Point of sale management

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Point of sale management

Holidays - who's minding the store?

POS SOFTWARE

Holidays

You are planning a holiday. It going to be a great time.

Fair enough everyone needs to get their batteries recharged and stepping away for a week or two is I think a necessity. If you are like me, you need a week of holidays just to unwind enough to start enjoying the holidays. You start making plans, counting the days 

But hang on a minute...

Have you prepared the shop for your absence? Who is in charge while you are gone? Does everyone know what they are supposed to do while you are gone?

Of most importance to us, do they know how to work the computer system? If they do not, do you have support available while they are gone? 

Test runs

What I recommend is that you do some test runs, organise the shop, take a couple of days off and then see what happens.  

 

 

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Disadvantages of direct bank deposit

POS SOFTWARE

Direct bank deposit

In an effort to reduce banking costs, some people have asked us instead of Zippay can they offer a direct bank account system as cash is slowly declining.

Payment methods Australia

The short answer is *YES*, maybe and no.

The first point is you do not want to create what we call any type of friction if someone wants to pay with a particular payment method then I suggest you give them that option, particularly as it is an easy and cheap option plus it does offer what every business needs to provide a fee-free way to pay.

The problem is that today people want an immediate solution, that is the problem with laybys nowdays too which is on a steep decline. 

A direct bank deposit takes time, while the other methods like PayPal, Credit cards, Afterpay or ZipPay are instant.

 

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Australia's best shopping days

POS SOFTWARE

Retail sales

 

Anyone in retail here in Australia these are the most important based on marketing surveys in descending order

  • Boxing day
  • The day before Christmas
  • The day after Christmas
  • The Saturday before Mother's Day
  • The day before Father's day
  • Valentine’s Day (if you handle these products)
  • Black Friday, seems that we are rapidly adopting this date 
  • Easter Monday
  • Easter Saturday

Source: ShopperTrak data

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Information and the growing importance of 1%

POS SOFTWARE

What is driving retail today is information. A few days ago, I talked of the 1% rule. Let me show you another example. 

Taking from the ATO benchmark study they give what I consider the best benchmarking figures for typical businesses in Australia today, so I picked a stationery shop just because it is something most of us can quickly get our head around.

Putting in typical figures for their figures, I made this chart.

ATO benchmark figures for a typical stationery shop

So here what I am saying is that on the first column So on 150,000 turnover a business from the chart would have about 78% expenses leaving it with about $33,000 profit and I did the same on the other rows.

Okay now let us say that these businesses make a 1% improvement, so they sell 1% more and they reduce expenses by 1%. What do you think the effect will be? I think you are going to be surprised.

Stationery shop with a 1% improvement

Look at 1% did?

What is clear is that you do not need much to do dramatically better. All you need is 1% better.

So how do you get 1%? 

    Information, here are some ideas in no order
  • Speed up the queues by making your point of sale faster by increasing your POS sale scanning.
  • Find out your best sellers and move them into your best selling locations.
  • Better and more accurate buying.
  • Getting a better loyalty program going just using a simple customer birthday marketing offer helps a lot.
  • Monitor your theft rate
  • Speed up your computer processing by getting your suppliers to automate 
  • Controlling your debtors better.

All this is available from your computer system now.

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Day light savings tomorrow

POS SOFTWARE

Daylight saving time adjustment has come again. 

Although today most computers automatically adjust the time some for some reason miss this update so check tomorrow that our computers' clocks have the correct time. Last time we had a client in Queensland which should not have adjusted but did as the location was wrongly set to NSW time. So even if you are in say Western Australia which does not change it is a good idea to check.  

Based on experience over the next few days, the number one support issue we will have is that some of the times in the POS system will be one hour off.

 

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Christmas is coming

POS SOFTWARE

It is October now, and already we can start to see that retailers are getting ready for the holiday season. 

As the economy is doing well now and the public mood seems positive, this looks like it will be a good Christmas. 

Christmas trends over 5 years measured in 2018

Measured interest using Data Source: Google Trends (www.google.com/trends).

As you can see the public interest has not changed over the last 4 years.

It certainly now the time to start planning your stock ordering, so you need to estimate your stock requirements which is something our point of sale software can help you do. You also need to start looking at roistering again something our point of sale can help you with all this. I will be talking about all of these soon.

Before we go any further

You need to check is all your POS system ready for Christmas?  

So let’s get to work

If you are planning to bring in some of the old POS computers “out of the closet” to accommodate the rush period, tested it to make sure it works? If it has been in the closet for a year, who knows what state they are in now?

Here are some other points

Have you checked that you have all the cables to connect to this equipment?

Do you have a connection into your network where you need it?

Can this equipment be linked into your system, it been a year since it is been used?

Now try it now to see if it all works if you plug it in?

The closer it gets to Christmas, the harder it gets to repair in time.

Here’s the kicker

What is going to happen if you have extra staff and the computer register does not work over Christmas? I have seen this happen all too often. 

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Scan rate in retail

POS SOFTWARE

The more you are scanning on your POS system the better.

Consider this

Typically a person working a cash register manually entering each transaction makes one mistake for every 300 characters typed. It is not surprising as working a point-of-sale terminal is often extremely hectic. Plus for many cash register operators by the end of the day, they get tired of answering questions,  processing transactions counting cash and giving change. Mistakes go up. The time to process an item, count money and issue change are all measured in seconds.

Consider an automated the point-of-sale process.

A POS barcode reader is recorded giving about one error for every 394,000 to 100.5 million characters scanned.

Scanning an item with a barcode reader takes a fraction of a second. 

At this point you realise

A POS system is much more efficient and faster.  This translates to customers being serviced much faster and better.

How to solve it

So what I suggest you do is look at your scan rate. It is consider to be one of the most important retail KPIs in retailing today.

This KPI tells you where you are scanning and the more you are scanning the faster and more efficient you are on your point of sale counter.

To get this KPI, please go to cash register reports

Then go to sales

 

 

Once there select

Dissection Sales / Profitability for a Given Period.

Now run the report with a year of data.

What you will see is a column with %Scan, the higher the better. Now if you look through this list, the problem department is marked with a green arrow.

 What have you got to lose by acting on this?

 

 

 

 

 

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Stock that is not performing

POS SOFTWARE

Do you have some slow-moving stock items?

Maybe you can cut back on their space to make more room for your profitable products?

I suggest that we do this in two stages. 

To begin with

Firstly let us find the items that are the slow movers

Go to Register reports > Stock > Slow moving Stock lines

 

Now call it up here

As you can see I am looking at the stationery department over a twelve month period for anything that I have sold less than $100 and am now stocking something.

Now out pops a report in this case of 81 pages of detailed information of all the items that match this condition in this case, we have almost $80,000 worth of worthless stock.

Now check them out, pull out what you do not want to keep and put in your sales area.

Once you’ve got this done

I suggest that you do a report of your top selling stock items and at those items that are selling well. A rule of thumb in retail is double the space of an item increases its sales by 50%. So the idea here is we are going to replace the marginal items with those that sell well.

Go to Register reports

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

Now the following comes up.

Now put an appropriate period the default here of a day is not enough for this but I just wanted a quick report for illustration.

Out comes a report with the top sellers

Now, these products need to be checked that you have the right display for each of these products.

Note anything, not on this list you also need to look at as they are marginal..

The bottom line is this

You do not want to pay to a landlord for the space to stock items that do not sell.

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Try Selling fewer products

POS SOFTWARE

Consider this a consumer is expected to go through all these products to find the one that they want!. Is it any wonder that many experts say that modern retail today is confusing the consumer as it is giving them too many options. If you look through your POS software products, it is probably confusing to you also.

But here’s the extra problem  

Each product you have has to be displayed, and if you have two or three similar products for basically the same potential market you need more display room, and you have more tied-up capital in stock. 

Don’t worry. There’s a solution.  

Reduce the range for that product mix and put in place products for with a new market for example instead of having five different hair brushes have two hair brushes, some clips, headbands etc.

To do this what you need to do is determine your poor selling items and consider whether to discontinue them intending to replacing them with other things. Because you want to buy more of a particular product, you may be able to buy better, plus you are freeing up capital tied up in low selling stock items. 

It’s easier than you think


Go to Register reports

 

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

Now the following comes up.

I will select a day, for example, but you usually would put in a year, now select a department

 

Out comes a report with the top sellers

Now, everything on this list needs to be marked, everything *NOT* on this list consider *CULLING*

Now you’re set!  

What I suggest is that every month you move a few items to a more prominent position,  cull a few items and replace them with new test products. A buyer at Coles told me that at any time he wants about 12 new items in his department. I suggest using this figure as a benchmark.

 

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BUSINESS REPORTS WITH POINT OF SALE SOFTWARE

What point that often I find stunning is the comparison of when I talk to the chiefs in large organisations compared to owners of small businesses (SMB). The leaders know less, much less but what they do know is relevant and essential to the problem at hand. The owner of an SMB, often does not know anything. The owner has all the details in their head, the pixels that they know little of the big picture.

I do not believe that retail business has ever had access to such a wealth of information as they do today.

A conversation might start, what is your top seller? The owner often gives a blank stare, well we sell a lot of this and that what is the top seller, it could be.... Yet the information is available in their POS system here.

Register sales report point of sale

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