The POS Software Blog

The POS Software Blog

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

Taggross profit

Too Much in “General”? How a Cleaner Department Structure Makes Small Business POS Data Work Harder

October 20, 2026
3 Min read
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Open your Tower Systems Retailer POS and look at your departments and categories. If you see duplicates, vague names, or a “General” or “Miscellaneous” category holding hundreds of products, you’re not alone.

It happens in almost every business over time. A new supplier arrives and someone creates a category in a hurry. A staff member adds a department that already exists under another name. Products that don’t obviously fit anywhere end up in a catch-all.

None of it seems like a big problem on the day. But after a few years, your data becomes hard to trust and harder to use.

Why it matters

Your department and category structure is the backbone of your reporting. When it’s messy, the reports are messy too.

You can’t see which categories are growing if half the products sit in “General”. You can’t compare gross profit across departments if the same products are split between two of them. And staff waste time hunting for the right place to put a new item.

Clean data makes your business easier to manage. It helps you make better decisions about stock, space and buying, because the numbers reflect how your shop actually trades.

How our service works

Our Department and Category Restructure service is a careful, practical clean-up, tailored to each business. This is a small business focussed service that’s helping retailers achieve a clean dataset.

We start with an AI assisted review of your full product database. From that, we create a proposed department and category structure that suits the way you sell.

We then send you a spreadsheet showing the proposed structure. You review it and either approve it as supplied or tell us what you’d like changed. Nothing is updated in your POS until you’re happy.

Once approved, we rebuild the structure in your Tower Systems Retailer POS. Duplicates are merged. Vague categories are replaced with meaningful ones. Every product ends up in the right place.

What to know before you start

Two things sit outside the service.

If you use an accounting link, you may need to update its setup after the restructure. We’ll guide you through this, but the accounting changes themselves need to be made by you or your accountant.

If you have a website, menu links that point to departments or categories may need updating. We’ll help you identify what needs to change. If you’d like us to make the website menu changes for you, we can quote on that separately.

The result

You end up with clean departments, clear categories and a logical product hierarchy. Your staff find things faster. Your reports make sense. And you have a dataset you can actually use to manage your business.

The Department and Category Restructure is currently $499, down from $999.

Find out more and book at store.towersystems.com.au/products/department-and-category-restructure, or reach out to support.

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You buy raw material and bag your own blend. Where does the stock go?

September 1, 2026
3 Min read
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You buy raw material and bag your own blend. Where does the stock go? This is the question that separates software made for produce / stockfeed / farm supply businesses from software adapted to them.

You buy in bulk. Grain, pellets, minerals, chaff, whatever your mix requires. You combine it to your own recipe. You bag it, label it, and sell it under your own name. Somewhere in that process, most systems lose track.

What usually happens is that the raw material is treated as stock and the finished bag is treated as a separate product with no relationship to it. So the raw material never comes down, or it is written off manually, and the finished product appears out of nowhere. The stock on hand for both is wrong. The cost of the finished bag is a guess. And the gross profit on your own brand — often your best margin line — is unknown.

Our locally made and supported produce / stockfeed / farm supply software handles the whole chain. You record the purchase of raw materials. You record the mixing of those materials into your own product. The finished, packaged product exists as its own sellable item, with a cost built from what actually went into it.

The effect is that your own-brand line becomes measurable. You can see what it cost to make, what it sold for, and how it compares to the branded equivalent on the same pallet. Retailers who mix their own product usually suspect it is their strongest margin. Being able to prove it changes how they range and price it.

A few notes from our years of experience serving produce / stockfeed / farm supply businesses.

Recipes change with input prices and season. The software should let you reflect that without rebuilding the product.

Wastage is real. Build it in rather than pretending it does not happen, or your costs will read better than they are.

Batch and pack size matter. If you sell the same blend in 20kg and 40kg, they need to relate back to the same raw material properly.

If you make your own product for your business and your current system cannot follow it from raw material through to the bag on the floor, that is worth a conversation. Send me how your process works today and we will tell you honestly whether we are a fit. If we are not, we will say so.

…

Contact us: sales@towersystems.com.au or 1300 662 957 or research us: www.towersystems.com.au. Locally made. Locally supported.

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Selling by the kilo, the metre and the half bag

August 31, 2026
3 Min read
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Most retail software assumes a customer buys one of something. Produce and farm supply retail does not work that way.

A customer wants nine kilos out of the bulk bin. Another wants four metres of cable off the roll. A third wants half a bale, because half a bale is what fits in the ute. None of those are a scan of a barcode.

We hear how stores handle this today. Someone works it out on a calculator and types in a dollar amount. Or there is a shortcut key set up years ago with a price that has not been reviewed since. Or the item goes through as one unit and the difference is absorbed. Each of those costs money quietly.

Selling by weight, length and fraction is a core part of our produce software. The item is set up once with its unit of measure and its price per unit. At the counter your team enters the quantity, or takes it from the scale, and the software does the rest. The sale is accurate, the stock on hand drops by the right amount, and the gross profit on the line is right.

That last point is where the value sits. If bulk sales go through as dollar amounts, your reports cannot tell you what you made. Category performance, supplier performance and margin by line all rely on the quantity being real.

There are three practical things worth thinking about in your own produce /stockfeed / farm supply business.

The first is your unit of measure. Decide whether you buy and sell in the same unit, and set the software up to handle the conversion if you do not. A tonne in, kilos out, is common and easily handled.

The second is who is allowed to override a price. Bulk sales are where discounting creeps in. Being able to see who did what, and when, is worth having.

The third is your scales. Where a scale is doing the weighing, the software should be taking the weight rather than your team reading it and typing it. Fewer keystrokes, fewer errors.

None of this is exotic. It is the basic requirement of selling bulky goods, and it is the first thing we show in a demonstration for a produce business, because a system that cannot do it properly will cost you every day it is in place.

If you are selling by weight, length or fraction today, tell me how you handle it now and we will tell you honestly whether we are a better fit. If we are not, we will say so.
…

Contact us: sales@towersystems.com.au or 1300 662 957 or research us: www.towersystems.com.au. Locally made. Locally supported.

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Advice for retailers: How to work out which part of your shop floor makes the most money

August 4, 2026
4 Min read
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Retail space usually costs between 11% and 15% of revenue, depending on the type of shop. For most retailers that makes it the biggest cost after stock and labour, yet plenty of shops have not looked hard at how that space earns its keep in years.

This is not advice you will get from your accountant, and you will not find it in your profit and loss. It is a practical exercise, done with paper and pen, that gives you a fresh view of your own business. Retailers who do it are almost always surprised by something.

We share this advice today to help local small business retailers look at the space use in their shop from a profit contribution perspective. Retailers we have done this with have made changes that have led to them making more money. It’s all about profitable space usage.

Here is the method we recommend.

  1. Take a blank sheet of paper, ideally A3, and roughly sketch the layout of your shop. Mark in display units, wall shelving, the counter, everywhere you have products.
  2. Include your back room if you hold stock there. That space costs you rent too.
  3. Colour-shade the layout by department.
  4. List the departments down the side of the floor plan.
  5. Estimate the percentage of total space each department uses and write it next to each department on your list. Rough is fine. This does not need to be accurate to two decimal places.
  6. Using your POS software, report on the gross profit dollars earned by each department over the last year. If your system cannot do this directly, calculate it from sales figures using the average gross profit percentage for each department. In our software, this is a standard report.
  7. Work out each department’s percentage of total gross profit and write it next to the space percentage on your floor plan.
  8. Circle the best performers in green and the worst in red. A strong department earns a significantly higher share of gross profit than the share of space it occupies. A weak one occupies more space than its profit contribution justifies.

Now stand back and look at the marked-up plan. Space and profit side by side, department by department. This is your shop as a landlord would see it if every department paid its own rent.

What you do next depends on what the page shows you. The work usually leads to one or more of these actions: moving a department to a better or worse position in the shop, giving a strong department more space, shrinking a weak one, improving a department’s margin through better buying, or working to lift sales in a department whose gross profit dollars are below its potential.

Be careful before shrinking a department solely on these numbers. Some low-margin departments drive traffic that shops the rest of the store. Newsagents know this well. The exercise is not a set of orders, it is information you did not have before, and it is up to you to weigh it against what you know about why customers walk in.

Once you have done the shop, you can go deeper: pick one department and run the same analysis by category within it. That is often where the most actionable findings sit.

Do this once a year, or ahead of any refit. Shops evolve, and space allocation tends to reflect the business you used to run rather than the one you run now. This exercise is one way to keep the floor working for today’s shop.

The gross profit reporting this relies on is standard in our POS software, by department and by category. If you would like to see it with your own shop in mind, book a demo at towersystems.com.au/pos-software-free-demo.html or call 1300 662 957 (AU), 0800 444 367 (NZ).

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Margin is where small business retailers find money they did not know they had

July 30, 2026
3 Min read
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Ask a struggling retailer about their business and they will usually talk about sales. Ask a thriving one and before long they will talk about margin. That difference matters. You bank margin, not revenue, and in our experience most local retailers have more room to move on margin than they realise.

Here is practical advice we share with retailers, and how the tools in our POS software help act on it.

Start by knowing your actual gross profit, by department and by category. Not what you think it is, what the data says it is. Most retailers who run this report for the first time find surprises: a category they love that earns less than the space it occupies, and a quiet performer subsidising it. Our software reports GP at every level, and the AI report insights will flag more useful data in plain English.

Question habit pricing. Plenty of retail pricing is doubling the cost price because that is what everyone has always done. But customers do not know your cost price. They judge value. On items bought as gifts, or in an emergency, or on impulse, a price a dollar or two higher rarely changes the sale. A one percent improvement in average margin lands straight on your bottom line. Test it on a category and measure, rather than guessing either way.

Stop losing margin at the scale and the counter. If you sell by weight or length, rounding down to the nearest unit gives margin away all day. Our software sells 1.2 kg of birdseed or 0.75 of a metre of fabric exactly, with scale integration, so you are paid for what leaves the shop.

Bundle to protect price. A starter kit or gift pack sold at one package price earns more per sale and is harder for a customer to price-compare item by item online. Bundles are built into our software, and they are one of the most underused margin tools we see.

Get cost prices right, automatically. Margin reporting is only as good as the cost prices behind it, and manually keyed invoices are where cost data goes wrong. The AI invoice import in our software reads almost any supplier PDF and updates stock and cost prices without the typing. Retailers use it to save hours, but the quiet benefit is margin data you can trust.

Deal with dead stock sooner. Stock that has not sold in six months is not an asset, it is money on a shelf losing value. The reports in our software show exactly what is not moving. Quit it, take the small hit, and put the cash into stock that earns. Holding on feels safer and costs more.

Watch shrinkage like it is a supplier. For many shops theft, internal and external, quietly takes one to three percent of turnover, and that loss comes straight out of margin. Accurate scanning and tight inventory records in the software make shrinkage visible, and visible problems get fixed.

None of this requires more customers or longer hours. It requires knowing your numbers and acting on them, which is what POS software should be for. If your current system cannot tell you your margin by category in under a minute, that is worth fixing.

We are happy to show you these reports live, using scenarios from your own shop. Book a demo at towersystems.com.au/pos-software-free-demo.html or call 1300 662 957 (AU), 0800 444 367 (NZ).

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Reprice 500 items before your first coffee: Stock Manager in our Retailer software

June 16, 2026
2 Min read
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Some of the most valuable tools in POS software are the unglamorous ones. Stock Manager in our Retailer POS software for local independent retailers is a good example. One screen, bulk changes to stock items, hours saved.

Tower systems makes bulk stock management easy.

A supplier emails a price rise across their whole range, effective Monday. Without a bulk tool, you open products one at a time and key new prices until your eyes glaze over. With Stock Manager, you search by that supplier, select the lot, and apply the increase in one pass.

The pricing options deserve a closer look. You can lift prices by a percentage or a dollar amount, set a fixed price, or have the software calculate new prices from a markup or gross profit percentage you choose. That last one matters more than people realise. When costs rise and you only pass on the dollar amount, your margin percentage quietly shrinks. Repricing to a target gross profit protects the margin, and the software does the maths.

There is more in the same screen. Product details can be updated in bulk. Images can be added across a whole group of items. Descriptions can have words added or replaced, which is handy when a brand renames a range or you are cleaning up copy for your website. Shopify-connected retailers use the bulk tag tools to build collections and promotions without touching products one at a time.

Selecting what to edit is flexible. Search by department, supplier or classification, then tick what you want, or highlight a group, or take the entire search result. The list stays put even if you close the software, so a big job can be done over several sittings. Nobody finishes a 2,000-item tidy-up in one go, and the software does not expect you to.

Two pieces of advice from our support team. Run a backup before any bulk change, because bulk means bulk and you want a way back. And if you are zeroing out quantities, use a custom stocktake instead. It does the same job and leaves a proper paper trail.

Step-by-step advice and a video guide are in our Knowledge Base, and our support team will happily walk you through your first bulk edit.

Suppliers will keep sending price rises. At least now they only cost you minutes.

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