Suppliers tend to prioritise larger retailers because of their product stupidity (If a large retailer is not monitored, they often do stupid things), higher spending power and perceived reliability. SMB retailers face problems securing favourable terms, yet SMBs need to establish supplier relationship management despite these obstacles.

Ask your suppliers where your business fits in their priorities. Understanding your position can help you tailor your approach, such as negotiating better terms or diversifying your supplier base.

Diversify Your Supplier Base

Relying on a single supplier puts your business at considerable risk, including stock shortages or price hikes. What you should consider is diversifying your supplier base:

• You reduce dependency risks.
• You gain leverage in negotiations by having alternative options.
• You ensure consistent product availability.
• Have a better pool of products to select from.
• You're not left stranded if one supplier faces disruptions.

Actionable Step: Use your POS system to track supplier sales performance. Could you identify which suppliers are underperforming and explore alternatives to fill gaps?

Negotiate Beyond Price

Negotiation isn't just about securing the lowest price; it is about more. Often, the seller has more flexibility than initially disclosed, but you must be willing to ask first.

What to Negotiate:

• Extended payment terms (e.g., 30-day credit).
• Bulk discounts or promotional pricing.
• Marketing support
• Shipping Terms

For example, I received a huge order and told our supplier I needed a better trading term to help me get the order and fast delivery. I got both. Remember, you can negotiate improved trading terms and expedited delivery by highlighting the mutual benefits for both parties.

Pro Tip: Once you've diversified your supplier base, use their competition as leverage during negotiations.

Conduct Independent Research

Suppliers may present information that benefits their agenda but verify everything independently. Ask your customers, visit similar shops, examine the advertising, use your POS reports, and do Google searches. I find that Amazon's top-selling lists in Australia are beneficial resources. Check here.

These are some items to check:

• Compare sales data between Supplier A and Supplier B for similar products.
• Assess whether each supplier's margins meet your financial targets. Some suppliers hide their margins, which can be a problem. A typical problem is that some quote markup and some margins. Always work in margins.
• Investigate alternative suppliers offering better terms or unique products.

Offer Products at Multiple Price Points

Stocking products at different price levels allows you to cater to diverse customer segments while also strengthening supplier relationships:

• Budget-friendly options attract cost-conscious shoppers.
• Mid-range products appeal to the average buyer.
• Premium items target customers seeking quality or exclusivity.

This strategy not only broadens your market reach but also creates upselling opportunities.

Leverage Technology for Efficiency

Your POS system has an invaluable tool for managing supplier relationships and improving operational efficiency:

• Use the report "Sales Comparison by Supplier" to rate your suppliers.
• Automate reordering processes based on sales trends.
• Monitor margin creep (declining profit margins) and address it with suppliers promptly.

Use Sales Comparison by Supplier

Use the "Sales Comparison by Supplier" report in your POS System. This report will show you͏ the actual figures, and the͏ changes over time for each supplier. By ͏analysing your suppliers, you can gain valuable insights about your shop based ͏on various criteria such as the number of sales, total value of sales, average sale amounts and ͏profit. For example, it is important to determine which suppliers are unde͏rperforming or overper͏forming. Check if they are giving you enough margins to meet your needs.͏

How to Access the "Sales Comparison by Supplier" Report

To access the "Sales Comparison by Supplier" report, follow these steps:

It is in the register sales reports; find the report "Sales Comparison by Supplier."

Click on it, and you will get this screen.

How to Interpret the "Sales Comparison by Supplier" Report

You have a report of your suppliers that shows you the summary statistics for each supplier. They are based on each criterion you selected and a comparison of how you have been travelling with them. The big ones and those with significant movements in the comparison percentages are fascinating.

Look at the profit figure. Today, we are seeing significant downward margin creep. This is an excellent place to see it. There appear to be many reasons for this downward margin, and it seems to be both due to changes in customers and suppliers. I will discuss this in another article.

Now, rerun this report and compare suppliers based on those that handle similar products. Now, compare and contrast these different suppliers based on their performance over time, noting the number of sales and profit.

Build Strong Relationships

Suppliers are more inclined to give more to retailers they see as partners instead of merely vendors.

How to these relationships:

• Please make sure to let them know about your needs and concerns often.
• Pay invoices on time to build trust.

• Show loyalty by prioritising their products when possible.

• Tell them information that they may find helpful.

For example, if a supplier launches a new product line, consider promoting it immediately. This shows commitment and builds goodwill.

Take action Based on Data Insights.

How to Customise the "Sales Comparison by Supplier" Report

To customise the "Sales Comparison by Supplier" report, follow these steps:

Select a period for the report, let us keep it simple so start with the past 12 months and compare it with the previous 12 months. So leave it AS IS and run the report. Afterwards, feel free to explore more options as desired.

Screenshot of Customised Sales Comparison by Supplier Report

Using data-driven insights from tools like the "Sales Comparison by Supplier" report allows you to make informed decisions:

1. Identify underperforming suppliers. Then, address any concerns with them directly.

2. Strengthen relationships with high-performing suppliers.

3. Monitor trends such as declining margins and/or dips in sales.

Example: If Supplier A's products exhibit decreasing margins over time due to increasing costs, renegotiate the terms or consider switching to Supplier B, which has superior profitability metrics.

Challenges and Opportunities

I encourage you to contact underperforming suppliers and express your concerns. Please also inquire about how you can collaborate more effectively with well-performing suppliers and how to do more with them.

Please give it a go and see how it goes.

Valentine's Day offers retailers a chance to increase sales, but achieving understanding involves more than just figures.

It's crucial to analyse your store's performance to determine what worked well and what did not and to improve. Here’s a guide to assist you in evaluating your Valentine’s Day sales.

Last-Minute Shoppers

Many Valentine's Day purchases are impulsive, so people buy even after the holiday. Please keep displaying your themed products for a little. Also, remember that some bargain hunters are now looking.

The Importance of Measuring Sales for Businesses

Businesses need to measure during busy seasons such as Valentine's Day. These days are unusual, and what you find on them can work against you because they are uncommon. This makes it harder to make decisions. Luckily, tracking sales has become more straightforward and practical with a modern POS system.

Sales Reports

Sales reports are crucial tools for monitoring sales performance. They show your profit, bestselling products, and employee performance. Using these reports, you can identify trends and make data-driven decisions.

How to Track Sales Performance

Go to reports and click on sales.

This report will allow you to check how each department in your shop is doing compared to previous periods.

Now select the dates you are interested in, 14 February 2025 and 14 February 2024

I am ignoring all the extra options for this example. Please feel free to review this later after you work through this example.

When reviewing reports, navigate the left-hand menu to focus on the most relevant departments. It will help you pinpoint areas of success and those needing improvement.

The advantages of utilising sales reports: By analysing sales data, you can determine, in particular, the bestselling products and employee performance. Your business strategy must be to gain insights to maximise profits. If you follow what happened on those days, you can identify trends that you need to make informed decisions. It will help your businesses make data-driven decisions.

Another good way to measure sales on Valentine's Day is through employee sales analysis. It is interesting because, by analysing sales data, you can identify employees who perform well.

Top-Selling Products

Create a list of your best-selling items! Did red roses or heart-shaped chocolates fly off the shelves? Also, please remember items that didn't sell well; each has a story for me. In my experience, it's best not to fight the market if the public wants these heart-shaped chocolates from you; give them to them and do not try to do better.  

Leftover Stock

Everyone hates these items if they cannot be sold after Valentine's Day. These items highlight what did not resonate with customers, so if you're left with too many red candles or gift baskets, make a note for next year.

Sold-Out Items

Which products sold out too quickly is more important? These cost you money. For instance, if heart-shaped chocolates sold out too quickly this year, plan to increase inventory next year.

Summary

> Valentine's Day is an excellent time for businesses to boost sales, but it requires strategic planning and measuring sales.

> Measuring sales during busy seasons such as Valentine's Day is essential.

> Sales reports are great for monitoring sales performance.

> Employee sales analysis is another way to measure Valentine's Day sales. It can identify high-performing employees and those who need more training. Using this information, you can boost sales.

Businesses can use this information to boost sales and customer satisfaction.

(Friendly Advice for Non-Tech Business Owners)

In 2025, it's clear that Facebook's recent changes have made it more difficult for you to reach your customers for free. Before, businesses could easily connect with their customers without any cost. While it's still possible, it's not as easy as it once was. Facebook increasingly encourages businesses to pay for advertising to reach their audience.

Also, it got better and more complex, so now it might feel tricky, but it's still a good tool for local shops wanting to connect with their customers. Let's walk through some changes and how you can make it work for your business—no fancy tech skills needed.

Why Your Shop Needs Facebook (Even Now)

Every local business should keep its Facebook page updated. Think of it like your digital shop window - people expect to find you there. If they look, they should find you; if Facebook sees that they want to find you, it will push you.

What if your potential customers look for you and find your competitors?

What your Facebook page shows is:

You're open and active

Customers check Facebook before visiting

Answering questions quickly

Facebook likes that as do your customers and potential customers.

• A thumbs-up emoji
• All you need is a short, friendly message
• Answers to any questions, if you do not know the answer, tell them you are investigating. -Talk like a local.

Sharing what's new

Could you take a picture of what is new or your weekly special? If, for example, you have a lotto, there is no reason why you cannot post something new once a week. Someone won big in the shop; there is a good draw, your opening times, etc.

Free Tactics That Work

Post When People Are Browsing

If you share when folks are looking, Facebook shows your posts to more people.

11 AM-1 PM

Perfect for lunch break shoppers
Please don't post after 6 PM - your post gets lost overnight.

Videos Get Seen More

You don't need fancy equipment. Try these easy ideas:

• Film a 20-second video of new stock arrivals
• Record staff explaining a product's features
• Share customer testimonials on camera (This is excellent stuff in retail)
• Top products. Why not set up a free product showcase? People like to buy stuff that their peers are buying.
• Go to your page's "Shop" tab
• Snap photos of your top 5 products
• Add simple descriptions

Events

St Valentine's Day, do you sell cards, toys for pets, perfume? Snap a few of them and put them up. Cards inside and out as many people really care about the words.

Save Time With These Simple Tricks

Batch Your Posts

Pick a quiet morning to:

1. Write 3-4 post captions
2. Take photos of your products
3. Schedule them using Facebook's free tool

Check What's Working

Visit your Dashboard weekly to see what your readers like and want to see:

• Which posts got the most comments
• When your followers are online
• How many people clicked your photos

Your No-Stress Action Plan

Here is a step-by-step plan to try.

-Ask your customers to give you likes on Facebook.

Now, you can go to your top-selling report and pick your top five selling items by quantity. Take pictures of them. I discussed how to do this here.

• Add these top five products to your Facebook Shop
• Make a few Facebook posts showing these items.

Conclusion

Consistency matters more than perfection. If you wait for perfection, you will do nothing. You can always make it better later. Start small.

A single sapling becomes a forest through daily growth, not instantaneous majesty.

Facebook requires more effort than before, but it's still worth it.

Receipt Marketing: A Powerful Tool to Boost Your Business

A crumpled receipt at the bottom of a shopping bag is one of retail’s most powerful marketing tools. About 92% of Australian consumers check receipts before recycling them, and forward-thinking retailers are transforming this afterthought into a strategic advantage.

Receipt marketing is a low-cost, effective marketing technique. It involves adding promotional messages to the point-of-sale (POS) receipts businesses issue after a sale.

This article will discuss receipt advertising, its features, and some methods for utilising receipt promotion to support your business.

Reasons for larger receipts

Small businesses often do small receipts as it is cheaper to print a small receipt than a larger one, but you notice that majors tend to use large receipts. Could you take a look at a supermarket receipt today? They have done their figures. If you'd like something to think about this, you can check out this video.

While small receipts are financially savvy, more significant receipts offer many advantages. 

What Are Its Advantages for Business?

Receipt promotion is a low-cost method businesses can use to increase. Special offers are added to the receipts given to clients after the sale.

Receipt promoting offers businesses a few advantages, including:

> A savvy method for contacting the people who buy from you.
> Receipt messages are a minimal expense item.
> Be very flexible with the message, which can urge your customers to return and make extra purchases.
> Offering customised offers and advancements to your customers.
> An easy method for building your shop by adding your shop details.

No matter what the size of your business, receipt promoting offers a financially cheap method for drawing customers.

Ideas for utilising receipt messages

Coupons

People are searching for cash savings, so put an exciting offer on the POS receipt. 
> Try to make it engaging.
> Keep the offer straightforward. A modern consumer will not sit down and try to figure out what you are trying to say. A helpful tip here is to ask a kid about ten years old to read it and tell you what you want to say.
> Make it simple 
> Make the offer real. You have an opportunity to sell; the last thing you want is for the customer to think it's ridiculous. I can assure you the customer will remember that.
> Put a cutoff date on the offer. It creates a need for your customers to move soon.
It may end a common legal problem when an offer is valid. 
> Try to make the offer something that drives more sales to the business. Some items have excellent added sales value. 

Marketing season

There are times of the year when people buy unique goods. You can use your receipt to let your customer know you are in this market, too.

Customer feedback

You can use the receipt to get customer feedback, but I will discuss this in another post as you need special equipment.

Thank you message

Thanking customers can be an easy way to foster business loyalty. Showing appreciation may make customers more likely to buy from your business.

Could you consider saying something like this?

"We appreciate your support for our small local business! Your patronage means a lot to us, and we are grateful for customers like you who help keep us going. We look forward to serving you again soon and wish you all the best!"

Creating Your Receipt Advertisements.

You should work out your message first by following this rule.

The 7-3-1 Rule

Today, receipt marketing thrives on simplicity.

7-Day Maximum Validity  

Change your message every week; there is no point in sending the same message unless it is particularly good. 

If you are going to add a special offer, make it only available for a week. For example, "$5 OFF your next purchase. Valid 7 days from this transaction."  

3-Sentence Maximum Copy  

Shoppers today scan and don’t read. The message is three sentences tops.

One Call-to-Action  

Do not confuse people too much; it should have only one call to action. 

Once you have worked out your message,, you can just go to the main menu and select the Cash Register section.
Choose Register Setup.

After that, select the Receipt option (see the green arrow below) from the menu. 

Now there are many other options available, which we will discuss later.

In this section, you'll see that we've done much work recently.

The first option we'll discuss is adding an image to the receipt's top. You'll often use this feature to put your logo on the top of the receipt, but only some use this function.

The next choice is to include an image at the bottom of the receipt. In this instance, the illustration is a Valentine's Day advertisement. The file came from the supplier. 

The last option is the one that is used the most. You can quickly add advertisements to the receipt here. Use this to promote your range of products, items on sale, and/or marketing seasons.

The receipt below illustrates such an advertisement. It promotes the store's extensive inventory of inkjet cartridges.

Conclusion

> Receipt showcasing is a minimal expense. A viable showcasing procedure that gives reasons for a customer to come back.
> Bigger receipts offer many benefits that little receipts can't.
> Receipt messages promoting offer advantages, including connecting with clients.
> Thoughts for receipt messages incorporate coupons. Make the offer genuine, put an end date, promote marketing seasons, thank your customers, and get criticism.

Psychological marketing techniques have transformed modern retail, with giants like Starbucks leading the way in implementing these strategies. I listened to a talk about them here. So, let's explore five evidence-backed psychological marketing tactics they use that demonstrate measurable ROI in retail settings.

Let's examine five evidence-backed psychological marketing strategies demonstrating measurable ROI for Starbucks.

The Decoy Effect

The decoy effect works by offering the customer three options. When presented with three choices, most people gravitate toward the middle. So, say you have two items, a cheap and costly product. Now, if you add a super expensive item, many people will tend to the middle, so they will buy the costly item because it does not look so expensive. The super costly item has increased the sales of the costly item.

This psychological principle drives significant revenue for businesses like Starbucks.

Bundling and Promotions

Could you make bundles with a base product and additional items? Many people who want the base product will often buy more with a bundle.

The whole is more appealing than the items individually; your items appear more attractive when presented in a bundle.

Consider bundling good-selling items and bad-selling items together. It's a great way to get rid of unsellable stock.

Charm Pricing

Charm pricing involves setting prices just below a round number (e.g., $3.99 instead of $4.00). This tactic makes products seem more affordable and can drive faster purchasing decisions as people see it as $3 rather than $4.

Making it 95 cents rather than 99 cents works better in many retail settings, as it creates a perception of better value. It is also easier in Australia to handle cash, as we have a five-cent but not a-cent piece.

Although it was not mentioned in the talk. Many Chinese people live in Australia. To Chinese people, 8 is a lucky number, so if someone wants to experiment with, say, 3.88, please let me know how it goes.

The Cashless Effect

Removing dollar signs from prices can also increase spending by making the transaction feel less significant. For example, you should not write $24.95 on a price but 24.95; you do not want to push a $ sign at people.

People also tend to buy more with cashless payments. Although it costs more to process cashless payments, people tend to buy more if the sale is cashless.

Building Emotional Connections with Customers

Creating emotional customer connections is vital for building loyalty and driving repeat business. Starbucks, for example, always asks for your name for each order.

Offer customised loyalty programs and personalised recommendations based on customers' interests or past purchases. Your POS System has a free CRM; why not use it?

Conclusion

These five psychological marketing strategies have significantly enhanced customer engagement and shop sales.

Update: 

Although this talk did not mention it, what Starbucks does is a tactic. 

Scarcity

Starbucks offers limited-time offers, like the Pumpkin Spice Latte, for a short time. Customers rush to try exclusive drinks before they disappear.

Valentine's Day is coming, and you must prepare for a record-breaking year. With projected sales of $535 million this year, it promises to be the most profitable Valentine's Day ever.

Market Projections for 2025

Roy Morgan's early estimates suggest a 15% increase in spending compared to last year. However, past trends indicate that actual spending often exceeds their predictions. For instance, in 2023, Roy Morgan estimated $485 million, but Australians ended up spending over $849 million, according to a review by the NAB. This discrepancy highlights the importance of being prepared for the impulse buyer.

Consumer Spending Trends

The Google Trends data indicates a notable rise in interest for Valentine's Day 2025 compared to the previous year, reflecting a robust demand across all states. This observation aligns with the overall increase in consumer enthusiasm for the holiday.

Top Gift Categories

Roy Morgan's data reveals the most popular gift categories for Valentine's Day 2025:

• For Men:

  • Flowers
  • Food, chocolate, and alcohol
  • Experiences (dinner or trips away)

• For Women:

  • Food, chocolate, and alcohol
  • Flowers
  • Cards

Inventory Management Steps

To capitalize on these trends, follow these practical steps:

Analyse your past Sales Data

To prepare for this year, use your POS software effectively. Reviewing last year's sales data will give you valuable insights into which items were the top sellers. Also check your current inventory levels. This information is essential for deciding what products to stock up on to meet customer demand!

Research sales data from the previous year.

To see what sells in your shop on Valentine's Day and what stock you have, It will take seconds to discover and give you some good ideas. Remember, unlike other marketing holidays, many products on Valentine's Day are still marketable afterwards if you select wisely. 

So, in your POS software, look at the Top N stock report, which gives you the top-selling items.

Go to Register Reports marked in green.

Select stock.

Now, you will see two reports. Click the one on green first. It would be best to hold the purple in reserve, as you may need it before placing an order.
 

 
Now select a week before last year's Valentine's Day and a few days after, and then use the top 40 items, which should be plenty. I suggest doing it by quality sold.

You will get a report with top sellers over Valentine's Day, plus your current stock holding, to see how you stand for Valentine's Day.

We now have a list of the products that have sold well in your shop. That took less than a minute. Now, make sure you have enough stock.

Order now

Don't wait. Sales are starting now.

Stock Up Strategically

With the average person expected to spend around $150, ensure you have various gift options available. Chosen wisely, as many Valentine's Day products remain marketable after the holiday.

Visual Merchandising Tips

Creating a dedicated Valentine's Day section in your store can significantly boost sales. Here's how to do it effectively:

Create a Special Section

Designate a specific area for Valentine's Day products. It doesn't need to be elaborate; make sure it's visible and appealing.

Decorate with Love

Use cute messages and signs to decorate the front of your store. It will attract passing shoppers and spread the love.

Gift Wrapping

Consider offering gift-wrapping services to go the extra mile for your customers.

Conclusion

Valentine's Day is a significant opportunity to increase sales. To make this day profitable, please ensure you have the right products and an inviting shopping environment.

Maximise your Valentine's Day sales.

This is a typical map that customers call daily to search locally for goods and services they use. See the green arrow, which they look at in the Google suggested listings of the businesses they are looking for now. I have spoken about this before and must talk about it again, as in 2025, local search in Google has become a cornerstone for businesses. Today, there is a dramatic rise in "near me" searches, and now nearly half of all Google searches have local intent, which has grown by 500% in recent years. It translates directly to sales, as 76% of local searchers visit that business within 24 hours, and 28% of those searches result in a purchase often in an hour. I suggest you go through the complete list of the items on this website I linked to.

Many more people are now searching for local shops on Google. Google Maps Marketing is crucial for enhancing your visibility and customer engagement.

Why Local Search Matters

For example, if a customer searches for "lotto near me," they want a lotto agency near them; almost certainly, this is a potential customer looking to buy. Today, this local search is pivotal in driving foot traffic and sales to shops. We want to target customers with high purchase intent, as 28% of these local searches result in a purchase, often within an hour.

Local search is critical for SMB businesses. You, David, can compete with the Goliaths.

How Google Maps Marketing Works

Google Maps Marketing involves promoting your name in local search results. It requires you to claim your Google Business Profile, ensure consistent business information across the web, and encourage positive reviews to improve your visibility and attract customers.

Setting up your Google Business Profile is the first step in Google Maps Marketing. Make sure your profile is fully completed and is correct. Please ensure you have accurate and up-to-date information. Put in your business name, address, phone number, and hours of operation. It's also important to categorise your business correctly and include relevant services in your business title. The ones you need to categorise are the ones that people are searching for you.

Ready to improve your local visibility? Let us proceed.

Understanding Google Maps Ranking Factors

Let us examine the key factors that influence rankings and why you can, as David, compete with the Goliaths out there.

Firstly, Google Maps is what we call a zero-sum game. That means there are limited spots, and if you are in, someone else is out. So, we need to push the factors that get us in so we get the place.

Now, the three primary factors that determine your spot in Google Maps are:

Relevance

Relevance in Google Maps rankings refers to how well your business matches the customer's request. If I am a potential customer looking for, in this case, lotto, you have lotto. You must ensure that your Google Business Profile lists you with lotto.

To enhance relevance, businesses should focus on the following strategies:

Correct Categorisation

Ensure your business is listed under the most accurate category. Google provides a list of categories that you can choose from when setting up your Google Business Profile.

Keyword Optimisation

Include relevant keywords of your business in your description.

Distance

This one is difficult as there is little you can do about the distance between you and the customer. Distance plays a crucial role in Google Maps positions. The fact is that businesses closer to the search location are more likely to appear in search results. However, distance is balanced with relevance and prominence to show the most relevant results.

Prominence

Prominence is determined by your business's online reputation and offline credibility. It includes positive reviews, high ratings, and mentions online. Being active online does help.

Basic Optimisation Steps

Introduction to Optimisation

Optimising your Google Maps presence is crucial for improving visibility and attracting more local customers. The process involves several key steps that help ensure your business appears prominently in search results. These basic optimisation steps can enhance your online presence and drive more foot traffic to your business.

Claiming your Google Business Profile

Claiming your Google Business Profile is the first step in Google Maps optimisation.

Steps to Claim Your Google Business Profile:

1. Verification Process: Verify your business through Google My Business. This typically involves receiving a phone call from Google. From experience with many of my customers, it is not easy. It often needs to be done a few times until it happens.
2. Complete Profile Information: Ensure your profile includes accurate business information. Double-check your name, address, phone number, and hours of operation.
3. Business Categories: Choose the most relevant categories to improve your business's relevance in search results.
4. High-Quality Photos: Take high-quality photos of your business with your smartphone to enhance visibility and engagement.
5. Description and Keywords: Write a compelling business description with relevant keywords to improve your profile's visibility.

It will take you a few hours of work, but it's worth it.

1. Encouraging Reviews: Encouraging people to review you is critical. Positive reviews improve your visibility in search results and build trust with potential customers. Ask customers to give you some reviews. Do not worry about negative reviews. We all get them. If you are in business, you need to have a thick skin. It goes with the territory.

Need help implementing these changes? Give me a call.

Monitoring and Improving Rankings

Monitoring your local search rankings is essential to understanding how well your business is performing in Google Maps and identifying any needed improvements. While there are tools advertised to provide insights, asking your customers is the most effective way to gauge your progress.

Asking Your Customers

Asking your customers how they found your business is a straightforward, simple and robust method for understanding your local search performance. This approach allows you to gather firsthand information about your visibility. Ask them what they are looking for, what they used and why they picked you.

This way, you will get:

Direct Feedback

Customers can provide direct feedback on how they discovered your business, helping you understand which marketing efforts are most effective.

Personal Connection

Engaging with customers builds trust and strengthens your relationship.

Insights into Search Behavior

Understanding how customers search for businesses like yours can help you better meet their needs.

Questions to Ask:

What Did You Search For?

Ask customers what keywords or phrases they used in Google Maps to find your business. It helps you understand which search terms are most effective for your business.

How Did You Find Us?

Please inquire about the steps they took to find your business.

For example, you might ask a customer: "What did you type into Google Maps to find our lotto shop?"

Do tests

Go to the parking lot near your shop. Now, search Google Maps for your business's services, such as "lotto near me."

What happens, what appears?

Do the same test in another part of your shopping centre, and try again.

Continuous Improvement

Once you get some answers, change your listing till you get it right.

Conclusion

Understanding Google Maps can help you leverage this technology to attract more customers in 2025.

Frequently Asked Questions (FAQ)

Q: What is Google Maps Marketing? A: Google Maps Marketing involves making your online presence appear prominently in local search results in Google Maps.

Q: Why is Google Maps important for local businesses?

A: Google Maps is crucial for local businesses as customers will use it in 2025. It drives foot traffic and sales and provides a platform for businesses to compete locally. Most importantly, it reaches customers with high purchase intent.

Q: How do I optimise my Google Business Profile?

A: Fill it out; not just 60% of many do. Ensure it is complete with accurate information and has the relevant keywords.

Q: How often should I update my Google Business Profile?

A: Until you bed it down, probably every month, and after that, once every three months just to check it out.

Q: What are the costs associated with Google Maps Marketing?

A: Everything I have said here is free. We can discuss later the paid stuff.

Q: How long does it take to see results from Google Maps? A: Generally, businesses notice improvements within a few weeks.

In today's digital age, we all need decent internet speed. The NBN has transformed Australia's internet infrastructure, which most of our clients run.

Factors Affecting Internet Speed

Now, your internet speed depends on several factors, some of which you may be able to control:

Type of NBN Connection

Different plans offer varying speeds.

Number of Users

More users in your area can slow down your connection.

Time of day

Different times of the day have different speeds. I noticed my speed dips at about 7 p.m., while I get heaps at night. Test your internet speed at different times, such as in the morning, lunchtime, and afternoon, as peak usage times can significantly impact your speed.

Copper

Today, much of the copper infrastructure in Australia's internet network has been replaced with fibre, but we still have to make progress.

Business Internet Speed Requirements

Today, SMB businesses should aim for internet speeds of at least 25/5 Mbps, preferably 40 Mbps

Case Study: Troubleshooting Internet Issues

We once had a client who complained about slow internet speeds. Upon investigation, our engineer discovered corroded internet wiring, which caused the problem. Once the wiring was replaced, the issue was resolved.

Testing Your Internet Speed

You must test your internet speed regularly to ensure your business runs at its best. A free speed check tool is available here that can give you an accurate reading of your current speeds.

For a download, 25 Mbps should be a min, and 40 Mbps would be better. Upload 5 Mbps if you do video conferencing, e.g. Zoom 10 Mbps would be the min.

For latency, 50 ms is for general use; if you do any video conferencing, 20 ms is the min.

Download/Upload latency should be at least 50 ms.

Troubleshooting Checklist

If you're experiencing slow speeds:

Check wiring

As stated above, most user problems are caused by cables. A big issue here is the fluro lamps in the shop. Move the wires away from them.

Restart Devices

Restarting your devices can sometimes resolve issues.

Contact your Internet Provider

If issues persist, contact your internet service provider for assistance.

FAQs

Q: How often should I test my internet speed?

A: Once in place, you should notice any slowdown. I recommend testing every three months, ideally at different times of the day.

Q: What is a decent internet speed for an SMB business in Australia?

A: I would say as a min 40Mbs down, 10 Mbs up

Q: What is latency?

A: Latency is the time it takes for information to travel from. your computer to your ISP. A low latency of under 20 ms, is crucial for video conferencing.

I understand how frustrating it can be to lose a customer. Even though it may appear to be a defeat, it does not have to be the end of the road. Keep your cool.

Customer churn is a significant challenge for business today. Losing a customer is a setback. We need to examine it to improve our business practices. Here, we'll explore strategies for winning lost customers.

The True Cost of Customer Churn

Losing customers will significantly affect your bottom line. Acquiring new customers to replace them is costly, so tackling customer churn is vital for maintaining profitability.

Building a Customer Recovery Strategy

Implement these proven tactics to regain lost customers:

Communication

Effective communication is the first step in recovering lost customers. If you can communicate with them, you can offer solutions or compensation, demonstrating your dedication to their satisfaction. It's also important to request feedback to understand their reasons for leaving. Sometimes, these reasons may be beyond your control, but showing that you value their business can make a difference.

When communicating with lost customers, consider their motivations. They might have left because of a negative experience or because they found a better deal elsewhere. Understanding these reasons can help you tailor your approach.

Taking responsibility for any mistakes is key. Even if you weren't directly at fault, showing that you're committed to improving their experience can help rebuild trust. This proactive approach not only helps in winning back customers but also enhances your overall customer service.

Leveraging Your POS System

While effective communication forms the foundation of customer recovery, implementing systematic tracking through a loyalty program enables proactive customer retention. A loyalty program allows you to measure and track customer loss, identify patterns, and maintain a solid relationship by regularly following up. Many POS systems, including ours, offer a built-in retail CRM to help you manage customer interactions and loyalty programs without additional costs.

Learning from Customer Loss

Studying the reasons behind your customer churn is a vital exercise. We must be open and honest here. Did the customer leave 1) A negative experience with you 2) Conditions have changed, e.g., because they moved to a different area; 3) They found a better deal elsewhere. Use this information to improve the customer experience and make the necessary adjustments to avoid similar issues in the future.

Proven Strategies for Customer Retention

Customer retention strategies are vital for maintaining a loyal customer base. Here are some key steps to focus on:

• Follow Up with Lost Customers: Regular communication shows that you value their business.
• Provide Solutions or Compensation: Offer incentives to encourage them to return.
• Take Responsibility for Mistakes: Show commitment to improving their experience.
• Gather feedback: Understand the root cause of customer churn to make informed changes.

Conclusion

Losing a customer hurts. Regaining lost customers often requires a direct approach. Remember, customer retention is more cost effective than acquisition, and recovering lost customers can turn them into brand advocates.

Would you be ready to transform your customer retention strategy? Access these powerful features in your POS Software today; you have a free CRM, so why not use it?

Running a gift in your shop can be rewarding, but success hinges on understanding the financials and implementing effective strategies. Let's explore how you can boost your shop's profitability.

Location: The Foundation of Your Success

Before diving into operational strategies, it's crucial to recognise the impact of location on gifts. Gift shops in high-tourism areas often perform better due to increased foot traffic and demand for souvenirs. When looking at your location, consider:

• Proximity to tourist attractions
• Local demographic trends
• Competition in the area
• Potential foot traffic

Of course, a prime location will significantly boost your sales potential and create higher profits.

Expanding Your Gift Shop with cloths

Although not gifts, adding clothing can significantly boost your profits and attract a broader customer base. The average Australian spends about $200 a month on clothin. We are some of the top spenders on clothes in the world.

When selecting clothes for your shop, consider whether your items appeal to tourists. T-shirts with local designs or slogans work. If you are in a coastal area, look at beach cover-ups.

Jackets, hats, etc are good as you do not need a changing room.

You'll want to stock a variety of sizes to cater to different body types, so remember to adjust your inventory based on the time of year and local climate.

Consider related items, such as hats, beanies, etc.

When pricing your clothing items, aim for a markup between 2.2 and 2.5 times the cost price. It will give you a decent profit margin while being competitive. Consider offering bundle deals to encourage multiple purchases, which can increase your average transaction value.

Effective display and merchandising can significantly impact your clothing sales by creating visual interest in your shop. Grouping complementary items can encourage add-on purchases, boosting your overall sales. It's important to rotate your displays regularly to keep the shop looking fresh and exciting, enticing repeat customers to see what's new.

Phone cases

Phone Cases

Australians buy a phone on average once every four years, which is about 9 million a year. Since new phones are different sizes, almost everyone buying one needs a new case. Since cases are replaced more frequently than phones, it is reasonable to estimate that tens of millions of phone cases are sold annually in Australia.

They do not take up much room, but they do need a stand, which must be organised by type, e.g., iPhone, Samsung, and other brands.

Then, you need to sort them by model; ensure you have the latest with a range of rugged, slim, leather, or eco-friendly cases.

Look at your price points. You need to offer budget-friendly and premium options to accommodate different customer preferences.

To sell them, though, you need some product knowledge.

Understanding Gift Profit Margins

One point that I have noticed is that those who do well in gifts are people who grasp the key financial metrics and know and monitor your numbers:

Gross Profit Margin

Gifts typically achieve a gross profit margin of 40% to 51% in a successful shop.

Net Profit Margin

You need to check your expenses, as the net margin is 12% to 22% for those shops that sell gifts; the additional costs are more than the cost of the goods.

Essential Financial Metrics for Gift Success

Understanding your financials is crucial, so studying your profit and loss (P&L) statement is worth studying. Consider it your business compass as it shows the critical metrics about your expenses. Pay close attention to these key percentages:

• Cost of goods sold (COGS): Typically 48% to 56% of revenue for gift shops
• Rent: Can range from 6% to 20% of turnover
• Wages: A significant expense that needs careful management. To sell gifts, you often need staff who know the product.

Keys to Success in the Gift Shop Business

Now that we understand the profit potential let's explore the key strategies that will help you achieve and exceed these industry benchmarks.

1. Grow Your Sales

While cost-cutting can improve margins, in my experience, it's not a path to success; sustainable success comes from growing sales. Consider these strategies:

• Create a unique product stand with relevant gifts together.
• Make the stand inviting.
• It needs to be somewhere your customers can see it
• Plan your inventory around peak holiday seasons to maximise sales

2. Price Strategically

Retail pricing is often recommended with a markup strategy of 2.5 times the cost price. This allows for a healthy gross margin while remaining competitive. However, I suggest walking into a few competitors nearby and getting a feel for their price points. See what they are getting. It will tell you what people in your area will pay.

3. Improve Efficiency

Enhance your shop's efficiency to control costs and improve customer experience:

• Streamline inventory management
• Optimise shop layout for easy restocking and customer flow
• Invest in a reliable point-of-sale (POS) system for faster transactions and better inventory tracking

4. Analyse Your Product Mix

Regularly review your product performance:

• Identify high-margin items driving profitability
• Recognise popular products that attract customers
• Discontinue or discount underperforming items.
• As a rule, you need about 10 new products constantly.

Advanced Strategies for Revenue Growth

To take your gift shop to the next level, consider these advanced tactics:

1. Develop an e-commerce presence to reach customers beyond your local area
2. Implement a customer loyalty program to encourage repeat business
3. If relevant, look at unique, locally-made products

Success lies in working smarter and making informed decisions based on your business data and market trends.

Artificial Intelligence (AI) is now revolutionising the retail industry. It is already changing how businesses operate and engage with customers. I have witnessed firsthand the increasing impact of AI on our retail sector. This article investigates how we anticipate the latest generation of AI solutions will transform the brick-and-mortar retail in Australia.

The retail landscape is evolving rapidly, with AI leading the charge. From inventory management to customer service, AI promises to provide solutions once deemed impossible. 

The Focus Engine: Our Early AI Solution

Almost three decades ago, we created an AI solution that transformed stock ordering for our users. Using the Focus Engine, this system has been a pillar of our service offering and has stood the test of time. No one has been able to match it in our market space.

Key features of the Focus Engine include:

• Widespread adoption: Thousands of our clients have used this solution, many in their daily operations; it is a testimony to its effectiveness and reliability.
• Cost-effective: We've always offered this powerful tool free of charge, making advanced AI accessible to all our users.
• Tailored for specific needs: The Focus Engine was designed to address particular challenges in stock order and excels in this specific domain.

The most telling indicator of the Focus Engine's success is the feedback we've received from our long-standing users. One particular comment I liked by one of our users when talking about the latest update:

"You can update it however you like. Just make sure that it gives the same figures after the update."

It's hard to beat a dedicated AI specially built for one task. However, it does speak volumes about the trust and reliance our clients place on the consistency and accuracy of our AI solution.

ChatGPT in Retail: Limitations and Challenges

Recently, some of our clients have been using ChatGPT. Unfortunately, in tests, its application in retail has revealed some significant limitations:

• Cost concerns: A significant problem with ChatGPT for many retailers is that it's "not particularly affordable." This poses a significant barrier, particularly for small—to medium-sized businesses operating on tight margins.
• Weaknesses in retail-specific issues: Although versatile, ChatGPT frequently encounters the many nuanced challenges unique to the retail sector in Australia. Most of its information is form overseas. 
• Mathematical limitations: One significant flaw of ChatGPT is its struggle with maths and arithmetic, which are essential for numerous retail operations.
• Pattern recognition methods: ChatGPT's strength resides in pattern recognition rather than actual computations, which can pose a significant drawback for retailers requiring precise calculations.

These limitations highlight why solutions like our Focus Engine, designed specifically for retail requirements, remain valuable even against the backdrop of broader AI advancements.

Enter DeepSeek: A Game-Changer in AI

The AI landscape is undergoing a seismic shift with the arrival of DeepSeek, a Chinese AI model shaking up the status quo. It's making waves in the industry, and here's why:

• Unparalleled speed: DeepSeek operates twice as fast as competitors like ChatGPT, allowing quicker response times and increased productivity.
• Cost-effectiveness: Perhaps most importantly for retailers, DeepSeek costs around a tenth of the price of its competitors, making advanced AI more accessible than ever.
• Comparable power: Despite its lower cost, DeepSeek boasts comparable power to the best commercially available AI models.

Here is a table I constructed to show the difference, in particular checkout the costs.

Why DeepSeek Matters for Retailers

DeepSeek's capabilities are particularly well-suited to the retail sector:

• Mathematical prowess: Unlike some general-purpose AI models such as ChatGPT, DeepSeek excels in mathematical problem-solving, a crucial skill for inventory management, pricing strategies, and financial forecasting.
• Improved efficiency: The combination of speed and accuracy means retailers can make decisions faster and more confidently.
• Cost-effective hardware requirements: DeepSeek is less reliant on expensive Nvidia microchips, allowing it to run on much cheaper equipment. It significantly lowers the barrier to entry for retailers looking to implement AI solutions.

These advantages are already impacting the tech industry. Nvidia, a major player in AI hardware, has lost nearly $1 trillion in market value, indicating a shift in the AI landscape. Moreover, DeepSeek's popularity is soaring, becoming "one of the most downloaded apps in the world".

The Open-Source Advantage

One of DeepSeek's most significant features is that it's the "only powerful AI model in Open-source". This open-source nature brings several benefits:

• Public preference: Users and developers alike prefer open systems. They like to know that the systems they use are open for inspection.
• Wider deployment and development: An open-source model allows for broader deployment and faster development of new applications and improvements as developers can see what it is doing.

Speed and Processing Power

DeepSeek's high processing speed makes it particularly suitable for businesses that require quick, real-time decision-making - a common need in the fast-paced retail environment. No one wants to wait unnecessarily.

Privacy and Security Considerations

While DeepSeek offers many advantages, it's essential to address our privacy concerns:

There are worries about the Chinese government's potential data access. It is also an issue with most AIs, as wherever they are hosted, there is a government with potential data access.

Running DeepSeek locally can mitigate some of these concerns. For those concerned about data privacy, I recommend using DeepSeek "for personal or exploratory use only."

The Bigger Picture: AI Industry Disruption

DeepSeek's emergence is more than just a new product launch; it represents a significant shift in the AI industry:

• It challenges US dominance in AI development.
• It positions China as a strong competitor in the global AI race.
• This competition will drive further innovation and development in AI technologies.

Current Limitations and Strengths

While DeepSeek is powerful, it's essential to understand its current position:

• It is only text-based tasks.
• Its focus on these areas means it can provide better-targeted, efficient solutions for many retail operations.
• Its maths and arithmetic are better, but it does make plenty of mistakes.

Looking Ahead with its Cost-Effective AI retail solutions

The emergence of DeepSeek and similar AI models is set to revolutionise the retail industry. We predict that many more AI models will soon copy its approach, making AI increasingly more cost-efficient and accessible. This democratisation of AI technology levels the playing field, allowing smaller businesses to compete with larger retailers in terms of AI-driven capabilities.

Despite these advancements, there's uncertainty about fully leveraging generative AI capabilities in practical applications. However, the potential benefits for retailers are significant:

Enhanced Customer Experience

AI can dramatically improve customer interactions and satisfaction:

• Provide personalised shopping experiences with 24/7 customer support, handling inquiries and potentially leading to simple transactions.
• Use AI-powered recommendation engines to offer tailored product suggestions, mimicking the personalised service of knowledgeable salespeople.

Improved Inventory Management

AI can revolutionise how retailers manage their stock, particularly in predicting demand fluctuations, automating inventory management, reducing waste, and ensuring popular items remain in stock.

Marketing Optimisation

AI tools can significantly enhance marketing efforts:

• Target ideal customers more effectively, maximising marketing ROI.
• Analyse market trends and competitor pricing to optimise pricing strategies.
• Generate more engaging product descriptions and marketing content.
• Analyse foot traffic patterns in physical stores to improve layout and product placement.

What I particularly like about AI is its ability to scan social media to check out current public thoughts. If you haven't tried it, I suggest you do. You can use this feedback to analyse customer sentiment. I will write another article with a step-by-step approach to show how you can do it now in a few days.

This cost-effective AI implementation means that even small brick-and-mortar retailers in Australia can now access powerful tools. By leveraging these AI capabilities, you can streamline operations, enhance customer experiences, and make data-driven decisions to drive growth and profitability.

The Promise of Cost-Effective AI Implementation

The emergence of DeepSeek and similar AI models is set to revolutionise the retail industry. We predict that "Many more will soon copy its approach", leading to AI becoming increasingly cost-efficient and accessible. This democratisation of AI technology levels the playing field, allowing smaller businesses to compete with larger retailers in terms of AI-driven capabilities.

Despite these advancements, there's uncertainty about fully leveraging generative AI capabilities in practical applications. However, the potential benefits for retailers are significant:

Retail technology trends

The rapid advancements in AI technology will transform the retail landscape.

From our early Focus Engine, which has served thousands of clients for nearly three decades, to the latest advancements in AI, we have seen how these technologies can revolutionise stock ordering. Soon, they will move into customer service, inventory management, marketing strategies, etc. Who knows where they will end up?

One thing is for sure: DeepSeek and what I am sure will be similar AI models will represent a paradigm shift in the AI industry.

Its speed, cost-effectiveness, and open-source nature challenge the status quo.

By staying informed about these developments and thoughtfully integrating AI solutions, Australian retailers can boost their competitiveness, enhance customer experiences, and drive business growth.

Understanding your actual profit margins is crucial for retail success. While supplier-provided figures offer a starting point, after years of experience, I can assure you that their figures are often wrong. I do not trust them, and neither should you. What you need to do is verify your actual margins. In the real world, things can be different. Here is how to do it.

The Reality of Supplier-Provided Margins

Supplier-provided gross margins often paint an overly optimistic picture that may not align with your business situation. Many factors drive margins. Salespeople are rarely the sort of people who can calculate the details. They take the figures they are given and quote them to you.

Verifying Your Actual Margins

Go to the menu

Now in sales, select  the "Discounted Item Sales Summary."

Pick a period. I suggest the last 12 months and now check; I would recommend it as a first attempt by the department.

Now you will get a detailed report of where you are discounting by quantity and price.

Actionable Insights from Margin Analysis

Understanding your actual margins can lead to valuable business decisions:

Pricing Strategy Refinement

Adjust prices on items with consistently lower margins.

Supplier Negotiations

Use actual margin data to negotiate better terms.

Inventory Management

Focus on stocking items with actual healthier margins.

Discount Strategy Review

Analyse the impact of discounts on overall profitability.

The Importance of Regular Margin Analysis

Making margin analysis a regular part of your business review process is beneficial. Who said today's price and margin are valid tomorrow? By consistently monitoring your actual margins, you can:

1. Quickly identify trends or changes in profitability.
2. Make data-driven decisions about product lines, pricing, and promotions.
3. Maintain a clear understanding of your business's financial health.

Remember, average retail profit margins can vary significantly by department.

Conclusion

While supplier-provided margin information can be a helpful starting point, your sales data will always provide the most accurate and relevant insights for your business context. Regular analysis and adjustment based on this data will help you maintain healthy margins and drive your retail business towards greater profitability.

Ready to uncover your actual profit margins? Start by diving into your POS data today and discovering the real story behind your product profitability. Remember, knowledge is power in retail, and accurate margin analysis is the key to unlocking your store's full potential.

The November 2024 RBA report here showed significant shifts in Australian retail payments directly impacting retail.

What are the payment trends in Australia?

Card Payments: The Reigning Champion

Card payments continue to grow the most, with total purchases growing by 5.8% in value and 5.0% in number year-on-year. Notably, debit cards are slightly outpacing credit cards, I suspect mainly because merchant surcharges are cheaper.

Key statistics:

• Total card purchases: $87.7 billion
• Debit card growth: 5.9% in value, 5.0% in volume
• Credit card growth: 5.8% in value, 4.8% in volume

I doubt anyone would be surprised to read here that credit cards are used for higher purchases.

Recommendations for merchants

1. Ensure your POS system accepts all major card types.
2. Consider incentives for debit card usage to align with consumer trends.
3. Implement contactless payment options, as 39% of card transactions are now via mobile wallets.

New Payments Platform (NPP): Rapid Ascension

I was stunned by the high growth of Bill Payments and direct bank transfers. Merchants are clearly trying to avoid using cards by conducting direct bank transactions, and I am sure this is especially true of the bigger transactions.

NPP growth statistics:

• Transaction value: +17.7% year-on-year to $168.7 billion
• Transaction volume: +15.0% year-on-year to 142.1 million

Action items for businesses

1. We are now working on expanding your NPP capabilities into your POS system
2. Get ready for it.
3. Clearly, the public now is accepting it. I would look into it with your bank.

Cash

Cash usage is up, not as much as card usage, but still up. Plus, clearly, there are fewer but larger withdrawals. The reduction in the number of ATMs forces people to take out more, and there is inflation.

ATM withdrawal statistics:

• Value: +2.7% year-on-year to $9.0 billion
• Volume: -2.2% year-on-year to 28.7 million transactions

Considerations for retailers

1. Maintain sufficient cash reserves for customers who prefer it.
2. Do not drop cash as people want it.

The Decline of Traditional Payment Methods

Traditional payment methods show a significant decline, which I doubt surprises anyone.

Cheques: A Rapid Descent

Cheque usage has plummeted; I know that now few people want to accept it.

Cheque payment statistics:

• Value: -22.6% year-on-year to $15.4 billion
• Volume: -30.9% year-on-year to 1.1 million transactions

Interestingly, the average value of each cheque is down now.

Recommendations

1. I suggest that you seriously look into phasing it out.
2. Communicate with your customers about transitioning to digital payment methods.

Merchant Fees: Understanding Transaction Costs

This part of the report was particularly interesting, and it's worth your time to compare what you are paying to the average. Note that if the customer is not present, the rate is generally higher.

Merchant fees vary significantly across card types. Understanding this is crucial for optimising your payment acceptance strategy.

Average merchant fees comparison (September quarter 2024):

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Action items

1. Review your current merchant fee structure against your costs. You can often get better rates if you take out a contract.
2. Consider reducing fees by promoting Cash/EFTPOS as a preferred payment method.
3. If you have not done it yet, implement least-cost routing to process transactions through the lowest-cost network automatically. Not having it is costing you money.

What are the future trends in payment systems?

The Australian retail payment ecosystem is rushing towards digital with its real-time solutions.

You must position your business for a digital retail environment.

If you want the details of this report, click here

Australia Day on January 26th represents our only national celebration. What was supposed to be a holiday meant to unite us in celebrating our beautiful, diverse country has become politicized. It indeed commemorates a day when much changed in Australia.

Australia Day trading hours

If your business operates on Australia Day, clear communication is essential. Display prominent signage, update your online trading hours, and ensure your storefront indicates you're open for business.

Local Support for Local Businesses

As a proudly Australian-owned Point of Sale provider, we are one of the few remaining, so we know how important it is to help local businesses maximize their Australia Day revenue. To that end, we are running our support lines today if you have a problem.

The Shifting Landscape of Australia Day Merchandise

Recent retail data reveals a significant decline in traditional Australia Day merchandise sales. According to industry reports, themed items like flags and novelty apparel now account for less than 1% of revenue in most stores during the holiday period.

Woolworths' Strategic Pivot

In 2024, Woolworths made headlines by announcing no Australia Day-themed products, citing "steeply declining sales" as the primary motivation. This announcement sparked controversy and accusations of being "unAustralian and woke," leading to boycotts.

For 2025, Woolworths has adopted a more nuanced strategy:

1. Reintroducing a limited selection of such merchandise
2. Heavily promoting family BBQ packs and Australian-made snacks
3. Focusing on "Perfect for Australia Day" food sections in stores

This approach balances traditional patriotic sentiment with more broadly appealing product categories that drive significant revenue.

Best Practices for Retailers

Data-Driven Merchandising

Successful retailers focus on consumer demands rather than social statements.

Emphasize Summer Essentials

Redirecting attention to seasonal products like sunscreen, camping gear, and reusable picnic sets allows retailers to capitalize on the holiday without relying on controversial-themed merchandise.

Partner with Local Suppliers

Showcasing Australian-made brands appeal to patriotic sentiment and supports local businesses.

The Future of Australia Day Retail

As the retail landscape continues to evolve, data-driven decision-making will be crucial.

Key Takeaways for Retailers

1. Use sales data to inform merchandise selection and placement
2. Focus on high-demand categories, e.g. here, summer gear
3. Showcase local partnerships to appeal to patriotic sentiment
4. Maintain a neutral stance on controversial issues
5. Offer flexible options to cater to diverse customer preferences

By adopting these strategies, retailers can maximize profitability during the Australia Day period while minimizing potential controversies.

Australia Day isn't a loyalty test in retail—it's a sales event. We need to focus on what actually drives revenue.

It is estimated that in five years, AI will drive 55% of Australian consumer spending by 2030. This projection shows how AI will revolutionise retail in our country. As a retail and point-of-sale (POS) systems expert, it is essential to explore this transformation together and its implications for small brick-and-mortar Australian retailers.

So, we will create a new section in this blog, "AI Musings," to explore artificial intelligence's musing on modern retailing. This space will blend AI-generated insights (approximately 80%) with my thoughts (20%) to delve into the most significant technological revolution in retail today.

The State of Modern Retail in Australia

AI dominates discussions at every retail conference today, signalling its emergence as the new frontier in retail technology.

Adopting AI in retail is not just a prospect; it's happening now. Many retailers already implement AI solutions to enhance customer experiences, optimise inventory management, and streamline operations. For example, our clients have been using AI for years in stock control, but no one is talking about it, and we need to.

I heard about chatbots handling customer queries in a retail firm a few days ago. It was expensive, but as AI becomes more accessible and affordable for businesses of all sizes, we will soon see it in almost all stores.

How AI is Transforming Australian Retail

Personalised Customer Experiences

AI will revolutionise how retailers understand and cater to individual customer preferences, offering a more personalised shopping experience. And it will not take long. If such a system is live in 10,000 shops in one month, that AI will have 800+ years of experience at the end of the month.

Smart Inventory Management

AI is already in our POS system and crucial in predicting demand and optimising stock levels, helping retailers reduce waste and improve efficiency. It has proven vital for retailers who often struggle with inventory management. AI-powered systems can analyse every stock item in the shop with its historical sales data, seasonal trends, and even external factors, like weather.

AI-Powered Customer Service

Chatbots and virtual assistants are improving customer support across online platforms. Currently, 47% of consumers feel comfortable using AI for product selection, while 75% remain cautious about AI handling high-value purchases.

Enhancing In-Store Experiences

AI is set to transform the in-store experience. Retailers use emotional recognition tools to detect customer frustration and seamlessly transfer to human support. This blend of AI and human interaction could be a game-changer for small retailers looking to provide personalised service while optimising staff resources.

Practical Considerations

Cost vs ROI for Retailers

Implementing AI solutions today requires a significant investment, but this is rapidly changing. DeepSeek-R1 is roughly comparable to ChatGPT GPT-4 Turbo, and it is $2.19/128k token, while ChatGPT is $30/128k token, a cost savings of about 93%.

Future Trends in Australian Retail with AI

Looking ahead, the future of AI in retail is bright. By 2030, AI is expected to create 200,000 jobs and $115 billion in economic value, which presents enormous opportunities for retailers of all sizes. That is almost 10% of the Australian economy now.

Voice Commerce

The growth of smart speakers and voice-activated shopping is expected to continue, offering new ways for customers to interact with retailers. I know some clients who now use them in the shop as a translator, and I do, too here. It has helped.

Conclusion

AI is undeniably reshaping the landscape of Australian retail. It is now transforming shopping experiences, retail operations, and customer engagement strategies. We intend to explore this topic here. I encourage our readers to share their thoughts on how they see AI shaping their shopping experiences or what trends they're most excited about.

Let's see how it goes forward together.

I hope you enjoy the new section, "AI Musings."

The Australian government plans to introduce a mandate requiring businesses to accept cash for essential items. This initiative aims to support those who rely on money and ensure the resilience of the payment system.

I don't know what an essential item is. I doubt anyone knows.

Many of my clients have given up on cash, but many more are committed to it.

Key Points of the Proposal

• Businesses selling essential items must accept cash payments
• Appropriate exemptions for small businesses The consultation period is open until 14 February 2025
• Proposed implementation date: 1 January 2026

Implications for Australian Retailers

While these policy objectives aim to protect consumers, they may present specific operational challenges for you.

Current Cash Usage Statistics

• 13% of transactions in Australia were made using cash in 2022
• 1.5 million Australians use cash for over 80% of in-person payments
• Up to 94% of businesses currently accept cash

Click here for more details

The Treasury seeks feedback from businesses like yours to shape the final policy.

If you want to supply feedback, here's how you can contribute:

1. Review the consultation paper on the Treasury website here

2. Submit your response by 14 February 2025

3. Share your unique perspective

International Context

Similar cash mandates have been implemented in countries like Spain, France, Norway, Denmark, and some US states.

Stay Informed and Prepared

The retail landscape in Australia is evolving, and staying ahead of regulatory changes is crucial for your business success. This cash mandate could significantly impact your daily operations, from technology investments to staff management.

Data is the difference between thriving and getting by in today's retail. Retailers who understand their POS System are not guessing; they're making intelligent, informed decisions, which gives them a real edge. The key to your business's success lies in taking actions that drive actual results.

Retailers leveraging descriptive analytics, such as dashboards, have reported revenue increases of 4%–10%, particularly when these tools are actively used to guide decisions on customer relationship management (CRM), personalisation, and prospecting technologies.

Your POS system has the information to help you. It's there, waiting for you to dig in. Here is how to get some insights together to use them in 2025. Use these insights to transform your business performance and set the stage for a successful 2025.

Getting Started: Your First Data Deep Dive

Here's how you can tap into this resource to gain a clear picture of your performance:

Accessing Your Sales Comparison Report

I think knowing where your business is going is essential. 

Now is an appropriate time to take a quick look at how well you did in 2024, where you are now in retail strategy and compare your performance to previous years.

Go to register reports.

Now select the item marked "Sales Comparison for a Given period".

Key Performance Metrics to Track

We'll first examine data from 2021 to 2024 to view your business movements. Here's how to do it:

Conducting a Four-Year Analysis

1. First Comparison:

   • Input the date range: 01/01/2023 to 31/12/2023 AND 01/01/2024 to 31/12/2024.
   • Run the report and note key figures

2. Second Comparison:

   • Return to the report and input: 01/01/2022 to 31/12/2022 AND 01/01/2024 to 31/12/2024.
   • Record key statistics

These data points give you a solid foundation for understanding your business's performance over the past two years.

Visualising

A simple graph of your annual turnover can provide a clear visual representation of your business's growth trajectory.

Go to the Cash register.

Then go to Sales - Register Select Dissection Monthly Sales Trend (Graph)

Now, I like to start with a long view first.

So you can choose 4 years to get a feel.

Please select the date range, in my case, 01/01/2021 to 31/12/2024

As you examine your four-year sales data, ask yourself:

• Is there a consistent upward trend in turnover?
• Are there any noticeable dips or spikes? What might have caused these?
• How does your 2024 performance compare to previous years?
• What factors might have influenced your sales performance over this period?

Now, go back and look at the past two years. Two years is good, as you can see from the seasonal variations, e.g., Easter before and the most recent.

Remember, this analysis isn't about numbers. It's about understanding the story. We are using these numbers to gain insights that will help us make a strategy for 2025 and beyond.

Leveraging Advanced POS Features

While this simple analysis provides valuable insights, your POS system offers even more advanced reporting capabilities. Use these features to uncover powerful insights that will drive your business decisions:

Looking Ahead: Your 2025 Strategy

Armed with these insights, you're well-positioned to craft a strategy for 2025. Consider:

• Setting realistic growth targets based on your historical performance.
• Identifying areas for potential expansion or improvement.
• Planning inventory based on observed trends.
• Develop marketing strategies that align with your sales patterns.

For instance, if your data shows a 15% growth in clothing, consider expanding this category and highlighting it in your 2025 marketing plan.

Conclusion: The Power of Data-Driven Decision Making

I want you to know that understanding your business's performance is invaluable.

I can guarantee your competitors are using these insights to get ahead of you now. 

Recently, we were invited as a significant POS Software supplier to a meeting to discuss the new payment method, PayTo, which is slowly being released.

The argument was that it would help with merchants' payment processing fees and reduce the frustrations of delayed settlements, customer arguments and chargebacks. It may help with the payment fee but certainly will help with the significant pain points of delayed settlements, customer arguments and chargebacks.

Think of it as an improved debt card system that can replace much of your credit card fees.

It gives you direct access to your customers' bank accounts and a faster, more secure, cost-effective payment method.

Let me start by saying that several larger retailers are using it, and soon, customers will expect it in your shop. I doubt you can avoid its usage. The big plus for the customer is that there is little to no cost for them.

It's excellent for larger items and items that need payment terms. They are looking at mid-this year for PayTo to go critical.

What is PayTo?

PayTo is a digital payment system that allows you to receive payments directly from customers' bank accounts. It's a modernised version of direct debit designed to be faster, more secure, and more flexible. As it operates in real-time, you get speedier cash flow.

How Does PayTo Work?

To use PayTo, your business must be sponsored by a bank, financial institution, or payment service provider. It is unclear if this sponsorship will involve you with a setup fee from your bank, but the process is straightforward once you're set up. Here's how it works:

Create a PayTo Agreement

You must define payment terms, including the amount, frequency, and duration. This agreement can be used for one-off, recurring, or ad-hoc payments.

Customer Authorisation

Your customer provides their PayID. The PayTo agreement is sent to their bank for authorisation, and they must approve it through their banking app. It ensures transparency and Security.

Payment Execution

Once authorised, PayTo debits the customer's account according to the agreed terms and instantly transfers funds to your business account.

Key Benefits of PayTo for the Merchant

Real-Time Payments

This is a big plus, as with PayTo, you instantly get the funds into your account. This will eliminate many of the delays associated with traditional payment methods. It means you can access your money immediately, improving your cash flow.

Lower Transaction Fees

Unlike credit card payments, PayTo does not go through a credit card supplier, so there are none of their fees.

Reduced Risk of Chargebacks

Since the customer has authorised it, the risk of chargebacks is reduced. In practice, this has been shown to reduce disputes.

Enhanced Security

Your customer agreements are now authorised through your customers' banking apps. It would reduce the risk of fraud.

5. Streamlined Reconciliation

The banks have reports that provide detailed transaction data, making matching payments and managing your accounts easier. Once this gets going, we will look into automating this in your POS System.

How to Get Started with PayTo

Check it out online

Click here

Contact Your Bank

You should contact your bank to learn about their PayTo options; there are some issues to resolve, particularly the potential costs.

Setup Fees

To use PayTo, your business must be sponsored by a bank or financial institution. Depending on your commercial arrangement, this may involve setup or access fees.

Transaction Fees

While PayTo generally has lower transaction fees than credit cards, I am unsure about debt cards.

The cost I was quoted was $0.30 fixed. Now, if I am doing a $500 transaction, that is quite reasonable, but if I am doing a $5.00 transaction, $0.30 is not so good.

Conclusion

PayTo is a modern payment solution that addresses many of the challenges retailers face with traditional payment methods. As I stated, it's coming; we can do nothing about that. Customers will want it.

Key Takeaways

• PayTo enables real-time payments directly from customers' bank accounts.
• We are on to it.
• It offers lower transaction fees and reduced chargeback risks compared to traditional methods.
• Retailers can benefit from improved cash flow, enhanced security, and streamlined reconciliation.
• To get started, contact your bank or financial institution and explore PayTo's resources.