How much to offer on your loyalty program points is a big decision. Understanding whether your point structure remains competitive whilst maximising customer engagement through strategic promotions directly impacts your program's profitability. In 2025, retailers must carefully design loyalty programs to maintain customer retention and growth, as we can see, brand loyalty is declining. While loyalty programs offer benefits like increased revenue and customer lifetime value, overly generous rewards will impact profit margins. The reality is that a loyalty program costs about 1% of turnover to operate. So, most of my clients offer too much to make it profitable.

Most successful Australian loyalty programs use a point value between 0.3 and 0.7 cents per point. It positions a business within a competitive framework that balances customer satisfaction with sustainable profit margins. Here are some I found doing a net search:

House VIP Rewards maintains a straightforward one-point-per-dollar-spent structure. Members must accumulate 500 points within 12 months to unlock a $20 reward, which translates to a 4% return rate once the threshold is reached.

Woolworths Everyday Rewards provides at least one point per dollar spent across their network, including BIG W, BWS, Ampol, Origin, and Marley Spoon. Members can redeem 2,000 points for a $10 off qualifying purchases, establishing a 0.5 cent per point value.

VIP point work as studies show that perceived value often matters more than the actual value. Thirty thousand flyby points sound more than $150, and this half-cent per point value observed in programs like Flybys is the benchmark.

Customers perceive points as valuable currency when earned through regular purchases. This perception has been found to drive repeat visits as customers return, increasing visit frequency and lifetime value.

Delayed Gratification Benefits

Unlike immediate discounts, points encourage future visits and sustained engagement. Yet not all customers redeem their accumulated points, creating breakage, which are unredeemed points. You can consider these a failure, as what you have does not interest your potential customers or a bonus profit. What does work here often is an email to say that your customer has XXX VIP points that will expire on such a date.

Strategic Implementation of Double Points Promotions

Double-point sales are one of the most effective tools in a loyalty program's arsenal. These promotions create immediate perceived value while maintaining control over your reward structure and profit margins, as they instantly make exceptional value sense for customers. Please promote during slower business periods to boost sales when needed; they are great for flash sales, too. Many successful retailers utilise such campaigns during post-holiday periods and slow periods.

Urgency

Time-limiting the points generates urgency without permanently devaluing your regular offerings. I strongly recommend using your POS software on such a day, say, the EOF year, when all points get zeroed.

Targeted Customer

Rather than offering double points universally, consider targeting specific customer segments, e.g. customers who haven't visited within 60 days.

Also, you can try specific products or categories.

Performance Measurement KPIs

Always track your VIP sales to see how they went. I like to look at participation numbers, average transaction value and new member acquisition.

Strategic Business Outcomes

With a half-cent point value, you're positioning your business competitively within the Australian market.

These work better: 

Substantial welcome bonuses: 1000 points to join your VIP club sounds better than $5

A VIP program with a double point sale offering 0.5 cent per VIP point compared to a 1-cent VIP point.

Written by:

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

Today, it is said that integrating Artificial Intelligence (AI) into financial reporting processes has enhanced the quality of financial reports by significantly improving accuracy, timeliness, transparency, and compliance and has much promise for SMB Businesses that cannot afford a full-time accountant. However, when we tested AI on financial reports here, we found many errors. Others who followed our advice and duplicated what we did told us it was beneficial, but they picked up several errors.

AI-powered financial report generators rapidly transform how many Australian retailers approach accounting, reporting, and business analysis. As these technologies have become accessible and affordable, many SMB Business owners are increasingly looking into them to cut costs and give them better and more intelligent decision-making. However, the critical question remains: How accurate and reliable are these AI financial reporting tools in real-world retail scenarios? This review thoroughly assesses different AI models, drawing on our independent research and real-world testing to help you make informed decisions for your business.

The Importance of Reliable Financial Reporting in Retail

Financial reporting is a compliance requirement for many retailers, but should be the backbone of sound business management. That is what it is designed to do. Financial reports can help with inventory planning, cash flow forecasting, and business decisions. However, even minor errors can lead to problems. The quality of the information here is critical.

In-Depth Analysis: How Each AI Financial Report Generator Performs

Now, we fed the six models listed below with unaudited reports of two years of financial statements and asked them to assess the company's financial position. A discussion of the test done is here. We will soon test using the reports in our POS to integrate into the financial reports. 

Here, what we are trying to assess is

How well did each AI do at pointing out errors

This is important as if you can correct the figures before giving them to the accountant, you can save them a lot of work. Save them a few hours that could save you a thousand dollars off your accounting bill. AI error reduction is a big plus.

The errors in the AI

The biggest problem with AI today is that it will produce errors. Most of these errors are classed as hallucinations; a better description is going off track. Some AI promoters claim that their system does not suffer from this, but I do not believe them. Humans make mistakes; AI makes mistakes. Neither humans nor AI are infallible. With today's technology, human oversight remains essential.

Grok

From this perspective, Grok emerged as a leader in AI financial report generators. After reviewing the figures, we gave the data a precision rate of 97%. Grok was particularly effective at identifying business risks and discrepancies, such as figure mismatches and unusual reporting patterns. However, it did not always flag significant structural errors, such as negative liabilities in the books and misclassifying a loan. For accuracy, Grok was the best.

Google’s AI

Google’s AI tools are widely known and used for financial reporting. I think you will find it the easiest to use. Its accuracy was good; we gave it a 95% data precision rate. I was not too happy with some of its tax advice. We liked that it explicitly called out odd liability presentations and discrepancies. Maybe it could have beaten Grok if we had corrected that, fed it back in, and redid the report.

Claude

Claude, we gave it a 93% data precision rate. Claude missed some critical errors in liabilities and equity and did not flag many errors, all of which could mislead SMB business owners.

ChatGPT

ChatGPT was unexpected, as we had read an academic research paper showing it was better than human analysts in financial statement analysis. That may be true, but in our tests, it scored 85% in data precision. Interesting for something highly thought of after it made some structural accounting errors. It did not flag anything as an error.

Qwen

Qwen is designed for enterprise applications, not SMB businesses, and we found it had an 83% data precision. It lacked precision in ratio calculations and left an incomplete reconciliation between the trial balance and profit and loss statements. We are not sure if it is programmed well with Australian accounting standards.

DeepSeek

DeepSeek is a favourite now as it's so cheap. It got 80% data precision. I suppose you pay for what you get here.

Common Pitfalls and What Retailers Should Watch For

Across all models, the most common errors flagged included data inconsistencies, business risks like revenue decline, and fundamental reconciliation issues. However, even the top performers tended to miss or underplay critical structural errors such as negative liability balances, misclassified loans, and negative opening equity. These are significant issues for retailers, as they can lead to unreliable reports and poor decision-making if not addressed.

Conclusion: Choosing the Right AI Financial Report Generator for Your Retail Business

The comparative analysis shows that while AI financial report generators are advancing rapidly, none are flawless. Grok and Google’s AI currently offer the highest accuracy for retail financial reporting, but even these leaders require human oversight to catch critical errors. Still, by alerting the owner to mistakes in their books, both Grok and Google AI could have saved about a thousand dollars in accounting costs.

Best Practices for SMB Retailers Using AI Financial Tools

I recommend that SMB retailers conduct quarterly financial analyses using these AI tools, export data from their accounting software (e.g., MYOB and QuickBooks), and review AI-generated reports for trends, risks, and recommendations.

We suggest combining outputs from multiple AI models (as we did) and merging their reports for a more robust analysis.

Learn how to review these AI outputs.

I am sure doing this can provide you with timely business insights.

Written by:

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

Cash payments in Australia are disappearing faster than most retailers realise, with usage plummeting to just 13% of transactions by 2024. Cash usage is rapidly declining and will probably not be viable for many by 2030. We are now looking at a cashless society.

The shift away from cash represents both a challenge and an opportunity for Australian retailers. The question isn't whether this change will happen but whether your business will be prepared when it does.

Recently, I attended a major conference that perfectly captured where Australia is heading with payment methods. At this two-day event with hundreds of delegates and speakers from both internationally and in Australia, I witnessed something that would have been unthinkable a while ago. On the first day, I went to pay for lunch with cash and had the exact amount ready. The cashier looked genuinely surprised and told me I was the only person to pay with money all day. Everyone else had paid with a card.

The second day was even more telling. I had a twenty-dollar note and needed change, but the cashier couldn't process my payment because she had no change. The organisers hadn't planned for cash transactions. It was a mainstream event, yet cash had become so rare that my usage caught everyone off guard.

This experience isn't unique anymore. It's happening across Australia, signalling a fundamental shift that every retailer needs to understand and prepare for the cashless society.

The Data Reveals the Scope of Change

The Reserve Bank of Australia's data paints a stark picture of cash's decline in our economy. Cash payments have plummeted from around 70% of all consumer transactions in 2007 to just 13% in 2022, and current data show about 10%.

The Australian Banking Association has projected that by 2030, cash will represent just 4% of all transactions. To put this in perspective, cash usage fell by over two-thirds between 2014 and 2024. It isn't just about younger generations preferring digital payments; the shift is across all demographics.

Infrastructure Changes Drive Payment Evolution

The conference experience I shared highlights a critical issue beyond consumer preference: the infrastructure supporting cash transactions is actively breaking down. Businesses are no longer equipped to handle cash because they don't expect it.

Bank branch closures have accelerated dramatically across Australia. The number of ATMs per 100,000 people has dropped by more than 15% between 2012 and 2021. If this decline continues at the current rate, the last will be switched off by mid-century. ATM withdrawals have crashed from 75 million per month in 2009 to just 28 million today.

It means your business's support system for cash transactions is actively disappearing. Even if you want to accept cash, your customers might struggle to access it, and you will find it increasingly challenging to bank deposits or obtain change for your tills.

The situation with Armguard, Australia's most significant cash-in-transit business, facing financial troubles earlier this year, demonstrates how precarious the cash infrastructure has become. When the company that moved most of Australia's cash around nearly went under, it exposed how dependent our remaining cash economy was on increasingly fragile systems.

Regional Considerations Present Unique Challenges

If you're operating in regional or remote Australia, your situation differs from that of retailers in significant cities. Cash usage remains higher in regional areas due to older demographics and less reliable digital infrastructure.

However, bank branches and ATMs are also disappearing fastest in regional areas. It creates a problem because regions where cash is needed most are losing the infrastructure to support it more quickly. Some communities are becoming genuinely vulnerable to further reductions in cash services.

Regional retailers might experience a slower transition from cash, but the infrastructure challenges are more severe. You might be one of the few businesses still accepting cash simply because your customer base demands it, while struggling to manage the practical aspects of cash handling.

Government Mandates Face Market Reality

You've probably heard about the government's plans to mandate cash acceptance for essential items like groceries and fuel starting from January 1, 2026. On paper, this sounds like a lifeline for cash. The reality proves more complex.

The proposed mandate will apply to businesses selling essential goods and services such as food, fuel, and basic healthcare. Still, there's already discussion about exempting small businesses with an annual turnover of under $10 million. This exemption could cover many of the retailers reading this article.

The critical question remains: even if the government mandates cash acceptance, can it mandate the infrastructure to support it? Legislation can force a supermarket to accept your twenty-dollar note, but it cannot force banks, ATMs or cash transport companies to remain profitable.

The energy for serious legislative action has waned in Australia's political landscape since the failure of the recent cash-out day, which was seen as an informal vote on cash's future. Also, the government likely views the end of the cash economy favourably for many reasons: it's cheaper, easier to track transactions for tax purposes, and reduces the underground economy.

Business Implications Demand you make a Strategic Response

As a retailer, you're now in the middle of this transition.

The costs of handling cash are substantial and often underestimated. You need floats, extra insurance, time for counting and banking, secure storage, and regular trips to deposit some money. When businesses struggled during COVID-19, these inefficiencies became impossible to ignore. Many retailers discovered they could eliminate significant overhead by going cashless.

However, there's a flip side to consider. Recent surveys show that whilst digital payments are rising, Australian shoppers still want the option to use cash. More concerning for your bottom line, in-store debit and credit card fees are now the most hated fees among consumers, ranking even above ATM fees. The government's response to this pressure seems frightening: get rid of debit card fees and make retailers absorb these fees.

Technology Solutions Provide Competitive Advantage

Your point-of-sale systems have evolved to handle this transition seamlessly. Today's POS technology can efficiently manage multiple payment types, including various digital wallets and contactless options. It positions your business for the future while maintaining current capabilities.

Use its reports to determine your business's cash handling costs, including salaries, time, insurance, banking fees, and security measures. When properly calculated, you might be surprised at the real expense. In my experience, many retailers discover that the hidden cash handling costs shock them.

Strategic Timeline for Australian Retailers

Based on current trends and infrastructure changes, here's my assessment of the realistic timeline facing Australian businesses:

2025-2026 Period

Cash usage continues to decline.

Soon, large companies will be mandated to accept it, and many small businesses will receive exemptions.

2027-2029 Phase

Cash usage continues to decline.

Cash access is difficult in many areas as more banks and ATMs are closing. Businesses find compliance with cash mandates growing in cost and time.

2030 Transition Point

We have a cashless society.

Cash will reach the projected 4% of transactions. At this point, cash will move from a mainstream payment method to a niche service, similar to how cheques function today, still technically available but rarely used.

Beyond 2030

Cash persists only for emergencies and specific cases; mass acceptance effectively ends.

Practical Business Recommendations

We need to prepare strategically. Your approach should be measured and customer-focused. Most retailers I've talked to have told me they intend to keep cash going as long as their customers keep using it. I doubt it. As my experience at the conference shows, even though I wanted to use cash they could not accept it.

Assess Your Customer Demographics

If you serve predominantly older customers or operate in a regional area, you must maintain cash acceptance longer than urban retailers serving younger demographics.

Calculate Real Costs Accurately

Track your business's cash handling costs, including salaries, time, insurance, banking fees, security measures, and opportunity costs. One point often missed is that an electronic transaction is usually higher than cash, so keeping cash may cost you lost sales. Many retailers underestimate these expenses. Use your POS system's reporting capabilities to get precise data on transaction costs across different payment methods.

Communicate Payment Policies Clearly

Whatever payment methods you accept, ensure customers know before they reach the checkout. Clear signage not only prevents awkward situations and improves customer experience, but it's also often the law.

Conclusion

Your success in this transition depends on preparation, not resistance. By understanding the timeline, investing in appropriate technology, and developing a clear strategy, your business can thrive regardless of how payment preferences evolve.

Written by:

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

It ͏is lucky for us th͏at some states in Australi͏a celebrate it on different days so that we can switch people around. 

Although most of our clients are open today, often with reduced hours, we are still open for support. We know how important it is to keep your IT systems running smoothly and͏ securely, especially ͏during these challenging times.

If you ne͏ed any help with your busin͏ess IT needs, ͏please don't hesi͏tate to contact us. You can use our after-hour͏s ͏support line or email us; we will get ͏back to you as soon as possible.

We hope everyone is having͏ a safe and ha͏ppy long͏ weekend!

Written by:

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

Australia's end-of-financial-year (EOFY) sale is the second biggest retail event of the year. It will drive $10.5 billion in consumer spending.

Retailers must take advantage of this shopping surge and the clock is ticking. The EOFY sales have already began, so you have a narrow window to attract bargain-hungry consumers looking for bargains and tax-deductible purchases.

Why EOFY Sales Work: Four Key Drivers

Tax Refunds Create Spending Power

Many Australians anticipate tax refunds, providing extra disposable income during this period.

Accountants Drive Purchase Urgency

Accountants to maximise tax deductions often advise clients to make purchases NOW before June 30.

Instant Asset Write-Off Deadline Pressure

Businesses face the urgency to invest before this year's deadline expires.

End-of-Year Financial Pressures

Companies offer significant discounts to improve this year's financial figures. They also need to generate cash for EOFY expenses.

Research shows that 71% of Australians plan to shop during the 2025 EOFY sales, a significant jump from 38% in 2024. Cost-of-living pressures and a growing aversion to full-price purchases drive it.

Planning Your EOFY Sale

Here's how you can make the most of the 2025 EOFY sales season:

Inventory

Review your stock, focusing on items that have been sitting idle. These can be used as loss leaders to draw customers in. Deadstock drains your cash flow and consumes valuable shelf space, so the EOFY sales period allows you to convert this liability into revenue. Our POS software offers tools to help identify this old stock—check out our training video for guidance. I suggest working department by department to streamline the process.

Consult Your Suppliers

Reach out to suppliers for insights and promotional ideas. Many are budgeting for the year's end and offer deals to help them shift stock now rather than count it later.

Research Competitors

Analyse what other retailers are doing to increase their EOFY sales. Just looking can spark inspiration and help you differentiate your offerings.

Discounts

Instead of straight discounts, consider bundling slow-moving items with popular products to increase overall sales.

Crafting Your Strategy

Leverage the following tactics to stand out during the 2025 EOFY sales:

Internet sales

For the items available on the EOFY sales, it's often harder to buy online as a shopper needs to look at and assess the item. The ARA above notes a drop in online shopping intent (down 11 percentage points to 44% in 2025), so expect more shoppers to hit your stores this year.

Discounts

Use dead stock as loss leaders to entice customers. Simple displays of discounted items at the front of your store can drive foot traffic. With 26% of Australians (6.1 million people) planning to participate in these sales and 37% intending to spend more than last year, there's a clear appetite for bargains.

Business Section

Create a dedicated section in your store for business-related items that may be tax-deductible. Highlight these products as savvy business shoppers want to claim deductions on work-related purchases. Label this area clearly with signage to attract attention.

Promote Your Sale

Use in-store signage to build excitement and encourage immediate action.

Conclusion

The 2025 EOFY sales period offers an opportunity, with 71% more shoppers ready to spend. Start implementing these strategies today—review your dead stock, contact suppliers for promotional support, and create your business tax-deductible section. With only weeks until June 30, early action is now required. This is some basic, sample markdown.

Written by:

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

Many small and medium-sized retailers across Australia operate without the benefit of a dedicated accountant. It is an everyday reality, with most relying on periodic check-ins with external advisors rather than having in-house financial expertise. As a result, regular strategic analysis of financial reports can fall by the wayside, leaving business owners at a disadvantage when making timely, data-driven decisions. With the rapid advancement of AI financial analysis tools, a pressing question has emerged: Can artificial intelligence reliably analyse SMB financial reports and deliver the kind of actionable business insights that drive retail success?

It emerged in a recent meeting with several clients, many of whom look to us as leaders in AI technology for retail in our market space. A big question arose: How good is AI at analysing financial reports for SMB retailers? The reality is that most small retailers in Australia don't have a permanent accountant. Unlike large organisations with in-house finance teams, most SMBs only catch up with their accountant once a year, which puts them at a disadvantage regarding regular, data-driven business decisions. Many would like an accountant to review their figures and give some advice, but time and financial considerations are real.

To answer this question, we undertook a practical experiment to reflect Australian retailers' real-world challenges. The aim was to determine whether today's leading AI accounting tools could step in where regular financial analysis is often lacking, especially for businesses using platforms like MYOB or QuickBooks.

Could AI deliver the financial insight needed without an accountant by drawing on real-world testing and current best practices in retail financial management in SMB retailing?

Our Test Methodology

Here's how we structured the test to ensure it was fair, practical, and relevant to everyday retail operations:

Reports Provided:

We used real-world reports from MYOB or QuickBooks, which had errors and inconsistencies you'd expect from an SMB business without a trained bookkeeper. So we used their data, and we ran for two years.

Profit and Loss Statement

Balance Sheet

Trial Balance

Then put them into a single PDF

Our prompt

After refining our approach through multiple iterations, we developed a comprehensive prompt for the AI platforms.

The test

The Free AI Landscape

Like so much in the world, not all AI tools are equal; some are better than others, and each has account limitations. So we tested six popular tools to the maximum the free version allowed. 

ChatGPT (OpenAI)

Claude (Anthropic)

DeepSeek

Google AI

Grok 3

Qwen

Evaluation Criteria for AI Tool Performance

Now, we know that all of them are good, but there is always a case where even the best six runners in the world have one who is better, and that is what we wanted to find out: the best free AI for retailers.

When running the report, we put the best possible model on the highest free level.

Scoring the AI Performance

To objectively compare the AI-generated reports, we implemented a 100-point scoring system based on:

Overall Business Health: Did the AI assess the company's financial position accurately?

Trend Analysis: How well did it identify the direction of the company?

Key Performance Insights: Did it break down revenue, profitability, cash flow, and operational efficiency?

Problem and Risk Assessment: Could it pinpoint areas requiring attention and highlight potential risks?

Actionable Recommendations: Were the suggestions practical, relevant, and implementable?

Communication and Usability: Was the report easy to understand and follow?

Error Handling: Did the AI flag data inconsistencies and avoid being misled by errors?

Scoring Guidelines:

Now, we had a grading system that was

90–100: Exceptional Business Insight

80–89 Strong Business Analysis

70–79 Adequate Assessment

60–69 Poor Business Assessment

Below 60 Fail

Detailed results by AI

Claude

Score: 88/100 — Strong Business Analysis

Overall Business Health (23/25):

• Gave a clear, accurate summary: highlighted a 10.2% revenue decline and a 30.4% net income drop,
• Balanced strengths (identified a strong balance sheet with concerns on the company's shrinking revenue

Trend Analysis (9/10):

• Nailed the year-over-year trend, contextualising declines and highlighting the need for urgent action.

Key Performance Insights (27/30):

• Broke down revenue by segment
• Noted labour revenue decline (-15%)
• Analysed gross margins, which are up, and net margin, which was down
• Flagged cash and inventory issues

Problem & Risk Assessment (18/20):

• Prioritised risks: liquidity constraints, inventory overstock, and bad debts
• Could have expanded on market/competitive risks.

Strategic Recommendations (17/20):

• Practical advice: weekly cash flow monitoring, inventory optimisation, service diversification.
• It suggested digital transformation and market expansion, but it should have gone deeper into a long-term strategy.

Communication & Usability (3/5):

• Well-structured, logical, but dense—could be more concise for busy owners.

Error Handling:

• +3 bonus for flagging data quality issues without losing focus.

Summary:
Claude delivered a highly detailed, data-driven report with actionable advice, only let down by its length and slightly dense style.

Google

Score: 85/100 — Strong Business Analysis

Overall Business Health (22/25):

• Clear on declining health
• Balanced positives (profitability) with concerns (liquidity, inventory).

Trend Analysis (9/10):

• Strong in historical context, less predictive about future trends.

Key Performance Insights (26/30):

• Detailed on revenue declines and margin shifts.
• Flagged inventory days (752 days in FY24) are a significant concern.
• Some working capital ratios were missed due to data presentation.

Problem & Risk Assessment (17/20):

• Identified key risks: revenue drop, inventory build-up, and bad debts.
• Could have ranked risks more sharply.

Strategic Recommendations (16/20):

• Practical calls for inventory reduction and credit control.
• Some recommendations (like scenario planning) were less actionable.

Communication & Usability (4/5):

• Clear, structured, and accessible.

Error Handling:

• +3 bonus for handling data inconsistencies without losing the thread.

Summary:
Google's report was well-organised, with strong practical recommendations and a solid structure, though its strategic vision could have been more forward-looking and detailed.

Grok

Score: 82/100 — Strong Business Analysis

Overall Business Health (21/25):

• Accurate on decline (revenue -10.2%, net income -30.4%), but less specific in some areas.

Trend Analysis (9/10):

• The downward trend was correctly identified, but the future outlook was generic.

Key Performance Insights (25/30):

• Covered revenue and margin declines, but not as deep on drivers.
• Noted liquidity and inventory issues, but lacked much information about working capital, something essential in SMB retailing.

Problem & Risk Assessment (16/20):

• Flagged revenue and liquidity risks, but prioritisation was vague.

Strategic Recommendations (16/20):

• Practical advice on cash flow and inventory, but lacked specificity.

Communication & Usability (4/5):

• Well-structured and clear.

Error Handling:

• +2 bonus for addressing data quality without overemphasis.

Summary:
Grok produced a solid, readable report with reasonable recommendations, though it lacked the detail and strategic sharpness seen in others.

DeepSeek

Score: 80/100 — Strong Business Analysis

Overall Business Health (20/25):

• Clear on decline (revenue -10.2%, net income -30.4%), noted equity growth (+10.9%).

Trend Analysis (8/10):

• A downward trend was identified, but the future outlook was general.

Key Performance Insights (24/30):

• Evaluated revenue decline, solid on margins, but less on specific drivers and operational ratios.

Problem & Risk Assessment (16/20):

• Flagged revenue and liquidity risks, but didn't rank them by impact.

Strategic Recommendations (16/20):

• Practical but broad suggestions.

Communication & Usability (4/5):

• Well-organised and clear.

Error Handling:

• +2 bonus for noting data inconsistencies without overemphasis.

Summary:
DeepSeek gave a firm overview and reasonable recommendations but lacked specificity and depth.

5. Qwen

Score: 75/100 — Adequate Assessment

Overall Business Health (18/25):

• Provided a basic overview but made a significant data error by misstating one department's growth.

Trend Analysis (8/10):

• A downward trend was noted, but the analysis was surface-level.

Key Performance Insights (22/30):

• Missed key revenue drivers and superficial operational analysis.

Problem & Risk Assessment (15/20):

• Identified issues but lacked nuance.

Strategic Recommendations (15/20):

• Practical, but generic and not innovative.

Communication & Usability (5/5):

• Clear and concise.

Error Handling:

• -5 penalty for data misinterpretation.

Summary:
Qwen's report was easy to read but was undermined by errors and a lack of depth.

6. ChatGPT

Score: 78/100 — Adequate Assessment

Overall Business Health (19/25):

• Summarised the decline, but used rounded numbers, which caused it to lack precision.

Trend Analysis (8/10):

• A downward trend was noted, but the analysis was fundamental.

Key Performance Insights (23/30):

• Reasonable on revenue and margins, but lacked detail and segment analysis.

Problem & Risk Assessment (16/20):

• Flagged liquidity and inventory risks but didn't assess the impact.

Strategic Recommendations (16/20):

• Practical, but generic.

Communication & Usability (4/5):

• Clear but slightly verbose.

Error Handling:

• No bonus or penalty.

Summary:

ChatGPT produced a basic, readable report with reasonable recommendations but lacked the depth and precision needed.

What This Means for SMB Retailers

The findings are encouraging. AI financial analysis tools have reached a level that can genuinely support SMB retailers in understanding their business performance. Even when presented with imperfect data, the best AI platforms can identify significant risks and opportunities and offer valuable insights.

The top performers, Claude and Google, delivered strong, actionable business analysis. These platforms identified critical risks, such as declining revenue and tightening cash flow, and offered practical recommendations that retailers could implement immediately.

Claude's report was the best. It provided clear summaries and highlighted both strengths and concerns. Its recommendations focused on weekly cash flow monitoring, inventory optimisation, and service diversification.

Google's analysis was well-structured and accessible. It balanced a clear-eyed view of business health with practical calls for inventory reduction and tighter credit control. While its strategic outlook could be more forward-looking, it handled inconsistencies in the data with confidence.

The others were adequate, and they all could do the job.

My Expert Commentary

As someone with deep experience in retail and POS systems, I believe these developments are a genuine opportunity for SMB retailers. AI tools do not substitute for expert advice; we did notice that not one AI produced what we would call an exceptional report; however, they significantly assist those lacking regular access to accountants. The capacity to conduct thorough financial analyses in minutes, utilising data exported directly from accounting software can revolutionises strategic planning and daily operations.

This AI-driven financial analysis empowers retailers to identify emerging trends before they escalate into critical issues, help make informed decisions regarding pricing, inventory, and supplier management, identify areas for improving operational efficiency and to concentrate on the most essential metrics: cash flow, profit margins, and stock turnover.

My Professional Recommendation

I strongly recommend that every SMB retailer in Australia conduct a serious financial analysis at least once a quarter using these AI tools. Here's how you can do it:

1. Export your financials (P&L, Balance Sheet, Trial Balance) from your accounting software.
2. Feed them into a top-rated AI; I suggest Claude or Google with the prompt above.
3. Review the AI's report for trends, risks, and recommendations.
4. Act on the insights
5. Repeat this analysis at least quarterly. Regular reviews can let you adapt quickly to changing business conditions.

If you need help setting this up, reach out for a chat. If there is enough interest, I will do a webinar.

Written by:

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

Computer performance issues plague businesses and individuals in 2025, causing productivity losses and frustration. This guide provides proven methods to optimise a PC, improve system speed and performance, and troubleshoot.

Measuring Your System's Performance

Effective performance optimisation begins with accurate measurement. Understanding your system's capabilities through proper benchmarking provides the foundation for targeted improvements.

It is why accurately assessing your computer's performance requires proper preparation and tools. This systematic approach can help you understand precisely where performance bottlenecks exist.

Preparing for performance testing

It involves several necessary steps.

Restart your computer to clear temporary files and reset system processes. Please do not close it down; a restart does more than a close. Then, all unnecessary programs will be closed to establish a baseline for testing.

Use a Professional benchmarking tool.

I like the PassMark Performance Test, which is a well-established benchmarking solution. The latest versions require at least 4GB of RAM and 500MB of free storage space. It now incorporates advanced database testing and artificial intelligence (AI) driven assessments with updated scoring methodologies. I will discuss its testing here, but there are others that you may prefer. If you know one that is good, please let me know. 

When using PassMark, you download and install the software, then select a comprehensive suite. Let it run undisturbed for about 30 minutes.

Interpreting benchmark results

The PassMark Rating provides an overall single number representing your system's performance, with higher scores indicating better performance. For modern retail POS systems in 2025, we get 7,000 to 8,000 or higher scores, which shows adequate performance for business operations.

You also get component scores broken down by performance into individual system elements, such as CPU, RAM, disk drive, and graphics processing unit. These detailed scores will help you identify what specific areas need improvement in your computer. I like the percentile rankings, which show how your system compares to others. For example, an 87% ranking means that 13% of the computers they tested perform better than yours.

Understanding Benchmarking Limitations

While benchmarking tools provide valuable insights, some limitations are worth reviewing.

AMD

If you use AMD equipment, it underestimates them. It is a real issue that the developers of PassMark need to address.

Real-world performance

These tests are made for typical workloads; they will not accurately reflect your software's performance.

Not stress testing

PassMark measures performance under controlled conditions but doesn't test system stability under extreme loads. Hardware faults or system instability may not appear during testing.

Hardware compatibility

If you have new equipment, the benchmarking test might not fully support it, causing low scores or test failures.

Benchmarking scores

These change over time; what is important today might be seen as less critical tomorrow, so benchmark scores change. These scores are for now.

Implementing Solutions

Once you've identified performance bottlenecks through benchmarking, the next step is implementing targeted solutions based on your specific results. 

To solve most of these, you need above-average computer skills. If you do not have them, ask someone who does.

Always take a backup first, then make a restore point, just in case.

Software accumulation

This is the most frequent performance issue I encounter. People install programs that run, consuming system resources and forcing computers to run more.

This problem compounds because newer software versions target modern hardware specifications. Legacy computers struggle to meet these requirements, creating noticeable slowdowns. Microsoft is a big problem here.

Insufficient memory

It creates significant bottlenecks in system performance. When you don't have enough, your system must constantly work harder to shuffle data between memory and storage. It creates delays, which you can feel as you wait. Upgrading RAM often provides one of the most cost-effective performance improvements available.

We have measured that upgrading from 8GB to 16GB improves multitasking performance by 50%

Storage drive capacity

It directly impacts system speed. When your hard drive is full, your computer lacks the space to operate. As a rule, always have at least 10% free space on your primary drive. I like using the software CCleaner to do this task.

Malware infections

I see this repeatedly: These malicious programs slow your computer down and pose security risks. Perform regular security scans to help identify and eliminate these performance drains. I saw one computer that was suddenly running slow and had over 170 virus infections.

Fragmented storage

File fragmentation is solved on newer systems with solid-state drives (SSDs) but affects older systems that use traditional hard disk drives (HDDs). It forces your computer to work harder to access stored information on these computers. It's easy to solve on HHDs: go to File Explorer > Properties > Tools > Optimise and defragment drive.

Please do not do this on SSDs, as you will hurt them.

Outdated drivers

Manufacturers are always learning new things. As they do, they update their drivers. Without these updates, your computer often struggles to keep pace. Older processors, memory modules, and storage drives slow down as your applications become more sophisticated.

To check what drivers are installed on your system, you can use the built-in driverquery command in Windows.

In the command line, go.

driverquery /v

This command displays a comprehensive list of all installed drivers on your computer with verbose information, making it useful for inventory and troubleshooting.

Outdated software

Many of the software on your computer can be updated automatically.

In the command line, under administrator options, go.

winget upgrade --all

It will take a while, as this command will update many of your software programs automatically.

Background processes

Many of these consume resources even when you're not using them. This is because many programs automatically start when your computer starts and continue working. Over time, this gradually degrades your overall system performance.

I like to go into the task manager and review what software is running, then review what I do not want to run continuously.

Hardware upgrades

Upgrading underperforming components like processors, memory, or storage drives provides immediate and lasting improvements. Solid State Drives offer particularly dramatic speed increases compared to traditional hard drives. Additional RAM prevents system slowdowns.

Artificial intelligence-driven optimisation

Although I know people like them, I am currently hesitant about them. Although they represent an emerging trend in system maintenance, they still need some work. What I like is their promise of identifying potential issues in the future before they impact performance, allowing us to be proactive rather than reactive.

Strategic System Deployment

We call doing this "musical chairs". Once you have the computer benchmarks, consider moving the computers around so you have the most powerful computer where you need it. Deploy the slower systems for less demanding tasks where occasional delays won't significantly impact you.

Maintaining Peak Performance

Regular performance monitoring and maintenance help ensure your system continues operating efficiently. Combining synthetic benchmarking with real-world performance assessment provides the most complete picture of your system's capabilities and limitations.

These proven methods have helped many users achieve significant performance improvements without expensive hardware replacements.

Written by:

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

It can be to get noticed in a crowded market. Most of our clients have listened to us and set up a Google Business Profile to help customers find their shop, but few have considered Bing? Yet millions of Australians use Bing daily to search for their shopping. If your business isn’t listed on Bing Places for Business, you’re missing out on a good chunk of potential customers. This free tool helps put your shop on Bing’s search results and maps. It makes it easier for people looking to find you. Setting up a Bing Places profile is quick, simple and free. It's like hanging a sign for your shop in a digital world.

"Bing Places for Business is a free service offered by Microsoft that allows businesses to create and manage their presence on Bing Maps and search results, it is similar to Google My Business. It helps businesses get listed and provides a platform to manage information about their physical locations, including details like address, phone number, hours of operation, website, and more."

Why Bing Places Is a Game-Changer for Your Shop

Search

When someone nearby wants to buy a lottery ticket, they commonly ask on their phones, "lotto near me". If you want your lotto business to pop up in front of them in Bing, then you should have a Bing Places for Business account. Doing this will increase the chance that your shop will be in the search results. In Australia, Bing has millions of searches a day. That’s a lot of potential customers you could be reaching.

Trust

An accurate Bing Places profile builds trust.

How to Set Up Your Bing Places Profile

Here’s how to get started, step by step, based on my experience helping retailers get online.

It not hard so getting your shop on Bing Places is straightforward, especially if you’ve already got a Google Business Profile. You can often pull your details straight from Google, saving you time.

Head to Bing Places

Open your browser and go to here www.bingplaces.com. This is where you’ll set up and manage your listing.

Sign In or Get an Account

You’ll need a Microsoft account. If you don’t have one, don’t worry. It takes only a few minutes to set one up.

Find or Add Your Business

Type in your shop’s name and address or phone number to see if Bing already knows about you.

The odds are that it does.

• If your business shows up, click “Claim this business” to prove you’re the owner. This step stops anyone else from messing with your details—something I’ve seen people do to competitors by putting in false information about them.

• If Bing doesn’t find your shop, select “Add new business.” You can import details from your Google Business Profile, which is a lifesaver, or enter everything manually if needed.

Your Business Details

This is where you need to be careful. Enter then double-check your shop’s name, address, phone number, and hours. I once worked with a retailer who lost business as their address was incorrect, don’t let that be you.

If you’ve got a website, add it so customers can browse your products online.

Pick categories that fit your business, like “pet supplies” or “lotto” so Bing shows your shop to the right people.

Photos

Add some photos of your shop—your storefront, the inside, or your bestselling products. Make them good as people will give preference to clear, bright photos. What I suggest is a good smartphone and take many pictures. Out of twenty pictures you may get one good image. If you’ve got a short video, like a quick tour of your shop, upload that too as it makes your listing stand out.

Connect Your Social Media

While you at it link in your Instagram, Facebook, or other social media pages. This lets customers follow you online, see your latest deals, and feel more connected to your brand. It’s a small touch that builds loyalty.

Verify Your Listing

Bing needs to confirm you’re the real deal, usually they do this through a phone call, email, or postcard. Don’t skip this. They will not give you a place unless you are verified.

Handling Your Bing Places

Setting up your profile is just the start.

Keep Your Info Up to Date

Life moves, your hours, phone number, or a holiday closure can happen so update your Bing Places profile as soon as things change.

Ask Customers about getting Reviews

Ask happy customers to put a review in your Bing Places profile.

Always respond to reviews, whether they’re glowing or critical. A polite, professional response to a negative review shows you care. Fun fact: a rating around 4.2 stars feels authentic to customers, much more seems suspicious. If I see 100 ratings and all are 5 stars, I am sure that someone is doing some funny business. It does not matter how hard you try there is always someone.

Mistakes That Can Trip You Up

It’s easy to make small mistakes. Based on what I’ve seen retailers struggle with, here's what to watch out for.

Double-check your details

Always double check, make sure that the information is right. Inaccurate information is the biggest mistake! Incorrect phone numbers, addresses, or hours lead to frustrated customers and lost business. Always double-check your details.

Leaving Fields Blank

Every field in your Bing Places profile is an opportunity to provide more information to potential customers. Don't leave sections empty. So fill all the boxes; a half-empty listing looks unprofessional.

Poor Quality Photos

Blurry, dark, or unprofessional photos can deter potential customers. As a rule, take 20 pictures of something and pick a good one. Invest in good quality images will showcase your business positively.

Ignoring Reviews

Not responding to reviews (especially negative ones) gives the impression that you don't care about your customers. Always engage respectfully and professionally. Always offer the person to come to discuss it.

Choosing Irrelevant Categories

Selecting categories that sell your business. Ask yourself why do they come to your shop.

Forgetting to Verify

They will not put up your listing until verified, so don't skip this crucial step.

Write for humans

While using computer keywords is good, its a turnoff for people, write for humans first, then for search engines.

Not Monitoring Performance

Failing to check your Bing Places insights means you're missing out on free and valuable data on how customers interact with your listing.

Check regularly

At least once every six months check that the details are correct. A lot can happen in that period.

Wrap-Up

Ready to get more eyes on your shop? Head to Bing Places for Business today, follow these steps, and keep your profile up to date. If you need more tips or want to dive deeper into local SEO, check out Bing’s help resources or reach out to a retail marketing expert. Your next customer might be one search away—don’t miss them.

Written by:

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

Loyalty programs have become a cornerstone for retailers in Australia. With the release of the "For Love or Money" latest 2025 edition, you can access the latest insights on loyalty initiatives. This article distils the key findings and practical, actionable advice. You can get a copy here of the report; you will need to pay for it, but it comes with a free executive summary of the report, which you can download for free. If you are interested in loyalty programs for your shop, it's well worth a read.

"A loyalty program, also known as a rewards program, is a marketing strategy designed to encourage customers to make repeat purchases by offering them discounts, rewards, or other incentives. Businesses implement these programs to foster customer retention, boost customer engagement, and ultimately increase profitability." 

Why Loyalty Programs Matter for Australian Retailers

Well-designed loyalty programs help you increase your business. According to this loyalty research, the number of Australians participating in loyalty programs is rising.

During COVID, you can see that it dropped, but now it is growing steadily.

Key Insights from this report

Customer loyalty id not just discounts.

• Consumers appreciate programs that are easy to join, understand, and use.
• Personalisation fosters engagement.
• Value is essential, but it doesn't only mean money.

Designing a Loyalty Program That Works

Our POS systems, tailored for Australian SMBs, include free and built-in loyalty modules, making it easier than ever for you to implement and manage these programs without any upfront investment.

A successful loyalty program for your shop does not require a large budget or complex technology.

You need to concentrate on a few points of what the report calls the nine currencies. Very few retailers can offer all of them, so you need to focus on two or three that your business can deliver.

The Nine "Currencies"

They are what people want. Don't worry if you cannot provide some of these; few can offer all of them:

Money

Not surprisingly, many are looking at discounts, points, etc.

Memory

Experiences that stick in your customers' minds: I have a customer whose wife is an art teacher, so he runs a free art course. This experience sticks in his customers' minds.

Time

Making things quicker or easier, e.g., offering digital receipts. Something that saves them time.

Me (Personalisation)

People want to feel recognised as individuals, so they may request that you send a birthday card or offer or suggest products based on past purchases.

Flexibility (Choice)

Customers want to choose their reward. Instead of offering 100 points = $1, offer a scale, say 500 points = $7.50, or a free birthday card at 400 points.

Us (Community)

Make an offer for a local school, organisation, business, etc. members to join your loyalty program. People like to be given the option to donate their rewards.

Joy

Offer an unexpected delight, a free treat, or say thanks with a handwritten note.

Access

I think it's very difficult to implement exclusive perks, such as early access to sales or new products for loyalty members.

Status

People want to feel special or recognised.

Next Steps for Your Shop

1. Your loyalty program doesn't need a big budget or advanced tech to work. Here's how to keep it simple and effective: Our POS system has free software for running a loyalty program.
2. Pick two or three "currencies" to focus on.** Money, memory, and joy are great starting points.
3. Keep it simple.
4. Promote your program. There is no point in having something that people do not know about.
5. I will make some key performance indicators (KPIs) to measure effectiveness. The ones I suggest are repeat purchase rate, average transaction value, program participation rates, etc.
6. Get customer feedback as it provides valuable insights for your loyalty program.

If you'd like help setting up a loyalty program, contact us for a chat.

Written by:

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

The Spend & Get promotion gives customers who buy in your shop a discount on future purchases. It's like a traditional discount voucher system, which I have discussed here. After doing a net search, I found several major Australian retailers use it. It includes Mitre 10, Supercheap Auto, Kogan, and The Good Guys. However, any retailer can use it; the big plus is that it requires no upfront marketing costs. Today, Spend & Get promotions are becoming a cornerstone of effective retail loyalty programs, and they are worth studying even if you do not use them.

Why Traditional Discount Vouchers Fall Short

Many small businesses still rely on basic discount vouchers, but these systems have significant drawbacks:

- Customers exploit voucher systems; a favourite method is to split purchases. For example, a shopper intending to buy two toys buys one and receives a voucher. That discount is used to buy a second toy. This undermines your intent to encourage future visits and instantly reduces your margins.

- Physical vouchers can be easily misused. Staff or opportunistic customers may collect discarded receipts or share vouchers, leading to unearned discounts. In some cases, this can result in substantial hidden costs that are difficult to track.

- Traditional vouchers are anonymous. You do not know who redeemed the voucher or what they bought. It limits your ability to make data-driven decisions and effectively target your marketing.

- Without customer data, you can't market to your customers and offer blanket discounts to unknown shoppers. I have discussed here how to set up a free marketing program.

How Spend & Get Promotions Solve These Problems

Spend & Get promotions are designed to address this problem.

- Requiring a short wait before redeeming credits prevents customers from splitting purchases to game you. It encourages return visits and protects your margins from being eroded.

-Because credits are deposited directly into individual loyalty accounts, only the customer who made the qualifying purchase can access the reward. There's no physical voucher to steal or share, reducing misuse and ensuring your incentives go to the right people.

- Every Spend & Get transaction is linked to a loyalty profile. You'll know who is buying what and when they shop. This data is invaluable for targeted marketing, which our loyalty marketing program can use. With access to customer contact details and purchase history, you can deliver an email campaign free of charge. I like sending a newsletter to those who haven't recently visited. You can get them back while they are still fresh in your mind.

The Business Benefits of Spend & Get Promotions

Improved Customer Retention

Loyalty programs are proven to increase customer retention. Research suggests loyal customers spend significantly more than new ones when incentivised to make repeat visits and purchase larger basket sizes. Traditional voucher systems are more expensive than loyalty-based promotions. It is vital, as a loyalty program typically cannot afford to operate at a cost over 1% of annual turnover. There is not a lot of margin there to play around with.

How to Implement Spend & Get

It is relatively straightforward to set up and manage Spend & Get promotions. There are two main approaches:

Automatic Implementation

The system automatically credits loyalty points with discounts when customers meet the spending threshold. This method is efficient and reduces the risk of human error. Customers receive notifications via email or SMS, and staff don't need to apply discounts manually.

Manual Activation

Sometimes, you may want staff to trigger the promotion by adding a specific code at checkout. This approach can be helpful for complex promotions.

For most people, we recommend automatic implementation. It has the advantage of simplicity.

Maximising Value: Best Practices for Small Retailers

Set Realistic Thresholds

Analyse your average transaction value and set thresholds to encourage higher spending without discouraging participation. For example, if your average sale is $20, a $50 threshold is too high; a $25–$30 threshold would be more effective. What you want is something a customer would think is a plausible limit.

Communicate Clearly

Ensure staff can explain the program benefits and redemption process. Use signage and digital communications to highlight how the promotion works and why joining your loyalty program is worthwhile.

Integrate Seamlessly

Test the POS system thoroughly before launch so you understand how it works.

Measuring Success and Continuous Improvement

As always, I suggest you track several key metrics (KPI). Without information, you do not know what is going on. I recommend such KPIs as:

• Loyalty program sign-ups
• Average transaction value
• Frequency of customer visits
• Your promotion costs are calculated as a percentage of revenue. As I said earlier, 1% should be your budget for loyalty marketing. Some marketers say 2%, but only with supplier support.

Want to learn more.

Contact our POS team today for more information on integrating Spend & Get promotions with your POS system.

FAQ

Q: How can I set up a Spend & Get?

A: There are two main approaches.

The first is automatic implementation, when the POS system automatically credits customers' loyalty accounts when they meet the spending threshold. Manual Activation: Staff manually apply for the promotion at checkout, which is valid for more complex offers.

Q: What are the best practices for running a Spend & Get promotion?

A: Set Realistic Thresholds: To maximise participation, base your spend thresholds on your average transaction value. Clear Communication: Train staff and use signage to explain the program's benefits. Seamless Integration: Test your POS system thoroughly to ensure smooth operation.

Q: How do I measure the success of a Spend & Get promotion?

A: Track these key performance indicators (KPIs):

Number of new loyalty program sign-ups

Average transaction value

Frequency of customer visits

Promotion discounts as a percentage of revenue

Q: What are the problems of traditional voucher systems?

A: Easy to Game:

Customers can split purchases to use multiple vouchers.

Prone to misuse as physical vouchers can be stolen or shared.

Lack of Data: Traditional vouchers are anonymous, limiting your ability to target marketing.

Written by:

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

The Australian government will introduce a 15% additional tax on superannuation assets exceeding $3 million from 1 July 2025. With Labor's parliamentary majority and crossbench support, this legislation will likely pass. Most of us will not be affected now but the plan clearly is to expand it over time as the plan lacks inflation indexation.

If you hold your shop in your superannuation funds in a typical neighbourhood strip shop has values typically ranging from $500,000 to $1.5 million, a $1 million shop today would be about $3 million within 15 years, a $1.5 million shop would get to $3 million in 8 years based on current market projections. Most of us plan to be around for more then that.

I would suggest that many of you consult our financial advisor particularly as the tax is on the assets  as once the fund goes over $3 million gets over $3 million you will face a particular challenge, as this tax is on assets. So whether you have the cash or not you need to pay the tax. Now unlike say shares, where you can always sell a few shares to pay the tax, a property cannot be easily divided, yet you will need the cash to pay it.

The other issue is that the more complex accounting burdens on the superannuation will certainly create more accounting costs.

Written by:

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

Product line expansion is a key growth strategy in retail. You have customers. What can you offer that will sell more to them? You want to attract new customers with new products. Successful implementation requires some intelligence, as we need to introduce new products thoughtfully to boost revenue.

Clothing

One new department that is doing well with my clients is clothing. It can be a profitable venture, with strong margins and consistent demand. Many find it offers an attractive opportunity to diversify their product range. Our studies show that clothing outperforms gift items in terms of profitability. Clothing is now experiencing significant growth.

Let us use it as an example of how to introduce a new line into your shop.

Clothing isn't simply about stocking random garments. It requires planning, so let's dive in.

Understanding Your Local Market

Defining Your Target Market

Successful clothing retail now depends on clearly understanding who you're selling to. Focus on specific customer segments that align with your local demographics.

Consider these key factors when defining your target market:

Age

Different age groups have distinct style preferences and shopping behaviours.

Gender

Will you focus on menswear, womenswear, or both?

Income level

This determines price sensitivity and expectations for quality

Lifestyle

Active, casual, professional, or fashion-forward

I find that making up a fictional persona helps. Let's say you identify three types of people and make them as detailed as possible to help you visualise them and identify their needs.

For instance,

• Professional women aged 45 who value quality items and comfortable, modern-style clothes. She is willing to pay for durability and versatility. Call her Debby.
• A retired 65-year-old male. Call him George. For him, clothes do not need to be fancy; they just need to be cheap.
• A 21-year-old woman named Lisa works in the local shopping centre and spends a lot on clothes.

Now ask yourself what George, Debby or Lisa would buy in your shop.

When conducting your competitive analysis, focus on:

Product ranges

What types of clothing are they buying? What you are looking for are gaps in your area.

Price points

What price points do they have in your area?

Customer demographics

Who shops there? Observe age groups, style preferences, and spending patterns.

Store layout and displays

How do they present their merchandise? What seems to attract attention?

You are trying to look for weaknesses and gaps that you can fill. The gaps do not have to be big.

For example, winter is coming up. There seems not to be much catering to cheap winter hats. You can get very cheap polyester beanies from Kmart, but not much is available if people want something made of warm wool. Maybe look into your new line for beanies, baker boy caps, bucket hats, etc..

Identifying Multiple Market Segments

Consider targeting several complementary market segments rather than focusing on a single customer type. This approach provides more stability and growth potential for your business.

Aim to identify at least three potential market ideas:

For each potential market, assess:

• Size of the potential market
• The commitment you need.
• Competition
• Alignment with your business values and capabilities

After identifying these segments, you can evaluate which offer the best opportunities and gradually narrow your focus to the most promising markets.

Finding Your Niche

Creating a Specialised Offering

The key to standing out in retail is specialisation. Rather than competing directly with department stores or chain retailers on everyday items, focus on developing a unique niche that addresses specific customer needs. A well-defined niche helps customers understand what makes your clothing selection special and gives them a reason to choose your store over alternatives.

Seasonal Strategy Example: Winter Headwear

Your example of winter headwear illustrates an innovative seasonal approach. As you noted, winter brings predictable demand for warm accessories, creating a natural opportunity to introduce a focused clothing category.

When implementing this strategy:

Start with variety

Offer different styles (beanies, newsboy caps, berets) to determine what resonates with your customers.

Quality

Select a price point; do not be afraid to be expensive. In my experience, the top and bottom are very hard to get into.

Consider timing

It is probably too late for seasonal items like winter wear, as winter is almost here.

Suppliers

Finding reliable suppliers is crucial for retail success. Clothing platforms like AliExpress can be good starting points for sourcing products. I suspect many majors, like Kmart, use them a lot. You can, too.

Supplier reliability

Check reviews, what do people say about their communication responsiveness

Product quality

I think you will do better with mid-range quality

Marketing support

It would help if they had some display materials

Delivery timelines

Very important, when can you get the goods? You must ensure sufficient lead time.

Minimum order quantities

This is often a problem when getting excellent prices. You need enormous quantities, but you don't initially want these. Make them an offer, say for 10. They can only say no. We have all heard that before in business, so I doubt it will hurt that NO.

Effective Merchandising Strategies

Creating Compelling Displays

How you display significantly impacts sales. Effective merchandising creates visual interest and helps customers envision how items look when worn.

Dedicating Proper Space

When introducing the products to your retail business, allocate sufficient space to create an impact. A few scattered items won't generate excitement.

Leveraging Social Media

If you sell products like clothing, you should be on social media. You need

• High-quality product photography that the supplier can give you.
• Give yourself a local presence, with pictures of you wearing these clothes.
• Share new arrivals as they come in
• Highlight real customers wearing your products

Ongoing Management

The sad fact is that most experiments fail. No matter how much you plan, you will have failure. You do not want to end up tying up capital in slow-moving stock.

Implement these inventory best practices:

• Use your point-of-sale report to update your sales figures
• Which items sell quickly at full price?
• What feedback do shoppers provide?
• Why are items brought back? What sort of problems do you have?
• Ruthless culling of products that do not work.

Use this information to refine your product selection, adjust pricing strategies, and optimise your merchandising approach.

Conclusion

With careful planning and consistent execution, you can drive sales into your retail business.

Written by:

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

We all need effective email security strategies to combat spam emails that waste our time. This guide provides best practices for email security tailored for retailers.

How Spammers Find Your Business Email

Public Listings You Can’t Avoid

Your email address often appears in mandatory business records, such as:

• ASIC company registrations (required for all Australian businesses)
• Domain registration details (when you buy a website domain)
• Industry directories (e.g., local chamber of commerce listings)

Your email addresses are often exposed through normal online activities. Spammers deploy automated programs called harvesters that scan websites, forums, and directories overnight. They can collect thousands of Australian business email addresses in a night's work.

Guessing Game Tactics

Guessing is often not hard, as most email addresses follow a typical pattern.

For example, if you are John Smith and work for "Your Business Pty Ltd," spammers will automatically try.

[email protected]

[email protected]

[email protected]

[email protected]

If your name is not known, what the spammer wants is that they assume that a small business uses [email protected] and use their list of the 40 common names (male and female) and send 40 emails. In Australia, approximately 13.6% of male newborns received one of the top 20 most popular names in 2023. Females are a bit higher with 14.36%, so they have a 10% chance of getting it. On a harvester program, this is not hard to do. 

POS Systems

Your POS System receipts can be used too,

Buying lists

The primary reason for these massive data breaches is the thriving market for stolen email addresses. According to the Australian Cyber Security Centre, over 4 million Australian email credentials were compromised in breaches during 2024 alone. Spammers purchase these lists; I saw one on offer on the dark web marketplace containing additional information like names, companies, and email addresses for $US 100 per 100,000 addresses.

Simple ideas for retailers

Now that you understand how many spammers target your business emails, let's explore practical countermeasures you can implement immediately without disrupting your daily operations. These are not solutions, but they do help.

Switch to role-based Email Addresses.

Replace personal emails like john@ with functional addresses:
[email protected] (customer enquiries)
[email protected] (technical issues)

These sorts of addresses do not seem to interest spammers a lot.

A bonus is that it maintains continuity if staff leave or change roles.

Basic Email Masking

These do work, but it's a judgment decision, as often, they can confuse legitimate people with whom you want to give your email address with spammers.

Write addresses not as john@@yourbusiness.com.au but as john[at]yourbusiness[dot]com.au

On social media, use the Message buttons instead of posting emails.

Feature a phone number as the primary contact method.

Turn On the Free Spam Filters

All major email platforms include built-in protections, and these are excellent email security gateways.  

I tested Gmail with some of the latest email phishing attacks and was very pleased with how many it picked up. One particularly pleased me as it was a scam email from Microsoft, which I was sure it would not pick up, but it did.

Pro tip

Mark suspicious emails as spam instead of deleting them, as this trains your provider’s filters to improve accuracy.

Go into the spam folder and check those emails that are not spam.

Use Disposable Addresses

This method works but can cause problems for people who want your email address.

You create a temporary email for specific needs and then delete it. For example, for Mother's Day you could have set up an email address [email protected]

Next Steps for Immediate Protection

Use free tools like HaveIBeenPwned to see if your email is compromised. I have spoken about it here.

Conclusion

While spam will not disappear anytime soon, implementing the abovementioned strategies can dramatically reduce your exposure and protect your retail business from harmful attacks.

Written by:

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

A recent confrontation at a Melbourne Coles supermarket here shows a problem. The Coles staff were suspicious and demanded proof of purchase for the customer's items. The customer said she had brought it into Aldi, did not have a receipt, and refused. There was nothing the Coles staff could do. This highlights critical compliance challenges facing Australian retailers.

Legal Framework

Mandatory Requirements

Under Australian Consumer Law (ACL), your business must:

• Automatically issue receipts** for transactions ≥$75 (excluding GST)
• Provide receipts within 7 days** for purchases under $75 upon request

However, the client does not need to take or keep them, and most customers do not.

Here is the problem: You cannot legally demand receipts from competitors to validate the goods in the customer's possession.

Conclusion

Your point of sale system can tell you whether you recently sold these items. Our labels will show if the goods came from your shop, and cameras might show what the customers had before entering the shop. However, all this might not be enough.

Written by:

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

Google has just launched "What's Happening" for its Google Business Profiles. You can display daily specials alongside your business listing if you are a restaurant or bar. This offers a valuable opportunity to increase your visibility at the critical time when customers are making dining decisions.

It is said that it will soon be rolled out to other businesses.

What is the "What's Happening" Feature

When potential customers search for dining options in your area, they'll immediately see your current promotion before any other business information. This placement ensures that your most compelling offers receive maximum visibility when it is critically needed.

Currently, you have nothing to lose, as it's free.

Implementation Options for Your Business

I was thinking about how you can use the "What's Happening" feature.

Try it out by publishing this content directly through your Google Business Profile dashboard.

If you like it, connect your existing Facebook or Instagram profiles to sync relevant content to your Google Business Profile automatically. If it works, this would eliminate the duplicate work while maximising the exposure of your existing content across platforms.

If you are our client, we are happy to assist you as we always like to maximise our clients' benefits.

Optimisation Strategies

I am sure that Google's algorithm will favour current, engaging content that they are looking for. So to extract maximum value from the "What's Happening" feature, you would need to:

- Focus on a straightforward offer rather than overwhelming potential customers with multiple options.

- Use action-oriented language, e.g. "Book today" or "Try our new menu", as it's designed to drive immediate response, so you need something that is for an immediate response.

- Clearly say when promotions begin and end to create urgency and manage customer expectations

- Keep it up to date; customers will only be disappointed and lose trust if they come for an old offer that is no longer available.

- Note each promotion to see which ones work for you to refine your approach over time

Integration with Point of Sale Systems

If it takes off, we will undoubtedly integrate. I can already see some automation, as the POS system knows

- Your excess inventory can be used to reduce wastage.

- Performance analytics can be utilised.

- Automated scheduling is no problem for your POS System.

How to do it

To implement the "What's Happening" feature for your hospitality business:

Access Your Business Profile

Sign in to your verified Google Business Profile.

Review Profile Verification

Please ensure your business details are current and accurate

Select Implementation Method

For starters, till you get going, I suggest picking manual posts

Create Your First Update

Highlight your most compelling current offer or upcoming event—something simple like the deluxe premade range of sandwiches, 50% off now to 4:00 p.m. today. Remember, unsold sandwiches are often binned if not sold by 4:00 p.m. Also, I must say that excessively offering such discounts rarely does a business much good in the long term.

Review

See how it goes, I suggest experimenting a lot. Its very hard in advance to know what motivates your customers.

Please tell me

I would love to know how it goes for you.

One problem I noticed is that it only supports one location. If your business has multiple locations, you may have problems. One solution might be to make one business profile for each location.

Conclusion

It's free and does represent a significant opportunity for Australian businesses to enhance their online visibility and connect with customers.

I would say, "What do you have to lose?"

Written by:

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

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.

Written by:

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

Take a look and see what you think?

Written by:

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

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

Today, 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 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.

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.

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 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.