CategoryJeweller software

Small business retailers often miss the opportunity to maximise pricing of items over which they have in–store control of pricing. There is good work that is easily accessible to help retailers better understand the opportunities.

In this posts we share information aimed at helping small business retailers make pricing decisions:

The power of the number 9.

In his book Priceless, William Poundstone analyses  8 different studies on the use of charm prices (pricing that ends in a 9 or a 5 but usually a 9), and found that, on average, they increased sales by 24% versus their nearby, ’rounded’ price points.

Poundstone has a video which explains this. It’s worth watching and can be found via this link: http://youtu.be/nZqOGhWw3Q8.

For a more complete study on pricing, read The Widespread Use of Odd Pricing in the Retail Sector by Judith Holdershaw, Philip Gendall and Ron Garland. Published in 1997 in Marketing Bulletin. http://marketing-bulletin.massey.ac.nz/V8/MB_V8_N1_Holdershaw.pdf

What to include in your calculation.

Start with the real cost price. This should be regular wholesale plus freight. Keep any supplier or other discount as a bonus for yourself. Add freight as it is a cost associated with your location. This is not yours to soak up.

Setting your price.

In considering what to sell something for, ask your colleagues in-store how much would you pay for this? Do your research, too and see what others nearby sell the item for. Finally, consider carefully your objectives for the product – is this a volume play or a margin play?

Your pricing choice may not be as clear-cut as it would seem. For example, you could set a high price knowing that with a discount voucher on purchase the item appears to cost less. You might have volume pricing: $xx.xx for one, $yy.yy for two. You could have the item bundled with another to differentiate your offer to that of a nearby competitor and thereby offering you the opportunity to break free on pricing.

Think carefully about where in a band you price an item.For example, Items priced above $7.99 could probably sell at $9.99. Items above $19.99 should either be $24.99 or $29.99 and no other number in between. Above $29.99 more often you should target $39.99.

Avoid nothing prices that can cost GP. For example: $21.95 should be $24.99; $112.50 should be $119.99; $6.50 should be $7.99; $8.75 should be $9.99; $132.50 should be $139.99; $36.50 should be $39.99..

Choose to go to a higher price point rather than lower. Independent retail businesses  are expected to be more expensive. If you counter this with a consistently offered and generous discount voucher program then erring on the higher side of pricing works for you as your voucher sets value perception for your shoppers.

Our recommendation is that you always end your prices with a .99 and price at above RRP.

Be bold on price, make more money and make your business more valuable.

We are proud to support rural and regional small business retailers with our POS software. Our service is personal and in-store, placing ourselves where our customers are, to help them get the most from their investment in smart Point of Sale technology.

The personal service we provide to regional and rural retailers includes:

1. In-store demonstration of the software.
2. In-store personal experience in the business to fully understand business needs.
3. In-store personal one one one training in the use of the software.
4. Personal customer service, by humans who are based in Melbourne Australia and not an offshore help desk.
5. Virtual location in the business to help fine tune the system to maximise opportunity. We can log in, with customer permission, and make any necessary changes.
6. Regional user meetings.
7. Unlimited personal training.
8. Unlimited access to live weekly training seminars – accessible from anywhere.

These are some examples of personal services we provide that help regional and rural retailers leverage POS software for their commercial advantage.

One of the most crucial benefits delivered by Tower Systems is the offer to visit a business considering POS software. In that first visit we ask plenty of questions and we watch how the business operates, what happens in the business, how business is done … for watching and learning can help us understand if the opportunity is one for us or not. We know we are not a good software fit for every business we look at. We have found it valuable to us and prospective business customers to wish them best and walk away so they can fine more appropriate software for their needs.

Being in-store, being local with them enables us to ensure that businesses we work with are a good fit, that we can serve them well with software that is fit for purpose.

The initial visit is by one of our retail experts. They listen, learn and ask plenty of questions. This helps us. We have found regional and rural retailers appreciate this approach to the consideration of the POS software that is right for their business.

Tower Systems is not your usual POS software company. We are proud of this.

Our small business POS software company often provides general business advice to retailers, beyond our POS software specific advice. Here is one example – about competing with onlone.

Competing with online begins with your headspace, it begins with committing to getting the business right and relentlessly pursuing its success.

In practical terms, this means that every business decision is based on careful consideration of sound data. If the data does not support a business decision, you don’t do it. Simple.

Five ways you can compete with online

Here are five ways you can differentiate your business from online, ways that leverage personal, human, contact.

1. Track every contact.Treat every contact as a customer. Know who they are. Explain that it’s part of your service – to offer advice and keep in touch. This will qualify them as a customer from their very first question. While it may scare some off, better that you do it early before you give away your expert advice.
2. Give them a gift for listening to you.Every customer who spends time taking in your advice should be given a voucher for them to spend in-store in a purchase above a certain value. This shows that you value their attention. Presented well it can better connect them with you for the longer term.
3. Subtly share stories about the risks of online shopping.There are documented stories you can find about people being ripped off – what they ordered is not what they received, credit card fraud and the like. Arm your team with these stories … maybe a story about a customer who bought from you following an expensive rip off online.
4. Reward loyalty with a front-end approach.Ensure that every purchase over, say, $10, comes with a voucher offering a discount off the next purchase. Factor this into your mark-up model. Cash rewards showing on a receipt can be a powerful lure to bringing a shopper back.
5. Personalise your service.Arm all sales staff with personal business cards. Place follow up calls or emails to shoppers spending over, say, $100. Host networking events in-store. Connect with and support local clubs. Add value through personal contact at every possible opportunity. Structure regular, value-adding, contact with your customer base.

The difference between a bricks and mortar shops and a website selling similar products is that your business, the bricks and mortar business, is real, it can be visited, it’s personal. Everything you say and do needs to reinforce this and build trust based on this.

Tower Systems recommends Tyro broadband EFTPOS as the best EFTPOS solution for small business retailers. We have been Tyro customers ourselves in our own retail businesses for many years. We have partnered with Tyro with an integration to our POS software for many years.

Here is what we like about Tyro:

1. It’s fast.
2. It is seamlessly integrated.
3. It eliminated data entry.
4. It cuts mistakes.
5. Settlement is swift.
6. Queries are handled quickly.
7. Back end tech makes management easy.
8. It does not complicate the overall business banking relationship.
9. Fees are competitive.

Tyro is terrific as our years of experience using it in our own shops has shown us. This is why we happily recommend it to our small business retail customers.

Being fully integrated with the Tower Systems Point of sale software, Tyro is a fast and easy method of payment for 0ur customers. Setup is fast and easy and use is stable.

Speed is critical in high traffic businesses and this is where Tyro shines. We see it handle hundreds of transactions a day without a blip, with pinpoint accuracy. This is done with tap and go as well as with PIN security. The integration makes the process simple and easy and valuable for retail businesses thanks to terrific throughput.

Data accuracy is important too. The Tyro POS software integration eliminates keystrokes and every keystroke eliminated is a potential mistake eliminated. This is good news for retailers and good news for shoppers as both parties to a transaction want transactional accuracy.

As a tech partner with tyro, Tower Systems is at the forefront of development of integration opportunities and this is a terrific benefit to our small business retailer community. Leading with innovation, time saving and new revenue opportunities is important to us as we help our small business retail customers to grow stronger and more valuable retail businesses.

The Tyro EFTPOS POS software integration developer and supported by Tower Systems is a valuable piece for any retail business keen on accurate payments handling at the counter and elsewhere in the business.

Tower Systems is proud to serve small business retailers in many different specialty re6ail channels.

What is the cloud and why is it important?

The cloud is a marketing term used by technology companies to describe the accessing of software through a browser in one location where the actual software and data are stored in another location.

The cloud is not new. The first versions of this were running in the 1970s in the early days of computing.

In a small business retail sense, there were retailers in the 1990s operating this way. Indeed, Tower Systems had customers as early 1999 running in the cloud.

While technology has refined, the principles have not.

On a server runs your software with your data. From your retail location you access this through a web browser. Around ten years ago, in 2005, we ran four of our own shops in the cloud – none of the shops had retailer or data on their computers. This was before the term cloud became a marketing term.

While the marketing of the cloud has been excellent, the business benefits have not been so great, especially for small business.

The cloud seems cheaper because there usually is no up front cost. Add up all costs over three years and a cloud based solution will in almost every case cost you more.

In terms of business commercial outcomes, a cloud based solution may not deliver you better business outcomes. Business outcomes depend on your engagement with the data collected and managed by your software. This is on you and has nothing to do with where your software and data are hosted.

To run in the cloud, you need a good and reliable host with quality data backup, speedy access and 24/7 support from your country of location. Too often this is not the case.

Does the Tower Systems POS software run in the cloud?

Yes. We have customers today running in the cloud. In fact, we have plenty from single store locations through to retail groups with all stores running in the cloud.

We can help you establish your own cloud setup or provide one for you.

Running the Retailer POS software in the cloud starts with us understanding the business outcomes you want to achieve. Once we understand these we can guide you to the solution we recommend.

We have relationships with several hosting partners that we use in our own retail and technology businesses. We can connect you with them if you want to set this up for yourself or we can manage this for you.

The extent to which the Retailer small business POS software runs in the cloud is up to you. However, what you do and what you spend is a function of the business outcomes you want.

Our most popular cloud offerings today are our cloud based backup service and our cloud based link to Xero, the best-practice cloud based accounting solution.

How can I run my business in the cloud?

Running your business, your business software, in the cloud requires you to have business grade internet access. This is vital.

Next, you need to partner with a host. This is best organised through your software company.

It is vital your cloud provider offers the level of backup and redundancy you require for your type of business and you are prepared to pay for.

Tower Systems can help you through these steps, providing from our own experience running our own retail businesses in the cloud.

The best point for advice on what is appropriate to your needs is your local Tower Systems sales person. They will want to understand your business needs and from there they will provide practical advice on which you can rely.

More and more retailers and discovering the value of Shopify connects POS software thanks to the work by Tower Systems in this area.

With plenty of Shopify sites already under its belt, the web team at Tower systems has proven skills in delivering commercially valuable Shopify sites. The bonus is the seamless POS software connection that enables easy delivery of data in both directions, helloing retailers achieve beneficial gains.

All Tower Systems Shopify e-commerce development is done out of the company’s Melbourne office. This is uncommon as many Aussie web companies offshore their work.

By being developed in Melbourne Australia, our small business retail customers have easy, same time zone access to skilled developers who genuinely understand local retail commerce needs. The Tower Systems web development team, our Shopify experts, are readily available for direct customer contact. There is no barrier to this. We think this is important as there is no filtering of customer needs to serve language or socio-economic differences.

Tower Systems has deployed POS software connected Shopify e-commerce sites for many different small business retailers including those in high volume consumer sales through to those keen to serve a local and discrete geographic area. Our specialists can provide live examples as inspiration as well as drawing on overseas experience, where foreign currency handling and shipping are two factors of interest to retailers.

Our process for considering the development of a Shopify connected POS software solution is comprehensive, structured, transparent and fixed price. We think these focus pints tick the boxes for our customers. In fact, they tell us they do. We deliver each time and fine tune based on real world experience.

Being a partner of Shopify of many years standing places us well in terms of knowledge and experience. It also provides our customers with an easy to use and trusted platform for their e-commerce business. We have runs on the board, and we are proud of this.

Small business retailers can rely on their Shopify connected POS software solution to help them find new shoppers for online as well as for in-store purchases. Tower systems is committees to facilitating these outcomes.

What is unique about your retail business? What sets you apart from your competitors? What makes you a specialty retailer rather than another shop with products similar to what you sell?

Tower Systems only develops, sells and supports software for specialty retailers in specific retail channels: garden centres, jewellers, bike shops, pet shops, fishing and outdoors shops, firearms businesses, produce and farm supply businesses, games shops, newsagents and adult shops. This is what is unique about us, and we are proud of it.

Now more than ever, specialisation matters.

Standing out from the crowd is what bets people through your door and back for repeat business. Embedded in our specialty retail POS software are opportunities that you can leverage to help you stand out, through which you can be your authentic self. Our POS software can help separate you from the crowd.

Does the software specialise?

Beyond safe, secure, fast and accurate selling, we help you trade efficiently with suppliers, be flexible with shoppers and, best of all, spot trends and opportunities for a brighter future. Our software does this in the context of your specific type of business. Whereas general POS software is general in function, our software is specialist, helping you be specialist at every touchpoint.

And beyond the software?

POS software should help you beyond the traditional, it should make your life easier and your decisions more confident. It should shine a light on opportunities. Through unlimited training, human support, real life retail knowledge and a commitment to your success, Tower Systems helps. We love helping indie retailers evolve their businesses.

What if I want to know more?

We could tell you to go to our website, to research us for yourself. What we prefer, however, is to talk with you. We want to know about your business, what you do, how you do it, what is unique, what matters to you. We always have many questions … because, our software is not always a good fit. We have retail experts who talk with you, listen and can, if you want, show you our software, please call 1300 662 957 or email sales@towersystems.com.au.

And my business website?

Online is a vital part of retail today, especially indie retail. This is where you can find new customers, some of whom will never set foot in your shop. Through our Shopify / Magento / WooCommerce POS software integrations, our web development team can provide you with a beautifully integrated solution for your shop and for online.

About us.

We are an Australian owned POS software company serving ex excess of 3,000 small business retailers. We are well established and debt free. Investing in our current and future products is important to us as is listening to our customers to develop software to their needs. Our CEO is Mark Fletcher. His direct mobile is 0418 321 338. We share this as a demonstration of transparency and accessibility.

This is a million dollar question…

How do you get the most from your POS software?

Many POS software companies leave this up to you. They may offer training and support, but outcomes you achieve are left for you to gain for yourself.

Here at Tower Systems we offer to be as engaged as you would like. If you want guidance, support, encouragement, training, hand-holding to achieve the best from the Tower Systems POS software then all of those things, and more, are available to you.

We want 0ur customers to run successful retail businesses. We want them to enjoy using our software. We want their investment with us to deliver for them valuable rewards. We want them to enjoy their retail businesses.

As retailers ourselves and using our POS software in our retail businesses we know what can be achieved, we know first-hand the rewards available. So, when help retailers it is as a retailer first. This changes the conversation. Were think it helps our retail customers get more from the opportunity. It sets us apart from other POS software companies. We like it.

That every one of our POS software customers has access to unlimited training is an excellent and appreciated differentiator. That this training is personal, on–on-one is appreciated, is live is a bonus and is based on the data in the customer’s business is real gold. This is just one way we help our customers get more from their POS software, just one way we unlock potential that may not be unlocked if we left them to themselves without encouragement and nurturing.

Tower Systems is an actively engaged POS software company, delivering personal service, tuned encouragement and small business targeted education … to show what can be achieved, to help our customers reach their potential through good use of the software, to be more valuable beyond what they hoped for.

We take this seriously, delivering outcomes for our customers that are commercial as well as personal. We take it seriously because what our customers want for their businesses we want for them too. Our energy and focus are absolute and consistent.

This is another example of the Tower Advantage.

With the reports last week at Smart Company about Neto POS software, Tower Systems reminds small business indie retailers that it is a well-established, debt-free POS software company offering solutions in specific retail channels.

Software user frustration with Neto was expressed following a reported significant price increase for users of the software, imposed on them by Neto. In the same article, there is also information about the financial status of the company:

In an email sent to Neto clients on February 28, seen by SmartCompany, Neto chief executive Ryan Murtagh said the business needed the extra money.

“We have to balance our current costs while investing in our future,” he said.

Murtagh separately told Kofoed over social media that Neto, which is majority-owned by Telstra, could “no longer endure significant losses” associated with its legacy pricing model.

Three separate clients said they weren’t consulted about the change prior to the February 28 email informing them of the restructuring.

However, the company has been considering the move for several months.

Select clients were informed and asked for feedback on the prospective changes earlier this year, while clients informed last week have just a month to prepare for the hike if they are billed monthly.

Asked whether Telstra pressured Neto into changing its pricing structure, Murtagh said the telecommunications giant holds various board positions as the majority owner of the business and is “party to all decisions the company makes”.

Here at Tower Systems, our view on POS software companies that rely predominantly on a low-price subscription model is that the cashflow from such models will not be sufficient to fund the necessary and expensive software development and support infrastructure that retailers require in the proper and successful use of POS software.

The Tower Systems model is a mixture, where customers can choose what works best for them: purchase, lease or rent, or a mixture of all three if they wish.

Tower Systems invests heavily in its future. This is evident already in 2019 with a major software update already released, delivering access to new facilities along with the announcement of the imminent release of Retailer Roam, a new product for pop-up, outpost, mobile and queues-busting retail. Retailer Roam is already in preview and feedback has been terrific.

The result of long-term investment, Retailer Roam will be a valuable opportunity step for indie retailers who want to themselves evolve what retail means in their businesses.

In our work with a range of retail businesses across multiple channels, too often we see retailers get fixated on a competitor, often a big business competitor, not realising that they are their own most important competitor.

In our experience, the most important competitor a business has is themselves.

Comparing how you are currently trading against the same time a year ago is the best measure of the impact you are having on your business.

Comparing revenue, transaction count, average sale value, average items per sale – these are all good overall business measurements to compare.

Comparing unit sales by department and by category within department are good measures.

Comparing unit sales and revenue by suppliers within each department are also good measures.

The Monthly Sales Comparison Report in the smart Tower Systems small business POS software offers all of these comparisons in the one report. This is the best everyday business analysis report we think. Indeed, it is the primary report we go to for the retail businesses we own ourselves.

However, let’s first up dispel some myths:

1. The report does not have to be monthly. It c an be for any period.
2. The report can focus on revenue, GP or unit sales.
3. The report can focus on product categories or supported or both.
4. The report can cover any periods you want.
5. This report is rated the most valuable by almost everyone who uses it and speaks with us.
6. We rely on this repot in the retail businesses we have owned for decades.

We urge you to use this report to compete with yourself. Look at the last three months of this year compared to the same period last year. See how you are tacking. Look at the parts of the business where you have concentrated most and see if you are having a positive impact.

We urge you to not be fixated on competitors outside your shop. Rather, look inside, see how you are doing now compared to a year ago or how you are doing this quarter compared to last. The Monthly Sales Comparison Report measures data points anyone in the business can understand. It shows you where work is needed and it shows you where there is good news on which to build.

We can help you with this report.

The Tower Systems POS software link to Xero cloud based accounting software proves time and again to help small business retailers in myriad ways. From saving time to improving business planning to cutting expensive mistakes, the seamless integration delivers to small business retailers a whole of business benefit.

Tower Systems was an early partner of Xero, delivering access years ago, to its specialty retail customers using its POS software.

Without human intervention, sales data, incoming invoices and more is available from within Xero thanks to the integration between Xero and then Tower POS software. This lack of human intervention is key in that it delivers data to the accounting software without rekeying. When you consider that every keystroke is a potential mistake, eliminating these makes a huge difference.

In not going through a third party product, Tower is able to deliver seamless, better supported and more business suited solutions to its customers. The result is easy access to good and accurate data, the basis for better business decisions.

This is important in retail where there is pressure to be more competitive, leaner and more nimble. The POS software Xero integration facilitates these benefits and more for any retailer using the Tower Systems software.

Linking directly to Xero, as we do through our POS software, enhances the time-saving gained through the software as well as facilitating the accuracy of data managed by the software.

Our Xero link provides for a data feed of sales as well as purchases. This facilitates better management over creditors, which is crucial in and retail business.

With a CPA working full time in our business we are configured to provide a technical solution that has been overseen by our own Accountant, to ensure it is a viable solution for the small business retailers we serve.

INTEGRATIONS

Our Xero integration is one of many approved integrations provided by the software to serve the needs of retailers. Other integrations include:

1. Tyro broadband EFTPOS.
2. Links to all major banks through PC-EFTPOS.
3. Magento e-commerce. Magento is an excellent platform for website sales for small to medium businesses.
4. Shopify e-commerce. Shopify is an excellent entry-level solution for small to medium businesses.
5. FlyBys in New Zealand.
6. Transactor loyalty in New Zealand.
7. Scale integration for selling by weight.
8. Touch networks for vending event tickets, phone recharge, fishing licences and more.