Retail surcharging on public holidays sparks much debate. It's not for every business, but let's explore this complex issue.

What is a Public holiday surcharge?

A public holiday surcharge (retail surcharging) is an extra fee added to a customer's purchase to cover increased costs on the public holiday. It's gained more attention lately, especially on public holidays, with the astronomical growth of salaries.

Although it is commonly seen as an issue in hospitality and service industries, it does come into other sectors. For example, I recall a heated debate when newspaper companies introduced Sunday papers. Many newsagents argued that newspapers should have a consistent price daily, viewing them as products, and doubted customers would pay more because it was Sunday. Despite this pushback, the newspaper companies implemented a higher Sunday price. This higher cost is part of the reason Sunday newspapers sell less.

The Rationale Behind Public Holiday Surcharges

Cost of Labour

Businesses face significantly higher labour costs on public holidays. Today, the average hourly rate for a shop assistant in Australia is $30.38. You could look at 250% of the base rate for full-time and part-time employees at public holiday rates. Using this average hourly rate of $30.38, you can estimate that $30.38 x 250% = $75.95 an hour on public holidays.

It's a lot of money that can quickly eat into your profitability. This is why many shops close on public holidays. Many of my clients work themselves on those days; otherwise, it's not worth it to open.

The Balancing Act

Implementing a surcharge is about more than covering costs. It's about finding a delicate balance between:

• Staying open to serve customers

• Covering increased operational expenses

• Maintaining profitability

• Not upsetting customers

The Nuts and Bolts of Surcharging

Surcharge Rates: Finding the Sweet Spot

In my experience, most businesses charging surcharges use 10% to 15%. If you levy 10%, you might as well go to 12.5%. If you will make it 15%, I suggest considering 17.5%.

Although I have seen it, I think 20% to 25% is too high for most customers.

Retail surcharge laws

I am unaware of any legal limit on surcharge percentages in Australia. However, businesses must display the surcharge, e.g., at the point of sale, as they must disclose prices, including surcharges.

Besides, it's critical to maintaining customer trust.

Industry Variations: Who's Surcharging and Who's Not

Where You'll See Surcharges

Surcharges are most common in the hospitality sector. Restaurants and cafes often lead the charge due to high labour costs and the expectation of being open on holidays.

Where You Won't See it.

You're unlikely to see surcharges in many other sectors, including:

• Essential services

• Public transportation

• Online services

• Banks

• Government services

The Customer Perspective: What's the Verdict?

In my interactions with my clients, they have reported to the public a range of reactions to surcharges:

• Some flatly refuse to pay it.

• Many accept the necessity, especially if the surcharge is reasonable.

The Role of Technology: How POS Systems Can Help

As someone now in the POS software business, I can't stress enough how important the right technology is in managing surcharges effectively. Our POS System has a function that allows you to charge the surcharge.

In the cash register

You can make the surcharge here as a percentage or amount; it is your call.

As it automatically calculates, it reduces the chance of human error, so you can change any figure you like, e.g., 12.5%, which is hard to do manually. More about 12.5% later.

• Display surcharges on receipts and customer-facing screens

• Provide reports on surcharge revenue to help with decision-making

• Offer flexible options for implementing different surcharge strategies so you can do what we call an A/B strategy, say, charge 10% this public holiday and 15% on the next and then compare the results.

Note:

-If you have a customer who objects too much to the surcharge, you can choose not to charge them for this transaction.

Clear Customer Display

Our POS systems with customer-facing displays will clearly show enhanced transparency.

Detailed Reporting

Our advanced reporting features can help businesses analyse the impact of surcharges on sales and customer behaviour.

Conclusion: Finding Your Balance

As retailers, we need to balance our operational costs with customer satisfaction. My advice? Whatever approach you choose:

1. Be transparent

2. Be fair

3. Always prioritise your customers' experience

FAQ

Q: Can businesses charge a public holiday surcharge?

A: In Australia, you can legally charge a public holiday surcharge.

Q: What is the average public holiday surcharge in Australia?

A: The most common range for public holiday surcharges is 10% to 15%

Q: What is the public holiday rate in retail Australia?

A: Public holiday penalty rates for retail employees are typically 225% to 250% of their base hourly rate.

Q: Can you charge a weekend surcharge?

A: Yes, you charge weekend surcharges.

Q: Why do businesses implement surcharges?

A: Generally, businesses implement surcharges to offset increased costs, notably higher labour costs due to penalty rates on public holidays and weekends.

Q: Consumer rights regarding surcharges?

A: Consumers have the right to be informed about surcharges before purchasing, so businesses must display surcharge information.

Q: Alternatives to surcharging for businesses:

A: Not many.

• Absorbing the additional costs

• Raising regular prices to account for occasional higher costs

• Closing the shop

Note: I am not a lawyer, so you may consider getting proper legal advice before proceeding.

Now, in Victoria, it's a time when the place buzzes with the AFL Grand Final in Melbourne.

To Open or Not to Open?

The problem is that it's a public holiday, and it costs if you have staff on that day. So, as the day approaches, retailers are asking themselves whether to open.

But here's the problem if they decide to open: do your customers know you are open on AFL Final Melbourne?

The Customer Confusion Challenge

Last year, one of our clients decided to open their shop on Grand Final Day, but they saw very few customers. They think it was because many customers assumed we'd be closed.

Let them know

Spread the word: For example, plaster a "Yes, we're open!" sign on the shop front.

If you have a Facebook account for the shop, let them know there.

If you can put something in front of the shop to show you are open so people can see it.

Final Thoughts

Your customers can only buy from you if they come, even if you are open.

Do it now as you do not have a lot of time.

Having worked in POS Systems for years, I have witnessed the evolution of point-of-sale systems. I am excited about the latest all-in-one POS computer models; these sleek machines are revolutionising retailing. 

The All-in-one POS system Advantage

These new all-in-one POS computers are fresh air on the front counter. They're not just computers but complete systems tailored for retail environments. Let's dive into what makes them so great:

Compact Powerhouses

Picture this:

- It has a 17-inch touchscreen

- An i5 CPU, 8GB RAM, and a 256GB M2 SSD, a high-performance computer that's been to the gym!

- Customer display

All packed into a single unit that looks good.

Built for Business

These are designed specifically for the rough and tumble of retail life. Temperature fluctuations, dust, spills, and slamming are constant uses—these are designed to handle them. I think all of us are tired of equipment that looks good in a showroom but fails in the real world of retail.

Why Retailers Are Falling in Love

Space Savers Extraordinaire

In my experience, counter space is like gold in retail. These all-in-ones are true space savers as they take up much less space.

These new models are an inch slimmer than the old models, with no loss of screen size. When I measured them, this is what I got.

So we have more room at the front counter.

A Modern Face for Your Business

First impressions matter. An outdated computer monitor can make your whole shop look outdated. These sleek, modern all-in-ones show customers you're up-to-date and professional.

Value for Money

When you break down the costs, these all-in-ones are a bargain. They cost what a computer and touchscreen separately would with the same specs, but with the all-in-one, you're getting the customer display for free. So this is free

Real-World Benefits

Let's get practical. Here's how these systems can transform your day-to-day operations:

1. Streamlined Transactions: Everything's integrated, making checkout smoother and faster.
2. Easy Maintenance: One unit means less fuss regarding updates and repairs.
3. Adaptable Setup: Adjustable screens mean you can customise the layout to fit your space perfectly.
4. Professional Image: Impress customers with a modern, efficient-looking point of sale.

My Take

Having worked with POS systems for years, I can say that these all-in-ones are game-changers. They are designed to address many friction points that retailers struggle with, such as space constraints, durability issues, and the need for a professional image.

If you're a retailer looking to:

• Maximise counter space
• Upgrade your shop's image
• Invest in durable, long-lasting equipment
• Simplify your POS setup

...then an all-in-one POS computer could be just what you need.

Wrapping Up

In retail, having the right tools makes a difference. Every inch of counter space counts, and getting more speed is a bonus.

Get an edge with a modern, efficient, all-in-one POS system.

I've seen firsthand how the right strategies can transform a retail business. Today, we're diving into selling fewer products, which can, although it sounds counterintuitive, sell more. Using your POS System, Product assortment optimisation can revolutionise your store. Currently, each product you have needs to be displayed, and if you have two or three similar products for the same potential market, you need more display room and more tied-up capital in stock. 

The Challenge of Customer Choice Overload

Imagine walking into a shop brimming with products. Sounds great, right? Not always. This abundance often leads to what experts call customer choice overload. Too many options paralyse decision-making, potentially driving customers away empty-handed.

The Hidden Costs of Excess Inventory

Beyond customer confusion, an expansive product range can create significant challenges:

1. Display space limitations
2. Tied-up capital in stock
3. Complex retail inventory management

Leveraging Your POS Software for Smart Decisions

Your Point of Sale (POS) system is more than just a cash register - it's a powerful tool for product assortment optimization. Here's how to use it effectively:

It’s easier than you think

Go to Register reports.

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

Now, the following comes up.

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

Out comes a report with the top sellers

Now, everything on this list needs to be marked. Everything *NOT* on this list is considered *CULLING*

Implementing Your Optimisation Strategy

1. Monthly Review: Regularly assess your product performance
2. Strategic Culling: Remove underperforming items
3. Smart Diversification: Introduce new products that serve different needs

Addressing Key Retail Concerns

For Retailers Looking to Streamline Product Offerings

Implementing a 'less is more' approach doesn't mean limiting your business. It's about curating a selection that truly resonates with your customers. Use your POS system to identify top sellers and structure your product mix around these vital items.

Enhancing Profitability:

Concentrating on popular items can lead to better supplier deals due to larger orders. This and lower inventory management costs can significantly boost your bottom line.

Improving Customer Experience:

A carefully selected product range makes your store more user-friendly and enjoyable. It shows you understand and value your customers' needs and time, potentially increasing loyalty.

Optimising Inventory:

Fewer product lines mean easier stock management, less storage space required, and faster stocktakes. Your POS system becomes an essential tool in maintaining optimal inventory levels.

Reducing Operational Costs

A streamlined inventory leads to lower storage expenses, less deadstock risk, and more efficient use of retail space. It also frees up staff time for enhanced customer service.

Conclusion

Embracing product assortment optimization through selling fewer products is a powerful strategy for small retailers. It addresses the issue of customer choice overload, simplifies retail inventory management, and can lead to increased profitability and customer satisfaction.

Keep in mind, the aim is to present a carefully chosen array of products that satisfies your customers' requirements without causing decision fatigue. Begin with small changes, let your POS analytics inform your choices, and observe how your refined product lineup revolutionises your retail operation.By concentrating on the essentials - your top-performing items and your customers' desires - you're not merely reducing inventory, you're enhancing your sales strategy.

Customer support can make or break a business, and the numbers back it up: consumers say that the quality of customer service influences their choice of and loyalty to a company. I know from personal experience that I do not deal any more with Citibank because of one lousy loan officer. I can go to plenty of other banks. In today’s competitive market, exceptional support isn’t just a nice-to-have—it’s a necessity. That's where support call ratings come into play.

Those that collect them consider them a report card for their customer service team. If you look at them, it shows how well you are solving problems. The reality is:

• Happy customers come back: When people have a good experience, they're more likely to return.
• Word-of-mouth magic: Satisfied customers are your best advertisers.
• Continuous improvement: Ratings help you spot areas where you can do better so we can improve customer service

The Nuts and Bolts of Support Call Ratings

So, how does this rating system work? It's pretty straightforward:

1. After a support call, we send the caller an email to say that the support call is considered done and to please rate their experience and give their comments.
2. The ratings we use range from 1 to 10 stars.
3. The data is collected.
4. We analyse your feedback.

When rating a support call, customers often consider:

• How quickly their issue was resolved
• The friendliness of our support person
• The support person's knowledge and expertise

One point I have noticed, if a customer today is upset with you, they will leave negative feedback.

Customer support ratings, last Quarter

We're keen to share some great news with you! Last quarter, our support team has truly outdone themselves:

• Nearly perfect scores: We've achieved 10 out of 10 ratings, with just one 9 out of 10.
• Glowing feedback: Our customers have left some ripper comments that warm our hearts.

Here's a snippet of what our happy customers are saying:

"Great service"

"How easy it was to get help"

"What great knowledge Peter has!! And as usual always a pleasure"

We are absolutely thrilled with these results and would like to acknowledge our exceptional team for their effort and dedication. It is indeed a proof of their dedication to guarantee the top support of all our satisfied consumers.

We're Here for You

If you ever have a problem or think we could do better, let us know. We're all ears!

As a guy who has worked for a top point-of-sale (POS) system company, I have over the years met and talked to many retailers and retail experts, so here are simple tips on how to increase sales in your physical store that I have learned. Whether it's a small shop or a larger local chain, these strategies can I think you help you draw in more customers and make more money.

Make Your Shop Front Inviting

The first thing customers see is your shop front. Make it welcoming. Think about:

• Please keep it clean: Have clean windows, a tidy entrance, and no mess around.
• Bright signs: Use clear signs for your shop name, open hours, and deals or sales.
• Seasonal decorations: Change your front display with the seasons to keep it fresh and exciting.

Click on this for some ideas

Improve the Shopping Experience

A great shopping experience keeps customers coming back. Here are some ideas:

Offer Top-Notch Customer Service

• Train your team: Ensure your staff knows their stuff and pays attention to what customers want. I have always been proud that many people can sell computers, but people who buy from me know that my staff knows computers. I recommend this philosophy to every shop. For example, a few days ago, I went to a toy shop to buy a present for a four-year-old boy. I really did not know what to buy, but the people serving were very professional and helped me. I would come back.
• Listen and fix problems: Take customer complaints seriously and resolve any issues quickly. A complaint is often a marketing opportunity. 
• Add a personal touch: Small things like saying hi by name or remembering what they like can make a big difference.

Display Products Well

• Set up items wisely: Put things that go together near each other and show off your best stuff where people can see it easily.
• Be creative with displays. Try different ways of showing products to grab attention, like themed setups or stacked items. 

Use Digital Ways to Boost Sales

Mixing online and in-person tactics can raise your sales. Think about this:

• Social media buzz: Use social media to discuss deals, showcase new items, and get people excited to visit. If you are missing out on this free advertising, you are not doing yourself much good.
• Collect emails: The purpose of a VIP club must be to get customers' emails to send them news and special offers. It's not that they will often take it up, but what is more important is that they know you exist.

Use your POS System

Unlike your memory, the facts in your POS System do not lie. 

• It watches what your customers do: Use data from your sales system to understand what people buy, like, and dislike.
• Keep the right items in stock: Use data to determine what people buy.

Seasonality and Inventory Turnover

It's important to note that a retailer's sales often fluctuate throughout the year due to seasonality and marketing seasons.

To manage these changes:

• Forecast: Use your historical sales data to anticipate peak and off-season inventory needs.
• Diversify Your Product Mix: Try to stress items that sell all year round; too often, I see retailers after a holiday stuck with stock that no longer sells. 
• Implement Promotional Strategies: Run sales and promotions during peak seasons to clear out remaining seasonal stock before the off-season starts and you are stuck with the stuff.

Putting these steps into action can really help your shop sell more and grow. The trick is always to be ready to change and try new things to ensure your customers' satisfaction.