CategoryJeweller software

I want to share with you a true story of what happened recently in one of my own shops – yes, I own this POS software co as well as retail shops. It is a story of how a small everyday purchase led to something bigger and how this happened as a result of fundamental changes in how the business is run.

This story could happen in any retail business – city, country, large, small, shopping mall, high street. I make that point so you do not dismiss the story and think it could not happen in your business. The elements of the story work together in any size business. In writing about it here I’m not getting you to do anything other than to consider that you could achieve the same in your business.

At its core, this is a story about shopper loyalty, especially shopper loyalty in a retail situation where between 25% and 30% of shoppers visiting the business are not local and therefore not likely to engage with the old-school points-based loyalty program.

A customer passing the shop noticed our greeting card range and stepped into make a purchase because of a specific need. They purchased two cards. On their receipt was a voucher for almost $2.00. As they are not usually in the shopping centre they looked around for something in which to spend the $2.00.

This is the key: the customer came in to make a quick destination purchase. The type of purchase where we did not matter. They were on the way to the car park and happened to pass buy our shop. Point 1: location is in our favour. The stepped in because they saw our greeting cards. Point 2: the floor placement of cards was key in getting them in the shop.

Having made the purchase, the customer then noticed, for the first time, what else we sold – because of the $2.00 discount voucher on their receipt. Point 3: we got them to look around and see what else we sold.

The customer did a 180 degree turn and saw a locked glass cabinet of beautiful collectible bears. This was in the right place at the right time as they had been looking for a gift for a child. Money was not an issue. They wanted something to last a lifetime. They purchased a $500.00 bear.

This purchase would not have been made had they not been given the $2.00 voucher on their receipt. The voucher is what got them to notice what else we sold.

Fast forward several weeks and this customer who said they don’t usually come to the shopping centre was back for another $500.00 purchase. Now, several more weeks later, the customer has another $500.00 order placed.

I can directly trace more than $1,500.00 in sales back to the $2.00 voucher.

The software produced the voucher based on rules I established. The initial staff member serving the customer made a brief professional pitch highlighting the voucher. These are both important factors as they are at the core of a structured consistent approach to what has become the most lucrative loyalty program I have seen in my 30+ years involved in retail as a retailer myself and working with retailers in many different channels.

While most times vouchers are handed out they are not redeemed, they are redeemed enough to make them worthwhile. They are redeemed for good margin product as they get people looking at the shop for the first time and discovering items to purchase they were not in our four walls to consider.

The discount vouchers are disruptive. People respond in unpredictable ways.

Best of all, the discount vouchers are profitable.

For this story to work in a newsagency you need to have the right products, placed strategically in-store. Your staff need to make the right pitch. Plus, you need to be attracting people who don’t know and probably don’t care what shop they are in.

If you have read this post and thought it does not relate to you, that you could not do this in your business I say you are wrong. I am certain the approach I have shared with you could work in any newsagency in any situation. I urge you to not hold your business back.

Theft is retail can be expensive, particularly employee theft. Tower systems has a structured and proven approach for dealing with employee theft in retail businesses where the Tower Systems POS software is used.

The Tower POS software has tools for reducing the opportunity for theft. Better still, the software has hidden tools for tracking theft, tools that provide evidence police and prosecutors have used to successfully deal with theft situations.

It is the secret and secure facilities where our software provides retail business owners the evidence necessary to achieve successful resolution, as we have found in many employee theft situations where our help has been called upon.

Discovering theft by an employee can be debilitating and destabilising. To help you through this, Tower Systems provides advice and support on what to do once you discover employee theft. The goal is to offer straightforward steps to help you get through as it is on the other side of this where you can find the opportunity to move on from the feeling of violation that often accompanies employee theft in small business.

In addition to being a support, we provide practical advice an help for use our our POS software to reduce  the opportunity for employee theft and shopper theft.

Follow this advice on how to use our specialist retail software to hamper opportunities for theft and bolster the certainty of detecting it before it’s too late:

1. Employ stock control for high volume items. Enter new stock as it comes in, scan all sales and only reorder based on what the software says. Perform a stock take regularly each month. High volume item stock discrepancies are an indicator of theft.
2. Scan everything you sell. Do not use department tracking only – your data needs to be granular to prevent employees taking advantage of loose stock on hand quantities. Not scanning individual stock items is unfortunately an invitation to dishonest employees.
3. Use the software-based end of shift procedure and have a zero-tolerance policy on cash balance discrepancies. Reconcile banking to your computer software at end of shift. We have seen businesses failing to do this: one was being skimmed regularly of $200 a day.
4. Do spot cash balancing. Unexpected checks can uncover surprises. One business owner needing to perform banking during the day uncovered a $350 discrepancy that lead to the discovery of systematic theft.
5. Mix up your roster. Sometimes people work together to steal. One retailer found a family friend senior and their teenage daughter stealing consistently.
6. Check your audit Log. Look at cancelled sales, deleted sales and items deleted from a sale. Leaving a cash drawer open from the previous sale, scanning items, taking the cash and cancelling the sale is the most common process used by employees to accrue cash they then take from you. Our software tracks cancelled sales and what was in them. This can be matched with video footage.
7. Check GP by department. If GP is falling outside what you expect, always research further.
8. Publish a theft policy. Put this on a noticeboard in the back room. Get staff to read it and sign up to it. At the bottom of this page is a sample theft policy.
9. Keep the store counter area clean. A better organised counter reduces the opportunity for theft. Reducing nooks and crannies makes detection of any cash hoarding easier.
10. Have a “no employee bags” at the counter policy. This makes it harder for dishonest employees to hide stolen cash.
11. Beware employees who carry folded paper or small notepads. These can be used for them to keep track of how much cash is in the register that is theirs – i.e. not rung up in the software.
12. Beware of calculators and mobile phones at the counter. Employees can use these devices to track how much cash could be stolen prior to balancing for the day – cash from sales not processed.
13. Do not let employees sell to themselves. If an employee wants to purchase something ensure they purchase it from the customer’s side of the counter.
14. Be professional in your management of the business. The more professional your approach they less likely your employees will steal as they will see the risk of being caught as high. Do not take cash handling lightly; if you respect your business procedures your staff are more likely to too. Never take cash from the till for your own personal use, i.e. to buy lunch.
15. Advise all job applicants that you will require their permission for a police check. From the outset this indicates that you take your business seriously. In many situations applicants who have been asked for permission to do a police check advise they have found a job elsewhere.

These steps work. They are based on decades of helping small business retailers to reduce and manage employee theft.

Retail is changing at a rapid rate. Changes in-store and online are making 2017 an important year.

We have see these changes first-hand at international retail conferences this year. We play with the changes in our own shops where we use our POS software and our website technology to find new customers and drive a higher average spend.

Come to one of our FREE workshops near you and find out more about how you can equip your retail business to confront the changes in retail, transact online and compete with big businesses, including Amazon.

Here are the dates for our free POS software / website workshops. Click on the city name to book your place:

1. Cairns. June 26. 2pm. Novotel.
2. Townsville. June 27. 10am. Mercure.
3. Mackay. June 28. 10am. Mackay Grande Suites.
4. Rockhampton. June 29. 10am. Quest.

We will share insights on how small business retailers around the world are using website connected POS software to win online sales.

We will explain how to get to the top of Google search results.

We will demonstrate the connection between social media posts (Facebook, Twitter etc) in-store sales and online sales.

There will be no hard sell. Our goal is to share practical information to help you better plan for the future of your regional retail business.

Anyone is welcome including people on whom you rely for advice, such as accountants and mentors.

If you have sales queries prior to these events please talk with your local account manager: QLD: Justin Randall. 0434 365 789.

I hope to see you at one of these workshops. I am keen to share with you what I have seen and learnt in this rapidly changing space.

There will be plenty of time for questions on any topic connected with retail.

We have software for: gift shops, jewellers, bike shops, pet shops,  toy shops, fishing/outdoors, garden centres/nurseries, newsagents, produce stores and firearms retailers.