The POS Software Blog

The POS Software Blog

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

Small business retail advice on how to handle and leverage low margin products


We know that low margin, high volume businesses can be tough. The traffic is good, but the profits are slim. And it can be hard to know how to make the most of those low-margin products and services.

How do we know this you ask? Here at Tower Systems we serve thousands of local small business retailers. This provides us with broad experience. It is surprising the crossover value of knowledge across retail channels. As well as helping retailers leverage our POS software we are grateful to share this business management advice.

No, back to low-margin products and how dealing with them can feel challenging for small business retailers.

Don’t worry, we’re here to help. We’ve put together a list of five must-do things to leverage your low value traffic.

  1. Place at least one offer or stand at the door. This is a great way to catch people’s attention as they’re leaving. Make sure the offer is clear and relevant to people walking in or walking by.
  2. Use a portable table for pricing stock. This is a great way to keep your stock looking neat and tidy, and it also gives you a chance to upsell other products to customers as you are pricing items.
  3. Pitch other products to customers who are buying low-margin items. This is a great way to increase your average order value. Like, use the traffic of low-margin product to sell other things.
  4. Have an offer at the counter that’s unrelated to the low margin purchase. This is a great way to tempt customers into impulse buys.
  5. Establish a floor unit to guide counter traffic. This is a great way to showcase your products and services, and it also helps to keep your customers moving through your store.

Oh, here’s a bonus tip. Offer a sample, a taste, or a feel (if appropriate). People engaging with a product are more likely to purchase. We have seen this happen in a. range of different types of retail businesses.

We know that these tips might seem like a lot of work, but they’re worth it. By following these tips, you can increase your profits and make your low margin, high volume business more successful.

If you need any help, we’re here for you. We have awesome tools to help low margin, high volume retailers, and we’d be glad to give you some practical advice.

Why this advice from our POS software company matters.

Every day we connect with small business retailers about their businesses, through our help desk, in sales situations and elsewhere. Owning and running a local small business retail shop is challenging, time-consuming. Coming up with fresh ideas is hard. It’s necessary though. The ideas we share here are things we have tried, and found to work.

Thanks for reading.

By Mark
The POS Software Blog




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