CategoryRetail management advice

Here at Tower Systems we develop POS software for small business retailers. We are grateful to serve 3,500+ customers in Australia and New Zealand. We also develop beautiful websites for small business retailers.

Leveraging that experience, we have evolved a suite of knowledge about works for small business retailers going online. We have plenty  of advice to offer retailers about going online.

Today, we flip that consideration, we want to take a look at common mistakes retailers make when they go online, mistakes that can cause their shop connected websites to fail or, at least, to not achieve what they hoped for.

These are mistakes we have seen retailers make, advised against and, often, had to fix once the retailers agree they were mistakes. They make our mistake list once corrective action is shown to fix an issue, thereby proving the first move was a mistake.

1. Poor navigation. A site that is hard to get around will see people leave quickly.
2. Unclear shipping charges / policy. People want to know what it will cost.
3. Inadequate payment options. Credit card is as essential as PayPal, buy now pay later like Afterpay, ZipPay and Humm, Apple Pay and Shopify pay.
4. Using photos are are blurred or with more than. one product in them. Good photography is key – yes, you can do it yourself.
5. Using stock photos that are already on many other websites. Google likes unique photos. Take them yourself.
6. Using the same text that is on plenty of there websites. Google likes fresh text, fresh content. Write this yourself and follow consistent standards.
7. No chat. Chat is key because shoppers have questions.
8. Secrecy – not including an email address, phone number and actual street address.  People want to know they can trust you.
9. Having no USP – unique selling proposition. Really, why should people shop with your website if your website offers nothing unique.
10. Poor fulfilment. If you take too long to fulfil, people will know and they will complain to others.
11. No support. Your website needs support online and elsewhere, so people can find it. This could be marketing, links on other sites, links on socials and more.

Our advice for small business retailers with websites goes beyond the 11 points we have noted here. Take these as a start. Anyone with a website can address these without additional cost. Fix these mistakes and you should start to see growth non engagement with the website. This is another step to growing online sales.

Tower Systems is grateful to serve thousands of small business retailers. Working with them helps us learn every day, which we love.

Small business retailers appreciate retail solutions, they appreciate real help to real everyday challenges.

Here at Tower Systems we offer retail solutions. Often, the retail solutions go beyond our POS software, go beyond what is usual for a POS software company.

Our retail solutions, retail advice and retail business counselling comes from a place of experience, from being retailers ourselves for more than 25 years and from our 40 years of service of indie retailers.

Here is one example of retail advice, retail solutions for small business retailers.

This is practical advice, practical retail solutions, designed for helping retailers. We call this our Small steps strategy for growth in small business retail. This is a good example of retail solutions beyond POS software.

The small steps strategy is about taking regular small steps in your retail store which compound in a way to dramatically enhance the value of each of three key components to the business. The key is that the business makes progress on one or more of three business growth levers every day:

• More traffic.
• More revenue in each sale – greater sales efficiency.
• Better margin.

There is no grand plan needed, no master document full of words and charts. The small steps strategy is about simple achievable steps which and retailer can take in any type of business every day to build a stronger business.

The small steps strategy is made up of the following work for the three levers:

1. More traffic, new customers, existing customers revisiting
2. Consistent traffic generator promotion. Regularly promote a popular consumer product or product category outside your business – to attract new traffic. The product category will depend on your business. Ideally it will be habit based product for which you have a strong value proposition. A good percentage of customers you win from regular promotion are more likely to visit again. These customers are often worth more than what they purchase.
3. Regular participation in catalogue and flyer based offers. They could be catalogues covering a numbers of businesses or just for your business. These do not have to be expensive.  Even flyers you make yourself and copy in house can work – having compelling offers is key with catalogues and flyers.
4. Regular local newspaper advertising. Local newspapers will usually do deals if you offer a long term commitment.
5. Support for local sports clubs and community organisations. For a few dollars you can have your business name promoted at games, in newsletters and at events.
6. Branding of at least one vehicle. A couple of hundred dollars can get your name out in the community – everywhere you drive.
7. In-store newsletter. Delivered outside the store. This is best done on a simple stand near the entrance to the store.
8. On your window and walls. Use your front window and side walls to promote your business. The right campaign ought to bring people passing by into your store.

Through a consistent program of chasing new traffic you ensure the health of the business and protect against the cost of the natural loss of customers.

2. More revenue from each sale – greater sales efficiency

Here are some simple strategies for achieving more from each sale.

1. Uncluttered counter. Make conscious decisions about what is placed at the counter. Ensure clear air around each offer so it can be seen. A cluttered counter can hide good deals and block sales.
2. Counter offers. Choose good margin low price products which work for your demographic by tapping into interests, desires (chocolate to eat on the way home) or value – quick decision small gift lines.Remember, a counter must be easily understood and be able to purchased quickly.
3. High traffic bargain offers. Between the entrance and the highest first stop for traffic into the business have at least two dump bins or displays with compelling and easily understood offers. Move these weekly.
4. In-store newsletter. Create a simple newsletter promoting the business and place it out the front of the business, in bags, handed out and even slipped into local newspapers. Get your message in front of customers after they leave.
5. Hotspot promotions. Identify locations where customers stop the most in your store. Place other products at these hotspots which appeal and are easy to purchase. Use the HOT products to sell other product – but the impulse products have to change a couple of times a week.
6. Dance floor change. The dance floor, the space in front of the sales counter, needs to change weekly. More often for busier shops. A fresh dance floor will show more customers ‘new items’.
7. Coupons / advertising on call to action offers on receipts. i.e. bring this coupon back within two days for XXX offer.
8. End of sale offer. Once you complete each sale, give customers an offer to make another purchase within a limited timeframe for a discount. This is best done with a coupon.  Consider structuring the offer to drive business in a particular category.  Track redemption by keeping coupons redeemed with receipts for the purchases.
9. Parasite displays. These are small space displays which hang next to other products, encroaching on the space. You can see supermarkets use parasite displays well offering products from elsewhere in space committed to popular and often unrelated product.

By focusing on sales efficiency and driving a bigger basket for each sale, you set yourself up to make more from every sale.

3. Better margin – by selling for the best price

What you charge for what you sell needs to be carefully considered.  Price is all about customer perception of value.  Value is based in a range of criteria including:

• Added value – from purchasing from this business.
• Perceived value – how you package a product compared to how others package the same product can lead to a different price.

1. Manage labour to focus on products with the best return to the business. This is a balance between overall gross profit dollars and margin percentage.
2. Look at items with a customer service component, where your expertise is required to make the sale or make good use of the products or where there is a reasonable after sales service component. These can usually carry a higher margin.
3. Look at the items which are unique to your business in your location or nearby. If you are the only store serving the local community then you do have a pricing opportunity. These items can usually carry a higher margin.
4. Assess why people shop at your shop. If they are shopping because of convenience then you have the capacity to charge more for this. This is why convenience stores charge more for items which you can buy elsewhere for considerably less.
5. Involve others in setting sale price. Ask your team what you can charge for an item. Assess what they think you can “get away with”.  By polling team members, you may find that your perception on price is lower than what others expect.

You can build a stronger business by taking small steps each day which focus on new traffic, better margin and improved sales efficiency. No grand plan, no expert strategy – just small steps which leverage opportunities which exist in your retail business.

By paying closer attention to the margin you can achieve, you strengthen the financial foundation of the business and ensure that your return on inventory investment is more helpful to the bigger business plan.

Beyond the financial cost and regardless of the size of the theft, employee theft in a retail business can come at a huge cost to the business, those who work in it and the owners.

The impact can be felt for years after employee theft is discovered. We have seen this first hand inn businesses we have worked with and counselled through the process. To be honest, we have seen it ourselves in the early years of owning our own shops.

Often, the person caught stealing from a retail business is a trusted employees. This is where the high emotional cost kicks in. It is not uncommon for them to be a long term employee who has the trust and respect of the business owners. We have seen situations where it has been a relative of the owner or at least someone treated as a relative or a member of the family.

We have seen the impact of the theft flowing in waves:

1. Typically, the retail business owners blame themselves for the theft or at the very least for not having discovered it sooner.
2. What follows is the extraordinary feeling of a breach of trust and violation. This can lead to a feeling of overwhelming illness. In some cases, one or more of the business owners have withdrawn from the business – such is the personal hurt and betrayal they feel.
3. Devastation often kicks in with the owners losing focus on the business, unable to deal with the issues of today.
4. Depending on the extent of the theft, depression can follow which requires some form of intervention to resolve.

The personal impact on the outlook and confidence of the business owner can be devastating. Unless they are able to accept what has happened and genuinely move on, they could find themselves wallowing in anger, inaction or even depression for long after the crime has bene discovered.

The key, from our personal experience, is to accept what has happened, make a decision on how to deal with it and move on… never looking back.

Discovering an employee theft problem is an excellent first step. The alternative is that it continues unabated. Discovery stops the theft and that is a great first step. It is important to acknowledge the good news of the discovery regardless of the quantum of theft discovered.

Deciding an action plan is the ideal step two. Deciding whether to report the crime or agree on an immediate financial settlement with the employee who committed the crime is the best next step. Only the retail business owner can decide whether reporting the crime is worth it or not. Sometimes, being paid a reasonable sum by the employee is better for the business and moving on than a protracted police investigation.

Talk with the team. Listen. Console. This is a time for grieving about what happened. Either gather as a group or one on one. Ensure that everyone has an opportunity to air their feelings. Business partners especially should take time to do this and explore how they feel. Do not let this process go on too long. Ensure that everyone understands that this is the time of grieving and that when it ends, it ends so that the business and those involved can move on.

Focusing on the business is the fourth important step. Once the employee theft is caught, the action plan re police versus reimbursement resolved, the next focus has to be the business. Difficult as this is, it is important to move forward rather than to stand still and wonder what might have been or worry about the betrayal one feels. Look at business practices and modify these so that theft is harder to perpetrate, implement processes which disrupt the business and make theft easier to detect.

There are excellent government and community resources which can help. Engage and use these resources and benefit from the insights of others.

How a retail business comes out of discovering employee theft is up to the leaders of the business themselves. They set the mood for the team. It is important to reach a point of moving on and not looking back as soon as possible – for the sake of the business, its employees and its customers.

We have some timely advice for school leavers joining the full-time workforce. It is offered here in the spirit of encouragement, that you grow professionally and serve the needs of the business employing you. This advice is especially aimed at those new to the workforce.

1. Know the business is tough ands that retail, especially small business retail, is very tough.
2. The business owners do not get to keep for themselves every cent that comes across the counter. Indeed, they will be lucky to keep even 5 cents in the dollar.
3. If the business succeeds, you succeed.
4. The business relies on customers. Every retail employee plays a role in setting how much each customer loves shopping in the shop.
5. Learn as much about the business as you can in the businessman the job.
6. Learn outside the business – there are many online learning / training opportunities in retail that can make you more valuable any employer.
7. If you are not sure of something, ask. Don’t assume.
8. Work out how to love your job, because if you don’t, working there will not be good for you or the business.
9. Be as low maintenance as possible. Your employer is not an ATM you can tap every time you feel like sleeping in.
10. How far you go in a business, and in your career, is up to you. You get out what you put it.
11. Add value. If you do this a business will want to keep you and that gives you leverage in this job and your next.
12. Every day, how it goes, what you get from it, the contribution you make … is up to you.
13. Speak up. If you see a colleague making a mistake, stealing or misbehaving, speak up. You own it to the business to do this more than you owe your silence to a colleague or friend.
14. Make suggestions. Even new employees have good ideas.Fresh eyes are sometimes the most valuable through which to see business.

If you are a business owner and hiring school leavers, step up to the responsibility seriously. You hire them, train them, manage them and determine their value to the business as as the value of the business to them. Oh, and being their friend is not an ideal step to good management.

Small business retailers often express frustration at big business competitors: they have more money for marketing, get better supplier deals and often have lower overheads per dollar of revenue. It is easy to get drawn into envy and get lost in a whirlpool of self pity for the small business situation.

In our experience in owning and running small retail businesses, there is little to be gained from worrying about these things, which we cannot change. There is more to gain from focussing on points of difference we can leverage.

This is important, that we look at the upside opportunities we have rather than the negative of envy about big business competitors. It’s tough to do, but well worth it.

For example, we can bundle items in our small retail businesses to make price comparison difficult or impossible, we can offer a loyalty pitch big businesses will not offer, we can be flexible in how and where we pitch producers while bug retail businesses are structured and, usually, inflexible.

Bundling is particularly useful as you can create a bundle unique to your business, which feels like it is a value proposition unlike anything they have seen to that point. While this is a product by product task, it is in these small steps that you can find success, by changing shopper perspective and winning business more direct competition may have denied.

Bundles can work in gift, stationery, cards, toys, plants, fishing and more. It is easy to use tech to manage and track this.

Big businesses do this. Its is a key reason for their price guarantees – because price comparison is harder and even not possible, ensuring they don’t pay out on the price guarantees.

Our key message today is that you can compete with big businesses in myriad ways, especially through using our small business focussed POS software that is rich in features for doing just this. We give you the tools and provide training and supporting their use, to help you compete as you may not have competed before.

Big business competitors are not going away, they are not fading in size, they are not spending less. This means we have to be smart and engaged to compete.

Small business retailers using our POS software and following our retail management advice have had access to terrific tools with which to leverage the Boxing Day / Post Christmas sale opportunity. Our training, support and retail business advice platforms have aligned to help retailers make the most of the seasonal sale opportunity – well in advance of the big day.

Businesses in the city and country, mall and high street have terrific tools to leverage this traditional sale season in the retail year.

While Black Friday, Cyber Monday and other on line events have grown in intensity and popularity, in Australia the Boxing Day / post Christmas sales continue to be an important feature of the retail calendar. We help our retail community make the most of the opportunities.

Our focus has also included training and guiding new retailers and those who have never undertaken such sales. Owning our own retail businesses for years, we have been able to drawn on our own advice to to speak from personal experience, to help those new to the Post Christmas sale opportunity to help it work for them.

From discount facilities to inventory opportunity discovery to targeted marketing tools, our POS software is an ideal platform through which to drive additional revenue this time of the year.

Talk to any small business retailer and they will have stories about empty shops in their area that are having a negative impact on their business.

In shopping centres, suburban high streets and country town main roads, there are plenty of empty shops.

Some have been empty for years.

Empty shops make a shopping centre or area feel unpopular, making the task of attracting shoppers harder for remaining retailers. Retailers nearby who are doing it tough will point to empty shops nearby as a core cause.

Some local councils have been innovative in addressing the vacant retail space challenge by opening them to local makers and artists. This has been terrific to see. In Newcastle in NSW, for example, they did some excellent work in this area years ago. Most councils, however, have not.

Why are there so many empty shops? Talk to retailers and they will blame landlords for rents that are too high. Talk to economists and others expert in retail property space as a ratio of population and they will say that Australia has too much retail space. Talk to the folks in some specific towns and they will blame the main street empty spaces on the new mall that has opened just outside town. Talk to almost anyone and they will blame online. Talk to some landlords and they will say retailers are not innovative enough.

As with any contentious issue that has opposing vested interests, it is hard to get to the truth of the situation.

For what it is worth, my opinion is that the answer to the question lies in a mixture of the reasons offered above.

I do think we have too much retail space in Australia. Rent is among the highest in the world. Retail is not that innovative. People are shopping online for convenience. So, yes, I am hedging my bets.

That said, the why does not matter as much as what to do with them.

Occasionally, you can find a pragmatic landlord who is happy to have a space filled at a lower rent than sit empty for a year or more. We think we need more pragmatic landlords.

Occasionally, we see small business retailers burst out of what has been traditional for their type of business and create something genuinely innovative, which is embraced by local shoppers. We need more of this. However, it is hard work, often capital intensive and high risk.

Occasionally, we see empty shops torn down and the space used for something difference. We need to see much more of this. Less retail space is a good thing for retailers and this is good for local communities.

The challenge for small business retailers today with empty shops nearby is how to deal with the stench of those empty shops.

If your landlord has those shops too and there is one next to you, ask them if you can use the space for display. To us, that would be a win win for you both. The key is to craft the right approach that serves the interests of the landlord as well as your own.

If the shops are not from your landlord, the most obvious response will be to be louder and bigger from your premises. By louder, we mean more events to attract shoppers, give people more reason to come to you.

The best way to deal with online is to be online yourself, with a compelling offer, probably under a brand that is not your shop brand, seeking out shoppers far from your shop location.

The alternative to action is to complain because, yeah, complaining achieves a lot … not.

Empty shops are a problem in Australia. How we deal with that in our own retail businesses comes down to us and the actions we take.