Today, retail success depends on turning sales data into actionable business insights. Follow this guide to use tools to make data-driven decisions that significantly impact retail performance using POS Systems.

Accessing Your POS Gold Mine

Your point-of-sale (POS) system has a Gold Mine of data. Here's how to access your sales comparison reports:

1. Open your POS software and navigate to the Reports section.
2. Select the Sales option.
3. Look for the Compare feature to analyse different periods side by side.

Setting Up Your Comparison: The Foundation of Insight

When setting up your comparison, you have two main options:

1. Formal Date Ranges: Use standard periods like months or quarters for consistent reporting.

2. Custom Date Ranges: Select specific dates (e.g., 06 Nov 2024 to 05 Dec 2024) for more targeted analysis.

Pro Tip: Choose comparable periods for meaningful analysis. For example, compare:

• This year's holiday season to last year's
• This quarter to the same quarter the previous year
• Weekends vs. weekdays

By selecting similar business cycles, you'll gain the most accurate insights into your performance trends.

Analysing the Report: Your Retail Crystal Ball

Your comparison report offers a wealth of information:

Overall Performance Metrics

• Sales figures for each period
• Revenue generated
• Quantity sold

Department-Specific Insights

• Performance comparisons across departments
• Individual department deep-dives

Pro Tip: To analyse specific departments more thoroughly, click on them in the left-hand menu.

Understanding POS Data Export: Unleashing the Power of Excel

To gain additional insights, export your data to Excel. Follow these steps:

1. Click the export button in the top left corner of the report.
2. Choose Excel as your export format.
3. Open the file in Excel or OpenOffice (a free alternative).

Once you've got your data in Excel, you can dig deeper.

Actionable Insights from Reports: Beyond Sales Comparisons

Your POS system is a goldmine of retail intelligence. Beyond sales comparisons, consider exploring these powerful reports:

• Top-selling products analysis: Identify your star performers and potential areas for expansion.
• Inventory turnover tracking: Optimise stock levels and reduce carrying costs.
• Customer purchase history: Tailor your marketing and loyalty programs for maximum impact.
• Staff performance metrics: Improve scheduling and identify training opportunities.

Turning Data into Dollars: From Insight to Action

Now that you've gathered insights from your POS reports, it's time to put them into action:

Identify top performers

Optimise the placement of your best-selling products in your store layout.

Adjust inventory

Use turnover data to fine-tune stock levels, reducing overstock and stockouts.

Refine marketing

Leverage department performance comparisons to allocate your marketing budget effectively.

To consistently enhance your retail performance, regularly examine your data, experiment with new strategies, and evaluate the outcomes.

Your Next Moves: Turning Data into Profit

Start harnessing the power of your POS data today:

1. Generate a sales comparison report for the last two months.
2. Identify your top three performing products or departments.
3. Create one actionable strategy based on your findings.
4. Execute your strategy
5. Monitor the outcomes.

Your POS system can be your gateway to success in retail.

Frequently Asked Questions

Q: How do I access sales comparison reports in my POS system?

A: To access sales comparison reports:

1. Open your POS software
2. Navigate to the Reports section
3. Select the Sales option
4. Look for the Compare feature to analyze different periods side by side

Q: What types of date ranges should I use for comparisons?

A: I suggest using formal date ranges, such as monthly ones. Custom date ranges (e.g., 06 Nov 2024 to 05 Dec 2024) are for ad hoc analysis.

Q: What key information can I find in a sales comparison report?

A: Sales comparison reports typically provide:

• Overall performance metrics (sales figures, revenue, quantity sold)
• Department-specific insights
• Performance comparisons across departments

Q: How can I analyse my POS data more in-depth?

A: Export your data to Excel or a similar spreadsheet program. This allows you to perform custom calculations and create tailored data visualisations.

Q: Beyond sales comparisons, what other reports should I explore in my POS system?

A: Consider exploring reports on:

• Top-selling products
• Inventory turnover
• Customer purchase history
• Staff performance metrics

Remember, consistent analysis and action based on your POS data are key to optimizing your retail operations and boosting your bottom line.

In Australia, most business failures stem from poor cash flow. Poor credit management is a critical survival skill for Australian retailers. While extending credit can help build valuable business relationships, it's a delicate balance that requires careful management. Many retailers find themselves challenging as some customers need credit to trade with them. These arrangements can quickly become significant debt collection problems if not adequately controlled.

For this reason, establishing clear credit limits using your Point of Sale (POS) system is critical from day one. This proactive approach prevents a typical scenario of customers accumulating more debt, which can lead to costly and time-consuming collection efforts later.

One point I want to make here is that, from personal experience, just because an organisation is large or a government authority, the problem goes away. I have been in government agencies chasing debts long overdue and complaining about nonpayment. I have had government department cheques bounce. I have had a government department take forever to pay their debts. What makes it very hard with these large organisations is that they have policies they follow, and often, despite your best efforts, they still need to change them. The other problem with large organisations is that threatening them with legal action usually does not work as it often does not worry the person personally, and all it means to them is that the problem will get transferred to another department. In these situations, keep your cool.

Understanding Credit Management

Credit management in retail isn't just about offering payment terms—it's about protecting your business while maintaining strong customer relationships. A study by the Australian Retailers Association stated that businesses using strict POS-based credit controls are 60% less likely to face serious debt collection issues.

Why Credit Limits Matter

• Protect against excessive credit exposure
• Create clear boundaries for customer spending
• Automate credit decisions through your POS
• Reduce the risk of debt creep
• Make a plan for the total amount of money you trust Joe Blow. Use that as a benchmark.
• A credit limit should only be increased if required and if the customer consistently pays. They must earn a higher credit limit.

Credit Policy Development

-Set up a well-structured credit policy in your POS system that should include:
-Clear payment terms (30, 60, or 90 days)
-Specific credit limits are based on customer history and needs.
-Make a formal approval process for limit increases
-Set a warning threshold for your business, typically at 70% of the credit you are willing to give.
-Preventing Over-Reliance on Credit
-Consider alternatives; today, with widespread credit and BNPL cards, consider whether the customer needs credit. 

Early Warning Systems 

-Customers are approaching credit limits.
-Overdue payment patterns
-Unusual purchasing behaviour
-Payment promise breaches

POS System Setup & Features

In your system, click on the main menu to customer > customer maintenance.

Now call up a customer, and click Other Details. (see green arrow below)

There are two options that I would like to run through with you. 

You can select a credit limit for a period, a big problem with majors is that they have the money, but they take a long time to pay, so in this case, you may want to give them a large credit limit but watch if they go over time.

The next option is to decide whether the account should be stopped if it exceeds the credit limit or the operator should be warned so you can be notified. Collecting the debt while they are in front of you and want the goods is the cheapest and best place.

Trust me. It’ll all be worth it to do this.

Allow people to get more credit limits over time, start them small and let the amount build up.

I also recommend that every year, you review your credit limits.

Conclusion

Managing credit limits effectively through your POS system is crucial for retail success in today's competitive Australian market. While it might seem easier to be flexible with credit limits, the short-term convenience isn't worth the potential long-term headaches. Our POS system removes emotion from credit decisions and consistently enforces your policies, helping build a more robust, more profitable retail business with healthy cash flow and minimal credit issues.

Using PLU and SKU Numbers 

Managing your stock and inventory efficiently is crucial for retail. This is where PLU (price look-up) codes and SKU (stock-keeping unit) numbers come in. Implementing these tools can help streamline your operations, saving you time and money.

What Are PLU and SKU Numbers?

Before we dive into the benefits, let’s define what exactly PLU and SKU numbers are:

PLU codes are universal identifier numbers assigned to products, often produce items and other goods sold loose without barcodes. For example, a PLU code for a Granny Smith apple might be 4152. Suppliers assign these 4-5 digit codes and allow retailers to look at pricing and inventory data for produce.

Retailers can optionally use a range between 3170-3269 to create their own internal PLU codes for produce items. Please do not count on them being available, though. Many suppliers are idiots and will occasionally supply items with these PLUs. Interestingly, this happens in newsagencies despite standard stock file standard requirements explicitly forbidding this practice.

SKU numbers are unique ID codes that retailers assign to track stock-keeping units. They allow you to monitor specific product variants in your inventory. For example, say you assign:

SKU #101 to Coca-Cola Can 375mL

SKU #102 to Coca-Cola Bottle 1L

etc.

These 1-3 digit codes help differentiate product sizes, colours, flavours, etc.

Key Benefits of Using PLU and SKU Numbers

Implementing PLU codes and SKU numbers offers several advantages that can help streamline operations and boost efficiency:

Faster Checkout and Fewer Errors

PLU and SKU numbers speed up the checkout process by allowing cashiers to enter a code instead of searching through the system for the product. This is especially helpful for loose produce items that don’t have barcodes.

Fewer steps mean fewer opportunities for mistakes. Cashiers won’t have to guess which cucumber or apple variety they select. Quickly entering PLU and SKU codes results in faster customer service and shorter checkout lines.

Better Inventory Tracking

When each product variant has its unique SKU number, you gain much tighter control over inventory tracking. Your point-of-sale system can generate detailed reports by SKU showing exactly which items are in stock, which are selling fastest, and which need reordering.

This granular data makes it easier to minimize excess inventory and stock the right amount of each item. No more guessing how many of each t-shirt size or colour to order. The sales velocity by SKU tells you exactly what’s moving.

Increased Efficiency for Purchasing and Receiving

Standardizing your SKU system dramatically improves efficiency when purchasing inventory and receiving deliveries. Purchase orders, delivery paperwork, and item labels must only display the SKU to identify each product variant.

Employees will immediately know which item or size is being ordered or received by glancing at the SKU number, speeding up processing time considerably.

Improved Data and Analytics

With all inventory uniformly tracked and identified by SKU, your sales reports and analytics become much more helpful. POS reports can break down sales and profits by specific product variants rather than just lumping all similar items together.

You can see which SKUs have the highest profit margins, fastest inventory turns, or slowest sales velocity. This allows you to make smarter purchasing and promotion decisions. You can also identify underperforming items that may need to be discounted or discontinued.

Setting it up is very easy.

1: Open Stock Maintenance and look up the item.
2: Click on the "Prices" tab
3: Scroll to the far right on the pricing grid to see the "PLU" field.
4: Click EDIT and enter a number here (for example, 101 for an SKU and 4152 was the PLU for the apple above)
5: Click SAVE

When you are ringing up a sale in the cash register, enter the PLU into the "price entry" box and press ENTER, and our point of sale will find the item immediately!

PLU and SKU Best Practices

To maximize the benefits of using PLU codes and SKU numbers, keep these best practices in mind:

Keep SKU numbers short and straightforward - Long, complicated SKU codes lead to errors when entering the POS and paperwork. Stick to 1-3 digits if at all possible.

Be consistent—Decide on a standardized format for your SKU numbering and stick to it (e.g., category letter + sequence number). Please don’t make it overly complex. For example, we have a client that sells T-shirts and uses SKUs. They start with #1 for the small size of a V-neck T-shirt, SKU #2 for the medium, SKU #3 for the large, etc., to track each inventory item.

The main advantage of SKUs is that retailers can customize them for their needs. For example, they might encode specific attributes into each SKU.

For example, they started SKUs with a "B" for blue products, "R" for red products, or "S" for small, "M" for medium," and "L" for large. This can help employees quickly identify products.

Assign unique codes - Never reuse SKU numbers, even for discontinued items. Your retired products should still show their historical sales data.

Print SKUs on labels - Printing the SKU on product packaging, shelves, or item tags makes it fast and easy for cashiers to enter.

Cross-train staff - Don’t just train cashiers. Ensure everyone, from inventory managers to purchasers, knows how to use and apply SKUs.

Conclusion

As a retailer, implementing PLU codes and SKU numbers requires some initial work but pays off tremendously through savings in time and money. Your business will benefit from faster checkout, tighter inventory control, increased purchasing efficiency, and improved sales data.

Contact our team to learn more about setting up and using PLUs and SKUs in your retail operation. We would happily advise you on the best practices and system options to boost productivity. Investing in these simple tools will streamline your business for years.

FAQ

What is an SKU?

A stock-keeping unit (SKU) is an alphanumeric code created internally by retailers, manufacturers, or businesses to identify and track specific products in their inventor

SKU vs PLU

SKU (Stock Keeping Unit) and PLU (Price Look-Up) are inventory identification systems, but...

SKU (Stock Keeping Unit):

• Alphanumeric code assigned by retailers to track inventory
• Customizable and unique to each retailer
• Used for a wide range of products across various industries
• Provides detailed product information, including size, colour, and variations
• Primarily used for inventory management and sales tracking

PLU (Price Look-Up):

• Numeric code, typically 4-5 digits long
• Standardized across retailers
• Primarily used for fresh produce and bulk items
• Mainly used for pricing and essential identification
• Originated in the grocery industry to expedite the checkout process

Product Number vs SKU Number

Product Number (also known as Item Number or Part Number) and SKU Number have some key differences:

Product Number:

• Assigned by the manufacturer
• More stable and less subject to frequent changes
• Used for broader purposes like manufacturing and distribution
• May follow industry-standard formats
• Provides less granular information about the product

SKU Number:

• Assigned by the retailer
• It is more dynamic and can change over time
• Primarily used for internal inventory tracking and retail management
• Customized according to the retailer's needs
• Offers more detailed product information

PLU vs Barcode

PLU codes and barcodes are both used for product identification, but they differ in several ways

PLU:

• Numeric code, typically 4-5 digits
• Often used for fresh produce and bulk items
• Manually entered at checkout
• Standardized across retailers
• Limited data capacity

Barcode:

• Visual representation of data (usually UPC or EAN)
• Used for a wide range of packaged products
• Scanned at checkout
• It can contain more detailed product information
• Unique to each product and manufacturer

Can two items have the same SKU number?

It is not recommended that you give two items the same SKU number. Each SKU should be unique to avoid confusion during sales and restocking.

However, there are some scenarios where retailers might use the same SKU for closely related items:

1. Different sizes or colours of the same product (using variations)
2. When transitioning between suppliers for the same product
3. For tracking the same product across different locations

The best practice is maintaining unique SKUs for each distinct product to ensure accurate tracking and avoid potential inventory management and sales process errors.

Kaizen is a successful management technique focusing on continuous improvement through small changes. Instead of reinventing what you have, it asks, "How can I improve just a little on what I have?" The idea is that it is much easier to work on something that is already there than reinvent the wheel.

It works well in retail and massively impacts your business's bottom line.

Kaizen in Action

Using data from the Australian Taxation Office (ATO) benchmark study, let's examine a real-world example. We'll focus on a typical stationery shop simply because it's a business that most people can easily relate to.

I took the average figures from these benchmark studies, and what they produced is in this table.

I made three scenarios: the first is nothing changes (Now), the second has a 0.5% improvement, and the third case is a 1% improvement.

Look here.

The results are staggering! A mere for this slight improvements. A 0.5% improvement shows a 2.6% to 5.1% improvement. A 1% improvement leads to profit increases ranging from 5.3% to 10.2%.

I must stress here that most organisations work towards having a 2% increase a year. This 1% is very conservative. 

These small changes have led to significant results.

Harnessing the Power of Information

So, how do we achieve this 1% improvement? One answer lies in leveraging information. In my years of experience, I've found that the following strategies can help you unlock that crucial 1%. Here are some examples:

Optimise Product Placement

Use your sales data to identify your best-selling items and place them in high-traffic areas. If you notice, supermarkets continuously display their best sellers on unique stands in front of their customers. Good sellers are often on several stands.

Improve Inventory Management

By implementing this approach, better buying decisions based on accurate sales data can reduce overstock and stockouts while maintaining sales levels. POS software provides real-time tracking of inventory levels, allowing you to:

• Set up automatic reorder points to prevent stockouts
• Identify and reduce slow-moving items
• Buy more frequently but less so, reducing carrying costs and increasing cash flow.

Implement a Loyalty Program

Implement a loyalty program to encourage repeat business.

One idea that works well is a simple birthday offer, which has been seen to work wonders. It is easy to do it with a basic loyalty program. I am yet to see a more effective VIP program then a birthday offer. If you do not have such a retail program, its costing you.

Monitor your shrinkage

Keeping a close eye on theft rates can help you implement targeted prevention measures. Use your information to reduce shrinkage by addressing problem areas.

Improve Debtor Management

Implementing credit limits, automated reminders, and more explicit payment terms can improve cash flow and give you better control over your accounts receivable.

Generate Actionable Reports

Use your POS reporting capabilities to:

• Identify top-selling products and peak sales times
• Track employee performance
• Analyse profit margins by product/category

These insights can help you make data-driven inventory, staffing, and pricing decisions.

Conclusion

Use the power of minor improvement. It's not about making drastic changes overnight. It's about consistently seeking out those minor improvements and letting them compound over time to transform your retail business.
 

FAQ Frequently Asked Questions

Q: What is Kaizen?

A: Kaizen is a management technique focusing on continuous improvement through small changes. It emphasizes improving existing processes rather than reinventing them.

Q: How effective is Kaizen in retail?

A: Very effective. It is used by many organisations, as a rule they look for having about a 2% increase a year.

Q: How can I achieve a 1% improvement in my retail business?

A: You can achieve this by leveraging information and implementing strategies to exploit it.

Q: What's the key takeaway about Kaizen in retail?

A: The key takeaway is that minor, consistent improvements can significantly transform a retail business. It's not about drastic overnight changes but continuously seeking and implementing minor enhancements.

Today, we follow up on yesterday's blog post, in which I discussed your best sellers. I suggest you read it.

In many shops I go into, I see old stock that did not budge. It is a common problem that can seriously impact your bottom line. Let's explore how you can deal with this slow-moving stock. It would free up valuable space for your best performers.

Why Tackle Slow-Moving Stock?

Before we get into the nitty-gritty, let's discuss why this matters. Slow-moving stock is like a guest who's overstayed their welcome - they're taking up space, costing you money, and contributing little in return. By addressing this issue, you can:

• Free up valuable shelf space
• Improve cash flow
• Reduce storage costs
• Make room for more profitable items

Identifying the Culprits

Step 1: Run a Slow-Moving Stock Report

First things first, let's find out what's not selling. Here's how:

1. Open your POS system
2. Navigate to Register reports > Stock > Slow moving Stock lines
3. Set your parameters (e.g., stationery department, last 12 months, sales under $100)

When I did this recently for a client, we uncovered a whopping $80,000 worth of slow-moving stock. That's a lot of capital tied up in items that aren't pulling their weight!

Now call it up here

As you can see, I have been looking at the stationery department for over twelve months for anything I have sold for less than $100 and am now stocking.
Now, out pops a report, in this case, 81 pages of detailed information on all the items that match this condition; we have almost $80,000 worth of worthless stock.

Check them out, remove what you do not want to keep, and put it in your sales area.

Once you've got this done

Report your top-selling stock items and look at those selling well. A rule of thumb in retail is that doubling the space of an item increases its sales by 50%. The idea here is to replace the marginal items with those that sell well.

Go to Register reports.

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

Now, the following comes up.

Now, put an appropriate period. The default here of a day is not enough 

Note: I just wanted a quick report for illustration.

Step 2: Analyse the Results

Once you've got your report, it's time to roll up your sleeves and dig in. Go through each item and ask yourself:

• Is this still relevant to my business?
• Is there a reason it's not selling (poor placement, pricing issues)?
• Can it be bundled with faster-moving items?

Making Room for the Stars

Now that you've identified your slow movers, it's time to give your top performers the spotlight they deserve.

Step 1: Identify Your Best Sellers

1. Go back to your POS system
2. Navigate to Register reports
3. Select "Top N Stock Sales for a Given Period"
4. Choose a meaningful timeframe (I recommend at least a month)

Step 2: Optimise Your Layout

Here's a little retail secret I've learned over the years: doubling the space for a product can increase its sales by up to 50%. With this in mind, consider:

• Giving more prominent placement to your top sellers
• Reducing space for slower-moving items
• Ensuring your layout guides customers towards your best performers

Putting It All Together

Remember, your store space is valuable real estate. Every square metre should be working hard for you. Regularly reviewing your stock performance and adjusting your layout accordingly can significantly boost your profitability.

This process isn't a one-and-done deal. Make it a habit to run these reports and review your layout quarterly. Your stock mix and customer preferences will change, and your store should evolve.

The Bottom Line

Don't let slow-moving stock weigh you down. By identifying these items and making space for your stars, you're not just clearing shelves but setting your business up for success. So, fire up that POS system, run those reports, and start optimising. Your future self (and your bank account) will thank you!

Police now say that shoplifting or retail theft is the biggest retail crime in Australia. The penalty is pretty minimal. 

Most shoplifting incidents tend to occur in specific retail store areas, typically concentrated in locations where higher-value items or easily concealed products are displayed. 

As a retailer, understanding where shoplifting occurs in your store is crucial for effective loss prevention. By mapping out these hotspots, you can implement targeted retail security measures to reduce shrinkage and protect your bottom line. I have seen it done, and it works. Let's explore how you can create a practical shoplifting map using your POS system and some simple tools.

Getting Started: The Basics of Shoplifting Prevention

To begin your shoplifting prevention journey, you'll need:

1. A recent stocktake in your POS software
2. A large piece of paper or white cardboard
3. A pencil
4. A tape measure or your pacing skills

Creating Your Store Layout for Optimal Security

First, draw a rough sketch of your store layout. This will serve as the foundation for your shoplifting prevention strategy.

Pro tip: Use a pencil to make adjustments quickly. I've found that creating these maps saves time and frustration.

Once you're happy with your layout, it does not need to be perfect. Now, make at least four photocopies. Label two "Quantity" and two "Value". Keep the extras for future use because there is much you can map.

Leveraging Your POS System for Loss Prevention

Now, it's time to dig into your POS system. Look for the variance reports in the stocktake section. These reports will show you the following:

1. Missing quantities
2. Missing values

Your POS system is a powerful tool in your loss-prevention arsenal. It can help you track inventory accurately and identify discrepancies quickly.

Mapping the Data: A Visual Approach to Retail Security

On one of your "Quantity" maps, jot down the figures for missing quantities in each area. Do the same for missing values on a "Value" map.

My experience: Using subtotals from your POS reports can speed up this process significantly.

Analysing the Results: Identifying Shoplifting Hotspots

Once you've filled in your maps, it's time to analyse. Add up the totals for each area and divide them into three groups:

• Blue = Good (low losses)
• Yellow = Moderate to bad
• Red = Terrible (high losses)

Now, colour-code your fresh maps accordingly - one for quantity and one for value. You will now have something that looks like this.

Interpreting Your Shoplifting Map: Key Insights for Retailers

Your completed maps will reveal a lot about your store's vulnerabilities:

1. The quantity map shows how often items are stolen
2. The value map indicates the financial impact of these thefts

Key Areas to Watch

Look for:

• Red areas surrounded by blue: These could be blind spots or areas with highly desirable items
• Red areas behind the counter: What is a real worry if it is behind the counter because then it's staff.

Important note: Remember, the area of loss might not always be where the actual shoplifting occurs. Thieves may move items before concealing them.

Here is one distribution of shoplifting hotspots in a store that I did for a client, categorised by severity.

Taking Action: Implementing Anti-Theft Devices and Strategies

With your shoplifting map in hand, you can now implement targeted anti-theft devices and strategies:

1. Rearrange store layout to eliminate blind spots
2. Increase surveillance in high-risk areas
3. Train staff to be more vigilant in problematic sections
4. Consider additional security measures for high-value, frequently stolen items

Effective Anti-Theft Devices for Small Retailers

1. Security tags and labels
2. Surveillance cameras
3. Convex mirrors
4. Electronic tags
5. Display locks for high-value items

Practical Tips for Shoplifting Prevention

To address the search intent of retail store owners and managers looking for actionable strategies, here are some practical tips:

1. Train your staff: Educate employees to spot suspicious behaviour.

2. Optimise your store layout: Place high-value items in visible areas, use low shelving to improve visibility, and ensure cash registers have a clear view of the store.

3. Use signage: Display signs indicating that shoplifters will be prosecuted. This can act as a deterrent.

4. Implement a customer service strategy: Train staff to greet and engage with customers. Attentive service can discourage potential shoplifters. Shoplifters do not want people near them.

5. Utilise your POS system: Regularly review inventory reports to spot discrepancies early.

6. Use dummy products: Consider displaying empty boxes for high-value items.

7. Install proper lighting: Well-lit stores deter shoplifters and make it easier to spot suspicious activity.

8. Implement a bag check policy: Require customers to leave large bags at the front of the store.

Revolutionising Your Approach to Store Security

Think of your shoplifting map as a retail security GPS. It will guide you to the heart of your loss prevention challenges, helping you protect your inventory and boost your bottom line. But remember, the retail landscape is constantly shifting—so keep mapping and learning. You'll soon have a clearer picture of your store's security landscape. Combine these insights with your POS System and vigilant staff, and you'll see a noticeable dip in your shoplifting incidents.

Give it a try. You will find something.

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.

Your point-of-sale software has a lot of features that are nice to know and free for you to get and take only seconds to find out. It is a free resource. These are my favourite things.

One such tool is the "Basket Size by Hour" report in your point of sale (POS) software. This report provides insight into your customers’ buying habits.

Get the "Basket Size by Hour" report.

To access this report, go to End of Day> Reporting > Average Basket size by hour in your POS software.

Now, put in a date 

See how the basket size varies in your shop by the time of day.

Put in a range of dates, and I am sure you will find them very interesting.

You'll likely notice that account sales tend to have higher basket sizes than retail sales. It is a hidden benefit to account sales that many miss.

Some ways to Use the "Basket Size by Hour" to Optimise Your Retail Operations

Optimise Staffing

Generally, the smaller the basket size, the less selling your staff needs to do and the more transaction processing is required. For times with high basket sizes, you need staff members who can sell.

Targeted Promotions

Most shops have different types of customers, depending on the time of the day, so try experimenting with promotions based on time.

Give it a go!

The "Basket Size by Hour" report is a powerful tool to help you optimise your retail operations and stay ahead of the competition. Analyzing this report allows you to make data-driven decisions to improve staffing, promotions, visual merchandising, and checkout efficiency. Don't miss out on this valuable insight – start using the "Basket Size by Hour" report today, boost your sales and stay ahead of the competition!

​

If you use cloud backup for your point of sale (POS) system, you may ask yourself: Why does your backup run smoothly sometimes but take an eternity at other times? Let's explore why this happens and what can be done about this.

This came up after my previous post on cloud backup when I was asked this.

What's Cloud Backup?

Firstly cloud backup means storing a copy of your Point of Sale Data to computers far away from your shop. This protects your data if something happens to your shop, like a fire, computer problem, or, what is becoming much more prevalent, theft. A window is smashed, the computer is grabbed, and it's gone in a minute.

Slow cloud backup

Here are some of the most common reasons your cloud backup might be taking a long time:

• Your backup contains a lot of information: Your point of sale system has a lot of data to track! Since it's cheap to store nowadays, most people want as much data as they can keep, as you never know when it's needed. Rarely do people complain they have too much.
• Slow Internet: Australia's internet speeds are no longer being taken seriously and are a low priority. We are now 57th in the world, and countries like Bulgaria and Sebia are higher.

​

• Your Internet Plan: A basic internet plan might not be fast enough for big backups. Many people pick their internet purely by price, not by quality. I know price in business is important, but when you have a good price, look around that price for a good service.
• Network congestion: Think of the road traffic during rush hour, In the evening, as people finish dinner and hop online to watch TV, browse, and play video games, the demand for the internet increases. If you are doing speed tests, you should check the times as speed can vary wildly in Australia by time. 
• Encryption and Compression: Encryption scrambles your data for security, and compression shrinks it to save space. These processes take time, especially if your settings are focused on maximum compression instead of speed. Contact your cloud provider to see what can be done here. I set them for lower compression and high speed than most people do.
• Your computer might be busy: Check whether your computer is going flat out when the backup is being done. 
• Your position: The closer you are to where your connection joins the network, the better your speed. Often, there is little one can do about this problem. I argued once with NBN over this on behalf of a client and was told that after the first visit, it would be fixed soon. The second guy claimed to fix it, and the third guy from NBN came in and said there was nothing they could do.

What Makes it Frustrating

The real frustration isn't just the backup time–your shop's computer and internet get super slow while it's happening! Customers can't load websites, and using EFTPOS can be painfully slow, making running your business a struggle. Many cloud backups really suck up the juice of your computers. 

Tips to Make Things Better

Here's what you can do:

• Schedule Backups for Off-Hours: Run your backup at night when the shop's closed (for example, between 1 am and 5 am). This won't impact your day-to-day operations if you do not work then.
• Tweak Compression and encryption (if possible): Many cloud software programs let you adjust the settings to improve the service.
• Upgrade Your Internet (if needed): Talk to your Internet provider about faster plans if they're available and affordable.
• Have a Local Backup Too: It's always smart to have a fast backup on hand (like on a spare computer or external hard drive) in case you need your data super quickly. Cloud backups are great for long-term protection and emergencies!

Let me know if you have any other questions about your cloud backup. ​

As a retailer, you'll sometimes need to add notes to specific transactions. Our user-friendly POS software makes this easy - providing clarity and context when needed.

Why Add Notes?

There are many reasons you may want to add notes to a transaction in your POS system:

• The item is damaged or defective, sold AS IS
• The product has no warranty
• The product is sold under some strict conditions, e.g. not for use in Australia.

It's an irregular transaction that needs an explanation to be recorded, so adding a note provides important details that give context to the transaction. This additional information can be invaluable if there are ever questions or disputes about that sale. This can be very important for customer satisfaction.

How to do the Note Taking

Our POS software allows you to add notes to any transaction seamlessly.  When ringing up the transaction, in this case, a return, there is an item on screen *Change Description* If this is pressed, you can see another option on screen *Attach as Note*.

Now, in this case, I wrote, "IT WAS BROKEN."  see where the red arrow is.

Once the return or transaction is saved, you have a complete reporting and analysis available. For example, in finding registered transactions in the cash register,

I am looking for this refund, which was done almost eight years ago.

See I am able to search for this transaction with a wide range of filters.

And here is a report of the books with the broken covers and I can find the one I am looking for.

The person looking at the transaction history will see that the book was broken, probably torn.

Enhanced Reporting and Search

The ability to add notes enhances the reporting and analytics capabilities of our POS system. Having the extra transaction details allows for more precise sales data and tracking.

Searching transactions is also simplified. You can easily filter and find specific sales using the notes field, for example, pulling up all transactions with notes mentioning 'damaged', 'discount' or 'clearance'.

Insights for Better Decisions

Detailed reporting using notes ultimately helps you make more informed business decisions. You can analyse irregular transactions to adjust buying patterns or staff training. Identify best-selling clearance items that should be reordered. Gain insights from customer purchasing habits and preferences.

Our POS software gives small retailers like you the tools to gain value from your transaction data. Empower your business with robust features for notes, reporting and analytics. We make it easy to access the information you need to satisfy customers, streamline operations and drive growth.

Insights for Better Decisions

Detailed reporting using notes ultimately helps you make more informed business decisions. You can analyse irregular transactions to adjust buying patterns or staff training. Identify best-selling clearance items that should be reordered. Gain insights from customer purchasing habits and preferences.

Standard Note Templates

To speed up the process and help you to find them consider making a dictionary of common notes. Then you can create standard note templates in the system. 

Training Staff on Notes

Train staff on proper procedures for adding notes. The notes are only helpful if they accurately and thoroughly document each unique transaction situation. Set clear expectations and guidelines.

Our POS software gives small retailers like you the tools to gain value from your transaction data. Detailed notes drive reporting, analysis and customer satisfaction. Let us make note-taking easy so you can focus on your business.

Conclusion

This is just another example of how POS Solutions software is giving retailers more in their software.

Frequently Asked Questions

Why should I add notes to transactions?

Adding notes provides essential context and details about irregular transactions. This clarifies the transaction record and provides transparency if questions come up later.

What kinds of transactions need notes?

Notes are helpful for any exceptional situations like damaged/defective items, clearance markdowns, customer disputes, etc. Anything out of the ordinary.

How do I add a note to a transaction?

When ringing up a sale, select the "Change Description" button and choose "Attach as Note". Type your note explaining the transaction, which will be saved with the record.

Can I view and edit notes later?

Yes, you can view and edit notes on the transaction details screen anytime. Notes can also be accessed through transaction reports.

How do notes help with reporting and analysis?

Notes allow for more detailed sales data and tracking. You can search and filter transactions using keywords from the notes field.

Should I create standard note templates?

Standard templates for typical notes can save time and ensure consistent entries. It makes it easier to find as well.

How should I train staff on note-taking?

Set clear guidelines and expectations for note-taking. Ensure staff are recording notes that fully explain unique transaction situations.

How can notes help my business decision-making?

Insightful reporting using notes allows you to spot trends, adjust practices, identify top products, understand customer preferences and more.

Why are notes important for customer transparency?

Notes reduce disputes by providing clear documentation visible to the customer on any irregularities like damages, discounts, etc.

Long queues at the checkout can drive customers away and cost you sales. Customer wait times,  studies show the average time a person will wait is 6 to 7 minutes in checkout queues before walking out. For retailers, slow cashiers can have a big financial impact. 

The Cost of Customer Frustration

When customers wait too long at the registers, many will leave your store. Some studies estimate that 10% or more of potential sales are lost to customer walkaways. And for those who do stick it out, the memory of queues will linger in their minds.

To crunch some numbers of lost sales - if your business has one walkout a day with an average sale of $30, you have lost $11,000. If it is two, you have lost $20,000+  - that is money you could have kept if your checkouts moved faster.

The risk goes beyond the immediate lost sales, too. Think of your customer satisfaction if you have frustrated customers. They often don't return quickly if they associate your shop with long waits. Slow registers cost you transactions today and cost you customer experience value in the long term. Is it any wonder why major retailers like supermarkets invest heavily to speed up checkouts? You need to take note and make changes, too. 

Average time to complete a transaction in a shop

The industry standard to do this is about 40 seconds for transaction time plus about three seconds for each item to be scanned and rung up. So if you need to ring up four things, the time taken is expected to be about 40 seconds, plus four items in their basket at 3 seconds each, so it's almost 52 seconds.

Calculating The Cost to Your Bottom Line

To figure out the cost of long queues, here are two key metrics to analyse in your store:

Average transaction time: How many seconds does it take to process each sale?

Look at your POS software's " find transactions " screen to see what typical speeds you can achieve. For comparison, I've included some transaction speeds that my clients have achieved with our POS system. 

On this cash register number, they were doing a transaction every three (3) seconds.

Here as you can see, they did transactions from two (2) seconds onwards.

On this page, it was four (4) seconds onwards. Interestingly, the $431.80 transaction that would have required scanning many items was completed in about forty (40) seconds.

Customer defection rate: What % walk away after seeing line lengths?

What you need here 

• Number of lost sales from your Retail sales
• Sales value per abandoned basket
• Profit margin lost

I would suggest looking at both weekly and yearly figures

How to reduce checkout queues

Here are some proven ideas to try in your store to keep the registers moving faster:

1. Restructure Queue Layout

Research shows a single queue line feeding multiple checkout points is perceived as fairer by customers than individual lines per register. It also helps even out speeds so no single operator bogs down line length.

2. Hide Long Lines

Retail store planning experts talk about the power of “inflow angles”. What this means is when a customer enters your store, carefully analyse sight lines to any queues - long lines early in the shopping journey can trigger an early walkway. If they see a long queue, many people looking to shop in your shop will not go in.

3. Entertain Waiting Customers

Don’t let waiting customers dwell on queue length. Distract them with something; banks often use a TV. What works in shops are items that are hot sellers. It is not the sales to just consider but the distraction value. A magazine that a customer can look through while waiting works, too.

4. Keep Registers Clear

A common complaint is when customers have already committed to queuing but see unused registers not being opened despite staff floating nearby not helping ease waits. Make sure your staff, top priority is to jump on a register when lines start to develop.

5. Scan Whenever Possible

Barcode scans are proven 3 times faster than keying in product codes. So ensure everything sold has usable barcodes - even make barcode labels for loose goods or frequently sold combos. Bundling items that often go together also minimises scanning actions at the register.

6. Integrate EFTPOS

Many of you do not use it for cost, but consider that you can save seconds on each sale by integrating EFTPOS into your point-of-sale system. Avoiding re-keying in amounts slashes transaction times and reduces miscues when switching between the terminal and register. It is also more accurate.

7. Cashier speed

When queues are long, having your fastest operators active becomes critical. Slow cashiers bantering with customers may be helpful for engagement at quiet times, but focus on processing transactions fast at peak times. Knowing checkout rates for each staffer also enables good roster decisions.

Conclusion

Even implementing a few quick wins here pays dividends through higher converted transactions and improved customer loyalty. Getting checkout queues moving faster is necessary for any retailer serious about sustaining growth. Reach out if we can help analyse your current state or provide advice beyond what was covered today.

Drive Traffic and Sales with Flash Sales for Your Business

Running quick sales events is an excellent way for brick-and-mortar retailers to create buzz and drive traffic into their stores. It can be done anytime, leading to a surge in sales and new customer acquisitions. Here I will discuss tips for planning and marketing winning flash sales for your retail business.

What Are Flash Sales and Why Do Them?

A flash sale is a promotional event where you offer items at a discount for a very short period of time - usually 24 hours. This create a sense of urgency and excitement that many customers will look at. The limited time frame convinces shoppers they need to buy now before missing out on the fantastic deal.

Done right, flash sales can:

• Generate a rapid boost in sales and revenue
• Attract new customers into your store - Customer acquisition
• Clear old or excess inventory
• Create buzz and visibility for your business
• Increase customer email signups and social media followers, use your customer loyalty

Brick-and-mortar retailers can use flash sales as periodic events throughout the year to spike sales during slow periods or when introducing new products and to liquidate old stock.

It works anytime but can also be used around holidays, events, or seasons, flash sales help you capitalise on timely opportunities. You can align them with occasions like back-to-school, Halloween, Mother’s Day, or the summer clearance season.

7 Tips for Creating a Successful Flash Sale - Retail marketing

Flash sales may seem simple, but excellent execution is critical to driving traffic and conversions. Here are six tips for planning and marketing a profitable limited-time sale:

1. Strategically Select Sale Items - Promotional sales

Carefully curate the products or product bundles you’ll discount for the flash sale. Pick items that:

• You have overstocked and want to clear out
• Have wide customer appeal
• Will entice shoppers to make additional purchases
• Allow you to maintain adequate profit margins

Avoid putting your newest, trendiest merchandise on sale so you don’t diminish its perceived value.

2. Set Clear Start and End Times

Be very specific with the start and end date and time so customers know exactly how long they have to get the deal. Twenty-four hours or less creates optimal urgency.

For example:

Starts: Saturday, November 18, 9 a.m.

Ends: Saturday, November 18, 9 p.m.

3. Offer a Realistic Discount

You want your discount deep enough to excite customers and make them feel like they’re getting an incredible bargain. You need to be careful here if it is not enough, you look silly, and if it is too much, then you will sacrifice too much profit. Do the math to ensure you can offer huge savings without losing money on each transaction. You can maintain strong margins by only discounting certain items while keeping everyday prices on others.

4. Inventory management

The quickest way to kill a flash sale is running out of the promoted products. Calculate expected demand and ensure you have enough excess inventory on hand to meet it.

Nothing disappoints shoppers more than finding their desired item already sold out, which can even damage customer loyalty. It’s better to have leftovers than to turn away empty-handed customers. You should be able to sell it later.

5. Small business marketing

Heavily advertise your flash sale through:

• In-store signs and window displays: Place bold, colourful signage at your entrance and throughout your store to spread the word to foot traffic use to the max your In-store marketing. You can use this signage again after the sale in a few months.

• Social media marketing: Run your shop on Facebook and Instagram to reach a broader local audience. It costs nothing.

6. Plan Accordingly with Staffing and Operations

Alert your staff to prepare for an influx of customers during the sale period. Schedule adequate employees to handle the customer traffic so shoppers don’t have frustratingly long wait times. Brief them on what you are trying to do clearly to prevent misunderstandings, you need to provide decent customer service.

7. Update your Point-of-sale (POS) system

Make sure your POS software is up to date with the information required.

Flash Sale Ideas for Different Business Types

Here are examples of successful flash sale ideas for specific types of shops, I have seen.

Newsagency

• Summer fun flash sale - Buy one get one half off outdoor water toys and games
• The magazines company gave them some magazines to move on their flash sale -  It did not cost them anything, they just asked.

Pet Supply Shop

• Adopt-a-pet sale - 25% off pet beds, leashes, bowls, and toys
• Stock up and save flash sale - 15% on some food and treats

Make Your Next Flash Sale a Success

A well-executed flash sale takes strategic planning, savvy marketing, and strong operations. But the reward of increased traffic and sales make it a highly effective periodic promotion. Remember to select sale items wisely, offer deep but profitable discounts, stock up on inventory, advertise heavily, and prepare your staff.

What other tips do you have for small retailers looking to run successful flash sales events? What kind of promotions resonate most with you as a shopper?

Good luck, and let me know how it went for you.

Provisional forecasts by the Australian Retailers Association (ARA), in conjunction with Roy Morgan

These predict $66.8 billion will be spent in the November to December 24 Christmas trading period- broadly in line with last year (up slightly by 0.1% or $74,000). Here is the estimate by retail category

The full report is here.

So get Your Retail Business Holiday-Ready.

Here is an updated checklist to help you prepare for the coming holiday season. This holiday season is most of my clients' busiest time of the year. Many of you will do half of your trade in the next few months. To get the most out of it, you need planning.

This guide covers points you need to review and prepare your retail business for this holiday season.

Step 1: Get Your POS System Holiday-Ready

The point of sale (POS) system is the heart of your retail operation. A glitchy or overloaded POS can ruin the holiday shopping experience, lose your sales, and damage your reputation.

Here are tips to ensure your POS is ready for the holiday rush:

Test Backup Registers and other Hardware

• If you are bringing old POS computers out of storage, test these well in advance to confirm they work. Computers not used frequently have problems.

• Verify where these computers will have proper cabling, the network connections work, and it works with our POS system.

• Test these extra computers by processing a few sample transactions.

• Make sure you have adequate printer paper, receipt rolls, printer ink, and other POS consumables. I suggest shopping early.

Step 2: Review Your Finances

This proved to be a problem last year, so I decided to add this point this year. The coming holiday season strains finances as it requires increased inventory expenses and seasonal staffing. Here are some tips to keep your finances under control. Make sure you have enough. 

Step 3: Plan and Stock Products

Smart inventory planning prevents out-of-stock that can sink holiday sales.

Analyse Past Sales Trends

• Run sales reports from prior holiday seasons. Identify your top-selling products at this time of year.

• Look for trends on seasonal best-sellers, big-ticket items, and gift purchases.

Order Seasonal and Holiday Products

• Make sure to order enough holiday decorations, gift sets, appropriate greeting cards, etc.

• Make sure you have enough top-selling products and proven items. Shortages can be devastating.

Communicate Early with Suppliers

• It is a good idea now to discuss orders and delivery logistics with your suppliers.

Step 4: Prepare Your Team for the Holiday Rush

A great staff is crucial for executing a smooth and prosperous holiday season.

Start to schedule Staffing Levels

• I suggest reviewing last year to prepare.

• It is not too early to start to prepare a roster.

Step 5: Market and Advertise for the Holidays

Promotions, offers, and campaigns tailored for the holidays can drive significant traffic and sales.

• If you are into Social Media, I would recommend starting to tell your customers that you have some good things for them. 

• Even a simple sign can do wonders. Make sure you have it.

Holiday Preparation Checklist

Here is a checklist summarizing the key tasks for getting your retail store holiday-ready:

• [ ] Test and update POS software and hardware

• [ ] Review inventory levels and sales histories

• [ ] Order seasonal and holiday-specific merchandise

• [ ] Communicate expected order volumes with suppliers

• [ ] Check your shelves and plan where to put the holiday goods.

• [ ] Check your financing

• [ ] Review your coming staff roster

• [ ] Confirm staffing arrangements for store opening event

• [ ] Consider a holiday-themed marketing campaigns

• [ ] Make sure you have signs to decorate your shop

Conclusion

Your retail store can thrive this holiday season with proper planning across your POS systems, finances, inventory, staffing, and marketing. Leverage the checklist above and the recommendations in this guide as you prepare for a busy holiday sales season. Let us know if you need any assistance getting your retail business holiday-ready!

Your point-of-sale (POS) system can give you crucial information that can help you drive your retail productivity, accuracy and profits. To do that it needs accurate information. Are you getting good information? One key retail metric (KPI) often overlooked to reveal how efficiently your POS system operates is the scan rate percentage %Scan.

Luckily, your POS Software can give you this and show you how to improve this.

Why the Scan Rate Matters

The POS scan rate (%Scan) shows the percentage of products scanned compared to the manually keyed-in at the cash register. A high scan rate translates directly into faster transactions, shorter checkout lines, and happier customers. It also results in fewer errors and less waste that hurt profits. Manually entering product codes is slower, more demanding on staff over a shift, and inevitably leads to mistakes. The industry standard is that cashiers make around one error for every 300 characters typed daily.

In contrast, scanning barcodes with a POS scanner takes just a fraction of a second and is a million times more accurate! The higher your scan rate, the more transactions you can process, lower errors, and provide better customer service. Better product information captured during scans also gives you valuable data for purchasing, promos, inventory and more.

Checking Your Scan Rate

Finding your current scan rate percentage is easy using your POS reporting. Go to the cash register reports, open the Sales section, and select "Dissection Sales/Profitability for a Given Period".

Go to the cash register reports.

Then go to sales.

Once there select

Dissection Sales / Profitability for a Given Period.

Now run the report with a year of data.

You will see a column with %Scan; the higher, the better. Looking through this list, the problem department is marked with a green arrow.

Run it for at least the past 12 months to see trends. The %Scan column reveals your overall rate across products and departments. Ideally, you want to see your scan rate consistently above 90% for maximum efficiency. Look for low percentages that stand out. While the overall rate matters, drill down into individual departments and product categories in the report. This allows you to pinpoint sections of your inventory that need scan rate improvements.

How to Boost a Low Scan Rate

If your scan rate is low, identify underperforming departments or products lagging in scanning. Then, focus on addressing the root causes:

• Missing barcodes - Confirm all inventory has scannable barcodes printed and attached. For any products without barcodes, quickly print and add barcode labels.
• Faulty scanners - Your barcode scanners may be aging or defective. The industry standard is that a scanner is built to last about three years, and then you have a bonus.
• Staff training - Cashiers may need refreshers on scanning techniques and procedures. Observe them on the POS and provide feedback to build good habits.
• Product database - Check your POS system to ensure the product database matches all items to the correct barcodes. Add any new products that are missing.
• Check items - Sometimes the barcodes are not clear, if so notify the supplier and consider using inhouse barcodes until this can be fixed.

Scanning Drives Retail Success

Improving your POS scan rates pays for your bottom line. It reduces wasted time and costly errors while increasing transaction speed and customer satisfaction. Make it a priority to monitor scan rates, identify underperforming areas, and address gaps. Turn your POS system into a competitive advantage!

Introduction

Selling greeting cards are a profitable business opportunity for retailers as they have high sales and margins. 

Greeting cards are considered the department in the shop that can be the fastest and best improved by monitoring by POS Software. Improvements, when done, are often immediate.

The problem now is that most of the greeting card management today in most stores is done by the sales representatives of the card companies. These people are notorious for making decisions that maximise their companies, not the retailer. This is because, in the past, managing this department was extremely difficult using manual methods as there were too many greeting card lines, but it is easy with POS Software designed to do so. Today by utilising POS Software, you can rapidly and effectively see which cards are selling well and which do not.

Now, what you can do - the action plan!

Your POS Software is tracking the cards sold. Most of you have the data inside your computer now. You can use that to make informed decisions about your greeting card stand.

Review your top-selling report by quantity and the last 12 months. Set up an arbitrary minimum sales number.

Say you want to find now your slow-moving stock that you are holding. This is a quick step by step way of doing just that.

Go to reports and select stock, see the red arrow on the image here.

Now enter in the criteria you require.

Where it is brown is the date range, I suggest starting with a year, but it's also good with three months.

Where it is blue, enter the minimum sales figure from the top-selling report.

Where it is purple is where you specify the greeting card department.

You then get a detailed report showing the value of the stock holdings and the amount moved in this period. I think many of you may get shocked by its value.

Further analysis

> Now analyse your cards by category using your sales data. See which categories are selling well and which do not. This information will help you decide which categories to expand and which to contract.

> Review greeting card sales by their position on the stand to see where your cards are selling well. Your best-selling cards should be in the best places. What you are trying to do is place the cards to maximise sales.

> To identify seasonal patterns, retailers should also keep an eye on trends in sales over time by categories. These patterns can to used to maximise profitability.

> Now compare your greeting sales data to previous periods. You can see how your greeting card stand performs by comparing sales data to prior periods.

> Your sales reports can also help you identify your price points in the greeting card. Using it, you can quickly determine the prices for cards your customers are willing to pay.

Quantities on Hand

If your stock levels are incorrect, you must consider a stocktake to proceed.

Retailers should track inventory levels to avoid overstocking and increased storage costs. It is common in your storage area to find cards just sitting there.

Set up a monitoring schedule.

Set up a regular schedule to watch your card sales and stock information. It takes little time to do this once you are set up.

Conclusion

Using your POS software sales data analysis can be a more lucrative department.

Executive Summary:

> Greeting cards are a lucrative business opportunity for retailers due to their high margins and sales.
> POS software that monitors sales of greeting cards may result in immediate sales increases.
> Retailers frequently rely on management from card companies' sales representatives, who may not put the retailer's interests first.
>Greeting card sales can be effectively managed, and data-driven insights for decision-making can be provided by POS software.
>Top-selling cards can be reviewed, sales can be analyzed by category and location, seasonal patterns can be found, sales data can be compared to previous periods, and the best price points can be found using POS software.
>Additionally, retailers can avoid overstocking and storage costs by monitoring inventory levels and establishing a monitoring schedule.
>Retailers can increase their greeting card department's profitability by using sales data analysis in point-of-sale software.

A/B testing is a formal system used when you have an idea you want to test. It's simple to understand, easy to implement into any aspect of your business, and free. It is used by both large and small companies alike to make business decisions that increase store sales.

All you need is accurate information from your POS Software and some time.

You pick a period generally a month, like for like. An example of like to like is Jan 2021 to Jan 2022, Feb 2021 to Feb 2022, etc.

For this post, I will consider the example of swapping your books and art supplies.

Now make sure you have the sales information for these departments in the previous period you are adopting. Then that can collect the same information for the coming month.

So do you have the book and art supply sales?

If so, make the change and wait a month.

After the month, go to register reports.

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

Now select the dates that you wish to compare. You will get pages of detailed information showing how you are performing compared to the previous period. Now see what was more successful.

The reason this system works well as different audiences behaves differently. Something that works for one company may not work for another. You are trying to find the best practice for your business.

It can be used for anything, shop hours, price increases, etc.

This is another example of how powerful our point of sale software is for retail management.

Sometimes we see stock sales, still going on long after they are over. This, of course, costs the shop money.  Administrative errors are one of the major causes of stock loss.

If you see this as a problem in your shop, here is a quick way to check.

Go to register reports> stock

There you will find a report "Stock on Sale Between a Given Period"

Now we will keep it quick and straightforward here.

Now what I selected here this month and ticked "Show all within period"

As you can see, some of the sales dates that are active are quite old. Now you go over and check it.

This is a very useful report. So it will be worth going through some of the more detailed options.

What happens is that when you go to your point of sale software and check your selling report to see how things are selling. You will find items that are selling well but are making little profit. The question often raised here, is even accepting that the item is not making much, is it drawing people into your shop who buy other products?

Well, we can help you somewhat. The reason I say somewhat will be explained here.  

Go to Register reports.

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

Now put in say a year of sales and ask for the top 100 by quantity. 

Outcomes a report with the top sellers for that year. 

I have not got the heading here, but I will explain. Look at the envelope 

45 is the stock ranking. It is the 45th best selling item in the shop. The 300 is the quantity sold. The next roll is profit, which is $77.45. In comparison, the item on top of it at 44 made the store $1159 profit. Now for many retailers would say to themselves is $77.45 profit enough to justify having this item? Is it enough to even pay the rent, much less the labour and other charges?

Now another issue that most retailers will ask here is, as it does sells well does it bring people into my shop who buy other products? That is very hard to measure, but we can give you an idea.

Go to reports > Sales register > Stock Sales companion sales by period 

Now in options put in say last financial year and put in the product ENVELOPE TUDOR....

Now out pops up a report which will give you a listing of all the items that were sold with this item.

Then at the end will be a total.

The last number is the profit of $265.01, which is the total profit of all the items sold with this item. 

Now the question is how much of that profit of $265.01 would you have made anyway with or without that profit. That is something you have to decide. 

An analyst like me, as a first-level approximation in the absence of any other information, would probably say

A third would have brought something else in the shop to replace the envelope 

A third would have left and gone elsewhere

A third would not have brought the envelope but everything else.

So I would say the loss involved in dropping the product is 

2/3 x (the actual product $77.45) + 1/3 x ( companion sale of $265.01) = a loss of about $140.

If you can do a better estimate let me know.

The most successful selling methods in retail - cross-selling.

Ideally, what you are trying to find is products that sell well to the item being purchased. For example, the purchase of a comb could be cross-sold with hairpins and elastics. 

However, in practice, it is quite hard to suddenly present items that sell well with a specific item to a customer. So what people do is place a  small pile of items on the counter that people tend to buy impulsively.

 
The first point to do is to identify these products. A quick trip to your competitors might be in order here. It will give you an idea, now check what your top-selling items, which is easy to find from your top-selling reports in our point-of-sale system are.

But your top sellers change over time. Ask yourself will today's top seller be a good seller tomorrow. Typically in retail, what you expect to see is that an item that sells 50 today will sell about 66% of 50 or about 30 tomorrow and day after that 66% of 30 and so on. What you need to do is identify today what is selling well to check you have adequate stock for tomorrow on the counter.

And it is easy in our point-of-sale system.

Go to Register reports.

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

Now the following pop up.

I selected a day. You usually would put in today

Outcomes a report with the top sellers for today.

Now, these need to be checked that you have enough stock.

Experiment and try it out. If you do it right, many of your customers could be buying two items instead of one. Your basket size will go up.

Once you get experienced, you will develop a better idea of what these cross-selling products are, and I do not recommend low margin sweets. Ideally, you want items with good margin that move.

By incorporating these trends into your sales process, you proactively identify cross-selling opportunities on an ongoing basis.

In your point of sale software, now is a very powerful tool to see your cash breakup. Any study of this is getting into the heart of a business.

So off we go, in the main menu select "End of day."

Now in your Options menu marked in green, tick everything, so you are going to get as much detail as you can. 

Now in the Option above, as for the following 

Now you are going to get a detailed report on all the cash takings for the last 12 months.

Now one part that I do suggest that you look at is the Sales Payment Breakup, in that you can see an analysis of how people are paying in your shop. I am sure just that alone will make interesting reading.

Enjoy!!!