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.

I think retailers must verify orders with photos today. It is a simple yet powerful technique that is revolutionising how we handle orders. It involves photographing packed orders before shipping.

The Power of a Picture

Today, it's an all-too-familiar scenario: a customer claims they didn't receive all the items they ordered or got nothing. You have a shipping dispute. Without concrete evidence, these situations often boil down to an "I said, she said" dilemma.

A photo can help with your case. The courts do accept photos as evidence. Can taking a picture show evidence of what was in the parcel when it left your shop? Another picture of you sending the parcel. These photos can strengthen your case.

Photographs as evidence are extremely powerful when shown in court. People tend to believe what they ‘see’.

That's where the smartphone camera comes in. You're creating a visual record that could be used later by snapping a quick photo of each packed order before it's sealed and sent.

Personal experience

I was shocked when I sent some goods to a client. He replied that he never got them. The post office said they were delivered, but I needed help to prove what was in the box, which I could not. It was a wake-up call. Clearly, I needed some order verification.

Implementing the Photo Verification System

Here's how we've incorporated this practice into our order fulfilment process:

1. Pack the order as usual, laying out all items.
2. Take a photo using your smartphone.
3. Attach the photo to the invoice in our POS system so you have a record.
4. Seal and ship the parcel with confidence.

It's that simple. This small step has become an integral part of our shipping process, and the benefits have been immense.

A Word of Caution

While this system has been a game-changer for us, it's important to remember that it's just one part of a comprehensive order fulfilment strategy. It doesn't replace the need for careful packing, accurate inventory management, and excellent customer service.

So, why not give it a go? Grab your smartphone, take that first photo, and join the ranks of retailers using this simple technique to revolutionise their order fulfilment process.

Have you ever been locked out of a crucial business system? For many business owners, this becomes a reality when they overlook a critical step: notify their POS provider about a change in business ownership. As a veteran of retail POS systems, I've seen how this simple oversight can spiral into major issues. But here's the surprising truth: a few minutes of your time can prevent this headache. 

The Importance of Timely Business Ownership Transfer Notification

A Cautionary Tale: The Unexpected Support Call

Picture this: Our support team receives a call from an unfamiliar voice requesting assistance for a shop we know well. They ask for sensitive customer data, raising immediate red flags. Until we are notified of a change in ownership, the shop's ownership belongs to the previous owner. This scenario has occurred several times.

Good Reasons for Prompt Business Notification of a change in ownership

1. Free Training Opportunities: We offer complimentary training for new owners during a retail business ownership change - why should they miss out?

2. Licence Ownership Transfer: Until officially notified, the POS licence remains with the previous owner, potentially leaving the old owners liable for new costs.

3. Data Security and Privacy: Ensuring only authorised individuals access sensitive information is crucial during a POS ownership change.

4. Legal Implications: Updating POS ownership information can lead to contractual disputes and legal liabilities. The law is quite clear that you must notify all the stakeholders in your business.  

Ownership Transfer Process

- Complete and submit the required documentation here.

- If a valid email address is on the form, both the Releasor and Acceptor will receive an email confirmation from us once the change of ownership has been completed.
 

Benefits of Proper Notification

By following the correct retail POS system update procedures, you ensure:

• Uninterrupted access to support services
• Proper transfer of licence ownership
• Access to complimentary training for new owners
• Maintenance of data security and privacy
• Compliance with legal and contractual obligations

FAQ: Common Concerns About POS Ownership Changes

Q: How soon should I notify you of a business ownership transfer? 

A: Ideally, at least two weeks before the official transfer date.

Q: Will the POS system be unavailable during the transfer? 

A: No

Q: Do staff need to be retrained after the ownership change? 

A: We recommend discussing the changeover with our support staff as the new owner and the staff will now need to get the system working according to how the new management needs.

Q: Are there any fees associated with ownership transfers? 

A: If the lawyers do it, their time will be charged. If you do, we will have no charges.

Conclusion

A POS ownership change is a critical step in ensuring the smooth operation of your shop. It only takes a few minutes.

​

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. ​

There have been many management studies on the advantages of training with software.

Free Coffee + Free Training = Your POS Success Story

Think of our point of sale (POS) software as a powerful toolbox. It's got all the latest gadgets and gizmos – constantly updated to make your business life easier. But even the best tools need someone who knows how to use them, right? That's where our excellent training sessions come in – with a free cuppa on the side!

Why Our Training Rocks

We don't just want to sell you a system; we want it to work its magic for you. Our training is your key to unlocking that potential:

• No more confusion: We break down everything, from sales and stock to hidden time-saving tricks.
• Staff = Superstars: Your team will become POS whiz kids, boosting productivity and customer happiness.
• Did we mention free coffee? Because staying alert while you learn is essential!

Here is what one client said 

"I was so stressed about your great software, but the training was a lifesaver! Now I can now track my stock like a pro, and my sales have gone up."

Training That's Tailored to You

Whether you're a one-person show or have a bigger team, we've got training that fits. It's friendly, hands-on, and focused on your specific business needs. If you need more training, book in more. What I find in my experience that even if you do not keep it all in in, just knowing what something  can do and that it is there is a big step forward.

The Bottom Line

Businesses that use our POS and get the training see way better results. That means:

• Smooth sailing: Less confusion, fewer mistakes.
• Happy customers: Faster checkout, more competent service.
• More $$ in your pocket: A system that pays for itself and then some!

Ready to Level Up?

Let's discuss getting you and your staff trained. We promise we'll make it easy. Just let us know, and we'll schedule your session (and get the kettle brewing!).

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!

Performing a SWOT analysis is commonly done today to provide invaluable strategic insights for businesses. It has been found that systematically evaluating a company using SWOT allows one to gain perspective on that company. I decided to do one for newsagencies. Hopefully, this will aid you to look at the newsagency industries and add some points of your own for your particular situation. If you want to know how to do a SWOT, click here.

SWOT is commonly considered a roadmap for a business.

Newsagencies have long been a staple of the Australian retail landscape. However, these beloved community stores face emerging challenges in today's digital era. 

SWOT Analysis of Australian newsagencies

Here is a SWOT summary of key factors:

Strengths - This is the pluses that the industry has:

• Established community presence and loyal customer base
• Wide product range catering to diverse needs
• Convenient locations in suburbs and shopping centres
• Personalised customer service with specialised advice on core products
• Strong supplier and distributor relationships
• Family ownership provides flexibility and adaptability

Weaknesses - This is the problems facing the industry as a whole

• Declining core products, for example, newspaper and magazine sales
• Economic factors like current reduced discretionary spending
• Higher costs like rent and wages
• Low and often declining profit margins on core items
• Competition from supermarkets
• Growing online shopping trends
• Owners are consumed with day-to-day operations, leaving little time for long-term planning and execution. 
• External risks like theft and disasters

Opportunities - This is what individual businesses should look at

• Diversify into new product ranges, for example, giftware, toys, 
• Fast decision-making ability
• eCommerce website
• Delivery services
• Leverage low-cost social media marketing
• Tailor products to local demographics

Threats - These are problems an individual newsagency might face

• Move to online shopping
• Lack of a centralised authority limiting group advertising/marketing/buying
• Resource limitations that hinder their ability to implement strategic changes eg with few staff effectively, newsagencies lack specialised expertise in areas like digital marketing and e-commerce. As such, owners wear many hats and may be stretched thin.
• Growing problems legally in running a business
• Failure to adapt to changing customer needs

The Changing Role of Newsagencies

• It is a false perception that newsagencies have not changed over time; a typical newsagency in 1950 was a very different business in 2000 and very different from a newsagency today.  Like any other business, it changed.
• Newsagencies must override inertia and actively transform to stay viable
• Those that innovate and find new solutions will be best positioned
• Renewal requires rethinking dated business models and learning from industry innovators

If you have any comments or suggestions, let me know.

From my last post here, I got some enquiries about charging customers for a lay-by.

Essentially legally, a lay-by is a payment option that allows customers to reserve a product. Then pay for it in instalments, typically over eight weeks. Security is the product only given to the customer after the total amount is paid. Lay-by has proved to be a convenient and popular method for people to buy expensive items.  Now I am no lawyer, so I cannot advise you. I know what is being done now by some large department stores in Australia, who I am sure have checked it out. I also know what some clients do, and it works for them. So here it is.

As I discussed, lay-by also comes with problems for the retailer; let us discuss fees here.

So there are the two main fees that retailers often charge. Doing a net search, I found some of the standard fees that large department stores charge for lay-by services from their websites:

Big-W

David Jones

Target

So what we have 

 **Service fees**: These setup fees are for each lay-by for setting up and administering the lay-by agreement. Range in these majors from $3 to $15 per lay-by. These service fees are all non-refundable. Average out, we are looking at (3+10+15)/3= $9

**Cancellation charges**: These are fees that the retailer charges if, for some reason, the lay-by agreement is cancelled before making the final payment. Examples might be a customer changing their mind, the customer does not pay, or there is some other breach of terms by the customer. Cancellation charges vary widely from $0 for Target to $20 for K-Mart and 20% of the lay-by value for David Jones.

Now one point I want to stress here is that the Australian Competition and Consumer Commission (ACCC) states cancellation charges must be reasonable and reflect the actual costs incurred by the retailer. They are, however, quite flexible on what they consider a cost, e.g. salaries, storage, administration costs, and loss of opportunity to sell the product. If, for example, a customer ordered a Christmas item that was cancelled just before Christmas making it unsellable, then you have a good case in stating you have lost much of the value. Conversely, if it was a history book that you could sell anytime, you may find the ACCC may think 20% unreasonable. I suppose you could argue if it was a special order and you do not sell that type of book, you may have a hope of justifying 20% or more.

Determine your Layby Fees and Charges

1) This is all federal law. You may find in your state that there are state consumer laws you need to consider.

2) Before introducing charges, I would suggest doing what I did and looking at the terms and conditions that majors charge in your state.

3) Ask your industry body.

4) Determined your actual costs. Be honest with yourself. What does it cost you? If, for example, a person generally makes eight payments to pay a layby. They come into the shop eight times. Each visit means a hello, how are you, etc. The first would take 5 minutes to set up and explain the terms, then each visit takes 3 minutes, but the final to wrap it up takes 5 minutes.  So we have about half an hour of work, plus some more administration work to look after the lay -by and this assumes everything goes right, and often, it does not. Here is a quick estimate, and if anyone wants to dispute it, I am happy to discuss it. Half an hour of work for a shop assistant is about $10, then add about 30% for extra cost sick pay, super, holiday etc. we have about $13. Forgetting the administration work, which should not be done. Salaries make up about half the expenses in a shop, so we can double them. So we are looking at costs for a first-level approximation of about $26.  For that, you are getting $9. Now tell me, are my doubts about Lay-By vs BNPL unjustified?  Plus, lay-by can be a legal minefield, something no one needs. 

5) Then act accordingly.

POS Software

Finally, running lay-bys with reliable retail POS software would help you manage your lay-by transactions efficiently and accurately. You will not get better than ours. It does:

- Record and process lay-by payments
- Track inventory and stock levels
- Generate receipts and invoices
- Send reminders and notifications
- Produce detailed reports that give you insight into how it goes.

Here, for example, is an analysis of a shop's lay-bys you will find there marked with a green arrow. Then when you press it you will get pages of statistics. 

If you press the blue arrow, you will get even more in a Full Detailed Report. 

Final note

I hope this is useful. Let me know your thoughts.

Introduction

Based on our experience, this is the current situation.

Maintaining accurate documentation is vital for companies today. It is often required to be kept by government requirements and is often needed to help you make decisions.

What is Documentation Management?

Document management refers to generating, archiving, and accessing files about a company's activities. Such documents include, among other things, bills, receipts, financial institution statements, salary reports, and tax returns.

Why is Document Management Essential?

There are several justifications for why exact document administration is crucial for firms. Some of the primary motives include:

Improved accuracy

Organisations can track transactions and record data to ensure their financial information is precise and reliable. This helps prevent errors and miscalculations.

Compliance with government regulations

Many governmental regulations demand that you keep detailed and updated accounts for some time. For example, the Australian Taxation Bureau requires you to keep financial records for at least five years from when the documents are lodged.

Saving time and money

Organisations can spare time and cash in various ways by keeping detailed accounts. For example, one of my clients found that they had accidentally overpaid a supplier by over $100,000. It was only discovered after a detailed study of the books.

Aiding decision making

Accurate account keeping can assist you in making decisions by giving you the information required.

Protecting the business from fraud

Maintaining adequate records can safeguard businesses against fraud. It makes it much easier to track stolen funds or goods. Several of our clients have had to use such information in court for dishonest staff members.

How you can keep proper records:

Manual

Filing cabinets and often is the best solution. The best evidence to back up your claims is the original documentation. The big problem here is that storing takes up a lot of time and often space, and searching for the required information usually takes time and effort.

Digital

Use and store your computer backups.

The big plus is that point-of-sale (POS) systems add extra information, e.g. customer details, item descriptions, and transaction records, into their records. This means they can serve as an information repository, storing essential pieces of data in one easy-to-find location. So you locate the information required quickly. It can also give you information in many forms. This makes it an effective mode of holding your records. Whether the relevant authority will accept your digital evidence is not guaranteed.

Since our POS System has an excellent CRM and a search functionality, you have a document management tool free. 

How Long Should Businesses Keep Records?

The time you should keep documents varies depending on the government agency requirements and the courts. These are only general guidelines, and some court matters have no time limit. As a general rule, most businesses use five years after the close of the fiscal year.

Conclusion

Point Of Sale Systems can help your businesses to look after your records accurately and efficiently. This help saves time and money while complying with government regulations and allow for better decisions.

Executive Summary

-Proper documentation management is essential

-Document management involves generating, archiving, and accessing files about a company's activities.

-Manual takes more work, and it can be challenging to find the records required.

-Digital is easier to search.

-The duration businesses must keep specific documents varies based on government agencies and court requirements, but as a rule, most people use five years.

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.

While having a customer loyalty program is beneficial to your business. You should be aware that somebody will always be looking to take advantage of the perks in your system. Often they do this without realising that their actions count as fraud. So if you run a loyalty program, you should know that it is not immune to fraud.

There are two types of loyalty systems we actively support:

Points: Where someone gets points for each purchase, and they can use these points to get benefits in your store. I have never heard of this fraud in our system. I would know as many of our clients are small to medium businesses who know their regular customers and would report if something goes wrong with these points. It is much harder to commit fraud if customers are verified and their purchases tracked.

Note: It would be highly worrisome if it happened as it would need to be internal as our system is secure using SQL used by banks.

Yet if you buy a business, I cannot emphasise enough how important it is that you address the issue of unused loyalty points with the previous owner.

Discount vouchers: they get an instant credit on their next purchase, say $2 off on their next buy for a $25 purchase.

Now, this I know has caused problems.

A customer leaves the shop and often throws the receipt in a bin nearby. Another person comes along, grabs the receipt, shows up in the shop, and buys a $3 item claiming the $2 discount voucher. One quick fix is to put the receipt in the bag. The problem is that the retailer wants the shopper to see the voucher to encourage them to buy more instantly, so they give it to them in hand. If you question it, his friend, acquaintance, etc., gave it to them.

A similar problem is when a person comes to the shop to buy two things. They buy the first item, collect the discount voucher and use that voucher to buy the second item. This is interesting as it's questionable whether it's fraud or the retailer's stupidity.

Loyalty programs are a great way to build brand loyalty and encourage customers to return to your business but must be reviewed. Check your shop information for suspicious behaviour.

A standard measure is that a loyalty program should cost the retailer about 1% of turnover, although I have seen 2% used. On a million-dollar turnover, you are looking at $10,000 to $20,000, it is worth checking. Also if you are over that, it's certainly time to review what is happening without supplier support, I doubt it's worth it. 

This is the finding from the Microsoft Customer Service Study here. 

90% of customers value the quality of customer service when choosing or remaining loyal to a brand. 

When asked how many stopped doing business with a brand due to poor customer service?

About 60%, more than half. I can relate to that. I stopped doing business with the NAB bank because of terrible customer service.

What I found surprising in the report is what the main problem with customer service was not actually how polite or friendly they were but

* The inability of the agent in understanding their problems.

* The lack of knowledge of the agent handling the problem.

*The inability of the agent in resolving their problems.

Obviously, people are looking for companies to provide solutions to their problems. I can relate to that too. I went looking for a war game to buy as a present for a friend. I went to a shop, and they had the stuff but not a clue on the product. I was unsure, so I looked in another shop. They had a guy who played and knew these games. He was a big help, so I brought the game there.

Your staff need to know their stuff, be helpful or it will cost you.

Do you have a Solid Information Distribution system that providing your staff with the tools they need to do their job?

This means ensuring they have all the resources they need to do their job. For example, someone is laying out the stock for a department. If they have a current sales report of what is moving now, they can do better. Just moving stock that sells well into a prominent position is a proven method of increasing. If so, would it not be helpful for that person to have that information? If they do not have it, the odds are they will go on feel, not data. That will cost you!

How can your staff give high-grade customers help if they do not have quick access to relevant information? Customers want results fast.

To efficiently perform in your shop, your team need access to such knowledge. Informed employees with instant access to necessary information can work better.

With our system, you can do all that securely.

Make sure your POS System is used to its fullest.

A SWOT analysis is the most popular and influential method for analysing plans today. You tend to notice once you know SWOT what people who service your business the way they think. No surprise, as this is the way they are trained. 

SWOT will help in the decision-making process and test the feasibility of a business, marketing, product etc. 

It is simple, and it will take you about 7 minutes to learn here.

Now you know how to do it, here is my advice.

Grab a big sheet of paper. Experts often use a large A2 sheet. Clearly they think people have a lot to say.

On the top, write your project aim. I find keeping it simple best, e.g. do not say "Increase turnover by 10% "but say "Increase sales of XYZ product". Then when you get more experienced, you can move into more general cases.

Now draw a big cross in the middle of the page, so you have four quadrants. Look at the above example.

Come up with ideas. Brainstorm with others in your team is a great idea. Running computer reports can stimulate ideas as can internet searches on your ideas.

Now you have the idea, it is easy to determine where it goes on the chart. 

1) Is it good for the business on the right side (Helpful) if it is bad on the left (Harmful) ? 

2) Is it something to business has control of then on the top (Internal), else on the bottom (External)?

Now write down your points in the relevant quadrants.

Now highlight items that people think are significant.

In the end, you will have a visual image of where you are. I promise you that you will find it helpful to examine. You will find that doing a SWOT analysis will help you better understand and how others in the business see your business. 

Let me know how it goes.

Well, Victoria today joined most of Australia except NSW by banning single-use plastic bags today in retail.

This ban affects small business only as the larger retailers have long stopped plastic bags here. 

I know some of my clients now offer only paid bags. Some use paper bags. One advantage of the expensive paper bags is that the customers appreciate is that they can be given to someone with no gift wrapping required.

One problem with them that several complained about was that the plastic bags are more weather resistant than the paper. Anyone that has lived in Melbourne will know about our rain problem, no city in the world has so many changes in weather as we have, so they are wondering if they now will have to put the items in a plastic bag and then put the wrapped object in a paper bag.  

If you do supply single use plastic bags in your shop, you now need to charge for them. This is easy to set up in our point of sale software. I am not sure about the law as to whether you can sell them with customers VIP points, I was not able to get a definate answer about this. 

Using our software, you can save a lot of paper compared to others.

Here are some suggestions on how to do it and save trees, money, time and bother.

1) Ask yourself, do you need to print the document? 

Too often I see people print a big report when all they require is a few numbers, why print it, use the preview and cut and paste the figures you need. That is why we made the preview!

2) Before you print use the preview to check the report to make sure that it is right, it is very frustrating to print pile of statements, then see that it is wrong and then have to reprint it. Proofread it first on the screen. What I do is make a checklist of items to check before printing. 

3) Do you need all the report, maybe only print the few pages you need.

4) On the top left side of our reports, click export (where the green arrow is), so you can examine it in a wide range of electronic formats. 

My favourite that I use a lot is excel which is marked in purple. 

This will give you a lot more flexibility then printing ever would.

5) If you are thinking of mailing it, ask yourself, does the person who you are sending it to need a paper copy? Many today are more than happy to receive it electronically. If you have their email address, send them an electronic copy in PDF and if they want it printed, let them print it. 

This also saves you time in organising the printed documents, wear and tear on the printer, envelopes for mailing, going to the post office and stamps.  It also as in statements is a big saving in time, money and bother when your client claims that they never got it.

6)  If you must print, try and reuse the paper, many reports for inhouse use can be printed on the reverse side of a previous published report that you no longer need.

7) Use a cheaper grade of paper, if possible, also take advantages of special deals. One of my clients picked up a crate of paper for almost nothing. Then set up a stand in the shop and put it up for sale as well as used it internally too.

8) Store reports electronically rather than the file. This also saves on the filing cabinet space. 

9) Review what you print, do you need to write all the information that you do on receipts and statements? Besides printing receipts faster, it saves not just on paper but also wear and tear on the receipt printer too.

10) I use previous published report that I no longer need as note paper.

While we are still far away from the paperless office, which is unlikely to happen soon, there is considerable potential for you to reduce paper consumption. 

The number of POS Cash registers you require is based on peak business volume. What happens then is that the long checkout times provide your customers with an opportunity to reconsider their purchase as such many will abandon the proposed purchase. A rule of the thumb in Australia in retail is six (6) minutes max.

The problem is not the actual time but the perceived time. 

That is why if you notice the many often near the counter, a stand with popular magazines. It is not as many think primarily to get impulsive sales; it is to keep people busy while they are waiting in the queue. Maybe they will buy the magazine if so its a bonus, but at least while they are reading, they do not do a walkout. 

Another idea frequently done is free WIFI, while people are in the queue they can fill the time productively doing facebook and email checking etc. 

Another idea is a TV screen showing the news or weather. 

Still, their maybe a better way. Instead of trying to fix the symptoms of the problem, why not try to fix the problem,

With our software what you can do is have one cash register station run multiple draws. So when it gets busy, a staff member has a draw ready to go and can serve your customers. 

It does not take any more room.

One of my competitors has released recently a benchmark study of what a study of their clients would show the return on investment of point of sale software to a retailer.

The figures they come up with are impressive. Like always, they do *NOT* state what standards they use for their calculations. I strongly suspect that like always they make up their own but anyway, they quote percentages and I think it does interesting reading  

Stock (Inventory) a 3% improvement. 

I can believe this. I think its a gross underestimation.

Just being able to put a figure on it, is a big step.

as I have seen just being able to qualify figures and manage thousands of items in a department better is a big plus notably as it reduces dramatically stock-outs.

We have had clients that have reduced stock holding by 30%. The Wikipedia quotes examples of 25% to 30%

Time saved in Purchasing a 50% improvement

Once set up, which can take some time, you can use automatic orders and save, I would say often much more than 50% of your time. What people tend to do is print out an automatic (focus) order. They then look and adjust, make some changes often quite minimal and send off an order by fax or email. 

VIP a 4% improvement

Managing a VIP club is difficult without a computer system. A good VIP club in a typical shop we have is also coming in about that too. Today about 79% of Australians are in loyalty programs.  

ecommerce 6% of sales

A good website attached to your shop should now be generating at least that. We have clients that are doing much more than that. Having one means your shop is open 24 hours a day, seven days a week.

Buy Now Pay Later (BNPL) is now big business in Australia and growing fast. As many as 30% of Australian adults now have one or more BNPL accounts, which makes for roughly 5.8 million users nationally. Nearly half of these users say they’ve stopped using their credit card to spend goods.

Why not a BNPL customer buys $20 in your shop on EFTPOS, you surcharge 50 cents, so it costs him $20.50 which they are paying now. If they buy the same product with a BNPL card, they get it for $20 and gets good terms to pay. 

Why no fees, well the business model of the BNPL is to charge mainly the retailers not the customer in return what the BNPL companies offer is a lot of business to the merchant and quite a bit of service.  To the retailer, the first immediate problem with these services is the fees as they are looking at fees between 3 to 7 percent.  Many of their products cannot afford these fees.  Many stores cannot afford to switch from a low-cost EFTPOS model to a BNPL model.

Often I find on Lay-by most retailers would accept this loss as it is cheaper than monitoring the Lay-by plus it avoids a legal minefield. But Lay-by is only a tiny percentage of the overall trade of retailers.

The other problem is many retailers question whether the BNPL model will drive much business into their shop.  

What many retailers, that handle BNPL do is only offers those products and services that have margins good enough to pay BNPL plus restrict the use somewhat of BNPL.

All BNPL companies and I have spoken to a lot of them, have made it quite clear that they do not like surcharging. Some of the BNPL, although they do not like it, they will accept surcharging, but some will not take it. The other point is that the customers that use BNPL have made it quite clear that I do not like surcharges either. I have seen them abuse merchants on social media who do it.

This is putting every retailer in a terrible plight.  To BNPL or not to BNPL

So I welcomed the news that the Reserve Bank of Australia is questioned 'whether there are "policy implications" from "no surcharge" rules that restrict the ability of merchants to apply a surcharge to pass costs to customers – something not available to the credit card schemes.'

Consider this

As most people who have BNPL, have a few BNPL cards, if one BNPL enforces the ban on surcharges and the merchant reluctantly accepts it because they are so big. Then the public will be drawn to that BNPL, and the other BNPL which does allow surcharging will be disadvantaged. 

If the BNPL are forced to allow surcharging, I suspect few users of these BNPL will accept these fees of 3 - 7%.

We all I am sure will all be quite interested to see how this comes out.