Have you ever found yourself shivering in the cold weather, wishing you'd bought that cosy jumper you have at home? Or perhaps you are hot and want a cool drink? These weather-induced moments of need aren't just everyday inconveniences—they're untapped goldmines for savvy retailers. Just look at the recent cold spell that swept across Australia, now sending sales of winter gear soaring.

A research paper here done on the weather stated

"Analyzing daily sales at a national apparel and sporting goods brand’s stores reveals that weather effects on store sales are surprisingly persistent, even after accounting for shoppers simply changing when and where they make their purchases. Moreover, sales at stores that have more experience with adverse weather events have a lower response, suggesting that adaptation may reduce the negative impact of increasingly severe weather on sales."

As someone who has analysed sales data for many retail clients, I've seen firsthand how changes in temperature and rain can affect product sales. It is not rocket science. Different weather conditions change what people buy. This is a chart I made based on data from one of our users. 

This stacked bar chart showed the sales performance of different product categories (Drinks, Clothing, Accessories, and Indoor Items) across three weather conditions (Hot, Cold, and Rainy Days). The y-axis represents sales volume, while the x-axis shows the different weather conditions.

Key insights from this chart:

Drinks have the highest sales on hot days, as expected.
Clothing sales peak on cold days, likely due to increased demand for warm clothing.
Accessories like umbrellas showed the highest sales on rainy days.
Indoor items see increased sales on both cold and rainy days, possibly because people spend more time indoors during these conditions.

This chart effectively illustrates how different product categories perform across various weather conditions, allowing users to quickly identify trends and patterns in weather-based sales.

Hot Days, Cool Profits

When the mercury soars:

• Cold drinks sell
• Sunscreen sells

Chilly Weather, Warm Sales

As soon as it gets nippy:

• Hot drinks sell
• Jumpers and beanies become must-haves
• Heaters become essential purchases

Rainy Day Retail

When the rain comes down:

• Umbrellas sell
• Raincoats become good sellers
• Indoor activity items like books and board games see increased interest

This weather-driven consumer behaviour is critical to understanding and predicting your sales patterns.

Turning Weather Data into Retail Gold

So, how can you use this info to boost your sales? It's all about being prepared and using your point of sale (POS) software to your advantage for weather-based inventory management and retail sales forecasting.

Dig into Your Data

This is where our POS software for weather trends shines, as your POS system is a goldmine of information for retail data analysis. Here's how to tap into it:

Go to Register Reports

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

Put in a date of a hot day and see what you get. Do a few. Now put in a cold day and so on.

Do this also for cold and rainy days—you'll start seeing patterns emerge. 

These are products that sell in your shop in those days. 

Stock Smart, Sell More

Once you've got your data, use it for weather-responsive merchandising:

Make categories for stock that sell well according to the day's weather, e.g., start with hot, cold, and wet.  Get the appropriate signs.

If a day in the morning is forecasted to be such a day, these signs and products will be placed in a prominent position in the shop. 

Communicating Weather Strategies to Staff

Your team plays a crucial role in implementing your weather-based strategy. Here's how to get them on board:

1. Hold regular briefings on upcoming weather and corresponding product focuses
2. Train staff to understand the connection between weather and sales trends
3. Encourage staff to provide feedback on customer behaviour during different weather conditions
4. Create simple checklists for weather-based display changes

FAQs: Weather and Retail

Q: How quickly do weather changes affect sales?
A: Impact can be almost immediate, especially for impulse buys like umbrellas or cold drinks.

Q: How far in advance should you plan for weather-related changes?
A: Today's seven-day forecasts are generally fairly accurate. 

So I would suggest that you check the 7-day forecast each week in your area and note any abnormal hot, cold, or rainy days coming up.

The Bottom Line

While Mother Nature may be unpredictable, your retail strategy should not be. Make sure you have the right approach and tech tools, to take advantage of the weather to make sales. Your POS system isn't just a glorified cash register—it can be a predictor of your customer behaviour. With some planning and the right tech, you can ensure your sales forecast is always sunny, no matter what's happening outside.

Have you noticed the weather affecting your sales? I'd love to hear your experiences! Comment below or reach out if you need help setting up your POS system to weather any storm.

Stay savvy, and may your sales be ever in your favour!

Did you know that boosting your stock turn rate by just 20% could dramatically increase your profits? 

What Are Stock Turns?

Stock turns, or Inventory Turnover, measure how often you replace your inventory over a given period. It is a crucial indicator of your shop's performance.

The Basic Formula:

Manually, it is calculated by

Stock Turn = (Cost of Goods Sold) / (Average Inventory Cost)

Step-by-Step Guide to Calculate Stock Turns Manually

Calculate your Cost of Goods Sold (COGS) for the period.

Determine your Average Inventory Cost
Add your beginning and ending inventory values
Divide by 2

Divide COGS by the Average Inventory Cost

For example:

COGS for the year: $100,000
Start of the year inventory: $25,000
End of financial year inventory: $15,000
Average Inventory: ($25,000 + $15,000) / 2 = $20,000
Stock Turn = $100,000 / $20,000 = 5

The Impact of Stock Turns on Profitability

Cash Flow Management: Higher turns mean you're not investing in the slow-moving stock. This improved cash flow allows you to reinvest in your business.

New stock: Moving your inventory faster keeps your stock current, reducing the risk of obsolescence.

Space Efficiency: You can use your valuable retail space better by keeping fast-moving items on hand.

The Magic Number: 12

Many retailers aim for a stock turn of 12. Why? It's simple:

You're likely paying suppliers monthly
A turn of 12 means you're selling out monthly
This means you do not pay for the stock you sell.

How to Check Your Stock Turns with POS Software

Our POS software has made inventory analysis more manageable than ever. Here's how to check your stock turns:

Open your POS software
Navigate to Main Menu > Cash Register > Register Reports
Expand the 'Stock' section
Select "Show Stock Turn by Dissection and Item"

​Here is the sample I produced showing the stock turns by department.

As a general rule, the higher the score of your stock, the better. This, however, is not always true; a stock turn that is too high often shows that you are understocked. For example, you have an item you could sell once daily, but you order one weekly. So every week, you have sold one, so at the end of the year, you have a score of 50, which is a great score, but you have lost 250 sales that you could have had because you could have sold one a day and all you have sold is one a week.  

High Turns (8+): Great! But are you missing sales due to running out of stock? 

Mid-Range (4-7): Good, but room for improvement.

Low Turns (1-3): Time to reassess. Are prices too high? Quality issues?

Common Pitfalls to Avoid When Optimizing Stock Turns

Over-optimizing: Pushing for extremely high turns can lead to being out of stock.
Ignoring seasonality: Some products naturally have different turn rates at various times of the year.
Neglecting customer service: Don't sacrifice having enough stock to meet customer needs to improve your turns.
Forgetting about lead times: Consider how long it takes to restock when planning your inventory levels.

Our POS systems offer a range of features to help with inventory optimization:

Real-time tracking: Get up-to-the-minute data on your stock levels and turns.
Automated reordering: Set up automatic purchase orders when stock hits a certain level.
Predictive analytics: Use AI-powered (FOCUS) forecasting to predict future stock needs. Our software includes this feature for free.

FAQ: Common Questions About Stock Turns

Q: What's a reasonable stock turn rate? 
A: It varies by industry, but generally, a turn rate of 4-6 is considered good, while 6-12 is excellent.

Q: How often should I calculate my stock turns? 
A: Monthly calculations are ideal for most businesses.

Q: Can stock turns be too high? 
A: High turns may indicate that you're losing sales due to running out of stock.

Q: Should I use the same stock turn goal for all products? 
A: No, different product categories may have different optimal turn rates. Use our POS data to set appropriate goals for each category.

Wrapping Up

Take time to analyse what these scores are telling you. This will help you to identify the actions required to improve profitability and return on investment.

Now, you need to analyse your stock and check each department to see what is working and what is not. A score signals bad sales and that you are more stock than you realistically need at any given time. Maybe you have a pricing or quality issue, but that department has a lot of obsolete stock. If so, move the obsolete stock to a different department, as it will not give you fair figures here.

A high score indicates greater profitability and a good return on investment, although, as I stated, it may also mean that you are not ordering enough.

Remember, every figure has a story.

Can you imagine a world where every purchase involves manually entering the department and the price of every item at the checkout? Such a scenario might appear to have been lifted from a 1980s video game, but it was a fact for retailers then. Then came the barcode.

Fifty years ago today, on June 26, 1974, the first commercial barcode scanning was done on a Wrigley's chewing gum pack. Those stripes may seem simple, but they revolutionised how we shop!

After the barcodes were released, we released the first magazine barcoded return system here. At first, because it was so new, we had to manually put on a barcode sticker as many magazines did not have barcodes.

I am in the middle, boy. I was proud that day as no-one had ever done anything like this before, and next to me was Joe, the programmer who did most of the analysis for the returns. We had a deal between us; I handled the newsagency stuff and the data handling, and he dealt with the magazines. It was in DOS. The result is that we saved our clients a lot of time and money.

How the Barcode Changed Retail (and Saved Money!)

Before barcodes, cashiers rang up sales by manually entering in price and department codes. This process was slow and error-prone, frustrating customers and costing retailers money. The barcode, however, changed everything. Here's how:

• Faster Checkouts and Happy Customers: A simple scan eliminates the need for manual code entry, resulting in shorter queues, happier customers, and improved staff productivity.
• Reduced Errors and Happy Staff: Barcodes are much more accurate than manual code entry, leading to fewer mistakes and happier staff (no more hunting for the correct code!).
• Improved Inventory Management and Reduced Costs: Barcodes allow retailers to track stock levels more efficiently. This means there's less chance of running out of popular items, less money tied up in unnecessary stock, and better-informed ordering decisions—all contributing to significant cost savings.
• Enhanced Customer Experience: Beyond speed, barcodes enable features like price verification at checkout, reducing customer confusion.

The Barcode and Modern POS Systems: A Powerful Partnership

The barcode laid the foundation for modern POS systems like the ones we offer at POS Solutions. Here's how they work together to streamline your operations further:

• Product Data at Your Fingertips: When you scan a barcode, the POS system instantly retrieves the product information, including its name, price, and the applicable GST Code.
• Automatic Inventory Updates: Each scan automatically updates your inventory levels in real time, ensuring you always have accurate stock data and can make informed decisions about reordering.
• Sales Tracking and Informed Decisions: POS systems use barcode data to track sales trends and identify popular items. This information helps you decide stock levels, promotions, and future ordering.
• Seamless Integration for a Smooth Experience: Modern POS systems seamlessly integrate with barcode scanners, creating a smooth and efficient checkout experience for you and your customers.

Next Step of the Retail Industry

The introduction of a barcode, no doubt, has been a breakthrough, but the technology is still developing. We at POS Solutions are very optimistic about the future of retail efficiency, involving the following, which we are introducing:

• 2D Barcodes: These data-rich barcodes can hold more information than traditional barcodes, potentially including product descriptions, origin details, and even expiry dates.
• QR Codes: These square-shaped codes can be scanned using smartphones, opening up new possibilities for customer engagement and product information access.
• RFID Tags: These tiny radio frequency chips offer even greater tracking capabilities and can be used for tasks like automated inventory management.

These advancements can inspire, but the barcode is essential in the retail ecosystem. Remarkably, this solution made the most significant difference in modern retail.

Ready to leverage the power of barcodes and modern POS systems for a more efficient and profitable future? Contact POS Solutions today to learn more about our innovative solutions!

Now, at the end of the financial year, we are releasing this video, which provides a complete YouTube tutorial on how to do the physical count for a stocktake using our POS Software.

We walk you through this essential inventory management system and explain the options and best practices.  This video would be useful as a training and reference resource for anyone who needs to perform stock control using POSBrowser. 

It covers the two main approaches—doing the full shop at once or breaking it down into smaller location-based sections. Although both work, we advocate the location-based approach, which we find more efficient. Prepare your plan by dividing the shop into sections. Then, stocktake each section one at a time. This makes the process more manageable and accurate. 

The video demonstrates creating a new stocktake, correctly scanning/counting items, and correctly recording it. We also cover the necessary settings like "Check Stock Movement" if you are doing it during trading. It shows how to run reports to see discrepancies, cost valuations by department, and more. The reporting capabilities highlighted allow you to analyze and audit your stock position.

The clear explanations and visual demonstrations make it a valuable reference for new and experienced users. I suggest getting your staff to run through it, too.

"The integration between stocktake data and our ordering process has streamlined our operations significantly. We've reduced carrying costs, minimized stock-outs and given us accurate reporting." 

Mastering stocktakes is essential for the success for any retailer.

This question arises every year and again this year. Here, I will discuss the importance of stocktaking for businesses and address common objections. 

We also explore the advantages of performing a stocktake, even when facing challenging circumstances. Additionally, we highlight the potential risks of skipping a formal stocktake and how implementing regular rolling stocktakes throughout the year may offer better results.

Firstly, stocktaking is a critical process for retailers, ensuring accurate management of inventory levels. Despite perceived challenges, I think its benefits far outweigh the drawbacks. Modern POS software can streamline the stocktaking process. It's not just for the ATO; I have seen many retailers whose profits have mysteriously disappeared. We are not talking small figures here. Theft, damage, or errors of the inventory mean a significant time loss to the retailers, which also implies a substantial loss of revenue due to the problems of the businesses. You can substantially decrease the losses and increase the revenue by carefully regulating your inventory.

Objections to Stocktaking:

Stocktaking can be viewed as a tedious and resource-intensive task, with several arguments against its necessity:

It consumes time and effort
It incurs additional costs without generating revenue
Disruptions to daily operations can negatively impact sales

These concerns are legitimate; however, there are compelling reasons to perform a stocktake despite them.

Legal Requirements for Stocktaking:

According to the Australian Taxation Office (ATO), businesses must perform a stocktake if they cannot accurately estimate their current stock levels based on historical data and do not meet specific conditions. These conditions include:

The difference in stock values between the previous financial year and the current financial year is less than $5,000

Using a reliable method, you can reasonably estimate your current stock levels and maintain sufficient evidence to substantiate your estimates.

Please read this page from the ATO here on this question and pay particular attention to the square I marked in red. 

I am sure every client I have has at least a $5,000 inventory difference between this fiscal year and the previous one. 

It is your responsibility to affirm your stock figures to the ATO, at least to their complete satisfaction, so that the ATO will regard your figures as reliable evidence.

Rolling Stocktakes vs Formal Stocktakes:

There's debate over whether to conduct traditional annual stocktakes or opt for rolling stocktakes throughout the year. While rolling stocktakes offer real-time insights, they can be more resource-intensive than formal stocktakes. Both methods have their merits, but accuracy in stock valuation remains paramount for tax purposes.

Advantages of Performing a Stocktake:

A well-executed stocktake offers numerous benefits for businesses, including:

By comparing the inventory on record with the actual stock, one can obtain the data needed to make better stock orders, properly manage inventory, and prevent loss at the premises in cases of theft or things are just out of place. This information can then be used to devise better security measures.

Products are checked to see how many are near expiry and if stock is spoilt and damaged. Often, this allows last-minute sales to recover whatever value is left in these goods.

Getting technology that provides 24/7 visibility of the inventory status and the capability to view, track, and control the flow of goods in and out of the business will ultimately increase operational efficiency, accuracy, and, more importantly, customer satisfaction.
 

POS Software Benefits:

Our POS software comes equipped with robust inventory management features to simplify stocktaking:

• Barcode scanning: Scan product barcodes for faster and more accurate counting.
• Real-time inventory updates: You do not need to close the shop to do a stocktake.
• Stocktake reports: It generates detailed reports to analyze discrepancies and identify trends.

Conclusion:

With their circumstances, different businesses ought to decide whether to implement a formal or rolling stocktake. The legal aspects and benefits, which must be balanced with each approach, should form the basis for a decision. By taking these necessary steps, you can make wiser decisions. 

Whichever way you go, I wish you all the best for your business.
 

Somehow, I doubt anyone in the world has been as involved in stocktakes as I have. Stocktaking is one of the best practices and a crucial process for any business in 2024. It involves physically counting your inventory to ensure your records match what you have on hand. This can be daunting, but it is the best way to control inventory. It is also your way of testing your inventory management system. For example, Excess Inventory, *Eating Away* at your profits in 2024, and checking your inventory data.

Why Inventory Management Matters

In today's dynamic market, real-time inventory visibility is essential for success.

Current studies are showing "found that inventory record inaccuracies are a significant problem, affecting approximately 60% of stock  analysed. Interestingly both positive and negative inaccuracies had a detrimental effects on sales and correcting these inaccuracies led to a 4-8% increase in sales" 

Effective inventory management allows you to:

Stock management

Regular stocktaking helps you identify excess inventory and your inventory tracking and assess your current inventory control. For example, people often find "dead stock" just sitting there and holding their cash flow.

Improve Inventory Accuracy

Accurate inventory levels are the foundation for informed decision-making. Regular stocktaking ensures you have the right stock to meet customer demand.

Accounting requirements

A properly conducted stocktake is the best way to prove and justify your stock holding to the ATO. Estimates are always dubious to an auditor, and if the auditor feels that you do not have good inventory management techniques and stock keeping, they can make and use their estimates. I have seen this problem happen with clients that have used cyclic stocktakes.  I have discussed this issue here.

Tips to get your stocktaking procedure going in 2024 going.

Preparation is Key

Thorough preparation is critical to a successful stocktake. Schedule your stocktake for a quiet time, organise your shop as much as you can before, and consider what people are best for getting faster and more accurate counting. Remember as well that:

-Stock counting tends to work faster if people are in teams, so consider dividing people into teams of two or three people; I find that two people to count and one to record the count makes an effective team.

-A stocktake is an excellent opportunity to check pricing, barcode, and product labels while counting.

-It is also an excellent opportunity to clean the shop.

-Plan how to split the task into blocks to keep your staff motivated and alert. We recommend that you divide your shop into manageable counting areas. Label each section clearly. You should aim for each area to be something that can be done in one to two hours max. This makes it easier to have regular breaks

-If you have a warehouse, make sure it is not missed. Often, it can be done on another day.

-Move stock as much as possible to the appropriate counting area. You want stocktake day to be as simple and fast as possible.

-You can take a few days as a stocktake can be done in more than one day.

-Sometimes, you cannot count but will have to use estimates.

Check your Technology

Modern inventory management software has revolutionised the stocktaking process. Our POS system integrates with stocktaking software, automates tasks, and streamlines the entire process, but make sure the setup you intend to use works. I have seen how frustrating it is for people to assemble their teams, start the stocktake, go to record stock levels, and discover something isn't working. Make sure your stocktaking software and equipment work now! 

Test your equipment and verify it works. Confirm that the chargers and batteries are all fully operational and ready for use. It is also an ideal opportunity to familiarise yourself again with their operation.

If you can use laptops or, better still, PDTs, both will be real-time savers as these can move around the shop rather than going to the items to count. If you have a laptop, ensure it works with our POS Software.

Review how stocktakes work.

Develop a Systematic Counting Procedure

Establish a clear and consistent method for counting your inventory. This could involve counting by sections or categories to ensure no stock is missed or double-counted. In Australia, it is generally considered easier to count from left to right—bottom to top. Make this a rule before you start, and make sure everyone knows this in advance.

-As you count, prepare place markers to mark counted areas to avoid missing or double-counting sections.

Common stock issues

These problems you need to address before you start the stocktake:

-Have a problem holding area where problem items that appear while doing a stocktake can be moved too, allowing you to move on in the stocktake and not be held up. You are trying to streamline the process.

-Move as many problem items into this holding area as possible before you begin.

-Review the types of inventory you have. For example, put all laybys, consignment items, or items waiting for dispatch in separate holding areas. Later, you must check with your accountant about how they want these items handled.

Conclusion

These tips will help you make a successful stocktake. If I missed something, please let me know.

We are reviewing our complete stocktaking guide, so give us a few days to review it. We will also release some other guides on specialised issues in stocktaking. These guides will equip you with the latest knowledge to improve your bottom line.

Happy stocktaking!

Software training

Introduction

Training on point-of-sale software is an essential component of your business. It is a powerful business tool that can manage inventory management, customer loyalty programs, sales reports, etc of your business. You can do it better if you are properly trained. 

This article examines the benefits of training and answers some often-asked questions.

Benefits of POS Systems Training

Increased Efficiency

With the proper training, you can quickly navigate your POS software, allowing you to focus on other aspects of your business and save time.

Better Service for Customers

If you better understand how your POS software works, you can make it easier for your customers, making them more satisfied and loyal.

Accuracy of the Data

The POS system offers a lot of flexibility. You need to know the correct procedures to enter and manage your data. We provide proper training to give you this knowledge, ensuring your business works with accurate information. We also will discuss if you require the importance of data security training to ensure you understand best practices for protecting customer information.

Improved Control

You have many reports that detail your business in detail. With better information, you can run your business much better. Soon, you'll be able to make better decisions about your business operations and get better results.

> This only works if you have good information.

You do not have to do it alone.

Our POS Software Training Program

Cost

Our software training program is free for our clients in our offices or on Zoom. 

In your shop, there will be charges.

Customization

Our training program can be customized to meet your specific requirements. It can be done using your actual data from the shop.

Expert Teachers

Our experts who contact our training program have years of experience in our software. They know how it works in retail environments like yours. They will be able to provide examples and solutions from actual situations to your issues and problems.

Practical Instruction

These sessions offer hands-on training to use the software and improve your knowledge in a real-world setting.

Flexibility

Training can be done at times that are suitable to your needs. Your staff can receive the necessary training without interfering with minimal business operations.

Continuous Support

Once done, you can book more sessions. There is no limit. That way, you can do a refresher and keep up with all our software updates. 

Frequently Asked About POS Software Training (FAQ)

Q: What is training for Pos software?

A: POS software training is a comprehensive program that teaches you how to use your point-of-sale software. It provides you with the knowledge and skills necessary to manage your business operations effectively. The training covers all aspects of the software, from basic to advanced features and functions relevant to your needs.

Q: Is training in Pos software required?

A: NO, but if you want to get the best out of your software and improve your business, then YES. 

Q: How long does training for Pos software take?

A: How long is a piece of string? Some need a lot of training, and some only a little. Some people use many features of our software, and some only need a bit. The length of your Pos software training depends on your particular requirements. 

As a rule, I recommend it is done in two-hour slots with a coffee break between 15 minutes—more than that, it gets hard to digest.

Q: Is in-person or online Pos software training available?

A: Pos software training is available online and in person so that you and your team can choose the best method.

In-person training provides better hands-on and interactive instruction.

Online training offers more convenience.

Q: Who ought to attend training for Pos software?

A: I want to understand why POS software training is not available to anyone in your shop, including staff members who use computers. 

Conclusion

> Formal Point of Sale software training is essential for maximizing the software's capabilities.

> It enhances business operations.

> It gives you more control.

> Training can help you get more out of your software and achieve better results, no matter how experienced or new you are to the field.

Master your POS software and take your business to the next level with proper training.

No cost and you have much to gain, give us a call.

The delicate dance of retail inventory management: Picture the frustration of encountering empty shelves where popular items should be or overflowing aisles with last season's clothes. Both scenarios highlight the importance of balancing meeting customer demand and minimizing excess stock. At the heart of this strategy lies this:

Sell-Thru Rate

This rate is a powerful key performance indicator (KPI) in retail that measures the efficiency of a stock's performance. It is the percentage of your stock item sold during a specific period compared to the amount you received. It essentially tells you how quickly your stock is moving off the shelves. A high sell-thru rate indicates strong sales performance and effective inventory management. In contrast, a low sell-thru rate may signal a misstep on the inventory management tightrope, indicating overstocking or outdated products.

It requires real-time information that your POS System should have. Information here is power. 

Calculation of Sell-Thru Rate

The rate is calculated using a straightforward formula:

Sell-Thru Rate = (Number of Units Sold) / (Number of Units Received) x 100%

Say you got  a hundred blue pens and sold sixty blue pens in a month; your sell-thru rate is:

(60 / 100) x 100 = 60%

If you sell in one month (100%), you often do not need to pay for the stock, as your customer sales will pay the suppliers.  

Step-by-Step to calculate the Sell-Thru Rate

1. Determine the Period: Choose a timeframe for the calculation (e.g., weekly, monthly, quarterly). Using one timeframe for the shop allows for a more straightforward analysis. Most people use a month, which works well for Australian business practices.
2. Count Units Sold: Record the number of units sold during the chosen period. Your point-of-sale (POS) system can easily access this data.
3. Count Units Received: Record the number of units received during the same period. Your inventory management system or purchase records should provide this information.
4. Apply the Formula: Use the sell-thru rate formula: 

   Sell-Thru Rate = (Number of Units Sold) / (Number of Units Received) x 100%

Example Calculation

Say you brought twenty Coke cans for the shop at the beginning of the month, and by the end, you had sold fifteen. To calculate the sell-thru rate:

(15 / 20) x 100 = 75%

This 75% sell-thru rate shows a good demand for Coke at the product quantity selected.

Timeframe Considerations

• Calculating your sell-through rate regularly helps you manage your inventory. Being consistent helps identify trends, forecast demand, and adjust inventory levels.
• Using a POS system can significantly simplify the sell-thru rate calculation. Modern POS systems automatically track sales and inventory, providing real-time data that eliminates manual errors and saves valuable time.  POS Solutions offers intuitive dashboards and reports

Understanding a Sell-thru Rate

Benchmarks for a Good Sell-Thru Rate

A "good" sell-thru rate can vary widely depending on the industry and product category. Here's why:

• Product Category: Fast-moving consumer goods (FMCG) like beverages typically have higher sell-thru rates than luxury items like jewellery or high-end electronics.
• Seasonality: Coke has a higher sell-thru rate during summer, while sales drop in winter.

Here are generally accepted retail benchmarks:

• 60% - 80%: This range is considered a reasonable sell-thru rate for many retail sectors. It indicates that a significant portion of inventory is sold within a reasonable timeframe.
• Above 80%: An exceptionally high sell-thru rate. This is often considered a danger as it suggests you're not stocking enough inventory to meet peak demand or selling too cheap. 
• Below 60% could indicate overstocking, outdated products, or pricing issues. Analyse your data and implement strategies to improve sell-thru rates for these categories.

As a rule, most retailers are suggested to get to 75% sell-thru. In our tests, we see much room for improvement in SMEs as most retailers there are now at about 60%

Influencing Factors

Several factors can impact your sell-thru rate, and understanding them is crucial for navigating the inventory management tightrope:

• Product Category: As mentioned earlier, some products naturally have higher turnover rates than others. When setting expectations, consider the inherent demand cycle for your product mix.
• Seasonality: Seasonal fluctuations are a fact.
• Market Trends: Staying attuned to current trends and consumer preferences can significantly impact your sell-thru rate. Products aligned with trending styles or features tend to sell faster. Do market research to adjust your buying strategies accordingly. One good source is the list of the best sellers, many of which are publicly available. 
• Pricing Strategy: Competitive pricing can enhance your sell-thru rate. However, avoid excessive discounting. If an item needs to be significantly discounted to be moved, consider whether it should be kept.
• Marketing and Merchandising: Creative marketing campaigns and attractive in-store displays can boost product visibility and sales, improving your sell-thru rate. I like the idea that many online retailers use now to highlight their popular items in their shops; try it in your shop, as this method has been shown to drive customer interest.

Advanced Techniques for Sell-Thru Rate Mastery

To truly master the inventory management tightrope and achieve exceptional sell-thru rates, consider implementing these advanced techniques:

• Inventory Forecasting: Accurate inventory forecasting involves predicting future demand based on historical sales data, market trends, and seasonal fluctuations. Our advanced POS systems have many predictive tools to help you make data-driven purchasing decisions.

• Stock Levels: Maintaining optimal stock levels is crucial. Here are two standard methods:

  - Min/Max Stock Level: You set a minimum and maximum stock level for each item. If the stock goes below the minimum, you order to the maximum.  This ensures you don't overstock and tie up capital in unsold products. Find the sweet spot between these two levels to maintain a healthy sell-thru rate. The threshold below is the inventory level that should not fall to prevent stockouts. -- Focus stock level: Most use this as you let the computer calculate the minimum/maximum based on various methods, including AI technology. It will be calculated based on history and current sales figures. You can always review the result after the calculation if you want manual control.  This technology can significantly enhance inventory management capabilities.

Case Studies: Real-World Examples

Let's look at a few examples of businesses that successfully improved their sell-thru rates using the strategies discussed, illustrating how they navigated the inventory management tightrope:

Case Study 1: Newsagency

A newsagency was struggling with its stationery department, as the person doing it manually for years had left. So, they decided to implement focus in their POS system. It began tracking sales data in real-time and analysing customer purchasing patterns. After about three months, their sell-thru rate had increased slightly, they had significantly less stock, and they had improved their cash flow.

Case Study 2: Fruit and vegetable store

They decided to push honey, but there was such a variety that it was becoming unmanageable. They adopted a minimum/maximum stock control for some selected lines to seed the original purchases. Soon, they started ordering based on predicted demand rather than historical sales alone. They focused on high-demand products and adjusted stock levels dynamically based on real-time sales data. Soon, they achieved a consistent sell-thru rate of over 70%.

Inventory management

Managing inventory effectively is a requirement today in retail. 

• Prioritise Data-Driven Decisions: Integrate a robust POS system to gain real-time insights into your sales and inventory. Review your sell-thru rate and analyze trends.
• Embrace Advanced Techniques: Implement inventory forecasting strategies to maintain stock levels.
• Focus on Customer Satisfaction: The goal is ultimately to balance efficient inventory management and providing a positive customer experience. 

Recap of Key Points

• Sell-Thru Rate Basics: It measures the efficiency of inventory usage and sales performance.
• Calculation: Regularly calculate your sell-thru rate using the formula and track it over consistent timeframes.
• Influencing Factors: Consider product category, seasonality, market trends, and pricing strategies.
• Improvement Strategies: Use data-driven inventory management, effective product selection, and creative merchandising.
• Advanced Techniques: Implement inventory forecasting, min-max stock levels, and leverage technology for optimization.

Take Action

Start by integrating a robust POS system like POS Solutions to gain real-time insights into your sales and inventory. Regularly review your sell-through rate. Then, adjust your strategies based on their data-driven insights. Inventory is an ongoing process.

Contact us for more information on how POS Solutions can help you improve inventory management.

Running a successful retail business means ensuring every product on your shelves earns its keep. This is not easy. You know the items are ringing up the most sales. What is more challenging is to see if the slow sellers are boosting revenue by selling other products. This is where your point of sale software's Stock Companion Report can help.

Measure An Item's True Value

Go to Cash Register Reports > Sales Register > Stock Companion Sales by Period. See the green arrow below.

Select the stock item, put in the last 12 months, and you will get a detailed report listing profit, numbers, etc. 

You'll get a detailed report showing the item's profit, sales numbers, and more. With this data, you can evaluate whether a slower-selling product with low direct sales attracts customers who purchase other higher-margin items.

Insights for Smarter Merchandising

One client used the Stock Companion Report for dry cleaning. This service had low profitability, so they debated whether to keep it, but they found it brought in good customers who bought other products. So they kept offering it.

The Stock Companion Report is just one example of how our POS software arms you with the insights you need to optimize your product mix. Slower-selling items may be necessary to attract foot traffic and complementary sales. Understanding these hidden contributions lets you make informed merchandising decisions that maximise your total store revenue.

Let our POS system provide the robust reporting you need to understand what's driving your sales. 

This is just another example of how our POS System provides you with stuff you can use. Call us to learn more.

Check this image out. At the green arrow, the package said this sweet is 25 gm. Look at the red arrow for what it is: 17 gms. Selling such a sweet could be a fraud. Something similar happened to our of our customers. They ended up sending a few boxes back to their supplier. I wonder if the supplier forwarded it to another newsagent or fixed it. 

This is a problem we do not need.

Shrinkflation helps manufacturers quietly cut prices, but it sometimes creates headaches for retailers as products get sneakily downsized without transparency.

Shrinkflation Equals Retailer Frustration

Shrinkflation refers to products shrinking in size or quantity while prices remain stagnant. Instead of buying ten in a package, the package now has eight. Companies hide the quality reduction with tricky packaging tactics to mask these changes from consumers.

Numerous studies show consumers are far more likely to be negatively impacted by price increases than the reduction in size of a product. The strategy might even bolster certain sectors, like consumer staples, because these companies can sustain their margins by implementing shrinkflation tactics.

However, obscuring shrinkflation can seriously impact retailers once discovered. Suddenly, for example, your computer records contain incorrectly labelled products that no longer match what is programmed into your point-of-sale system. More importantly your shelf labels are now wrong.

This causes many problems no retailer wants to deal with. 

• Angry, confused customers
• Labor-intensive inventory adjustments
• Point-of-sale system inaccuracies
• Reputational damage and eroded consumer trust

Protect Your Business With Proactive Steps

Retailers can take proactive measures to catch this shrinkflation before major damages occur. 

Carefully Screen Inventory

When new products arrive, if they are different, there should be a separate item in your POS System with a unique barcode. 

Conduct Random Audits

I like this idea: if the computer scale is in the shop, it is easy to check the weights. If not, bring your kitchen scale to work and test many items in the shop.  Verify your figures match what’s on the supplier's packaging, if different, check what is in your POS system.

If you find an error, contact your suppliers to reconcile the differences and move forward. Most likely, you do not have their current catalogue file to import.

Shrinkflation Stings Customer Trust

Vigilance against shrinkflation directly translates to trust-building with customers. When shoppers find your inventory transparently reflects accurate weights and measures, they feel confident you offer reliable products.

Conversely, shrinkflation erodes consumer faith when its obscuring tactics are revealed down the line. Shoppers may wonder:

• What else is wrong with this retailer’s inventory controls?
• Are they overcharging me for other items, too?
• Can I trust product information here?

Once customer suspicion sets in, it becomes challenging to regain their loyalty. It is far better to prevent the problem through proactive measures.

We are continuing to expand our supplier category files which you can find on our website.

We just added HENDERSON GREETINGS click here for the category file. 

What we do is get the files from your suppliers directly, and then test them to make sure that they are okay for you to use. 

If you want other suppliers, click here.

Enter the supplier whose file you want, and the latest copy we have will be shown there, which you can automatically import. This will save you time instead of manually entering the details. You can automatically get the required stock details.

The big plus for you using these files is that these stock files have been independently tested.

We are committed to providing our clients the best possible service and support. These supplier category files are a valuable resource for optimising their operations. So please take advantage of this opportunity and start exploring our website now. With our user-friendly interface and extensive range of products, we are confident you will find something you need to grow your business.

Correct information at the right time can mean the difference between success and failure in retail. This is commonly significant in the administration of stock. Here is a current list of stock imports available for you to import now. We are continuously updating here this list. If you need some more suppliers added, let us know.

Here are the benefits of importing your data from your suppliers.

Accurate and Up-to-Date Inventory Data

The most significant benefit of importing data from suppliers is that it gives retailers access to the latest, most up-to-date information. 

Operational Efficiencies

Importing data from suppliers increases operational efficiencies. When retailers import data into their POS system, it is much quicker to enter stock information than manually entering it. Only some want to enter long product descriptions, so most use abbreviations when entering their data. This often results in a receipt or invoice, in which the customer often needs an explanation of what the item is. With us, the retailer can use ChatGPT to expand and import these descriptions into their POS system, but this has problems and can be messy and can be unreliable.

Stronger Relationships with Suppliers

When you have more information on your stock, it is easier for you to collaborate and communicate with your suppliers about their products. In particular, the same product codes will increase the efficiency of your supply chains.

Improved Product Information

Your pricing information is up-to-date. Cost and prices change regularly today. This makes it hard to keep your pricing information up-to-date. With electronic, it is much quicker and better.

Data accuracy

When importing suppliers' data, retailers depend on the supplier data being right. If the suppliers' systems contain incorrect information, well, by importing, you bring those issues into your system. 

To avoid this, retailers should encourage their suppliers to import stock data in an industry-acceptable format. A copy of our marketplace's most popular data import specifications is here. If your supplier does not have a data file import, suggest this format to them.

Summary

> Faster and easier to import

> Accurate and up-to-date inventory data

> Operational efficiencies in entering stock information into POS systems

> Stronger relationships with suppliers through better collaboration and communication

> Improved product information and up-to-date pricing information

>Please encourage suppliers to use industry-acceptable format for data imports

With Our Advanced Systems, you Take Control of Your Inventory.

Introduction

In the retail industry, your inventory management system is a crucial component that can make or break your company's success. You can ensure that you have a more significant number of valuable products on hand. They are manageable if you have an advanced inventory control system like ours in place. Businesses can improve accuracy, increase profits, and streamline inventory management procedures by utilising POS software.

By the time you get to the end of this article, you will have a clear understanding of how our point-of-sale software can help you. So, improve your retail business. Take your inventory management to the next level.

How POS Software Can Aid in Inventory Control

An explanation of how POS software can improve inventory accuracy

Well, you get inventory control. You can track inventory levels in real time using POS systems that integrate with barcode scanners and other devices, ensuring they always have an accurate picture of what's in stock. Overstocking and stockouts, which result in lost sales and dissatisfied customers, can be avoided.

Managing your inventory is streamlined by POS software.

As well as increasing inventory accuracy, POS software can simplify inventory management processes. POS software allows you to manage stock, reorder products, and track inventory levels. With this, you can help you concentrate on other aspects of your business while reducing errors and saving time.

Real-time inventory levels

You can access inventory data at any time and location with POS software to make better decisions about your operations. You can be better prepared for the future and anticipate possible stockouts. You can work more efficiently due to this. 

Costs associated with poor inventory management

Less revenue is generated, and more is lost due to stockouts. Stockouts often result from poor inventory management.

Inventory management can lead to increased labour costs, as employees spend more time managing the merchandise and less on other tasks.

Customers who aren't happy

Poor inventory management can also result in customers who aren't happy. When they can locate the required products, customers may become frustrated. They might not come to you the next time, so they might go to the shop with what they know has what they need.

Obsolete stock

Overstocking can also be a problem. What happens here is that you are accumulating unsellable inventory. This clogs up valuable resources and costs money.

Cash Flow

Improper inventory management hurts cash flow because it ties up funds which are often financed through debt.

Beginning inventory tracking

Requirements for hardware and software

To begin using POS software for inventory control, you must get the required hardware and software. Barcode scanners and a POS system are part of this.

Training

After installing the hardware and software, you will need to use the system correctly. Training on data access, sales processing, and inventory tracking are part of this.

The significance of a stocktake

A stocktake is a procedure of counting and confirming the number of items in stock. Regular stocktakes are needed to guarantee that the inventory records are accurate and current. There is no other way to get accurate numbers. It is easier as our software includes built-in stocktake functionality, making stocktaking faster and more effective.

You can identify discrepancies in inventory levels. Then make necessary adjustments with regular stocktakes. Improved productivity, accurate inventory records, and prevention of stockouts and overstocking are possible.

Take Control of Your Inventory

You can manage products, prices, and inventory with the Ordering New Stock feature. You get control over your stock. You'll be able to quickly and effectively add new products to your store. Also, set prices with this feature. This ensures that your inventory is always accurate. By staying on top of your inventory levels, you can reduce the likelihood of stockouts and overstock. This allows you to make better business decisions and increase efficiency as you can manage your inventory efficiently. This feature helps you better control and manage your stock.

Advanced Inventory Reporting

With POS software, you can now access advanced inventory reporting features. This provides in-depth data on sales, inventory levels, and other KPIs.

Sales by Vendors

After that, you can keep track of your suppliers' sales using advanced inventory reporting. It is too familiar today for retailers to understand less what sells in their shop than their suppliers do. Many bad decisions can result from this. Using our advanced inventory reporting, you can make more informed purchasing decisions now if you know more.

Inventory by Category

You can get in-depth information category. You can use this to determine which products are selling well and which aren't. Businesses can use this information to decide which products to keep on hand and which to drop.

Conclusion

Controlling inventory using POS software can significantly benefit your retail business. It can provide real-time visibility into inventory levels, streamline inventory management procedures, and enhance inventory accuracy. It can help you make better business decisions and increase overall efficiency by offering features like tracking sales by supplier or category and ordering new stock directly from the inventory system. A solid inventory management system can prevent stockouts, overstocking, and lost sales, resulting in increased profits and customer satisfaction. You can control your inventory and take your retail business to the next level by investing in the necessary software, hardware, and training.

Your company's success will be supported by good inventory management.

Call to action

Please use a cutting-edge inventory management system like ours to ensure you always have enough of the right products. Our point-of-sale (POS) software can assist you in gaining control of your inventory and taking your retail business to the next level by streamlining processes for inventory management, increasing accuracy, and increasing profits. For more information about our system and to set up a demonstration, get in touch with us right away. Don't delay; Now is the time to take charge of your inventory and begin reaping the rewards of better inventory management.

Extra questions

Q: Can my retail inventory be connected to eCommerce?

A: You can connect your retail inventory to eCommerce, yes. You can link your physical stock with your online store with the built-in integration capabilities of our inventory management software. This assists you in monitoring stock levels across all channels and ensuring that your online store always has up-to-date inventory information without using another system.

Q: Can you help me predict future sales? 

 A: Of course! Our system helps you forecast sales using your historical sales and stock levels over time. This it uses to estimate future sales of your products. This is a great way to plan for your future needs.

Q: Is it possible to keep track of information like inventory levels and serial numbers?

A: Yes, you can track data like inventory levels and serial numbers with many inventory management systems. Businesses that sell high-value items or products subject to warranty or recall can benefit most from this. By keeping track of serial numbers, you can quickly determine which items are in your inventory and where they are. This can help you track and manage your inventory more effectively. It also helps you manage warranty claims or recalls better.

 Q: How does it help me to arrange my products better?

A: Our system easily controls and tracks your inventory by allowing you to develop and organise products into different categories easily. This way, you can quickly find and control products. By monitoring inventory by type, you can also see which products are selling well and which aren't. This allows you to make better decisions about items to keep and dump.

Q: Does it help with product classification?

A: It allows you to organise products in many methods, typically by department, category, or supplier, so you can easily scrutinise your sales and inventory levels by these methods. This aids you in making better purchasing decisions. Then our advanced inventory reporting feature gives you detailed information on sales by these methods, so you can see which products are going well and which aren't. 

Automation Is Helping Through this Labour Shortage

Retailers have more difficulty finding enough workers to staff their stores, which is why automation assists them. We now have labour shortages, partly because many people have gotten used to not working, many regulars have found new jobs, and girls are considering having children now COVID pandemic is over.

So, retailers must devise strategies for being competitive with fewer staff.

So many retailers are looking into automation, which is now in your POS software—in other words, using what they have better.

Automation in Inventory Management

To run a successful retail business, inventory control is essential. It's possible to cut costs and save time by managing your stock. If you organize your POS systems, your automated focus systems can help you with inventory management. Your artificial intelligence-focused stock automation works best if your store is organized.

It will take less time to process your stock once this organisation is established.

Also, is organised a reduction in physical stress levels will also be noticed.

Additionally, you will know what you have. Currently, you can lose sales by not knowing what you have. A client told me that a customer came into their store a few days ago and asked for a book about the KGB. They searched for it and had to inform the client that they did not have that book. The customer left because he did not want to wait for them to order it. The owner later discovered that they had that book. He was upset because he had lost a sale, and they had hurt customer satisfaction. 

Make sure everything is barcoded. Your POS software has a detailed report that can tell you what isn't barcoded and which departments are having problems. Go over them. In the worst case, you can make in-house barcodes for these products.

Automation in customer service

If you're busy, emergency checkouts can help. But, if you don't have the space, consider adding extra cash draws to one computer. Because one computer in our system can run a few cash draws, two or more people can use the same checkout simultaneously. 

Consider making one mobile checkout in the shop if you need it. Once done, checkouts can be moved to the desired location. 

Besides being more professional, computerised scales are faster. Today the power of computerised scales has increased dramatically.

A faster computer can help the server. They can speed up your whole system. If you add it up, you may spend more on labour than a computer costs you today.

Problems with Putting Automation into Use

In my experience, the biggest obstacle to success is people's unwillingness to try new ways of thinking and doing things. A lot of automation can only be done without spending money. Once done, there is often less work. Plus, your labour is more effective the more automated you are. Employees who spend more time interacting with customers earn more money than those who manage stock and operations.

In conclusion

You must be able to adapt if you want to survive in this competitive world. That is what will ensure your survival. Because technology is changing how much is done today, you need to change your mindset and your expectations about how you run your business.

You must keep up with technology to boost retail productivity.

Efficient Inventory management means you have the correct amount of stock when needed while ensuring that your funds are not tied up.

And today, you should order with a computer as a partner for your Inventory management. 

Although changing your inventory management might seem like an enormous undertaking, once you get the hang of it, it will not be with your POS System.

I suggest you do it not to start from scratch; it is much easier to work with something there. It saves a lot of time as the more the computer does, the less you have to do.

So if your stock levels are correct, your POS Software knows how much inventory you have instead of second-guessing like people often do. Plus, it uses the automatic focus system to determine the sales fluctuations over time. This allows you to stay ahead of the peaks and troughs to maintain the right inventory balance. This is your advantage as you have an integration with the point-of-sale system and accounting software.

Then once the computer does the initial order, you change and adjust to what you see as your needs. This is much faster to do.

You will find that you can get faster and more accurate ordering with less workload. 

Plus, you will find it all on a single screen, making it faster.