Inspiring retail: Present and Correct in London
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Inspiring retail: Liberty in London
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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.
- 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.
- Colour-shade the layout by department.
- List the departments on the side of the floor plan.
- 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.
- 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.
- 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.
- 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:
- www.towersystems.com.au
- 1300 662 957
- sales@towersystems.com.au
Thanks for reading.
We help local retailers love their businesses
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Small business retail advice: personalise, localise, be different
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We are a different POS software company, focussed on helping small business retailers stand out…
Why have big retailers ramped-up their loyalty pitch in 2023 and what could this mean for you?
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The major supermarkets, several other retailers and non-retail businesses are spending big pitching their loyalty programs already this year.
Their pitches tend to cast their loyalty program as key to unlocking value for shoppers. Value in this context should read as lower prices.
We think their increased focus on loyalty is their response to inflation and consumer sentiment associated with this.
Shoppers are concerned about prices, especially in must-purchase settings. From data we see, with want purchases, discretionary purchases, price is less of a concern.
We have found the best way to pitch value is through an easily understood loyalty program that does not compare to the poor-value over-hyped programs from the supermarkets and similar.
Seriously, what is a loyalty point worth anyway?
While our specialty retail POS software has a good loyalty points facility in it, it’s the discount voucher loyalty program that many hundreds of our customers prefer. I use it in my own shops.
Each voucher has a dollar value. People understand $$ more than %.
On average, 19% of vouchers are returned and of those returned, a third are redeemed the day of, a third within 7 days and the last third within 28 days.
Guys are more likely to redeem right away whereas girls are more likely to redeem a week or more later.
In settings where shoppers don’t want the vouchers, there is an opportunity for a local charity connection, which extends the reach of the discount vouchers, better connects the business to a local charity and helps leverage that charity’s community to support you.
My advice, if you’re interested, is to take note that the major retailers are pitching loyalty more this year already. Consider what you can do in your business to engage with shopper interest in value.
We can help if you are interested.
Find out more:
- www.towersystems.com.au
- 1300 662 957
- sales@towersystems.com.au
Thanks for reading.
We serve local specialty retailers across a range of product channels and are grateful to serve beyond our POS software, with retail advice and inspiration – to help local small business retailers compete and enjoy their businesses more. This is where local value can be nurtured and shared.
Innovative retail: HighTide in downtown LA
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Innovative retail: Bodega in downtown LA
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Innovative retail: The merchant on Krog Street in Atlanta
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Hosting our first POS software user meeting catch-up for 2023
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We have announced details of our first POS software user meeting to our POS software user community.
Hosted on the Zoom platform, any of our customers will have access to this session live, as well as after the event via a shared video link.
The session will preview the latest software update and a couple of surprise announcements about updates to follow.
We will also discuss some requests made by our POS software customers as well as opening the meeting to discuss any topic.
Like all of the user meetings we have hosted in the past, this meeting in the next few days will be open, transparent and as valuable for us as it is for our customers. we will have the right people in the room including help desk colleagues, representatives from software development as well as our leadership group.
back in the day, in the 1980s and 1990s, user meetings like these were hosted by all software companies, in all capital cities and some regional centres. Ofer time, however, they have faded. Not here at Tower Systems. They continue to provide terrific value to us and, we think, to our customers. we say that based on the good engagement with the meetings.
Toop many POS software companies today put tech ology and other barriers between themselves and their customers. We think that is a mistake – especially when it comes to developing POS software for retailers.
Retail is personal after all.
There is tremendous value to be found in face top face free-flowing discussion. That’s what we find at least. We can work on a topic, explore it, consider various sides and make progress in one of these live meetings more so than the cold and faceless approach to connection that some software companies demand today.
yes, our approach to software user meetings is old school. It works we find. Our customers like it. we can point to good value achieved from the sessions we have hosted over the years.
The only difference today is the use of Zoom. This works for us and our customers as we cal all participate without as much in travel costs and time.
We are proud to offer our first POS software user meeting for 2023. Let’s get started!
Tower Systems nurtures local retail business fitness
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Our local POS software helps local retailers pitch local
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POS software update helps local retailers keep up to date
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Good software keeps changing, evolving, needing emerging needs and embracing new opportunities.
The Tower Systems POS software continues to evolve. What we offered a few months ago is not what we offer today.
In good engaged software companies, change is normal. This matters because needs change, opportunities change. Evolving POS software is all about local businesses keeping up.
The latest POS software update from the Tower Systems development team delivers access to:
- Allotrac integration.
- SmartPay integration.
- CentrePay integration.
- International barcode search integration.
- Image background removal integration.
- New security bridge integration for better and more capable security camera integration.
- An enhanced, faster and more insightful end of shift process.
- A customer servility sensitive data cleanup tool that helps your business better protect against unwanted data leakage.
These are just some of what is delivered in the latest POS software update from Tower Systems.
We are grateful to the customers who suggested some of these enhancements and to the customers who engaged in testing them as part of our comprehensive beta release program.
For this first update of 2023 it is considerable. Especially once you add the many other changes / enhancements not included in the list above. This update is the result of hundreds of man-hours of development investment. And, while our customers are embracing this update, we are advanced in our work on the next update, which we are excited for.
Engaged software developers are always working on their software products. That is our commitment here at Tower Systems – continual improvement based on continually evolving tech, market conditions and other factors.
We invest on behalf of our customers son that they can be sure that their Tower Systems POS software does evolve and can embrace opportunities of value and usefulness in the local small business retail settings in which we serve.
Included with this latest POS software update is advice for our retailer customers about data security. This refreshed advice is in the light of hacks in the last months of 2022. We have explained steps local retailers could consider taking to better protect data they are entrusted with. We have backed our advice with software tools to equip retailers with useful tech for better data protection.
Why we choose to serve local small business retailers with our POS software
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Tower Systems was created many years ago to serve small business retailers and we happily remain focused on that mission today.
We love small business retail for the people, their passion and the contributions they make to the communities in which they are situated.
Indeed, it is the contribution that local businesses make to their local communities that matters to us. We see it in many ways from supporting local community groups to local education, offering locally products unavailable elsewhere and offering places for local, makers to sell their wares.
While our Point of Sale software can be used by retail businesses of any size, it is in the small business retailer community where we are most comfortable.
So, why do we like small business retailers?
This is a question we confronted recently in an interview about our history.
Small business retailers play a vital economic role, often punching above their weight in terms of economic contribution.
Small business retailers play an important social role locally, holding, sharing and even adding to the narrative of communities around the world as well as providing practical support for community based endeavours.
Small business retailers help local shoppers with a level of personal service which leads to better buying decisions.
We like these points, especially that small businesses and small business retailers in particular are more like to uphold and carry forward local customs, beliefs and stories. Small businesses support the local voice. This is why small businesses are important in countries like Australia and New Zealand.
So, yes, we enjoy serving small businesses and remaining modest in size ourselves. This is where we think we can actively contribute and do the most good.
The value of a business is not only about financial performance. Its contribution to community is, in our view, equally if, not more, important.
Local small retail businesses rock! We are grateful to serve so many 0of them.
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
Advice for local small business gift shop owners: You are what matters most in relation to every decision you make in your retail business
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Our advice for local small business retail gift shop owners in the form of questions to ask when considering new POS software for their gift shop, and, indeed, every business decision:
- Will it make money for the business?
- Will it save time?
- Will it make the business more valuable?
- Will it make you happier?
Here at Tower Systems we make software for Aussie local gift shops, software that helps you make more money, save time, make the business worth more and make you happier.
Rent our Aussie made gift shop software for $159.00 a month (inc. GST).
This $159.00 a month cost includes the software, support (Melbourne based), half a day of training, access to training videos and a knowledge base of advice.
You can cancel the rental at any time.
There is no lock-in contract, no requirement for you to pay up front for a year.
And, that $159.00 costs is for as many computers as you use in the business.
There is no requirement that you use a particular EFTPOS service. We mention this as some POS software companies lock you in on a service with a high price.
Find out more at www.towersystems.com.au/gift.
Watch a demonstration: https://youtu.be/0kArDkAKE4E
We are grateful to already serve more than 3,000 local retailers. We’d love to serve you. Call us on 1300 662 957 or email sales@towersystems.com.au.
From sales to special orders to pre-orders, from Xero integration to digital receipt integration, from loyalty that works to easy shopper postcode tracking, from smart ways to pitch shop local to featuring locally made products … our gift shop software is made for gift retailers, made to help you thrive.
For EFTPOS, link to Tyro, the major banks as well as SmartPay.
For selling online, link to Shopify, BigCommerce, Magento and Woo.
Our software does smart things, too, like making it fast and easy to remove the background of photos you take of products.
We have loyalty tools that can set you apart, and make shopping with you more appealing.
Our insights dashboard serves data insights about the business that retailers tell us they L O V E.
Call us to see if our software is right for you.
We won’t pressure you.
Call 1300 662 957 or email sales@towersystems.com.au.
We are proud to serve local retailers
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We are proud to help local retail businesses build fitness
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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.
Australia Day holiday
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We’re here, and available, serving our local small business retail customers.
Innovative retail: Reddy on Prince Street, New York
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We stumbled across Reddy while looking at innovative retail businesses in Soho, New York last week. Reddy looked a bit like a pet shop, but more fashion. Inside we found a fascinating, fun and committed business. Inspiring really. We are so glad we got to see it and learn. Very surprised to discover who is behind it. Here’s a short video:
Innovative retail: Whalebone, Bleeker St, New York
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We love getting to see innovative retail, retail playing outside what is traditional. Whalebone in New York is one such store, and we got to visit a few days ago.
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.
As teachers prepare for the new school year …
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Track every button you sell …
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