The POS Software Blog

The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

CategoryRetail Advice

6 best-value insights that will benefit any local small business retailer

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Retailers in local small business shops can feel alone sometimes when working on their business. They can sometimes get lost in a cave of thoughts without seeing a way out.

We thought about this and considered the thousands of different retailers in our POS software user community, and we developed the Insights Dashboard in our POS software, to deliver easy access to local small business retail insights that any retailer could leverage, regardless of size, location, specialty area or setting.

We wanted to ensure that what we delivered would be useful regardless of level of business management literacy and financial management literacy. We wanted to deliver the insights without the retailer having to seek them out. We wanted to genuinely add value to what a local small business retailer could gain from using our POS software.

So, via the Insights Dashboard in our POS software, we provide insights in six broad areas – with the insights delivered visually.

Where Are We Today 

Gives you a snapshot of the overall sales & liabilities as it stands today.
 
You can access additional options by clicking the … symbol next to Todays Sales.
  1. Date Range – Expand the sales period covered by changing the start & end dates.
  2. All Locations – Multi-store locations can use this option to include/exclude other locations from the sales figures.
  3. Show Gross Profit Values – This option will show / hide GP values in the Daily Sales Dashboard, which you can access from the Point of Sale screen by pressing [Ctrl] + [D] on your keyboard.

What’s Not Selling 

This gives you a visual understanding of what is not performing in your business.  Deadstock in any business is lost cash.  This report gives you the ability to make decisions on this underperforming stock whether it be discounting or other stock reductions strategies to unlock this lost cash.  
 
You can click any stock item listed to show a graph of sales of that item broken down by month.
There are a number of options available to filter the stock items that appear in the list:
  1. Date Range – Limits the list to stock that has not sold in the amount of time specified.
  2. Listing Bottom – Maximum number of items to list.
  3. Rank By – Determines the order that items appear on the list in.
Click the … symbol for additional options:
  1. Departments – Select between showing stock from all departments or tick the desired departments from the list.
  2. Suppliers – Select between showing stock from all suppliers or tick the desired suppliers from the list.
  3. Exclude Recently Added Items – Exclude stock items that were added to your system inside the time period chosen in the drop down box.

What Am I Missing Out On 

This give you a list of items that have sold out and potential missed opportunity. The visual sales history will assist in ensuring the right items are restocked to ensure future revenue is not missed out on.
 
You can click any stock item listed to show a graph of sales of that item broken down by month.
There are a number of options available to filter the stock items that appear in the list:
  1. Date Range – Limits the list to stock that has sold more recently than the amount of time specified.
  2. Listing Bottom – Maximum number of items to list.
Click the … symbol for additional options:
  1. Departments – Select between showing stock from all departments or tick the desired departments from the list.
  2. Suppliers – Select between showing stock from all suppliers or tick the desired suppliers from the list.
  3. Exclude Recently Added Items – Exclude stock items that were added to your system inside the time period chosen in the drop down box.

What Sells With What 

This gives you an insight to consumer basket analysis. Through this you will see exactly what stock items sell with other stock items and from this you will be able to leverage upsell opportunities, co-location and promotion opportunities.   This also shows the sold alone percentage so you can see item upsell efficiency.
 
You can change the period of time in the Date Range to limit the data to the period chosen. The ten items displayed are the ten best selling items by quantity for the selected time period.

Is Theft An Issue 

This provides a in-depth visual overview of all the retailer audit log records by reason, number of occurrences by time day. This will assist in identifying staff theft/training issues that may need to be addressed within the business.
 
You can change the date range to limit the data to the time period chosen. Changing the time increment alters the lengths of time each day is broken up into.
You can view more complete records by using the Audit Log directly. Please contact Tower Support for help using the audit log.

When Are We Busiest & Quietest 

This is a visual overview used to detect any quiet or peak times in your business by displaying over the week as well as detailed by hour.
 
You can change the week ending date to see data from other weeks. Next to chart value type, you can choose to measure by sales value or number of sales.The top graph shows sales broken down by day of the week. You can change the type of graph used to display this data by clicking the diagram type in the bottom-right. The bottom graph shows sales broken down by time of day. You can change the type of graph used to display this data clicking the diagram type in the bottom-right. You can also view this data as a table by clicking the table symbol in the top-right.

Tips on common pitfalls retailers make when having websites developed for their businesses

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Too many local small business retailers make common mistakes when having websites developed for their businesses. We see this often when called in to fix issues with a website created elsewhere. Our web dev team provides a thorough honest assessment of websites and lays out a pathway to a better solution for the customer.

It surprises us to see some awful websites, built on plenty of mistakes that stem from poor outlines of requirements.

For what it’s worth, here are the top 7 mistakes we have seen retailers make when setting up a website for their business.

  • Not knowing the target customer. The target customer for a website connected to any shop should not be considered to be the person walking through the r=front door. rather, it should be the person you want to reach, the person who would never walk past your shop. Knowing who they are, where they are and what they could be looking for is key.
  • Making the website a copy of the physical shop. If you copy what you sell in your shop online you are not likely to find new customers and the best website for a shop is one that finds new customers for the business. Nice is best. Niche is appealing and easily found through online searching. Stand for something – not not everything you currently sell.
  • Thinking it is easy and once the site is live you are done. Creating and maintaining a website is hard work, relentless work. Think of a website and a hungry beast, and you have to feed it.
  • Believing a web developer knows what is best for your business. Web developers are not retailers. They may have opinions about what looks good or works well, but do these opinions match the needs of your business. It is best to find a web development who genuine understand your type of business and what you want to achieve online.
  • Failing to understand the total cost of ownership. Paying for a website to be developed is on thing. What is the cost of maintaining it. be sure to have this documented before you begin because once you are into it you are on the hook for future costs. Knowing this upfront is key.
  • Different is good. Too many retailers are lazy, loading images and product descriptions from suppliers. Search engines see this duplication and mark sites down that copy others in terms of content. The more of your own content the absolute better for you and for your business. Sure, this is hard work, but it pays off.
  • Your website is not a destination. Okay, it is a destination for online shoppers, hopefully. But, it is not your online end point. The website will have to evolve and, eventually, be replaced. Go into it knowing it will not be your final online presence, that it is, rather, a stepping stone on a pathway.

Take your time to figure out what you want, but not too long as what you launch will quickly change as change is critical in retail business websites.

Footnote: we know about this because we  have created plenty of websites for our retail businesses and for hundreds of our retail POS software customers. The most useful ones have been those that failed. The successes are terrific. But it’s the failures that are educational.

Indie retail advice: let’s not get sucked in by downcast sales forecasts by big retailers

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Some big retailers are predicting flat or declining sales through 2023 and into 2024 in the US and some here in Australia. There are forecast reports of comp (comparable) store sales, we tend to call these same store sales, of 3% to 5%.

The challenge is that journalists and news editors hear this and attach the downward forecast to all retailers.

I know plenty of independent retailers in Australia who are forecasting growth over the same period. Okay, not massive growth, but growth nevertheless.

In my own local retail stores, I am planning for 5% growth and hoping for closer to 10%. But more important than the sales revenue growth number is growth in business GP percentage achieved. Growing that several points is more important than revenue growth.

If you grow business GP% by, say, 3% and overall revenue by 1% the bottom line benefit to the business would be considerably magnified compared to no change in GP% and 1% revenue growth.

Retailers can think of GP% growth being achieved by buying better, which, for sure, is true. Often, there are opportunities for a small increase when pricing items to build in better margin.

The other opportunity here is stock turn. Working inventory to turn faster is a terrific bottom line benefit.

There are many growth opportunities in indie retail channels, many opportunities to achieve good growth in revenue and in gross profit percentage performance.

How do we achieve that?

Look at your current sales data, look for green shoots, indicators of opportunity for you. In a retail newsagency these are typically in cards, magazines and stationery. Sales in these departments can indicate opportunities outside of them, maybe in new areas for the business, better margin areas for the business.

Every retail business has green shoot indicator categories.

I know of many retails where this approach of data lead range review and gross profile percentage growth is successful.

Covid.

One of the consequences of Covid was that many shoppers tried local retail for the first time in years. We showed that we offered diversity in products and personal service. We can continue to leverage these differences. But we have to show rather than tell.

Big retail looks like big retail. Their displays tend to be blah and their differentiator tends to be price.

In local retail, displays that are more fun, appealing and enticing can work well. back this with shop floor knowledge and genuine personal service and price is a secondary factor. people want to enjoy shopping. They want to walk out of the shop feeling good. That feeling is currency, it pushes pure price to a secondary consideration as value is felt in other ways.

The economy.

Yes, there is pressure in the economy because of rising interest rates. There is still plenty of money around for what people want. Want is a big driver for spending. It’s the emotional purchase where you have good opportunity. Especially as a skilled local retailer who is able to feed into the want.

You.

The reality is that there will be more tough economic news and negative reports about retail. You can choose to watch that and worry, or you can create the retail experience that is an oasis of happiness, a place locals enjoy and are happy to spend. Every day, choices you make in your business determine this.

If you do what you’ve done every day for years, your results will be what you are used to. I think indie retailers can do much better than that. 

Tower Systems helps independent retailers to expand and find new shopper traffic

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Efficiency is the name of the game in local independent retail today.

Efficiency of retail space. Efficiency of inventory investment.l Efficiency of tech infrastructure. Efficiency of labour.

While specialisation is important in retail, finding allied specialty areas that expand the appeal of your business is important today, as that can address efficiency opportunities like those noted above. Through our POS software we help with this and through our business management support and advice we can reveal allied product and category reach opportunities.

We are grateful to help local independent retailers with this. We use the data we can access and share this with retailers.

In the big retail, mass retail, spaces we see fresh examples of expanding into new product categories.

Two stories in recent days reinforce the extent of change in retail and remind all of us in local indie retail to consider change as well.

Bunnings announced the addition of 1,000 pet related lines.

Bunnings gears up to be dog’s best friend with expanded pet range
Emma Koehn

Hardware giant Bunnings is hoping shoppers will add dog food and toys to their shopping lists when heading in store as the retailer launches a significant expansion of its pet merchandise business.

Bunnings will throw down a competitive challenge to specialty pet retailers, which have boomed since the COVID era, when it expands its range from a couple of hundred items to close to 1000 products from late March.

This is a smart move because the majority of pet related purchases are habit based and habit based shoppers are tremendously valuable. Their regular shop is valuable in the context of what else a business operates.

It’s kind of I told you so but around 5 or 6 years ago we suggested the pet category to another retail channel.

The other move in by Chemist Warehouse, into optical.

Chemist Warehouse and Peter Larsen join forces to ‘disrupt’ optometry industry

MYLES HUME
February 15, 2023, 3:18 pm 847

The first store in Melbourne is the start of a mass rollout to take place in the coming years.
Australian pharmacy retailer Chemist Warehouse has entered the optometry market, opening its first store in the Melbourne suburb of Malvern and appointing prominent industry figure Mr Peter Larsen as its managing director.

On 15 February, Optometrist Warehouse announced it had opened its first location at 120 Glenferrie Road, with plans to “disrupt the industry” in the coming years.

“Initial expansion plans include the opening of a handful of stores in 2023, followed by a mass network rollout which will see Optometrist Warehouse become a household name and the go-to optometry service provider within the Australian market,” a press release stated.

We noticed the Chemist Warehouse move as one of their first locations is two doors from one of our shops.

These are thought out moves, designed to reach new shoppers, to strengthen existing, well-established, businesses. In each case they target product / service categories served by vertical businesses, specialty businesses focussed only on these niches. It’s those narrow-focussed businesses that are at risk.

This is why we think it is vital that any local indie retail business draws shoppers for many different reasons, and not just the usual 3 or for product or service categories that we see are typical in a newsagency business.

So, our question today is what moves are you making to attract new shoppers? You have to have made or be making moves because you need new shoppers, especially new shoppers who would not usually shop your shop.

It’s not too late. There are plenty of opportunities. The moves by Bunnings and Chemist Warehouse should wake some local retailers up, and help them see the opportunities out there.

Retail is changing in 2023 at a faster pace than in recent years. We need to change.

How we help retailers deal with increased rent and other occupancy costs

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Retail occupancy costs are on the rise and try as retailers might to negotiate them down, in this property marketplace it is challenging to achieve the level of reduction or management that you may want.

This is why it is valuable to leverage your POS software to help you better deal with an increase in rent, an increase in occupancy costs.

In our Tower Systems POS software and in the training, advice and support that we produce our small business retailer customers, we help deal with the matter of retail occupancy cost.

We do this by helping the retailers buy better, turn inventory faster, drive more value from each shopper visit and manage business overheads, such as labour costs, more efficiently for the business.

Combined, following the advice and using the support that we offer, retailers can position themselves better for rising occupancy costs.

The occupancy cost of a business is the combination of all costs associated with leasing retail space. It includes the actual lease cost plus all outgoings plus GST. GST is included because of how the occupancy cost calculation us used, as a percentage of revenue, including GST.

Occupancy cost is typically the top one or two operating costs for an average local retail business outside of inventory cost. Labour being the other top cost.

Recommended Occupancy cost benchmark: between 9% and 11% of revenue where revenue is product revenue. This can vary by business type.

Explanation. The 9% to 11% suggested band is based on the margin we see as common in local retail businesses businesses.

Location and situation are a big factor in this benchmark. For example, a large shopping centre business will have a higher cost than a high street situation. However, the 9% to 11% band is recommended.

It is vital to the health of any retail business to manage the lowest possible occupancy cost. It is for this reason we recommend a low and viable base rent and a fair annual increase.

So, managing the business to pursue efficiency in inventory, space and labour usage is key. This is where our Tower Systems POS software can and does help thanks to the business training and the practical retail business support that we provide.

Small business retail advice: beware the payment redirection scam

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The emails of one of our customers was recently hacked on their business computer.

The hacker saw that we had quoted of supplying a new laptop a month ago. The hacker pretended to be us in an email to our customer and convinced the them to direct deposit money into a bank account they provided.

We only heard about it weeks after the deposit, when our customer contacted us asking where the laptop was. By then, the money, and the hacker, were long gone.

Hackers are sophisticated and clever. They make themselves look legitimate for people uncurious about emails and calls they receive.

In this instance, there were 3 indicators in the email from the hacker that it was a hack, 3 indicators we saw the moment we saw the email they had sent to our customer:

  1. The email named one of our staff members but had a dodo mail email address clearly visible.
  2. The grammar was poor – much worse than our usual typos (sorry for them). For example: all program has been loaded as well. The singular program is the giveaway here.
  3. We never ask for direct bank deposit by email.Our customers can shop with us online through a secure platform, or we issue an official invoice with payment details. Our invoices have a secure payment link.

What happened to our customer was what is called a payment redirection scam. We have provided our customers with advice on reasonable steps they could take to pursue what has happened to them, even though the chances now of resolution are slim.

For more, read about the payment redirection scam: https://asic.gov.au/about-asic/news-centre/news-items/asic-warns-small-businesses-to-be-vigilant-about-payment-redirection-scams/

While the advice from the ASIC and other government agencies is straightforward, it comes down to being vigilant, careful and questioning, especially before you part with any money.

For our customer, the hack was before they received the email. It could have been days or weeks before. Protecting against this involves the most basic of care – clicking only on links you absolutely trust and being careful as to the websites you visit from the business computers.

The Australian Cyber Security centre run by the Australian Signals Directorate offers excellent advice on protection against email hacks. We share this link with our customers as they are the experts. It’s best to share government provided expert advice rather than write our own. This way we are sure the advice is current and best practice. We particularly like:

  • Consider introducing an approval process for requests that ask to change payment details or make a large transfer.

  • Verify any such requests by calling the sender. Call them on a known and verified phone number (not a phone number from the email, as this could be operated by a cybercriminal). Speak with the sender over the phone to verbally confirm the request or change.

  • Ensure workers have clear guidance to verify account details and to think critically before actioning unusual requests.

  • Have a reporting process to report threatening demands for immediate action, pressure for secrecy or requests to circumvent protective business processes.

In terms of what we do at Tower Systems, we never ask our customers to transact with us insecurely. Payment is always through a secure platform, a trusted platform that protects our customers and protects us.

Checklist for anyone considering buying a retail business

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We are grateful to work with many people before they buy a retail business. Over the years, we have curated advice for buyers. Recently, we have seen an increase in acquisitions. here’s our fresh advice:

Local retail businesses  are appealing, and, looking out in the market, there are some excellent opportunities.

A common question we are asked by people who find me through this blog is what should I ask for when looking at buying a shop?

The question itself, when asked, indicates how green a prospective purchaser is when it comes to purchasing a business. Our first advice is that they better understand the retail business of today, to understand what they could be buying into.

Here is an updated list of data we suggest prospective local retail business purchasers access from the vendor or their representative:

  1. P&L from the accountant for the last two years. i.e. not a spreadsheet created for the purpose.
  2. A list of add-backs used to achieve a profit figure on which the asking price is based.
  3. Tax returns for the same two years. While note always appropriate given business structures, they can provide a cross check with the accountant P&L.
  4. Sales data reports, for the last two years, from the POS software in use – to verify the income claim. This source data is key.
  5. Sales data reports from the other sources to verify the income claim.
  6. BAS forms to confirm data in the P&L.
  7. A list of all inventory in the business including the purchase price and date last sold for each item. And, copies of invoices from which you can randomly select to verify.
  8. A copy of the shop lease.
  9. A copy of any leases the vendor expects you to take on board.
  10. A list of all forward orders placed on behalf of the business.
  11. A list of all employees: name, hourly rate, nature of employment, start date, accrued leave and accrued long service leave.

This is good basic information, a starting point, which will enable any purchaser to undertake reasonable assessment of a business.

Our advice to retailers looking to sell who may be concerned about this list is: think about it now and focus on your business so the data we have listed looks good. The time to prepare your shop for sale is every day you are in the business.

This is why we say every day is your pay day. Run a smart, lean and profit focused business and you will have a good pay day today and a good one when you come to sell.

The most appealing businesses are those that are easier to run and are making money.

Sure a purchaser can turn a business around. They should get the rewards if they are expected to do that for your business.

The price you can sell your business for will be based on what it is making now.

2 minute read: map your shop layout by GP contribution and see your business differently

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A few minutes spent analysing space allocation performance could reveal opportunities to embrace.

With retail space usually costing between 11% and 15% of (non agency) revenue, it is usually the next highest cost outside of the cost of stock itself.

Retailers often argue that rent should be lower. It could be that a different view of shop floor performance helps you achieve a better return.

  1. Take a blank sheet of paper, ideally A3, and roughly sketch out the layout of your shop, marking in display units, shelving, the counter – everywhere you have product. Include your back room if you have stock there.
  2. Colour-shade the layout by department.
  3. List the departments on the side of the floor plan.
  4. Calculate the percentage of total space used for each department. This does not need to be accurate to two decimal places. List this next to each department you have listed.
  5. Use your POS software to report on gross profit dollars earned by each department over the last year, or calculate it from sales figures knowing the average GP% per department.
  6. Calculate the percentage of total gross profit contribution earned by each department and list this next to the floor space allocated to each department – on the floor plan map you have done.
  7. Circle in green those performing the best, where the GP% contribution is more than the GP% space allocation, and in red those performing the worst.

Typically, a business owner doing this for the first time will have an ah ha moment, seeing something they had not realised. 

We have seen business owners make changes including to floor layout, quitting suppliers and increasing stock weight for some departments.

You can take the analysis a step further by looking only at one department and

analysing performance by category, using the method outlined above.

Our specialty retail POS software can help with this and more business performance analysis.

Our goal is to help you run a more appealing, successful and valuable retail business. As retailers ourselves, we use our software this way every day.

We can help if you are interested.

Find out more:

Thanks for reading.

Small business retail advice: how to stop dead stock sinking your bottom line

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We were helping a retailer turn their business around last year and one of the first things we looked at was dead stock. In their type of business, anything that has not sold for 6 months or more is dead. They had $32,000 worth of dead stock.

Their initial reaction was common, disbelief. We worked out a plan and soon enough quit that stock and used the freed cash to purchase more of what was selling.

The first way to resolve a dead stock issue is to understand the cost. Good POS software reports on it easily. Our Tower Systems POS software does. Our software also offers tools for m opting the stock, and tracking that to see the value of this.

We’re not your usual POS software company. Sure, we show how to use the software. But, we also offer advice from a business management perspective – how to use the software to drive value for the business and its owners. We do this from the position of being retailers ourselves. We can speak to our experiences in our shops.

That’s what we do in this dead stock situation. Plus, we draw on decades of practical help to other retailers.

Our advice is to look at dead stock / the age of stock every 3 months. You soon learn the value of buying based on data evidence in the business and being cautious when exploring new product lines.

Your software can guide you to make decisions more likely to work, and less likely to result in dead stock.

We have been working with retailers for many years and continue to be surprised at the disinterest of many retailers in the extent and cost of dead stock in their businesses.

When we bought a retail business a few years back we had written into the contract a cascading discounts for existing stock based on its age beyond 6 months. In that business, more than half the stock had been there for 6 months.

Dead stock costs the business today, and when you come to sell.

In our POS software and thanks to our personal training we help retailers reduce the cost of dead stock in their businesses.

Find out more:

www.towersystems.com.au

1300 662 957

sales@towersystems.com.au

The mental health challenge of theft in local small business retail

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Beyond the money, theft in local small business retail is a mental health challenge.

There is the situation of the person stealing, the customer, the supplier, the co-owner or the employee. Often there can be mental health challenges associated with or leading up to their actions.

Then, there is the mental health challenge for the business owner(s) following the theft.

In our work with local small business retailers dealing with theft from their business, we have seen mental health affected.

we have seen retailers so affected that they quickly sell their business, opting for a lifestyle change as a result.

Theft is personal. We get that there are plenty of ‘experts’ who say theft is not personal. But in our experience, it is. Your business is like your home. Theft is a violation of your home. This why it hits hard, why it hurst so much.

When we discover theft in a retail business we are helping we suggest the owners reach out to professional services for mental health support. Advice we have found useful includes:

Be sure of the facts. How much was stolen and how it was stolen. These specific details can help you draw a line under the situation.

Do something. Take an action, or actions, to protect against a recurrence. Acting on the situation can provide confidence and strength.

Be open with others. Sharing what happened and what it has meant to you can, of itself, nurture support.

Cleanse. The theft situation may have left you with an employee or two you no longer want in the business, a supplier to drop, a customer ti disallow. Take action to shut the door.

Exercise. Plenty off mental health professionals advocate active walking outdoors as a good step for calming and clearing your mind. Find the exercise that works best for you, walking, running, swimming, and engage in that exercise. From what we read and have been told, doing this away from you’re business regularly is key.

Try to not obsess. We have seen retailers become obsessed about theft following an incident. That can be debilitating and take joy from the running of the business. Find a balance that works for you where you can be vigilant, but not obsessed.

While dealing with the practicalities of theft is important in any local small business retail setting, dealing with your own mental health is important too. Work on it. be aware. Take care of yourself. And, be in control, rather than the crime controlling you.

Small business retail advice: what if you hate the retail business you own or work in?

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We are grateful here at Tower Systems to work with many different retailers in many different settings. Over the years, our experience has evolved. Add two this our own experience running our own shops for more than 26 years and we are resourced and able to offer insights and advice on local retail business management.

I hate going into work. As a friend of ours said these words we knew they had far more weight than if they had been said by an employee. Our friend owned the retail store to which they were referring. He hated going into his own retail business. They had fallen out of love with what they had created and the bitterness they felt towards their business had soured to hatred.

Why do some retailers hate going to work? It is an interesting question which needs exploration before we look at strategies for countering this.

There is usually a trigger – tough economic conditions, personal challenges away from the business, a partner dispute, tiredness… there could be any combination of reasons.  Sometimes, I have seen a reason quite a distance from the business itself.

If you own a retail store and you have reached the point where you hate going into work each day it is important to take time away from the business for an honest assessment as to why you hate the business. Until you can answer the question – why do you hate going into work? – you cannot begin to work on resolution.

Once you know the reasons you hate going to work, think about a series of small and achievable steps you could take to turn the situation around.

No matter how challenging the situation, there are always steps you could take. Focus on these, start work on them and in some instances that alone will be enough to move you through the fog of anger and ill-feeling toward the business.

Breaking a big problem down into small steps makes it feel manageable.

If finding small steps to take does not work, get together with a trusted friend and tell them how you feel toward the business. Ask them to talk with you about the business. Reminisce about why you started or purchased the business. Remember your dreams and hopes. Use the conversation to explore your emotion at the moment you decided to open or purchase the retail business.

If you have the funds, substitute your friend with a psychologist or professionally qualified counsellor to explore your feelings for the business.

We are not suggesting a business coach or mentor here because the ill-feeling toward the business is more often personal and is better dealt with by those with skills on working with feelings.

Understanding your hatred for your retail business is the first step. This will usually, of itself, reveal the first steps you can take to turn the hatred around. Be open to that. Take small steps and see where they lead. The change in feeling toward the business may not be immediate so do not expect too much too soon.

Some retailers we have worked with have felt ashamed of their hatred for their business. The best and toughest analogy we heard was that it was like hating your own child.

A retail store, especially one you created on your own, is like a child. There is no shame to be had in this feeling. So many factors can come into play to get one to this point.

By getting help to understand your feelings and using the understanding which flows from this to develop a strategy you can expect to start to feel better – even if the strategy involves you exiting that business.

If you do nothing, the hatred will be more and more reflected in the business and in your own person. Neither benefits from this.

Small business retail advice: 7 tips for keeping your bank or lender on your side

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Banks, and small business lenders, are vitally important for any retail business from day to day trading through to long term funding. A healthy relationship with your bank or lender will be vitally important to keeping the retail business healthy.

Maintaining a good banking relationship can be a challenge for retailers. It takes attention to detail and hard work. Retailers can be often sidetracked in their business days and not remember to take of the banking relationship.

Here are 7 tips which can lead to a better banking / lender relationship and thereby provide the business with protection against damage to the relationship.

  1. Be on time, every time. With trading figures, annual accounts and any other regular reports that you bank requires you to provide. Being on time will win a tick from them and ensure that you are not on their businesses to watch and be concerned about radar.
  2. Send them your newsletter. If you have a customer newsletter, put your bank manager on the list. Treat them like a customer and through this help drive a better connection between their business and yours. Newsletters go on your file and give local branch employees something to show off if they are talking to more senior people in the bank about businesses they like.
  3. Ask for regular meetings. You set the agenda for briefing sessions where you let the bank know how business is going and how you are leveraging your relationship with them. Even informal meetings are reflected in internal banking reports and these can strengthen your position with the bank.
  4. Recommend the bank. If the bank is serving you well and you are happy, recommend them to others. Be honest in your recommendation, let your friends know why you like this bank and what they have done for you. Let the bank know when you do this as it helps them see you and your business in a broader light.
  5. Invite bank employees in. If you are holding a sales or some other event, invite bank employees to participate. They could be good customers. They will also appreciate seeing the business first hand.
  6. Be regular. Banks appreciate regularity – with deposits and with payments.  Try and maintain a regular pattern in your business transactions.
  7. Write, update and follow a business plan. This should be point #1.  A well thought out and up to date business plan demonstrates how serious you are about your business.  Having this for bank review meetings will encourage them to treat you more seriously than retail businesses without a plan.

Treat the banking relationship as personal and one which needs to be nurtured each week. The better your communication the better the relationship. Be sure to set time aside for this in your work schedule and to include the bank wherever possible and practical.

The business outcome is flexibility when you need it and access for free advice at times of important business decisions.

Good banks appreciate good relationships with their retailer customers. You will find that they invest more time in businesses which invest time in them.

Here at Tower Systems while we are a POS software company, our advice and help for local small business retailers often reaches beyond what is traditional.

Small business retail advice: how and where to promote your shop to retirees

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The retiree (or seniors) marketplace can be lucrative for many different types of retail stores. They tend to be loyal and engaged in word of mouth marketing about good retail experiences. They can also be flexible about when they shop and this is where a retail business can really leverage the opportunity. They also network, leading to valuable word of mouth

Before you can market any retiree service or benefit you need to develop a plan for handling the opportunity. What products will be offered and at what special prices? The most common approach is to offer a flat discount to retirees, or seniors as they are called in some marketplaces. This discount is usually between 5% and 10%.

Price is important to the seniors marketplace since they either have a fixed income or are living off finite savings.  They like businesses which help them save money.

You will also need to decide when the discount or other offer is available. Some businesses make the offer available only on certain days, usually the quietest days of the week. Others offer access to the benefits all the time. Think carefully about the needs of the business before deciding when you will provide access to the benefits – focus on the business outcome you want to achieve.

In terms of accessing the benefit, it is common and fair to ask for some form of proof of eligibility. This could be in the form of a drivers license or a seniors card as is available in some locations.  This is a card usually issues by local government.  Sometimes, it is issued by residences.

An alternative is to create your own retiree / seniors card for use in promoting the business. These should be professionally designed and produced. Ensure that such a card is respectful and something these customers would proudly carry. Design the card so that it promotes the benefits you offer – so that it is an extension of your marketing program.

Whatever method you use to identify your retiree customers, it has to be simple to use at the counter for processing the appropriate discount.

To market a business to retirees consider these options:

  1. Train employees to offer the discount or other benefits to someone who looks eligible. While this could cause embarrassment, it could also extend the word of mouth around the offer.
  2. Promote to retirement villages in the local area.
  3. Advise local government authorities that you offer a benefit to retirees.
  4. Contact local clubs and organisations likely to connect with retirees.
  5. Promote the benefits in-store and in your business newsletter. You want to spread your offer as far and wide as possible, so that retirees beat a path to your door.
  6. Visit local retirement residences and offer assistance.
  7. Advertise in trailer parks.
  8. Look up clubs the Internet – there are plenty of groups, clubs and forums for older folks travelling around. They share tips about places they like.

The value of the retiree market to your retail store will depend on the value of the offer available to them and how widely you promote this. While some retailers see retirees as a chore others see a business opportunity.

Small business retail management advice: winers are grinners – using competitions to attract shoppers and drive sales

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Winners are grinners as they say. Shoppers who win from a retail store are happy and they tell their friends. Whether it is a large or small prize, the value to the business of making winners of customers can be considerable.

The best competitions are those where a customer of the retail store is guaranteed to win. That is, there the competition is store specific. While participating in larger national and state wide competitions around products brands and even franchise brands can be good for business, it is the local competitions which provide the best opportunity for local promotion.

Here are some tips on how to use competitions effectively to promote your retail store:

Every competition needs a focus. Promote a specific product or product category or a certain level of spending. Competitions open to anyone without a tactical focus are likely to be less successful.

Make entering easy for everyone. Ensure that the mechanics of the competition – how to enter – are easy and understood. You don’t want to slow down the sales counter or have customers reject entering the competition because of complexity.

Promote well. Promote the competition well in the business from the front window throughout the store.

Encourage participation. Get all employees actively promoting the competition. Offer a reward for the employee who achieves the most entries per hour worked.

Drive impulse purchases. A good competition is one used to drive impulse purchases at the counter. They key here is that the item being sold, the trigger for a competition entry, must be easily understood.

Show off the prize. If possible, show the prize of offer for the competition. This can drive people to engage in the behaviour you are promoting as they more easily understand the opportunity.

Show off entries. If entry in the competition requires shopper activity like drawing or coloring, show off the entries as this will drive more traffic to the store.

Promote winners. Take photos of competition winners, with their permission, and use these in newsletters and on a winners board in-store. This is how you can promote the store as a place where winners shop.

Host and event around the prize draw. Make the drawing of the winner a special event with its own retail hooks to drive sales.

Create a competition calendar. This can provide focus to the competition program throughout the year and ensure that they are a consistent part of the marketing mix.

Engage with suppliers. Call of key suppliers to support the business with prizes for your competitions. This is more easily achieved if the competition connects with specific brands.

Promote externally. Use the competition to promote the business externals in advertising and promotional flyers.

Competitions, regardless of size, can drive excellent results for a retail store. Professional execution is the key from the planning stand right through to the drawing of the winner. Ensure that everyone involved including customers have fun with each competition you run.

Small business retail advice: 7 tips for having fun while chasing growth for your retail shop

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Shopping ought to be enjoyable and, preferably, fun. Often, it is the experience itself which separates one retail store from another. This is why every retail business needs to devote management and front line attention to delivering a memorable and enjoyable experience.

One way to provide a memorable shopping experience is to have authentic and in the moment fun – among the sales team and with customers. Here are seven tips for having fun in any retail store:

  1. Theme days. Embrace an era which with interest your customers. For example, the 1970s. Dress the store and employees in keeping with the 1970s. Have a couple of items on sale at 1970s prices – to connect the theme with a commercial outcome. Get some stories from the 1970s related to products you sell and place these on display boards in the window. Consider a competition for the customer in the best 1970s costume.
  2. Other theme days include: school days, foreign country days where you wear traditional dress from a foreign country, crazy hair day and, of course, more theme days around key decades.
  3. Local sports competition. Fully embrace any major local sporting event, choose a team, dress in their colours and dress the store in their colours. Be unashamedly parochial and show your customers your local support.
  4. In-store buskers. Find some local musicians you enjoy and who have a repertoire which would connect with your customers and invite them in to play live for your customers. This would bring a vibrancy to the store and provide welcome entertainment for your customers as they shop. The local performers get to reach a new audience and you get to change up the feel of your business.
  5. Repurposing day. Host an event where customers compete for a prize for the most innovative repurposing of a product you sell. The idea would be that they take something you sell and demonstrate a use for it in a way which is completely different to what the manufacturer expected. There would need to be a rule that the new use is genuinely useful.
  6. The cutest baby. Invite your customers to bring in a photo of whey they were a baby, the older the better. Stick the photos on a wall and take votes on the best. You could change this up with two photos: as a baby and today and get customers to connect the two. Family members will come in to look at the photos and vote. A local store could get a real buzz with a promotion like this. While there is no obvious direct sales imperative, the traffic and word of mouth should drive good business.
  7. Stand up comedy in store. Invite local comedians to try out their stand up routines with your customers. While you would need to be careful about content, such an event would show the store supporting local artists and it could bring some fun to quiet retail times.
  8. Crazy tie day. While this has been done before plenty of times, you could kick it up with an amazing tie display – collect these from local Goodwill stores, invite customers to donate. As with the theme days idea, interact with customers and offer a prize for the best / worst.

These seven ideas are the tip of the iceberg for in-store promotions. They are designed to kick start your own thinking, to pursue what its right for your specific type of retail business.

The key here is to give everyone who works in the shop permission to have fun, and nurture fun.

Retail is very much about the shopping experience. While good customer service and a friendly shopping experience are vital, sometimes it is the wonderful unexpected experience which can get people talking about a business.

Be bold and have fun.

Small business retail advice: 5 sales tips for retrial sales people

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Selling is the lifeblood of retail, especially local small business retail.

It takes skill, stamina and creativity yet it is often treated as one of the lowest roles in an organization. Smart retailers help their sales staff improve their skills to better serve the business and its customers.

Some salespeople are naturals while others work hard to learn the skills. Everyone, no matter how experienced can improve. Take a moment to consider these five steps to better selling.

  1. Be in the moment. Focus on the customer in front of you, listen and respond to their needs. Genuinely care, don’t just act like you care. The personal connection they feel from and with you is more likely to bring them back into the store than almost anything else including product and price. If you are not comfortable with developing such a personal connection then maybe retail is not for you.
  2. Understand what you sell. Knowledge is king, even more so in retail. By knowing everything there is to know about the products you sell you make yourself more valuable to the business and to its customers. Good employees spend personal time learning about the products and how they are of value to their customers.
  3. Enjoy yourself. Smiles and laughter are infectious. If you are happy your customers are more likely to be happy. Happy customers are more relaxed about spending money. But don’t fake it as fakes can be spotted. Know what makes you happy about your job and embrace this. Never be afraid to bring i bit of your personal self to the shop floor or the sales counter.
  4. Know when to be quiet. Some shoppers like to be told what to buy but most prefer to make their own choices. It is important to spot the difference and know when to leave a shopper to make their own decision. Provide the information important to the decision but leave them space to make the decision for themselves.
  5. Selling is a service. Too often, especially in busy retail environments, selling is seen as production line work. If this is how it is treated then the experience will be less personal and memorable for the shopper. If you treat it as a service and understand that service does matter, you focus on the service as the point of difference. This change in mindset alone can lead to considerable change in a retail business.

So how to these steps increase retail sales? It all comes down to the service delivered being better than elsewhere: more personal, friendlier, more knowledgeable and genuine. Combined, these attributes make for a unique shopping experience in today’s cookie-cutter obsessed retail world.

Retail employees who see retail as a career will do well for their businesses and for their careers by embracing these steps.

Small business retail advice: the shop window is often the most underused retail business asset

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Here at Tower Systems we are grateful to our thousands of local specialty retail business owners for their insights, advice and support. This community will our well of knowledge, they enable us to share this with others, like we do here in this place.

Today, let’s talk about the shop window. It’s a vital business asset as it works 24/7. It pitches your business to people often who have never shopped your shop.

Get it right, and your shop window can provide an excellent financial return for a modest investment.

The window of any retail business can tell how serious the business is about business. If it does not regularly (at least weekly) change, has old stock, is dusty or dirty, is covered in signs or presents mixed messages then the business most likely is not doing do hot.

Look at the most successful retail businesses, they have a window strategy. From national groups to independents, successful retailers understand the importance of the window in the overall marketing plan.

As prime retail real estate, the window is a place to be respected, obsessed about and wholeheartedly embraced. Consider these ideas for developing a window strategy:

See your window how others see it. Step outside your business and cross the mall or the street and look at the front of your shop. Spend a while doing this. Go back again if you are not sure what you see.

Look at other windows. If you have competitors nearby, check out their windows. If you have retail businesses you admire, look at their windows too.

Develop a window calendar. Decide on themes for window displays, set dates when new displays are to be installed. Engage all team members in deciding on the display calendar. Be sure to cover off the major seasons for the business. Be sure to balance window time to all product categories in the business. Be sure to build opportunities into the calendar for community engagement – the window is a terrific place for community groups to show off and bring their contacts to your business.

Be single minded. Each window display should have a single message. This ensures greater impact and provides a better opportunity for success.

Strip it back. Retail business windows often have unnecessary items which have been added over time. Strip as many of these back as possible. Leave the maximum space for your themed displays.

Learn how to create stunning displays. Consider sending employees to a visual merchandising course to learn how to create displays. Alternatively, bring in a visual merchandiser to create the displays for you.

Be prepared to do it over. If a window display does not present the business well or reflect your point of difference – from across the street or across the mall – do it over.

Remember what window displays are for. Then window display is for your customers and would-be customers, to get them to visit and buy from you. If a display does not do this then it has failed.

A good window display will drive traffic and sales. The impact will be felt almost immediately. Be brutal in your assessment of success. It is business after all. The business needs a return on investment from this most valuable retail real estate.

A great window display can reinvigorate a retail business and help everyone involved love the business a little bit more.

Now, if you are motivated to change your window – do it yourself, from scratch. Anyone can. No experience necessary!

Small business retail advice: increase sales by recalibrating your sales counter

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Across a range of specialty retail channels, Tower Systems is grateful to serve thousands of retailers. Years of doing this, collaborating with them, has helped us developed a deep well of experience and knowledge, which we happily share.

The retail sales counter is premium space in a retail business. Too often, however, the counter is cluttered with products placed there in pursuit of impulse purchases or because there is nowhere else in the store for them.

In some retail settings, the counter itself is redundant. Think about that, because if a counter in your business is redundant, having one makes no sense.

but, back to the topic at hand – making the counter more successful for you.

A cluttered counter mentality often starts with one item which works so retailers add more and more until the counter is a mess of colour and small displays.

Representatives of suppliers pressure retailers to take offers, structuring deals to make counter placement compelling.

The result is a mess of color which rarely changes and is poorly managed in terms of return on space.

A good retail counter is a profitable retail counter in terms of the value of impulse purchases achieved.

At a good retail counter, less is more. By creating better displays without products competing for attention, the featured products have a better opportunity of performing.

Here are some tips to un-cluttering a retail sales counter which have worked in many different businesses.

  1. After the business is closed on a day, take all products off and clean the counter – completely off so that the counter is bare. Yes, this is hard work.  But you get to rebuild the counter you want.
  2. Rebuild the counter story one product at a time. Consider the product from the customer’s perspective – is it something they are likely to purchase on impulse? Is the product understood? Is the price point attractive? Can they easily access the product?
  3. Create zones for promotional purposes. Having zones and clear space around them sets rules which are easier for all team members to follow. Depending on the store, you may have items which children will like more at their level and products aimed at adults at a higher level.
  4. In choosing counter products, consider what will be on the minds of customers as they transact their sale. Are there products which add-on nicely to popular products you sell? Are their guilty-pleasure products which they can enjoy while shopping – like premium candy? Do you have small gift items which work in a variety of situations? Do you have gift items which people would be happy to pick up as a gift for a friend?
  5. Once the counter is rebuilt, step back and look at this from the perspective of a customer. Are the offers compelling, understood and valuable? Look at the counter from multiple points in the shop from the perspective of the counter being a marketing opportunity and not just a work desk. Are there items which could be removed?  Sometimes, less is more.
  6. Change key counter offers at least weekly – more often if your customers visit multiple times in a week. This helps fight against customer and employee store blindness.

By having fewer products at the counter and being more strategic in product placement and display, the products have a better opportunity of being noticed and purchased.

Where many retailers rely on an over the counter sales pitch to achieve the impulse purchase, smart retailers configure their counters to do the up-selling for them. This gives customers ownership of the purchase.

By tracking the success of counter offers you are able to build a good database of what works and what does not work. This can guide future counter placement decisions.

The sales counter is too valuable in any retail business to allow it to grow organically. Take time to manage it and expect good results.

Small business retail advice: sometimes it’s the bonus, the add-on, the unexpected that really sets your shop apart

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We are grateful to serve thousands off local small business retailers across a diverse group of specialty retail settings. Our work over many years has helped us develop insights that we willing share with local small business retailers. beyond our POS software, we actively support local retailers in myriad ways.

Today, let’s reflect on the bonus, the unexpected.

It is a good rule in business to always give your customers more than they expect.  It shows you value them, go the extra mile and delight in surprising them with good news and good opportunities.

The best way to demonstrate delivering unexpected value is to provide it here in the form of three special reports beyond the scope of what was planned and offered or RETAIL RESCUE.

Before we get to the bonus reports, consider these ideas for adding expected value to customer transactions your retail business:

  • Give the customer a small gift, something completely unexpected. Even something as simple as a chocolate can be the perfect thank you.
  • Package the purchase in a premium reusable shopping bag. This promotes the business and shows that you do value them.
  • Provide a voucher offering a discount if the customer returns in a specified period of time.
  • Depending on the nature of your store, give free gift which relates to items you sell. For example, if they buy a men’s suit, offer a free tie or if they buy six cup cakes, give them the seventh for free.
  • Connect with another business and offer a gift which is a free item or a discount from their store – they could do the same for your store.

The key to giving bonus rewards like these is to not promote it.  As Nike says, JUST DO IT!

By offering added value at the counter at the end of a sale it comes across as if you are doing something special for this customer.  This will make the gift more valuable than if it is widely promoted.

Giving your customers better value or a better experience than expected will be remembered and talked about.  It will build your business.

The POS Software Blog

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