you pay, but you don't get what you pay for with AI.

Strengths

• It provided accurate data analysis throughout
• We did like its breakdowns of top customers and their performance changes
• It had clear section headings and a well-organised structure
• It identified key account growth opportunities
• It also identified at-risk relationships

Problems

• Overall, it lacked specific implementation strategies
• The segmentation of customer types was bad.
• Again, as with some others, not much is known about Australian retail
• Report sections varied in detail

Overall

Claude was solid but struggled to translate those insights into tailored, implementable recommendations.

Google AI (Score: 55/90)

Now, Google AI is a good AI. Last time, it came out the best, but here, it's the worst. Google changed the free version because it wants you to switch to the paid version.

Strengths

• Methodical approach to analysis
• Accurate calculations
• We thought that it produced logically sound conclusions
• It considered many factors

Problems

• It presented an analysis without any specific recommendations
• Little creative
• Minimal segmentation of customer types
• Limited adaptation to retail

Overall

The free Google AI fell short of providing the strategic interpretation and actionable guidance that retailers need.

Key Findings and Implications for Your Retail Business

Our evaluation revealed several important considerations for using AI:

Different tools excel at different retail tasks

It's all good to analyse, but an ideal AI solution should connect the dots between "what's happening," "why it's happening," and, most importantly, "what to do about it." Not all AI ChatBots are equal.

The significant shift in rankings between our pricing study, where Google AI dominated, and this customer analysis evaluation highlights the critical point that AI is not a one-size-fits-all approach. It also showed that suppliers are moving to a user-paid model.

Usability

Busy retailers need an AI that produces a clear organisation and logical flow.

Practical Recommendations for Australian Retailers

Your specific need

The reality is that different AI systems excel at other tasks. There's no way around it; you need to test which one works better in your circumstances.

Prioritise actionability

Choose AI marketing tools that connect analysis to specific actions you can take. Ask yourself: "What can I do tomorrow based on this information?" If the answer isn't clear, the tool may not be right for your needs.

Provide detailed context

We tested with more specific information about a business, location, and customer base. We did get better results, but that's outside of this test. I would include such information if I were doing it in a shop. Don't assume the AI knows your business environment; even if it does, it can use it.

Verify findings

We found that AI made errors and provided advice that didn't align with business reality. Always check.

Continue with a focused question.

These reports should be considered the start of your analysis. To get more insights, I would ask specific questions about the customer, the segments, loyalty patterns, or purchase frequency. For example, "Which customers decreased their visit frequency in the last quarter?" will yield more actionable results than "Analyse my customers."

Integrating AI Insights with Your POS System

For retailers using our POS systems, connecting AI analysis has tremendous potential. Exporting customer sales data in formats your AI can analyse is easy; you can do this in the report section. I will discuss this in a future post.

The Future of AI

This evaluation demonstrates that AI tools have already reached impressive capabilities. Using them, you can get free access to dedicated data analysts. They offer you access to sophisticated insights previously available only to large organisations.

My thoughts

While it's free, I recommend looking at Grok, our winner.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

We're amazed by the overwhelming response to our EFTPOS survey. Although more responses are still coming in, we need to close the study on Wednesday. If you wish to participate, please do so immediately, as this is your last chance.

We will need to analyse the collected information, and due to the high volume of responses, this process will take some time. However, we are working to complete the analysis quickly, as we aim to have the findings ready before the upcoming elections. We believe the results could help inform and frame the public debate, which was the primary reason we were tasked with conducting this survey.

The processed information will be shared with relevant authorities and used to support decision-making in this area.

Thank you to everyone who participated.
 

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Our office is closed on ANZAC Day to honour those who have sacrificed for us. 

May their memory be for a blessing

Support Availability:

Our after-hours support team remains fully operational today, 24/7. 

Like many, I will be observing the day with my family today. Please direct your matters through the support channels unless urgent. I will be personally available again on Saturday.

I was listening to a discussion on retail security in the UK. What stunned me was the discussion on the growing use of body-worn cameras. These are becoming standard security tools in retail there. Australian retailers will begin to explore their full potential here. These cameras present a promising solution for improving retail security, loss prevention, and staff safety.

Global Trends and Local Adoption: Where Does Australia Stand?

In a survey in the United Kingdom, 60% of retailers have adopted or reported testing these cameras. Although I have no figures for the UK, retailers have reported a 37–45% reduction in violent incidents after introducing these cameras in the United States. According to a 2024 Motorola Solutions survey in the US, more than half of global retail workers feel safer equipped with these cameras. It all sounds pretty positive.

Why I Think that Body-Worn Cameras Matter for Australian Retailers

Deterrence

The visible presence of cameras reduces and discourages aggression. For example, UK supermarkets saw a 20% drop in aggressive incidents after adopting these cameras. It creates a safer work environment.

Evidence Management

They produce a high-definition video from a staff perspective, which provides reliable evidence for resolving disputes and improving incident resolution and loss prevention outcomes.

De-escalating Conflicts

It has been found that they generate a psychological deterrent, as being recorded has led to a dramatic reduction in assaults in the UK.

Supporting Accountability

Video evidence protects staff from false accusations and customer complaint investigations.

Improving Operational Efficiency

I can see many advantages.

The faster incident resolution would streamline the investigation of discrepancies, customer complaints, and workplace incidents.

We have investigated integrating these cameras into our point-of-sale system. This promises to link your transaction data with video evidence so you can view each incident comprehensively from the staff's view.

The cameras required

After some searching, I found them selling for $30, but I would not recommend them for several reasons. Looking at them, one can see clearly that not all such cameras are equal.

I noticed in the UK talk that the retailers discussed several types, all of which were of good quality. Not surprisingly, the right choice for a body-worn camera in your retail environment can make a significant difference to staff safety, loss prevention, and operational efficiency.

I put together some critical features and practical considerations for Australian retailers that I can see.

Key Features in cameras in a Retail Setting

Video and Audio Quality

Clear footage is critical for incident review, evidence management, and staff protection. I would suggest:

• Minimum 1080p high-definition video resolution to ensure faces and actions are easily identifiable.
• A wide-angle lens to capture a broader field of view is especially useful in busy shop environments.
• High-quality microphones to record conversations accurately, supporting dispute resolution and compliance.
• Date and time stamping??? The courts want accurate, tamper-proof date and time stamps, but the problem in my experience is that time drift and daylight saving can be a real pain to use in practice. I leave this to your judgement.

Battery Life

Your staff work many long hours.

• Aim for at least 12 hours of battery life per charge to cover a full shift.
• I noticed some models had quick-swap batteries, which would give added flexibility, and I recommend.
• You need spare batteries.

Ease of Use

Since your staff is probably not a photographic expert in a shop, you need intuitive technology.

• One-touch recording ensures staff can activate the camera quickly, even under stress.
• Visual and vibration indicators confirm when recording is in progress. As it's visual, your customers know it's recording, and as it vibrates, your staff do too. This reduces uncertainty.

Discreet and wearable

• As no one likes Big Brother, you need something that intimidates customers as little as possible.
• Easy to wear with many different outfits.
• Wireless upload, so if anything happens, you have a record.

Storage Capacity

Fortunately, retail incidents are infrequent, but when they occur, you will need substantial documentation

• Look for at least 32GB internal storage or higher.
• Loop recording means you do not have to reset it continuously because the oldest footage is overwritten.

Low-light and Night Vision Capability

Shops often have poorly lit areas. Cameras with low-light or infrared capability capture critical details regardless of lighting conditions.

Durability

Retail environments are terrible environments for electronics. People drop them, dust is often around, and, as we have discovered with our other POS equipment, people love to drop coffee over the equipment.

Legal compliance

These cameras in a retail setting require more rigorous legal compliance than regular fixed cameras. This is due to their ability to record private conversations and sensitive interactions, which triggers stricter privacy, consent, and data protection requirements under Australian law. You should discuss this with someone who knows more about these things than I do. Please consult for legal advice to comply with federal and state laws, as requirements vary. In Tasmania, for example, if you are recording sound, you must notify people somehow.

I would only use cameras with encryption and allow only senior staff access to the information. Make a clear policy of deleting the information after 30–90 days unless required for an investigation; if the camera is set to loop recording, as I suggested earlier, this would happen automatically.

Return on Investment

My understanding is that this is very good.

UK retailers claim to recoup their investment within 6–8 months through lower theft rates. Interestingly, they also claimed it minimises the risk and costs of wrongful dismissal claims and workers' compensation disputes.

Future Outlook: 2025–2030

When I asked our suppliers, they told me that the security industry forecasts that Australia's market for such cameras will grow by 23% annually by 2030.

Practical Steps for Retailers Considering Body-Worn Cameras

If you are considering such cameras for your retail business, I suggest:

- Buy a cheap one and try it out. There is no point in getting an expensive one and finding it unsuitable. Cheap ones start from $40.

- Try it first and see how you go.

- Then get your staff to try it.

- Review 

Further reading

Here  are links that I think you will find helpful on this subject

Can cameras save our shop workers from attack?

Why retailers are turning to body-worn cameras for loss prevention.

Body-Worn Cameras for Retail and Shopping Centres

Tackling the retail crime epidemic with technology – Are body-worn cameras the answer?

Will Body Cameras Scare Shoplifters?

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Cash Out Day is tomorrow, 22 April 2025. It is a practical reminder that many Australians value cash as a payment. As digital transactions have surged, the movement to keep some money viable has gained real traction. Last year's Cash Out Day drove a 6.2% spike in ATM withdrawals and up to 14% increases in some shopping centres. Most people felt there was no need to withdraw cash unless they went to a place like a shopping centre where they could spend it.

It showed that many Australians still value access to cash.

Supporting Cash Out Day is not just about being opposed to technology (a Luddite); it's about ensuring that cash as a payment method is necessary for our community now.

The Evolving Role of Cash in Australian Retail

Cash usage in Australia has declined sharply. It now represents 13% of consumer transactions, down from 70% in 2007. This shift has created a crisis for cash as the infrastructure needed to support it becomes less viable, e.g. nearly half of all bank branches have closed since 2011, ATM numbers have dropped by over a quarter since 2016, and Armaguard has been struggling due to the dramatic decline in cash usage across Australia. It has been creating a potential crisis, according to the ACCC, for the estimated "one in four Australians who would face genuine hardship or major inconvenience without access to cash."

Does Cash Acceptance Still Matter for Your Business

Customer

The ACCC stated, "Cash is the preferred payment method for approximately 1.5 million adult Australians, who rely on it for over 80% of their transactions." By accepting cash, you ensure your business is accessible to these customers, too.

Financial Benefits

Often forgotten is that Cash payments offer immediate settlement. They eliminate the settlement periods associated with electronic transactions and avoid the processing fees that come with card payments. These fees average around 1.5% per transaction for SMB retailers. These fees are also unfair as they affect SMB retailers more than large retailers.

Additionally, cash provides operational resilience. Digital payment systems experience outages. I had a customer who lost over $8,500 when his EFTPOS went down for most of the day. Australia does not yet have the infrastructure to support a cashless society.

Regulatory Developments

The Australian Government has stated it recognises the importance of cash, but no one has seen it do much. Their recent proposal to force businesses to remove EFTPOS surcharges is unfair as it stands as they have not answered who is supposed to pay this cost. I doubt the goverment intends to pay it.

Practical Steps to Support Cash Out Day 2025

If you want to support Cash Out Day 2025 actively. Here are practical actions you can take to demonstrate your cash commitment:

Take some money out of an ATM

It is what the organisers want, and it indeed is, as you can see that this statistic has been widely quoted. Simply go and take some money out of an ATM. 

Then tell your friends to do the same.

Display Window Signage

Put a sign on your shopfront stating "Keep Cash" or "Cash Welcome Here." This simple gesture signals that you value cash.

Sign and Share the Petition

The Cash Welcome campaign's petition has gathered over 200,000 signatures advocating for guaranteed cash access and acceptance.

Click here if you want to sign.

Create In-Store Promotions

Consider offering a small discount or bonus item for cash purchases on Cash Out Day. After all, many people will have more cash tomorrow and are looking for where to spend it.

The Future of Cash in Australia: Strategic Balance

While digital payments will continue to grow, I feel, and I hope you do, that cash will remain a vital part of the Australian economy for the foreseeable future.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

A simple fridge thermometer can deliver substantial benefits to your business. I had a client who got a free fridge thermometer, tested it out, and instantly reduced their energy costs by adjusting the fridge. They would also have saved by minimising food waste and extending the life of the fridge by working it less. A fridge thermometer is a low-cost, high-impact tool for retailers focused on energy savings and retail food safety.

What Is a Fridge Thermometer?

A refrigerator thermometer that accurately reads your refrigerator’s internal temperature is needed. Most fridges use a numerical setting (1 to 7), but you need temperature, which makes it impossible to check.

How a Fridge Thermometer Saves You Money and Reduces Food Waste

Energy Savings

In many shops, the fridge is the largest energy user. When it runs cold, it uses more electricity, increasing operating costs and ruining the food. Conversely, running hot causes food to deteriorate too quickly.

Most retail fridges need to be at 3°C to 5°C, and freezers need to be at -15°C to -18°C. You cannot verify this without a fridge thermometer.

The problem is that commercial fridges will increase a shop's costs with frequent door openings, hot environments, and poor maintenance. A small commercial fridge uses about 500 kWh, and a larger one can be up to 17,000 kWh. At about 40 cents a kWh, that currently works to between $200 and $6,800 a year, and we all know that electricity costs are rising..

Raising the fridge's temperature by a degree reduced its energy consumption by 5% without impacting the business. This is a first-level approximation of about $60/year in savings.

Fridges Life

Fridges that operate above their ideal temperature range will increase wear and tear on the compressors and seals. The cost of repairs is often the most expensive cost of the fridges.

Low-Cost

After a net search, I found affordable fridge thermometers for only $3.16, $5.65 and $2.99 (see the red arrows above). The potential savings in reduced energy bills would offset this investment in the first month in the above shop.

Please ensure the thermometer you pick is designed specifically for your desired temperatures.

Digital models are easy to read at a glance, but analogue versions are simple and require no batteries.

I do not know if you need an alarm, but I did notice that some digital thermometers include alarms that notify you if temperatures move outside the safe range. If you do, this could be a valuable feature.

How to Use a Fridge Thermometer for Best Results

I would test it first by placing it next to an existing Thermometer, leaving it for a few hours, and ensuring it is producing a good result.

You can find a position below the top shelf and towards the front or near the door because that is where you need to review the most. If you intend to monitor continuously, you need the place to be visible and at eye level, making checks straightforward. Now you can stick it into the fridge, leave it overnight and see the result the next day.

If the temperature exceeds 5°C, adjust the fridge setting accordingly. If the temperature falls below 3°C, change the setting to conserve energy.

If food safety compliance laws are essential to you, you may need to note the temperatures.

Frequently Asked Questions

Q: What’s the best temperature for my fridge and freezer?
A: Fridge: 3°C to 5°C
Freezer: -15°C to -18°C

Bonus Tip for the fridge

Regular Maintenance, such as cleaning the door seals, checking for ice build-up, cleaning coils, and periodically defrosting freezers, will save you money.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Today, EFTPOS payment plays a key role in retail! We need to hear your thoughts on what you need with FTPOS.

If you're a customer running our POS System, we need your feedback to help us create EFTPOS solutions tailored to your needs, making your business even more successful!

Understanding EFTPOS Integration

EFTPOS integration creates a direct communication pathway between your Point of Sale (POS) and payment systems. This seamless connection eliminates redundant data entry, reduces handling time, and reduces mistakes.

Why Your Input on EFTPOS Integration Matters

Implementing any EFTPOS integration is a significant investment for our team and your business. This goes beyond simply connecting a terminal—it involves creating systems that complement your workflow and work with the new system requirements errors. Each is a few months' work.

Prioritising Your Business Requirements

We want your priority for cost considerations, system reliability, support quality, contract flexibility, and feature availability. What factors are most critical for your business currently?

How Your Feedback Will Shape Our Development

Your survey responses will directly influence our approach to future EFTPOS integrations and determine which payment solutions we prioritise for development. It isn't merely a data collection exercise—your input will guide concrete improvements to our EFTPOS offerings for Australian retailers.

All responses remain confidential and will be used exclusively for service improvement.

Survey Completion Time

One minute!!!

We've designed the survey to take approximately one minute to complete.

Appreciation for Your Contribution

Your feedback will shape EFTPOS solutions that enhance efficiency, accuracy, and profitability for Australian businesses.

Thank you for partnering with us to create effective payment solutions.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Let's talk Easter. It's almost here; frankly, too many shops leave money on the table during this peak trading period. It's a shame if you look at the splurge forecast's potential for Easter this year. Potential doesn't pay the bills. Making the most of Easter isn't about luck; it's about smart, decisive action based on facts, not guesswork. Do something to capture your share of the Easter spend!

The Easter Spending Reality: Know the Numbers, Then Act

Before we talk about strategy, could we clarify the fact? The Australian Retailers Association (ARA) and Roy Morgan have laid out the landscape for Easter 2025.

"According to data from the ARA and Roy Morgan, 6.2 million Australians are planning to use the Easter break for DIY projects around the home. Nationwide spending for this sector is projected to increase 27 per cent year-on-year to $6.7 billion."

While shoppers might be watching their wallets overall, they plan to spend. Your job is to align your shop with where the money is going.

Everyone is talking about the fact that Easter goods will be dearer in 2025 than last year. We can't do anything about it, but please be ready to answer people if it comes up. I doubt it will be hard to explain as they know about this problem unless they live under a rock.

Figures show that, on average, shoppers will have to spend about 9.5% more on their Easter chocolates than on Easter 2024. Interestingly, Darrell Lea, the brand of many of my customers in the market, has no price from what I could see.

Common Easter Retailing Mistakes (And How You'll Avoid Them)

Based on my experience working with countless retailers, here are the critical errors I see businesses make year after year during Easter. Avoid these, and you're already ahead of the pack.

Mistake 1: Ignoring the Data & using gut feel

Too many retailers rely on gut feelings and/or memory without checking the facts. That's just lazy. Do some research, particularly on food and chocolates. Your stocking decisions must reflect this reality.

Action

Dive into your Point of Sale (POS) system. Run reports like "Top Selling Items" or "Sales by Category" for last year's Easter period (use the two weeks leading up to Easter Sunday). See what is sold in your shop! Don't guess, but know!

Action

Use this data and the 2025 spending forecasts to place your orders. Look at proven sellers in the key categories (treats, DIY). Don't forget small items like themed decorations, small gifts and greeting cards. Put them where they will be noticed.

Mistake 2: Being Invisible

Potential customers will walk past your shop if people cannot see your Easter product. For Easter, they need an immediate, compelling reason to enter. Weak window signage or your generic display won't cut it. You must grab attention and scream to the world, "Easter products here!"

Action

Use bold, clear signage in windows and throughout the store. Announce your Easter specials, highlight key product categories (Easter treats, DIY supplies), and make your unique selling points obvious.

Mistake 3: Running Uninspired Promotions

Slapping a simple "10% off" sign-up is unimaginative and often erodes your margin. Customers are bombarded with discounts; yours must be more innovative and engaging to drive sales and increase basket size.

Action

Create an Easter Bundle.

Most of you have a loyalty program; use it!

Mistake 5: Flying Blind Without Your POS Data

It loops back to Mistake 1 above, but it deserves its point because it's fundamental. Your POS system isn't just for taking payments; it's your business intelligence hub. Failing to use its reporting tools before and during a peak period like Easter is like driving blindfolded.

Action: Deeply analyse last year's Easter sales data before ordering.

Need some ideas

See what worked last year in your shop

Go to Register reports.

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

Put in,, say,, two weeks before Easter 2024, and check them out

As these items worked for you then, they should work for you again this year.

Now look at:

-Top-selling products overall.

-Best-performing categories.

-Sales trends day-by-day (when did the rush start?)

-Average transaction value (can promotions lift this?).

Your Easter Success is 100% you.

Let's be blunt: Easter presents a significant opportunity. Whether you capture your fair share depends on preparation and execution.

Good luck, and make this Easter your most profitable yet.

Easter is a great day to shop in retail as the holiday season is short, but sales can be impressive.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The toy retail market has always been challenging. Because trends shift rapidly, retailers must have sharp insights to succeed, as the trend graph below shows.

It did go down a bit recently, but it's expected to go up this year.

I was talking to a major buyer of toys in a large retail store, and here is his advice based on his experience. It's useful as it shares practical lessons from someone on the front line. Could you consider implementing his strategies to boost your shop's sales?

Lesson 1: Beware the Risks of Media Hype

Product hype, with media hype, can present a financial risk if the hype fails and consumer excitement does not translate into sales for some reason. A recent example that sparked this conversation involved the recent Disney Snow White dolls released alongside the film. Shortly after the film's release, we can see deep discounts on these dolls, which are widely appearing across major retailers. Look at the green arrow; you can see it's already at a 34% discount.

This rapid price reduction suggests that initial inventory orders have overestimated consumer demand.

Interestingly, this apparent overstock situation doesn't stem from dissatisfaction with the product. Early consumer feedback often highlighted the dolls' quality and design. Could you look at the red arrow highlighting what consumers thought of the product? 4.8 out of 5 is good. Instead, the poor sales appear directly linked to the film's disappointing reception. It shows that a well-made product can falter if the media it depends on underperforms.

Actionable Takeaway

Diversify inventory

Do not over-invest in recent trend-based items. Could you look at your good sellers and analyse your POS data relentlessly?

Strategic Ordering

Start with a small order for high-risk, licensed products. Reordering successful items is often less costly than discounting to clear unwanted stock at a loss.

Leverage Local Insight

Monitor your customer inquiries. Local demand is often a more reliable predictor than national forecasts. Again, your POS system is critical for tracking these trends.

Lesson 2: Look at LEGO

Contrast Disney's unpredictability with consistently high-performing brands like LEGO. LEGO always seems to sell; ask yourself why.

We thought it was because LEGO has extensive appeal. It is not just that while children are a core market, the brand also cultivates a massive and lucrative adult base. You can see this if you look at LEGO's tactics: with its limited editions and controlled releases, they do not just sell toys.

Actionable Takeaway

While securing LEGO exclusives might be difficult, focus on creating unique value propositions.

Target High-Value Niches

Consider courting adults as this 'kidult' market often has higher disposable income.

Create In-Store Exclusivity

Try to be unique in some way.

Bundles

Pair a popular toy with a related item, e.g. a book, craft kits, etc.

Strategic Promotions

Run limited-time, store-specific offers. I had a customer who brought some LEGO limited edition products based on space travel; they generated a lot of interest.

Look at the red arrows; they are not even targeted at kids. While you are at it, look at the price points.

Lesson 3: Target the Grandparent Market

What you can see in the toy market today is the growing financial influence of grandparents in toy purchasing. Today, they have fewer budget constraints than parents facing the rapidly increasing cost of living pressures. Grandparents today have significant spending power and a strong desire to treat their grandchildren. It makes them a crucial, high-value customer segment for independent toy retailers.

These grandparents prioritise durability, educational value, nostalgia, or finding that special 'wow' gift. They often buy from their memories, and your sales approach must reflect this.

Actionable Takeaway

Optimise your store and service model to get this lucrative demographic.

Accessible Store Layout

Make the physical shopping experience easy and pleasant for older customers.

Gift-Centric Approach

Offer attractive gift wrapping, create pre-made gift suggestions or bundles, and display items clearly as potential high-quality gifts.

Lesson 4: Fewer Kids, Fewer Hand-me-downs

There is a broad social trend now with our declining birth rates, which directly impacts the toy market.

Smaller families often mean fewer "hand-me-downs." Big Brother no longer has a little brother who can get his toys, which increases the need for more new toy purchases per child. Also, the budget per child has increased with fewer children. People buy fewer toys overall but spend more on them.

The market is shifting from quantity towards quality.

Actionable Takeaway

Prioritise well-made brand toys

Make this a key selling point in displays, signage, and staff interactions.

Justify Price Points

Do not shy away from higher prices for superior products.

Lesson 5: Educational Toys

Despite economic pressures and shifting trends, the demand for educational toys remains consistently strong. Parents seek developmental advantages, and grandparents favour toys offering substance beyond fleeting entertainment. It resonates powerfully across key customer segments.

Educational value is a potent, non-negotiable selling point that cuts through market noise. It aligns perfectly with the purchasing motivations of parents and, critically, the influential grandparent segment.

Do not forget educational toys.

Layout

Maintain a robust, diverse selection of science, arts and crafts, problem-solving, literacy, and imaginative play that builds cognitive or social skills. Use clear signage and shelf talkers to show educational aspects. Make it effortless for customers to find toys that teach.

Train for Authority

Could you make sure that your staff can confidently articulate specific educational benefits?

Conclusion: Thriving with Today's Independent Toy Retail Trends

The toy market presents undeniable challenges: unpredictable licensed products (Snow White example), the need to compete with giants (like LEGO, by adapting their strategies), understanding key demographics (grandparents), adapting to societal shifts (value focus), and meeting persistent demands (educational play).

Success requires decisive action. As independent retailers, your agility is your advantage. React faster than chains, curate stock based on your customer data, build genuine relationships (especially with high-value grandparents) and deliver outstanding value through quality and expertise.

Leverage your POS data to rigorously track sales and customer preferences. Understand these market dynamics. Reduce the hype risks, broad appeal tactics, key customer segments, the value shift, and educational demand. Make strategic inventory, marketing, and store experience decisions. Focus relentlessly on what works for your business to survive and thrive.

What's Your Next Step? Which of these lessons will you implement first in your store? Share your biggest challenge or success story related to these trends in the comments below!

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Pricing products effectively remains one of the most challenging aspects of retail management. It's a problem. You get a product you have never handled; how do you price the item for sale now? Getting it wrong can significantly impact profitability and competitiveness. Many people today have suggested that the new AI Chatbots can help, but none, as far as I know, have shown any proof of this. So, to address this problem, we conducted a comprehensive evaluation of six free AI chatbots to assess their effectiveness in pricing recommendations for Australian retailers.

Our Testing Methodology

We tested a scenario of a small newsagency in Keysborough, a typical Melbourne suburb located in a strip shopping centre. The test focused on pricing a specific product: a Pilot Frixion Ball Erasable Gel Pen pack containing three pens (black, blue, and red) with a fine 0.7mm tip using only free CHATbots.

Why only Test Free AI Tools for Stock Pricing?

We restricted the test to free AIs because most retailers are only now experimenting with AI chatbots. Few have purchased an AI Chatbot plan, whose costs now vary from about $25 to $200 plus GST (I have a customer who uses AI in our POS Software and runs a bill of up to $10 daily). Once you get into paid plans, there is a massive difference in what you get.

Free tools can offer an accessible starting point, but not everyone is equal for all tasks, as you will see here.

So, we limited our evaluation to these six popular free AI chatbots:

ChatGPT (OpenAI)

Claude (Anthropic)

DeepSeek

Google AI

Grok 3

Qwen

We wanted to test meta AI, which had announced a significant update, but unfortunately, it was not available when this report was written.

After multiple iterations to refine our approach, we developed a standardised prompt that described the retail location, business type, and product specifications. We then evaluated each chatbot's response based on nine key performance indicators. It all took a lot of time.

Evaluation Framework

Each AI tool was assessed across nine KPIs, with each scoring out of 10, giving us a maximum possible score of 90.

Quality of Information

Accuracy and relevance of data regarding the product, competitors, and market conditions

Usefulness

If the advice is impractical, what is the point of getting it?

Clarity

We are all busy people; we need something well laid out and comprehensible.

Actionability

We wanted clear, implementable recommendations

Accuracy

AI Chatbots do make errors and mistakes. We want correct information on costs, retail prices, and market trends

Adaptability

Not surprisingly, we found that to price appropriately in local retailing, the advice needs to be for a specific location and a store's customer demographics

Depth of Analysis

Besides price, we would like advice on various pricing strategy aspects

Creativity

It would be lovely to get information on innovative suggestions for marketing, e.g. bundling, promotions, or other sales strategies

Customer-Centric Approach

Not all customer segments react to pricing similarly, so we want to know how each responds. You rarely care if you get too much information.

Results Summary

The performance of each AI chatbot is summarised in the table below:

Notably, the top three performers delivered remarkably similar price recommendations, suggesting a similar practical use by a retailer on the top tools.

Detailed Analysis of Each AI Tool

1. Google AI (Score: 87/90)

Strengths:

• Provided accurate pricing recommendations based on local competitor analysis, correctly identifying Coles' price range of $9.50–$14
• Suggested appropriate margins of 35–50%, aligning with industry standards
• Delivered a logically structured report with clear reasoning

Areas for Improvement:

• Some sections contained overly technical markup calculations that would be challenging to understand.
• User interface could be more intuitive for retailers without technical expertise

Key Insight:

Google AI excels at tracking and analysing local competitor prices, making it highly effective for crafting a pricing strategy.

2. Qwen (Score: 83/90)

Strengths:

• Proposed innovative bundling strategies, such as pairing pens with notebooks at $12.99 to increase perceived value
• Included practical promotional messaging suggestions (e.g., "Save $1 vs Coles!")
• Presented information in an accessible, actionable format

Areas for Improvement:

• Assumed a wholesale cost of $6.50, which appeared to be unrealistically low based on market research

Key Insight:

Qwen's focus on bundling opportunities and targeted promotional strategies makes it particularly useful for retailers looking to maximise revenue through upselling techniques.

3. Grok 3 (Score: 81/90)

Strengths:

• Provided detailed customer segmentation analysis, correctly identifying pensioners as a key demographic in the Keysborough area
• Recommended a four-week price testing strategy to refine the pricing approach based on actual sales data

Areas for Improvement:

• Suggested profit margins were lower than industry standards
• Report contained unnecessary repetition

Key Insight:

Grok 3's demographic analysis capabilities make it particularly valuable for retailers to align pricing strategies with local customer profiles.

4. DeepSeek (Score: 65/90)

Strengths:

• Effectively highlighted product features (such as erasable ink) as unique selling points
• Suggested strategic product placement near complementary items to encourage cross-selling

Areas for Improvement:

• Recommended pricing ($12.99–$13.99) significantly exceeded competitor rates
• Technical terminology like "left-digit effect" was used without explanation. A left-digital effect charges a $10 item as $9.99. Did you know that? We did not know until we looked it up.

Key Insight:

DeepSeek appears better suited for premium or specialty product pricing than standard retail items with established market positioning.

5. ChatGPT (Score: 58/90)

Strengths:

• Provided a well-written, easily comprehensible report

Areas for Improvement:

• Wrong information, e.g. it inaccurately estimated competitor pricing ranges
• Did not check the local pricing of the product
• Lacked depth in analysis and failed to provide sufficiently actionable recommendations

Key Insight:

In our test, ChatGPT's generalist approach proved inadequate for the nuanced requirements of a retail pricing strategy in a shop in the Australian market.

6. Claude AI (Eliminated)

Claude AI was disqualified from the final evaluation due to its inability to access real-time data and lack of localisation features for the Australian market, rendering its recommendations useless.

Key Findings and Implications

If looking at an AI Chatbot, you need to look at:

Real-time competitor analysis

You will not be able to do a good job of pricing if you do not have local information; this led to a pricing recommendation by ChatGPT that was disconnected from market realities.

Value-added bundling recommendations

Does it offer ideas to sell the product

Demographic-specific insights

In most shops, there are several different customer demographics, and these when pricing needs to be considered.

Overly technical presentations

Some Chatbots made us feel that the complexity was excessive, making the report difficult even though we told them not to make it complex.

Conclusion and Recommendations

For Australian SMB retailers seeking to use AI tools for pricing, Google AI, Qwen and Grok 3 emerged as the best due to their accuracy in competitor tracking and logical approach to margin calculations. Any of these can do the job well. If I were pricing an item and wanted some advice, any of these three Chatbots would give me good advice. As there must be a winner, Google AI won.

If you are interested in looking into this technology, I would suggest:

1. Testing multiple free AI tools to identify which best aligns with your specific business needs
2. Please don't assume the chatbot knows your local market conditions; the more you tell it, the better. You are better off assuming nothing.
3. Check the AI report, as wrong information was sometimes supplied.
4. Gradually expand your AI Chatbot over time.

This research demonstrates that free AI chatbots can provide valuable pricing insights for Australian retailers, though their effectiveness varies significantly across tools. By selecting the appropriate AI assistant and providing relevant contextual information, retailers can enhance their pricing strategies without investing in expensive subscription services.

Have you tried any of these tools yourself doing this type of test? Please share your experiences in the comments below!

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

You get a good internet plan, and your internet provider says it is fast. They get you to run a speed test, and it shows your internet connection is quick, but really, you do not see it. It is common for people to feel that their internet is slow even though everyone tells you it is fast. I got such an enquiry yesterday. No one likes to wait; reliable internet isn’t just a convenience. After all, it’s essential for keeping your business running smoothly.

The Limitations of Internet Speed Tests

People seem to expect too much from these tests. What internet speed tests do is measure your connection under ideal conditions. They don’t often reflect the complexities of real-world internet usage. Here’s why:

Local Testing

Speed tests will often connect to servers geographically close to your location, thus minimising delays and avoiding congestion when connecting to more distant places. Usually, large internet providers use their speed test servers within their networks. These problems cause artificially high results. Also, some providers deprioritise types of traffic that they think can wait. As a result, your speed test might look great, but your experience is much slower.

Simplified tests

Speed tests rely on consistent, high-volume traffic and don’t account for the complexity of everyday tasks like video calls, streaming, or running multiple devices on the same network. These activities introduce variables that can significantly affect performance.

Peak Usage Times

In Australia, internet speeds often fluctuate based on demand. I have noticed in the evening it can slow right down. People tend to ring internet companies for support in the day time when they have some time.

Outdated equipment

Despite what many say, the quality of your modem and router play a significant role in Internet performance. When we replaced outdated equipment on one site, we saw an immediate improvement.

Software and Background Activity

Sometimes, slow internet is caused by what you are doing, if your computer is working, people are doing things in the shop, background apps and/or automatic updates are running often without you realising it. Yeah it can run slow.

External Network Congestion

If what you are doing is going say overseas, who knows where on the chain something could be causing problems. This is especially relevant as many of our customers rely on the internet for contacting their overseas suppliers

Practical Steps to Improve Your Internet Experience

If you’re frustrated by your slow Internet despite good speed test results, there are steps you can take to improve performance:

Upgrade Your Equipment

Check whether your modem and router are outdated; maybe consider upgrading to models that support higher speeds.

Move your Equipment

Check that your modem is away from interference sources, and move cables away from your network cables if possible. We had a customer who was running slow. The cause was that one of their internet cables was running just on top of the fluoro lights.

WIFI

I recommend Ethernet cables for critical devices like POS systems; they are generally faster and more stable. WIFI can sometimes cause problems. We laid a cable in one shop, and the problem disappeared.

Schedule your usage

Often, just moving when you do tasks can help. If it tends to be busy in the evening, move the task to an earlier or later time.

Test

If you are going to use a speed test, try this one

testmy.net

What I like about it is that it can test your speed and then give you a score compared to what other people in your city are getting. It can also check your speeds to overseas countries if that is what you are interested in.

I set it on a computer to run automatically every hour and then see what it says over a day.

Contact Your Internet Provider

If problems persist after troubleshooting, I would like to contact your internet provider for help. Ask them about the area you are in and your expected performance.

A Reliable Connection Is Key for Retail Success

A reliable Internet service is a necessity for running a modern business.

If you’re still experiencing issues after all of this, it might be time to consider upgrading your plan or switching to another provider!

We did!

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Loyalty programs are the most popular type of program today. They have successfully fostered customer retention and driven sales. What it is trying to overcome is that unless a person buys regularly from you, it takes time for them to accumulate enough loyalty points to make it worthwhile to use them. This allows people to purchase points that can be used now. It boosts sales as it functions much like a gift card.

What Does It Mean to Sell Loyalty Points?

Selling loyalty points allows customers to purchase points instead of earning them through spending. The points can be redeemed now. For example, a customer might use points as a discount to buy more points. Many large brands, such as airlines, Hilton, and Starbucks, successfully employ this strategy. With proper planning, it could work for you, too.

Key Mechanics of Point Purchases

Similar to gift cards, which many of you now sell, customers pay upfront for points that they can redeem later. Think of it as a top-up.

This approach would be convenient in industries where people visit infrequently.

Advantages of Selling Loyalty Points

Enhanced Revenue Streams

Selling loyalty points provides immediate cash flow.

Improved Customer Experience

Customers gain control over their loyalty journey. With its accelerated progress, it can be used immediately.

Competitive Differentiation

Offering point purchases sets you apart from competitors still using traditional programs.

Valuable Behavioural Insights

As the points go to the actual buyer, a gift card goes to the buyer, making it harder to track what your customers want. This is a big plus as you can utilise the reports in the VIP section, so allowing better customer tracking.

Implementing such a system

Define Your Pricing Model

In this image above

$300 gives the customer $330

$500 gives $565

$1,000 gives them $1,150

I think it's too much, and I would suggest something like

$25 gives them $25

$50 gives them $52

$100 gives them $104

$250 gives them $255

The reason $25 gives them nothing better is that you do not want to encourage people to buy these points just to get a discount. Additionally, as is typical in such schemes, large purchases often result in a slightly worse deal than the $100.

Integrate with Your POS System

With our modern POS system, you can simplify point sales by:

1. Automate point issuance upon purchase
2. Syncing inventory with redemption options
3. Tracking customer purchase/redemption patterns

There is no reason why you cannot experiment with offers like “Double Point Days,” which many retailers use.

Communicate Clearly

1. Use in-store signage to explain how it works. No point in having it if no one knows bout it.
2. I could see how someone like a barber could use it to send out targeted offers like “Need 50 more points for a free haircut? Buy them now and save $15!”
3. Train the staff to explain the program’s value during checkout.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The Australian dollar (AUD) is in a decline against its major currencies. It presents a significant economic challenge. Some people attribute this problem to external factors, such as trade tensions with other countries. However, the real causes are deeply rooted in Australia’s financial situation.

Here is a table to show this.

Just looking at the table, you can see that it's not Trump, as we received only the minimum 10%, and yet almost everyone, including those who received more, is doing better than we are: Japan, 24%; China 54%; and India, 27%. None have seen their currencies drop as much as ours. 

The Australian dollar is now at a five-year low. It has been going down for years, and the forecast for it is not good.

We are facing significant challenges for retailers since nearly everything is imported. Let's now examine Australia's Retail Outlook.

Retailers must adapt

Why Is the Australian Dollar Dropping?

That's a good question I wish would be asked more often now.

Our economy

This decline is compounded by external factors such as global trade dynamics and Australia's reliance on commodity exports. It has not been pretty for quite a while, and now our currency is viewed as a “risk currency.”

China’s Economic Slowdown

As Australia’s largest trading partner, China’s weaker economy and economic uncertainty are dragging down the AUD.

Commodity Dependence

Australia relies heavily on exporting commodities. Much of this is in uncertainty.

Unemployment

While unemployment rates are currently low, job availability in high-paying, export-oriented sectors, such as mining, is shrinking. This trend could lead to problems.

To many of you, this will affect your customers' spending habits.

How Does a Weaker AUD Affect Retailers?

Fewer tourists

Many of my customers tell me how they miss the Chinese tourists. Tourism is vital to us.

Rising Business Expenses

As we all sell products sourced internationally, you’re likely to be hit by higher wholesale prices soon. A weaker AUD makes imports more expensive.

These increased costs often lead to higher retail prices and/or a squeezing of profit margins.

Increased Operational Expenses

Beyond inventory costs, other business expenses will rise:

####Energy Prices In addition to the rising electricity prices we now face, Coal remains a dominant source of electricity generation in Australia. Since coal prices are set in US dollars, a weaker AUD directly increases electricity expenses for businesses.

Shipping Costs

Importing goods becomes more expensive as freight costs are typically calculated in foreign currencies, often the US dollar.

What Can Retailers Do to Adapt?

Consumer Spending Slowdown

With inflation now eating into household budgets, shoppers have prioritised essentials over discretionary purchases. This trend is if you sell non-essential items, such as fashion or gifts. I suggest stocking items that are necessities. Children are not being affected by this trend.

Diversify Your Supply Chain**

Relying on a single supplier is risky when currencies fluctuate; local goods and local suppliers might reduce reliance on imports. Shop around; different suppliers in different countries are affected differently. For example, a New Zealand supplier is only marginally affected, whereas a Japanese supplier would be significantly impacted.

Use your POS System

As prices and the economy change, the quickest and best way to assess your business and its current status is through your POS System. It will tell you trends, what is working and what is not working. What you need is actual data in real time.

Conclusion

Retailers in Australia faced a challenging period.

We need to focus on the customer experience.

The future belongs to those retailers who adapt.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Old stock refers to stock that has remained unsold for an extended period. This stock will hurt your business.

• Unsold stock ties up money.
• Every inch of shelf space in your store is valuable, so old stock prevents you from showcasing stock that sells.
• Items will lose value just sitting on the shelf.

The first step is to identify the old stock using your advanced point-of-sale (POS) system, as I'll show you here.

Then, we will need to manage it, as it is not going away now.

How to Identify Old Stock

You can quickly pinpoint this old stock by combining your technology.

Leverage Technology for Better Insights

Modern point-of-sale (POS) systems track and identify old stock. Here's how our POS software can help:

• Generate reports to identify items with low or no sales over specific periods.
• Flag seasonal goods that haven't sold after their peak period.
• Tell you how long each product has been sitting on your shelves.

Pro Tip

We invite you to explore our engaging training video on identifying old stock. Click here for a training video on identifying old stock.

Divide and Conquer Your Inventory Search

I suggest focusing on one department. Once that is done, proceed to the following department. Make sure you work systematically.

It avoids making you feel overwhelmed.

Look for Patterns in Your Inventory

Sometimes, the issue isn't just individual products but broader trends. Use your POS data to spot patterns such as:

• Check brands that consistently underperform
• Price points that don't sell well
• Categories with high amounts of leftover stock

These insights will help you clear out old inventory and improve your buying decisions moving forward.

What To Do Once You've Found Old Stock

Identifying old stock is only half the battle—you also need a plan to deal with it. Here are some effective strategies:

Repositioning Products

Always try this first; sometimes, all it takes is a little intelligence.

Bundling

My favourite method is to bundle unsellable stock with good-selling stock. Bundle slow-moving items with popular ones to create value packs. For example, pair unsold candles with bestselling home décor items as a gift set. Another example would be a cookbook that has not sold. Put it together with a cookbook that sells well and charges more for the bundle than the cookbook that sells well.

Clearance Sales and Discounts

The traditional method eliminates this by offering discounts to move slow-moving items quickly. A well-promoted clearance sale can attract bargain hunters while freeing your shelves for new products. It works well during the stock-taking season in July, but it's expensive.

Why Your POS System Is Key

A sound POS system doesn't just help you find old stock; it can help prevent it. Our POS software equips you with tools to manage your inventory.

Predictive AI

Why not use the AI built into our software for intelligent ordering? It's free. It does:

Demand Forecasting

Predicting future product demand based on past trends and external variables.

Optimal Reordering

Identifying the best times and quantities for replenishing stock to avoid overstocking or shortages.

Dynamic Adjustments

Continuously updating predictions based on real-time data, ensuring accuracy even in rapidly changing conditions.

Cost Optimization

Reducing holding costs and waste by maintaining just the right amount of inventory.

By leveraging these tools, you'll clear out old stock and avoid over-ordering in the future.

Final Thoughts

Old stock is an inevitable part of retail life—but it doesn't have to hold your business back. With the right strategies and tools, such as a reliable POS system, you can transform dead inventory into an opportunity for growth. Whether freeing up cash flow or creating space for new products, taking action now will set your business up for success.

Ready to manage your inventory effectively? Watch our step-by-step training video (click here) or contact us today for expert support! Don't let old stock weigh you down—start making smarter inventory decisions today!

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Easter brings sales, alright, with chocolate bunnies and festive decorations. However, once the holiday ends, retailers are often left with stock that is difficult to sell. It impacts their cash flow, and worse, it has to be stored. Your POS software can help you identify many unsellable items, allowing you to take action before they impact your profits.

Why Seasonal Stock Becomes Unsellable

Seasonal inventory is a double-edged sword. While Easter drives foot traffic, a study of 40 of our clients revealed that approximately a quarter of the seasonal stock often remains unsold after the holiday, becoming dead stock that ties up cash flow and storage space. That is why we decided to address this problem.

Here is what retailers typically do to solve this common retail challenge:

• Buy a stock for Easter, but it can be sold after Easter.
• Some can be returned to the supplier
• Retailers will typically slash prices by 50–70% to clear Easter leftovers, which erodes their profit margins.
• The rest has to be stored till next year

Fortunately, with our POS Software, retailers have a powerful tool to help them identify and sell this unsellable stock. This tool can help determine the number of items sold during Easter, but it will likely not sell after following this step-by-step procedure.

Step-by-Step Inventory Analysis

Your POS system does more than process sales—it can help identify unsellable items early, allowing you to take action before they impact your finances. Follow these steps:

Use POS Reports Effectively

Leverage Historical Data

Go to Register Reports, which is marked in green, and then select "Stock Sold During Period(a) Not Sold in Period(b)" from the in-stock section.

Now select in stock, "Stock Sold During Period(a) Not Sold in Period(b)"

Go to Register Reports > Stock Analysis > "Stock Sold During Period (a) Not Sold in Period (b)"

Run this report to pinpoint previous unsellable items:

Set Period (a) 01/03/24 – 31/03/24 (Easter)
Set Period (b) 01/04/24 – 40/04/24 (post-Easter lull).

This report will generate a list of items that sold during Easter but had no sales afterwards.

Flag products with year-on-year (YOY) sales declines. I suggest that ≥15% should be marked as high-risk for overstocking.

A Melbourne newsagency found that plush toys sold 22% slower than the previous year. They cleared 85% of their inventory early by running a pre-Easter flash sale.

Call-to-Action

Don't let unsellable Easter stock weigh down your business! You can use your POS system today to identify slow-moving items early, take decisive action, and refine your strategy for next year's holiday season.

Conclusion

You need to be able to manage their stock effectively. You should use this report to help manage your stock and maximise profits effectively.

Executive summary

> Due to stock that is only available during specific seasons, such as Easter, seasonal holidays can be particularly challenging for retailers.
> Our POS Software can assist you with tracking down unsellable stock 
> This report will provide a list of unsellable products.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Most of us were shocked at the budget when we saw that the Instant Asset Write-Off scheme was ending this financial year, I guess the goverment decided it was too expensive. For Australian small business owners, the Instant Asset Write-Off scheme has been a vital tool for managing finances and improving cash flow for many years, as it enables immediate tax deductions on eligible purchases. However, recent changes to the scheme mean that time is running out to take advantage of its benefits. Now is your last chance to take advantage of the scheme if you're a retailer; the Instant Asset Write-Off benefits effectively end on June 30, 2025.  

What's Changing with the Instant Asset Write-Off?  

Threshold Reduction

The maximum threshold for claiming an instant asset write-off will drop from $20,000 to just $1,000. This drastic reduction means that most significant purchases will no longer qualify for immediate tax deductions.  

Deadline for Current Benefits

We have a deadline of less than three months. That means you must act now to purchase and install eligible assets, as waiting too long could mean missing out on substantial tax benefits. Simply ordering or paying for an asset isn't enough—it must be ready for use in your business by June 30, 2025.

So now is the time to review your POS System while you can still take advantage of the Instant Asset Write-Off scheme.

So, is your computer feeling sluggish? 

Are the long queues and slow checkouts frustrating your customers and costing you? Then maybe it's time to turbocharge your business with a new computer using an ATO's $20,000 Instant Asset Write-Off!

This allows you to immediately deduct the cost of eligible computers (up to $20,000) from your taxable income. In the past, this has saved thousands of dollars for many of my clients, and it can likely save you money as well. 

Here's why a new computer and the write-off are a winning combo for your business:

Unleash the Speed Demons! 

• Faster Checkouts: Upgrade to the latest lightning-fast computer for even faster speeds. A new computer can improve the speed of your POS software performance.
• Boost Staff Productivity: Their time spent on the computer costs you money and reduces their time for productive work.

Here's how it benefits you:

• Improved cash flow: This deduction allows you to immediately deduct the full cost of the computers that you would otherwise have spent on depreciation over several years. This can free up a significant amount of cash flow.
• Simplified tax time: No need to track depreciation schedules for your computers. Just claim the deduction and move on.

Real Business Owners, Real Results! ️

Since upgrading our computers with the write-off, checkout times have significantly decreased. Customers are in and out in a flash, and our staff are significantly more efficient. 

"The tax savings from the write-off were a huge bonus! We used the extra cash to invest in a top-notch inventory management system"

Don't Miss Out! 

This opportunity ends on June 30, 2025. The computers have to be in the shop and working by then, to claim this year so if you are interested you need to move immediately

Here's a win-win solution: Upgrade your computers with the ATO's $20,000 Instant Asset Write-Off, boost your business, and save thousands on your tax bill!

Contact us today for a free consultation and discover the perfect computer to boost your business and save with ATO's Instant Asset Write-Off!

Please consult with your accountant first to verify whether you meet the eligibility criteria, as this information is for general purposes only and shouldn't be taken as tax advice.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.