Award wages rose 4.75% from 1 July. Rents are tracking 4–5% higher at most renewals. From 1 October, the RBA surcharge ban means processing fees that were passed to customers now need to be absorbed or built into prices.
Together, that is around 1.5% added to the cost base of a typical independent retailer. On a 5–6% net margin, it is worth taking seriously.
None of these are negotiable. But there are five places to look for recovery, and Tower Systems customers already have the tools backed by implementation advice with a foundation in practical management in local small business retail.
Pricing on the products you control
Plenty of supplier-set prices are fixed in different retail businesses. Stationery, gifts, homewares and general merchandise are not. Many retailers have not reviewed margins on these categories in over a year. The stock manager tool in the Tower software updates pricing across a whole category in one pass — worth doing before October. It’s fast, easy and safe.
Invoice processing
Many stores spend 5–10 hours a week entering invoices by hand. AI invoice arrivals imports them directly, cuts that to near zero, and removes the keying errors that come with manual entry. Those hours go back to the counter. Cut mistakes and save time with the AI invoice import tools.
Dead stock
Stock sitting unsold for six months typically ties up 10–15% of inventory value. It occupies shelf space and earns nothing. The dead stock report finds it. Moving it out — clearance, supplier return, bundling — puts that capital back to work.
Stockouts
Sales lost to unavailable stock are invisible in most reporting. The insights dashboard makes them visible, with a dollar figure attached. Fixing the reorder triggers stops the leakage.
Theft detection
Theft accounts for around 5–7% of turnover across independent retail. The volume tends to be customer theft; the larger individual losses tend to be internal. The audit and early detection tools find discrepancies well before a stocktake would. Too many small business retailers ignore theft, at their cost!
Pricing, processing time, inventory, loss — none of these require new investment. They require looking.
Tower Systems customers can reach the support team by phone, email or live chat. New enquiries: towersystems.com.au or 1300 662 957.
Recent Comments