Running your shop is hard work! You deal with:

- Long days behind the counter 
- Money worries from taxes and bills 
- Government officers
- Customers 

Things recently got more burdensome for many owners as the economy is not going well.

With all these stresses, taking care of your mental health is critical.

Personal Experiences

Over the years, I've encountered some heartbreaking situations that highlight the urgency of this issue highlighted for today:

The Locked-In Boss

I once had a boss who locked himself in his office, overwhelmed by stress. The situation became so dire that we called his wife, and when she came, we had to threaten to call the fire brigade to get him out. Sadly, I never saw him again after that incident.

Ivan's Story

One of my clients, Ivan, who was a genuinely capital guy, seemed alright, so I was shocked after he disappeared when rumours in the newsagency community circulated that he had taken his own life. While I can't confirm if it was work-related, it's a stark reminder of the hidden struggles many in our industry face.

A Schoolmate's Tragedy

Recently, a classmate I knew well committed suicide. She had had three failed marriages, no kids and was looking at the end of her fourth marriage.

These experiences have deeply affected me and reinforced my commitment to prioritising mental health.

Startling Statistics

Recent surveys reveal some concerning trends:

• 78% of retail workers experienced stress, anxiety, or depression symptoms in the past month
• 45% of business owners feel they lack resources to manage employee mental health issues

These numbers aren't just statistics – they represent struggling people in our community.

Legal Obligations for Employers

As a business owner, you are responsible for creating a supportive work environment. Here are some legal obligations in Australia regarding mental health in the workplace:

Practical Ideas for Support

Open Communication

Encourage regular check-ins with your team. A simple "How are you doing?" can open up meaningful conversations.

Flexible Scheduling

Where possible, offer flexible hours. It can help employees more effectively balance work and personal life.

Mental Health Resources

If you are worried, contact your industrial body for advice. They can provide information about what you should do and mental health services options.

Lead by Example

Share your own experiences with stress management.

Conclusion

Remember, if someone is struggling, tell them they are not alone, and there's nothing wrong with seeking help or referring them to someone who can help.

Fun fact: On average, in Australia, we have about nine suicides a day.

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At POS Solutions, we have seen firsthand the critical importance of isolating your POS system. Drawing from my experiences and industry knowledge, let me share why this approach is crucial for retailers.

The Risks of an Interconnected POS System

In today's digital age, it's tempting to connect everything. However, isolation is crucial to your POS system. Here's why:

Unauthorised Access 

Its a real threat, I'll never forget our case with a café using our system. A staff member's boyfriend added an email processor to the POS, causing the entire system to crash.  A little knowledge can be dangerous. It was a nightmare to fix, all because of a tiny unauthorised change. This incident hammered home the importance of limiting access to your POS system.

Cyber Threats 

The are real, if I was to make a bet with you that this week one of our clients will have a real malware or cyber threat, I am sure I will win. These are constantly evolving. An isolated POS system is more challenging for people to infiltrate. By keeping your system separate as much from authorised access, you significantly reduce the risk of falling victim to these threats.

Data Corruption and Theft

Your POS system protects your lifeblood by holding crucial business data and sensitive customer information. Data corruption or theft can be devastating for a retailer. Worse unauthorised use of your point-of-sale information can get you in serious legal trouble. An isolated system provides an extra layer of protection against these risks.

Benefits of Running an Isolated POS System

Now, let's look at the positive side of keeping your POS system isolated:

Enhanced Security

Limiting connections reduces potential entry points for cyber attacks.

Improved Performance

Fewer external processes mean your computer runs less so it runs smoother and faster.

Simplified Troubleshooting

When issues arise, it's easier to pinpoint the problem in an isolated system.

Compliance

Many industry standards today strongly recommend isolated POS systems.

How to Isolate Your POS System

Here are some practical steps to isolate your POS system:

Dedicated Network

Set up a separate network just for your POS use.

Limited Access

Only authorised people can access your POS System. Inform your staff not to let anyone access your POS system without management permission.

A Word on Staff Needs

You might worry about staff needing internet access. Here's a simple solution: Set up a separate Wi-Fi channel for your staff and the public. Modem today can do this. This way, your team can check their emails or browse the web without putting your POS system at risk.

The Bottom Line

While isolating your POS system requires some extra work, it's worth it. Your business will benefit from security, stability, and happy customers!
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This is one of the most used KPIs is labour cost with our restaurant clients yet it can be used for any modern business. In my years of experience working with point-of-sale systems, I've seen many retail shops firsthand how proper labour cost management can make or break a small business. 

Labour costs

The labour costs encompass all expenses related to your employees. This includes:

• Wages and salaries
• Overtime pay
• Superannuation contributions
• Payroll taxes if applicable
• Employee benefits 
• Paid time off (holidays and sick leave)

You probably have this figure in our profit and loss accountant, which the accountant prepared for you for the ATO. So, these calculations should only take you a few minutes to complete.

Revenue-based Labour Cost KPI

The labour cost ratio is a critical metric that measures the proportion of your revenue spent on labour expenses. It's calculated using this formula:

Labour Cost Ratio = (Total labour cost / Total revenue) x 100

If your shop's total labour costs for the year were $100,000. If your revenue is $500,000, then your labour cost ratio would be:

($100,000 yearly labour costs/ $500,000 yearly revenue) x 100 = 20%

So here it means you're spending 20% of your yearly revenue on labour costs.

Time-Based Labour Hour KPI

Although not part of the typical Labour Cost KPI, I suggest calculating it by week.

Labour cost a week = (Total labour cost / Number of weeks) 

If, for example, using the above, we say it is open 52 weeks a year

Labour cost a week = ($100,000 yearly labour costs/ 52 weeks )  = $1923 a week we need for labour costs in a typical week.

Why the Labour Cost Ratio Matters

Understanding your labour cost ratio is crucial because it:

1. It helps you evaluate how efficiently you're using your staff
2. Shows the impact of labour costs on your overall profitability
3. Allows you to compare your performance with industry benchmarks

Industry Benchmarks

In the retail industry, labour cost ratios typically range from 15% to 20%. However, because all shops are unique, they have different benchmarks. It's essential to research specific benchmarks for a shop similar to yours in your area. Many labour costs by industry are listed here, unfortunately not all, so what people often do is look for some industries that are close to theirs and see what those industries offer.

Tips to Optimise Labour Costs

Based on my experience working with various retailers, here are some effective strategies to manage your labour costs:

Use a Modern POS System

Your point of sale system has plenty of items that can do tasks that use labour, e.g. AI stock ordering management features. Use it to monitor your labour costs:

• It can also do rostering, allowing you to track your employee hours accurately
• Generate reports labour
• Allow you to forecast your staffing needs based on historical sales data
• Identify peak hours and adjust staffing accordingly
• Reduce overstaffing during slow periods

Employee Management

For example teaching your staff multiple skills, you can reduce the need for specialised roles to create a more flexible workforce. If you can reduce the need for someone extra to come to do a task, well that is a saving.

Monitor and Adjust Regularly

Keep a close eye on your labour cost ratio and adjust as needed. If it's creeping up, look for ways to increase efficiency or reduce costs.

Conclusion

Are you ready to take control of your labour costs? Start by calculating your current labour cost ratio and see where you stand. With the right strategies and tools, you can master labour costs and set your shop up for long-term success.

I've seen firsthand how crucial POS security is for brick-and-mortar shops. Today, we're diving deep into staff security levels in point-of-sale software, a topic that's essential for retail loss prevention.

The fact on Employee Theft

Let's start with a sobering statistic: employee theft accounts for 33.2% of shop theft.

I've become cynical about this issue. Why? Because I've heard the same story again and again for years:

"He was in school with me... his family and my family... he was my best employee..."

And how does it end? With the fact that this trusted person had been skimming from the till for years. I was there seeing an owner of a newsagency is in tears when he saw a video of his best friend who he knew since childhood stealing money from him.

Let me tell you, the mere presence of a robust security system can work wonders. It's like having a guard dog—just seeing it can make potential troublemakers think twice. When your staff sees cameras and proper POS procedures in place, they're less likely to consider any funny business.

The Power of Staff Access Control

One of the most effective tools in your employee theft prevention arsenal is staff access control. Here's a quick guide to doing it in our POS software:

1. Go to "Staff Maintenance"
2. Navigate to the "Security Level" section
3. Customise access levels based on job roles
4. Assign each staff member their appropriate level
5. Regularly review and update access permissions

We've set up defaults that work for about 90% of shops. But every business is unique, so you can fine-tune these settings to fit your specific needs.

Security Level Options

Here's a table showing some standard security-level options:

Implementing Effective Staff Security Measures

Remember, the best security system is only as good as its implementation. Here are some tips to ensure your retail loss prevention strategies are effective:

1. Train your staff thoroughly on security procedures
2. Lead by example - follow the protocols yourself
3. Regularly audit your security measures
4. Cameras, if they can be seen and are being recorded, it probably will not happen
5. Reward staff for identifying and reporting security issues

The Bottom Line: Protecting Your Assets and Revenue

By controlling staff access, you're protecting your business.

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!

We have all had shop assistants asking if they can help.  Most customers say they do not like to be disturbed by shop assistants. It's a fact, but is not disturbing them the best thing for the shop? 

If you want something to think about in your shop, have a chew on this study here. This study points that out.

"Shoppers who interact with a sales associate are 43 percent more likely to purchase a product, and their transactions have 81 percent more value, compared to those who don't interact with an associate. In addition, they are 12 percent more likely to revisit the store."

This is true of all shops; see here.

The orange is the increase in sales, notice the department store which is the least technical got the biggest percentage increase.

Let me give you a personal example. I went to a toy shop to buy a kid's present. I was unsure of what to get, so I appreciated it when a shop assistant suggested that I buy a kid's table set. So I bought it on her recommendation.

1) So your staff needs to know their products.

The study also states there are significant problems when customers can't find a shop assistant when they have questions. A negative experience can lead to customers going elsewhere.

2) So you have to make sure that your staff is at hand.

What is clear is that consumers do rely on interaction with your staff to make purchasing decisions. Helping them will lead to a significant increase in sales and repeat purchases.

Try it out now.