Point of Sale Software

Suppliers can get it wrong

POS SOFTWARE

supplier provided incorrect, misleading information

Running a successful retail business in Australia hinges on making informed decisions based on reliable supplier information. Here is a recent case when a supplier provided incorrect, possibly misleading information to one of our customers.

A garden supply retailer received promotional materials from a supplier urging them to stock up for "National Garden Week" with a note that it was fast approaching in early June. They were drawn to the note as they remembered last year, they did well with National Garden Week. However, they decided to check what sold well in early June while making an order. Upon checking, they discovered nothing unusual in their POS System reports. That was strange, as they remembered doing well at National Garden Week. So they decided to check online. They soon discovered National Gardening Week is in the third week of October, not June. Further investigation found that the supplier had inadvertently used American dates for the holiday.

They were lucky; this wrong communication could have led to premature stock purchases if they had ordered. Besides the financial problems, they could easily have suffered humiliation by displaying the incorrect date, which could have eroded customer trust and damaged their reputation.

This example is far from unique. Many supplier communications do not account for local market conditions or seasonal variations.

The lesson is clear: unchecked supplier information can lead to mistakes.

Trust but verify.

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But was the Sercurity Guard Justified in using such force?

POS SOFTWARE
But was the Sercurity Guard Justified in using such force?

 

Take a look and see what you think?

 

Written by:

Bernard Zimmermann

 

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.

 

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My answers to Labor's Debit Card Surcharge Ban and other stuff

POS SOFTWARE

Proposed EFTPOS surcharge ban

I got many questions about my article here

Here are the four questions I received, which generated considerable interest across the Australian retail sector. I explain why I believe this planned policy change will significantly impact how businesses price their products and process payments. I also explain why I think those who disagreed with me are wrong.

1) The Legislative Pathway for Surcharge Abolition

I agree that Labor's commitment to abolishing debit card surcharges will probably require legislation. Now, it was and is Labor policy to abolish these surcharges. Recent polls show strong public dissatisfaction with surcharges on card payments. When I spoke to a senior official in the NAB, I was told 71% of Australians polled. I cannot find any evidence to back this up, but it sounds reasonable to me. This creates significant political pressure for action.

Despite those who argue that the current law blocks a surcharge abolition, I believe a Legislative Pathway for surcharge abolition exists. Labor to put it through will need support from the Greens or the LNP to pass such an abolition through parliament. The LNP and the Greens are now re-evaluating their positions overall as they both lost their leaders in the last election. But before the election, the LNP had stated that surcharges were symptoms of deeper problems in the payment system. Meanwhile, the Greens advocated removing surcharges, with the banks absorbing these costs.

Despite differing policies, there is a cross-party recognition that the current surcharge system needs to be examined and reformed.

2) Potential Impact on Retail Pricing Models

Implementing a surcharge ban, which looks likely, will necessitate adjustments to retail pricing strategies. Most retailers will try to incorporate the cost of debit card processing into their base pricing structure. For example, if your debit card processing cost averages 1%, a product priced at $5.95 would need to be adjusted to approximately $6.01 to maintain margins. There is a marketing problem with making a price of $6.01.

Then there is a bigger problem: this price adjustment creates an unfair challenge for smaller retailers as they typically face higher processing fees than their larger competitors. A supermarket with a 0.5% debit fee will probably keep the magazine at $5.95, while a newsagent with a 1.2% fee would need to charge $6.02 for the same item. This pricing differential highlights the inequitable nature of card processing fee structures across the retail sector today. This assumes the magazine companies are okay with this. The most likely scenario here is that the newsagent loses 1.2%. I doubt any of the three political parties will care about this newsagent.

So, I suggest retailers consider reintroducing cash discounts, equivalent to card processing costs, for customers paying with cash. Our POS System can do that.

3) Understanding Current Surcharge Regulations

There continues to be significant confusion regarding what costs can legally be included in card surcharges under existing regulations. The current interpretation of legislation permits businesses to include only direct costs associated with EFTPOS processing in their surcharges.

This means costs such as:

) EFTPOS terminal rental fees

) Transaction fees charged by payment processors

) Receipt paper for EFTPOS terminals

However, indirect costs cannot be incorporated into surcharges, including:

) Your accounting services related to payment reconciliation, even if done by an outside contractor.

) Internet connectivity costs for payment processing

) Electricity costs for running terminals

The banks will analyse your surcharge rate for you. Our study has revealed that many financial institutions do not comprehensively outline all eligible direct costs when advising merchants on appropriate surcharge levels. This results in businesses underrecovering their actual costs. Check here for details.

4) POS Software Surcharge Considerations

Some retailers use Point-of-Sale (POS) systems that automatically apply surcharges to cover electronic payment costs. We think these surcharges only comply with current regulations if the additional charge is displayed on shelf pricing before the customer reaches the checkout. Few businesses that use such POS systems do that; if your company employs such a system, it is advisable to confirm with your POS provider that your surcharging practices align with current regulatory requirements. Non-compliant surcharging may expose your business to regulatory action from the Australian Competition and Consumer Commission (ACCC). If you do ask them, please let me know their responses.

Conclusion and Next Steps

The proposed abolition of debit card surcharges represents a significant shift in Australia's retail payment landscape. While the exact timeline and implementation details await further political development, Labor is talking of early 2026

Suppose you have specific questions about how these changes might affect your retail operation or require assistance configuring your POS system to accommodate the new regulations. In that case, our team can provide tailored guidance and support. We remain committed to helping Australian retailers adapt to this evolving payment landscape.

 

Written by:

Bernard Zimmermann

 

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.

 

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AI Reporting vs POS Systems reporting today

POS SOFTWARE

AI reports vs POS Systems reports

 

Today, AI-driven POS Systems are revolutionising the information flow to retailers. AI reporting offers advanced analytics and predictive insights compared to traditional POS system reporting. I love its ability to allow users to ask questions and research topics, enabling us to make more informed business decisions. Train your model with your information, and ask questions. If you do not understand something, you can ask for more information. It is brilliant. If anyone wants to attend a webinar on these functions, let me know.

While AI-powered analytics often deliver revolutionary insights, most users usually do not need them. Many retailers find that traditional POS reporting provides the information required for day-to-day business operations, which remains today's cornerstone of retail reporting.

The Trust Advantage of POS System Reporting

In business, POS systems have been refined over the decades, offering reporting functionality that captures actual transactions. Almost all errors have been worked out of the system, so retailers can confidently use this information to make business decisions.

The challenge with AI reporting systems lies in "hallucinations". These occur when the AI often generates plausible but factually incorrect information. Recent evaluations of advanced AI systems indicate hallucination rates of about 1.1% on simple tasks, and I have seen figures of 30-50% in complex tasks reported. What happens is that the AI, when asking your question, goes off track. It then moves along this track into nonsense. What is dangerous is that sometimes it appears plausible and can be hard to spot. It creates significant risks for retailers who might make substantial decisions based on inaccurate analysis. While doing a study, a pet shop retailer in Brisbane considered increasing its stock levels in dog toys based on an AI report trend. That trend did not exist. If they had followed it, they could have brought much excess inventory. Luckily, they picked it up. By contrast, when a POS system shows a 24-month history of a product sold, that figure represents a real figure.

Operational Speed and Accessibility

Timing becomes critical in retail environments where rapid decision-making directly affects sales outcomes. Our modern POS systems generate comprehensive reports within seconds for free. The system does not require an internet connection or an AI subscription.

Industry-Specific Relevance for Australian Retail

POS systems are designed specifically for retail operations. It incorporates Australian terminology and KPIs that align directly with Australian business practices. Standard POS reports include daily sales summaries, staff performance metrics, inventory turnover rates, and GST calculations, all of which conform to Australian requirements. An AI report, while powerful, often struggles with Australian-specific requirements. We have noticed that an AI analysis usually uses international accounting terminology that requires translation. When doing the report, we must do Google searches to determine what is being said. I have discussed this problem in depth here when we ran 100s of AI reports. 

Security and Compliance for Australian Businesses

We have a big problem here, as much of the information in your POS System is restricted. For example, in Australia, we have strict privacy laws. Your POS systems incorporate security features specifically designed for this retail environment. These security measures have evolved over many years and are focused on retail-specific security requirements. Using AI for business reporting typically involves transmitting all your business data to third-party cloud services, raising concerns regarding data storage locations, retention policies, and potential use of proprietary business information. More dangerous is that all your information can be accessed by people in your organisation. Its hard to restrict parts of your payroll information so some of your staff might get what others earn. 

Transparency in Reporting Methodology

When a POS system identifies top-selling products, the calculation methods are transparent and verifiable. You can do the calculation manually to figure out how it works. If the results appear unusual, you can easily check the report. This transparency builds confidence in the process.

AI-generated reports generally suffer from what we call "the black box problem." We get a result, but no one knows the reasoning behind its recommendations, making it difficult for anyone to understand the findings.

Consistent Reporting Over Time

POS reporting remains consistent over time. Once a retailer masters it, they know how to use it, what it gives them, and how to make meaningful comparisons over time.

AI systems face challenges with what we call "model drift." When you do the same thing, use the same prompts, you probably get different responses, each run of a report gives a different answer.Each run is an experiment. 

When to Use Each Reporting Type

The clear advantages of traditional POS reporting for day-to-day retail operations, POS reporting excels in managing daily operations, staff performance evaluation, inventory control, cash flow monitoring, tax compliance, and comparative performance analysis. These functions form the operational backbone of Australian retail businesses.

I like to think of AI reporting as going to see an expert. They often have great knowledge in a particular area of your business and can help you examine the situation. They can tell you about subtle patterns in the industry and what is likely to happen, giving you insights, but you need to be very careful about accepting their advice without further thought. What we love is its ability to allow you to ask questions and explore.

Implementation Recommendations for Australian Retailers

For Australian retailers considering their reporting, you need a robust POS System that provides the fundamental business metrics.

When evaluating AI tools, take their advice with a grain of salt. We expect that in ten years, AI reporting will take over, but not yet. We are all experimenting with it. Its a lot of fun but think of it as science experiment.

 

Written by:

Bernard Zimmermann

 

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.

 

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The coming debit surcharge blow to retailers

POS SOFTWARE

Labor cracking down on unfair card surcharges

Although much of the election still needs to be sorted out, it is clear that now we need to consider the government's announced plan to ban debit card surcharges. It is set to take effect from January 2026. It is being presented as a measure to provide relief for consumers and a "fairer go". However, many of you do not see it this way. Many of you would feel that this will increase your costs, as we face it, it's the retailer that will now have to pay these debt charges. So, let's delve into what this change means, to consider the broader implications for your business.

cost of accepting card payments by merchant size

We must speak here: Australia’s card payment system has, for a considerable time, been structured unfairly. Large national retailers, the supermarket giants and major department store chains, wield significant commercial power. This scale allows them to negotiate highly preferential, often rock-bottom, merchant service fee rates with the banks and international card schemes. Their sheer volume of transactions gives them leverage that an independent retailer cannot match. Currently, it's less of an issue than with cash; both independent and large organisations pay no fees to the bank on money. What makes it particularly bad is that in these government promises, there's no explicit, corresponding guarantee or mechanism announced to ensure that the bank charges the debt fees will be fair. This isn't anecdotal; this issue is acknowledged in reports from government regulatory bodies and industry analyses. On average, an SME business can expect to pay merchant fees for debit card transactions, sometimes two to three times more than what a major retailer pays for the same value and type of transaction.

To put this into perspective, a small business may see debit card fees ranging from 0.5% to 1.5%, and sometimes even more, particularly if newer or less typical card schemes are involved. Conversely, a large retailer might secure rates as low as a few cents flat per transaction, or a tiny fraction of a percent. For a $100 sale processed via a debit card, this disparity means a supermarket might incur a fee of just 20 or 30 cents. However, your local boutique, café, or specialty store could be charged $1.00, $1.50, or even more for that identical transaction. This difference isn't trivial.

Examining the Impact

Suppose the government proceeds with banning debit card surcharges without simultaneously legislating a significant and enforceable reduction in the underlying merchant fees that small businesses pay. In that case, the financial implications are pretty straightforward. The cost of accepting debit cards, which you can recover, will have to be absorbed directly by your business. For many independent retailers, this isn't a minor adjustment; it could translate into thousands, or even tens of thousands, of dollars in lost revenue annually, straight from your bottom line.

Let's consider the probable consequences under such a scenario. Prices are often set by suppliers in their RRP. I doubt that the suppliers will adjust their prices to these debit card increases. Then there is the problem of an item that says $4.95. You cannot increase it to $5.05, as inflation continues, you may be able to put the debt charges into the item, but certainly not immediately.

The other issue is that the surcharges explicitly show the consumer the bank fees; if this is hidden, as it will be in the government plan, what is to stop the banks from increasing it more? Debt fees now, compared to many countries, are high; what is to stop them from going up higher?

The Problem Lies with High Debt Fees

The fundamental challenge, which a ban on surcharging alone does not resolve, is the inherently unfair and often opaque structure of merchant service fees in Australia. Suppose the genuine policy objective is to create a more equitable financial environment for small retailers and deliver real savings. In that case, the primary focus must be on tackling these high debt fees. The proposal treats an effect rather than a cause. No one charges surcharges for cash, as it has no fees. The surcharge is there because of the debt charges.

A Call for Genuine Reform: What Should Change for True Fairness?

If the government is truly serious about fostering a fairer commercial environment, then the policy approach must be more robust. Simply shifting a visible cost (the surcharge) into an invisible, absorbed cost for the retailer doesn't solve the underlying problem of excessive debt fees.

We need a meaningful reform that ensures that banks and card schemes are compelled to offer more equitable and competitive rates to all businesses, regardless of their size. Any ban on surcharges, if it is to be fair, must be intrinsically linked with real, enforceable, and significant reductions in the cost of accepting card payments for all retailers. Without this linkage, the policy risks being perceived not as a measure of support, but as an additional financial impost on an already challenged sector, while letting the major banks and large retailers continue to operate with their existing advantages.

The coming months will be crucial as this policy develops. It is vital that small retailers' concerns are heard and acted upon to ensure a truly equitable outcome.

 

Written by:

Bernard Zimmermann

 

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.

 

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Soundproofing your computer

POS SOFTWARE

Sound meter

Computers' persistent hum and vibration are often overlooked in today's retail environment. However, these sounds can have a tangible impact on staff focus, comfort, and overall productivity, especially when you have a staff with ADHD. Here, we will discuss practical retail experiences and proven acoustic strategies to help you assess, manage, and reduce computer noise in your business.

Understanding Noise Standards for Australian Retailers

Australian workplace regulations generally recommend maintaining noise levels below 50 dB in retail environments; however, requirements may vary by state and local council. For context, modern POS systems typically produce between 25 and 40 dB, comparable to a quiet conversation.

Assessing and Measuring Computer Noise

Before investing in solutions, it’s essential to determine whether computer noise is a significant issue in your shop.

How to Measure Noise

You need a sound meter; if you don't have one, you can use a smartphone app instead. The one I use is Sound Meter & Noise Detector. It's free and good. Others look good too, but I do not know them.

Once installed and running, put your smartphone at the point you are measuring. Stand back and record the noise level for at least a minute.

Now turn off your computers and repeat the measurement.

Now subtract one value from the other, and you have an idea of the noise level from your equipment. It is probably best to do this after hours for the most accurate reading.

If computer noise stands out or exceeds 35–40 dB in a quiet shop, it’s worth taking action. The first point I would check is whether your computer is running too hot, something I have discussed here. If a computer is running too hot, the fan runs extremely high, resulting in a loud noise. If this continues, it will soon ruin your computer.

Quick, Cost-Effective Noise Reduction Strategies

Physical Barriers and Acoustic Treatments

Acoustic Panels

Installing acoustic panels around the computer can minimise echo noise in retail spaces. These materials effectively absorb sound and stop it from reflecting off hard surfaces. Position the acoustic panels on the wall behind the computer while allowing an unobstructed airflow path.

Sound-Dampening Curtains

Here is my favourite method: a heavy curtain around your computer can reduce noise by several decibels. It needs to be a heavy material, as sound is a form of energy; a lightweight material is ineffective against low-frequency vibration of a computer. If you'd like, you can obtain special materials, such as mass-loaded vinyl (MLV), which works exceptionally well, in my experience. However, any heavy fabric should also work. I tested a thick overcoat on my computer, draped over the front, and it made a measurable difference of 6 dB.

Please ensure that the computer has proper airflow to prevent overheating.

Manage Vibrational Noise

Computers will create vibrations. To help, place your computers on a rubber mat or some small wooden strips.

Store Layout

Distance is a simple but effective method. By moving the operator and computer just two metres apart, I recorded a 5 dB reduction in noise. If you can put a barrier, such as a wooden panel, that breaks the noise path, that helps, too.

Advanced Solutions for Maximum Noise Reduction

If more is required

Quiet Fans

Modern fans produce less noise so that we can replace your fans with modern ones. Since the fan is the primary source of noise, this often works.

Soundproof Computer Cases

We market professionally designed soundproof computer cases engineered to minimise hum and vibration. These cases use dense materials and specialised airflow channels to reduce noise without compromising cooling performance. We rebuild your computer into these cases.

Upgrade to Solid-State Drives (SSDs)

Traditional hard drives generate mechanical noise. Replacing them with an SSD eliminates this issue and improves system performance. If you are not currently running SSDS, I recommend considering it for the speed benefits.

Consider Professional Acoustic Enclosures

If your shop requires the quietest possible environment, a custom-built acoustic enclosure can reduce computer noise by up to 30 dB. This is a premium solution, and it may be justified.

DIY vs. Professional Solutions - A Cost-Benefit Perspective

Now, some I spoke to told me that they were skilled at this sort of work in a previous life and asked me about creating such an acoustic enclosure.

Building your sound-dampened enclosure is possible. It's one of those things; on the third attempt, you will do it right. I have seen one built that looked good, but it didn't perform well. When I recently costed it out at the hardware shop to research this article, I found that the material costs approached what the professionally engineered case cost. Sourcing timber (I freaked out when quoted about the price of pine now), MLV insulating material which the hardware shop did not carry but could get on a special order, the fans for proper ventilation (yes their is some electrical work required), and screws etc, I came up with over $400. I could probably get it cheaper, but I doubt it much. If you make such a box, please send me a photo. I might be able to send you some customers.

Frequently Asked Questions

Q: Why is computer noise a concern in retail environments?
A: Persistent background noise can distract staff, reduce concentration, and impact both productivity and customer service. This is particularly relevant for staff with sensory sensitivities, but benefits everyone.

Q: Are there legal requirements for noise levels in Australian retail shops?
A: Yes. While requirements vary, maintaining noise below 50 dB is generally acceptable for retail environments, but getting it that low is tough, just people talking is 70 dB. Always check your local regulations to ensure compliance with the law.

Q: What are some quick, low-cost ways to reduce computer noise?
A: I recommend heavy curtains or sound-dampening materials around the computer. Make sure you ensure proper airflow.

- Computers should be placed on rubber mats or wooden planks to absorb vibrations.

- Optimise computer placement for distance and use shelving as sound barriers.

Q: Are there advanced solutions for maximum noise reduction?
A: Yes. Consider professionally designed soundproof computer cases with quiet fans and SSD upgrades.

Conclusion

For some individuals, reducing computer noise in their workspace is crucial. Generally, it's not hard to reduce the noise from the computer.

 

Written by:

Bernard Zimmermann

 

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 true costs of an EFTPOS Outage

POS SOFTWARE

EFTPOS down use cash

Our recent EFTPOS Retailer Survey highlights the critical concern for Australian retailers, which resulted in many questions for me from retailers over this survey: When choosing payment solutions, retailers here gave reliability as their top priority, surpassing fast clearance and cost. While fast clearance remains the next most important, uninterrupted payment processing is essential for business continuity.

Payment processing reliability is not just a convenience; it's vital for business continuity. Yet our survey indicates that retailers frequently experience outages and pose a persistent risk. These outages would result in significant financial losses for retailers.

What hurts is that almost all IT infrastructure guarantees an uptime of 99.999% (we call this the five nines), yet no one sees it. A shop, let us say, open 8 hours a day, 300 days a year, would, based on this, have less than 1.5 minutes of an EFTPOS outage a year. I am sure we all have gone through more than 1.5 minutes of an EFTPOS outage.

Incidents involving Telstra and Woolworths demonstrate that even major businesses are not immune to payment outages.

For example, a retailer with $1 million in annual turnover and a 30% margin loses approximately $400 in revenue for every hour of downtime. This figure only reflects immediate losses. Long-term impacts such as damaged customer relationships, reputational harm, and customer attrition will be even more significant, though harder to quantify.

Under Australian Consumer Law, businesses may be entitled to compensation for financial losses caused by EFTPOS outages, even if the provider does not guarantee uptime. To make a successful claim,  it will take time as you need to document all losses thoroughly, then you will need to include POS reports comparing affected periods to normal trading to show the loss. I have seen a few people do this, with mixed results. We generally advise that if the EFTPOS provider makes a fair offer, accept it. One problem is that the EFTPOS providers know your figures as well as you do and have more money and experience in these matters.

Calculate the Cost of an EFTPOS Outage

Several direct and indirect factors determine the actual cost of an EFTPOS outage. The following outlines some key variables to help you estimate your potential losses.

Calculation

Average hourly revenue

An outage can occur anytime; take your yearly revenue and work out an hourly rate.

I should say here that Murphy's Law will tell you that outages will occur at the worst possible times, such as during peak trading hours, amplifying their financial and reputational impact.

Outage duration

This is hard to estimate, as customers have been knocked out for minutes, hours, and days. Do your best here. 

This one really hurts. Often, you use the downtime to do your books, and you see money going out, while your staff is doing nothing.

Card transaction percentage

Your End-of-Day reports will tell you this, I would expect somewhere between 50% and 80%

Estimated sales lost

Many customers carry little or no cash, and if EFTPOS is down, they cannot buy from you. Many will go elsewhere to buy the product. As a guess, I would say 50%, but I would not be surprised if it's closer to 100%.

Now multiply these out.

(Lost revenue) = (Average hourly revenue) x (Outage duration) x (Card transaction percentage) x (Estimated sales lost)

That is the easy part now, we need to add to this base figure.

Customer Reputational Behaviour    

What do the customers think of you? If they cannot buy from you, they will buy from someone else. What chance is that they will switch for good? It is said that if an outage occurs once, it is generally okay, but two or three is something else. What is the cost of losing ten customers a year to EFTPOS outages?

I have seen industry experts give figure 

Key Takeaway

The actual cost of an EFTPOS outage extends far beyond immediate lost sales. Reliability is the foundation of trust and operational continuity in retail. Both providers and retailers must prioritise robust systems and contingency plans to safeguard business performance and customer relationships. 

As Australia moves into a cashless society, our present government (both sides) will only make this problem worse by not putting more commitment into our electronic infrastructure.

 

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EFTPOS Retailer Survey Analysis Report

POS SOFTWARE

EFTPOS Retailers survey 2025

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:

Sample eftpos integrations in Australia retailers 2025

 

  • 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:

EFTPOS_outage_by_integration_Australia

Integration Type No Outages 1 Outage 2 Outages 3+ Outages
Linkly 21.2% 26.9% 21.2% 30.8%
Tyro 45.2% 32.3% 9.7% 9.7%
Non-integrated 42.9% 25.0% 17.9% 14.3%

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:

EFTPOS_issues_importance_by_retailers

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.

Factor Pair Correlation
Reliability ↔ Fast Settlement 0.72
No-Cost Option ↔ Fast Settlement 0.37
No-Cost Option ↔ Terminal Rental Fees 0.34
Rates ↔ Reliability 0.29
No Lock-in Contract ↔ Fast Settlement 0.29

 

 

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

 

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.

 

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When is it "Very Urgent"?

POS SOFTWARE

Passwords very urgent

 

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

 

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.

 

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This Blog Recognised as #2 Worldwide in the Top Point of Sale Blogs

POS SOFTWARE

Rated top POS System blog

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.

Top POS Systems Blog Listing

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.

 

Written by:

Bernard Zimmermann

 

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.

 

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How retailers can manage dead stock

POS SOFTWARE

Dead stock in retail management

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. 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.

Clearance stock sign

Set Review Period

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

 

Written by:

Bernard Zimmermann

 

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.

 

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Best Free AI for Analysing Your Customers

POS SOFTWARE

AI data processing in retail

 

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:

AI Tool Score (out of 90)
ChatGPT 78
Grok 68
DEEPSEEK 67
QWEN  66 (marked down)
Claude 59 (failed)
Google AI 55

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

 

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.

 

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EFTPOS survey closing on Wednesday

POS SOFTWARE

Person filing out a survey

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

 

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.

 

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ANZAC Day 2025

POS SOFTWARE

ANZAC Day 2025

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.

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Body-worn cameras will transform your retail security

POS SOFTWARE

Body camera in retail shops

 

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.

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.

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

 

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.

 

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Consider supporting Cash-Out Day 2025

POS SOFTWARE

Cash-out Day 2025

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.

EFTPOS down use cash

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.

 

Cash-out petition 2025

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

 

 

 

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.

 

 

 

 

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Why using a Fridge Thermometer is smart!

POS SOFTWARE

Fridge thermometer advantages

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, put it next to an existing Thermometer, leave it for a few hours, and make sure it is getting 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, lower the fridge setting. If it falls below 3°C, increase the setting to save 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

 

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.

 

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Help shape the Future of EFTPOS Integration

POS SOFTWARE

Get ready to shape the future of EFTPOS integration

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

 

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.

 

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Boost Your Easter Sales: Strategies for Retailers

POS SOFTWARE

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

 

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.

 

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Five Key Trends in the Toy Industry

POS SOFTWARE

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.

 

Toy and Game Retailing in Australia Revenue (2014-2029)

 

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.

Snow white doll review

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.

lego kits

 

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?

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

 

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.

 

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