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The POS Software Blog

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

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The Sunday reset: four questions every retailer should ask

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Most small retailers spend the week reacting. A delivery arrives, a staff member calls in sick, a customer needs something now. There’s rarely time to step back and look at the business as a whole.

That’s why we like the idea of a Sunday reset. Set aside 30 minutes, ideally away from the counter, with a coffee and your numbers. Look back at the week just gone and decide what you’ll do differently in the week ahead.

It doesn’t have to be Sunday. What matters is the habit. A short, regular review beats a long one you never get around to.

What’s working?

Start with the good news. Which products, categories and suppliers did well this week? Was a particular day or time of day stronger than usual? If a display or a promotion lifted sales, note it so you can repeat it.

It’s easy to skip this question. Don’t. Knowing what works tells you where to put more stock, more space and more of your team’s attention.

What’s not working?

Now the harder one. Look for stock that hasn’t moved in weeks, categories losing ground and margins that have slipped. Dead stock ties up cash and shelf space you could use for something that sells.

The answer might be a markdown, a better position in the shop or a decision to stop reordering. The point is to make the call rather than let slow stock sit.

What am I missing out on?

This is the question most retailers never ask. Are there products customers keep asking for that you don’t carry? Lines that sell well in similar shops but not yours? Times of the week when you could do more with the foot traffic you already have?

Missed opportunities don’t show up as a loss on a report. That’s why they’re easy to overlook, and often worth more than fixing what’s broken.

Is theft an issue?

Behind the scenes, in a quiet and secure way, we track keystrokes and let you know if we think theft may be an issue. We show you where to look. This has saved local indie retailers tens of thousands of dollars.

Most weeks you’ll find nothing. Checking regularly is what lets you spot the week when something is wrong.

Where the answers come from

The trouble with a Sunday reset is the preparation. If you have to pull reports, export spreadsheets and work through the figures yourself, 30 minutes quickly becomes three hours. Most owners give up after a few weeks.

For Tower Systems customers, that work is already done. The Insights Dashboard is an AI-facilitated tool that gives you answers to all four questions, ready when you sit down. There’s nothing to prepare and no report to build. It works around the clock, so the insights are there on Sunday morning or any other time that suits you.

Every Tower Systems customer gets the Insights Dashboard free. It isn’t an add-on or a premium tier. We include it because we think every independent retailer should be able to see clearly how their business is going.

If you already use Tower Systems, open the dashboard this Sunday and try the four questions. If you don’t, we’d be happy to show you what it would reveal about your shop. Call 1300 662 957 (0800 444 367 in New Zealand) or email sales@towersystems.com.au.

Contacting a human is easy.

Success Can be Found In Discomfort In Retail

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Most retailers know exactly which report they do not run. It might be the one that would show stock going missing. It might be the performance of the range you changed six months ago, or the supplier you took on because you liked them. Perhaps it is the comparison of what each team member actually puts through the register.

Not looking is entirely understandable. Finding out a decision failed feels personal in a business you built. But the cost does not pause while you avoid it, and it compounds quietly.

Here is a practical way to start. Choose one uncomfortable question this week and answer it properly.

We know many small business retailers who have found success by exploring parts of their business that they know will be uncomfortable for them.

Run your theft (shrinkage) numbers. Compare theoretical stock on hand against a physical count in one high-risk category and see what the gap tells you. Pull the sell-through on the last range change you made and ask honestly whether it earned its shelf space. Look at gross profit by supplier rather than sales by supplier, because a busy supplier and a profitable supplier are not always the same business. Compare average sale and items per sale across your team, not to blame anyone, but to see who might need coaching and who might be worth learning from.

Give yourself twenty minutes and a cup of tea. That is the whole exercise.

What usually follows is undramatic and valuable. A dead line is deleted before you reorder it. A supplier conversation happens a year earlier than it otherwise would. A shift pattern changes. Stock worth thousands moves out of the corner nobody walks past.

Tower Systems point of sale software for local independent retailers is built to surface exactly this kind of thing: whether theft is occurring, whether a product or category has failed rather than merely slowed, whether a supplier is returning what it costs you, and how performance compares across staff and trading periods. Evidence instead of a feeling about how the month went.

Retailers who work this way tend to make each mistake once. That is the difference, and it is available to you without hiring anybody.

If you would like help finding these numbers in your own system, contact us at sales@towersystems.com.au.

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

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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).

The most important advice we give small business retailers

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At a retail forum the other day we were asked what is the most important advice we give small business retailers. Our answer surprised a few people because it was not about marketing or ranging or margin.

The answer is often considered boring. It turns retailers off.

If only they understood the thousands of dollars to be made by listening to our answer.

The most important advice we think local small business retailers need is to focus on data accuracy. Dry, we know. But it is the factor local retailers most often overlook, and when it slips the damage spreads further than almost anything else in the business.

Here is the pattern we see. A retailer puts real hours into ordering stock and getting the shop looking right, and meanwhile half the sales go through the counter keyed into a department instead of scanned. Or the web store is full of products described as “candle lge” that no customer searching for a soy candle in a glass jar will ever find. Nobody set out to be sloppy. It builds up one shortcut at a time.

The costs rarely look like data problems, which is why they go unnoticed. Your reports can only tell you about what was entered, so vague or wrong entries produce reports that mislead with complete confidence. Decisions made on those reports feel informed. They are not.

Theft is the cost people least expect. Loose inventory records mean you cannot see shrinkage. Stock walks out the door and the numbers are too muddy to show where or how much or since when. Retailers who tighten up their data are often shocked at what it reveals within a few months.

There is a newer cost too. The AI tools in good retail software are only as smart as the data underneath them. With clean data they will flag margin shifts and buying opportunities you would have missed. With rubbish data they will confidently summarise rubbish.

The fix is unglamorous, which is probably why it gets skipped. Decide that every item gets properly described, every sale gets scanned, and stock records get maintained rather than guessed. Train everyone who touches the counter. Then check, because habits drift.

Retailers who do this tell us the same thing: they wish they had done it years earlier. The reports finally mean something, and for the first time they can see their own business clearly.

In retail, when the boss steals, staff learn to steal

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Years ago we helped a retailer investigate an employee theft problem. Using encrypted transaction data from their POS software, we isolated the days and times where discrepancies were appearing, matched them against the roster, and identified the most likely person. When confronted, the employee admitted to taking around $20 a day.

The reason they gave was not what the owner expected.

The boss took cash from the till for lunch. So they did the same.

The idea of stealing hadn’t occurred to them independently. They watched the owner take money from the register without ringing it through and drew a straightforward conclusion: this is normal here.

The owner hadn’t thought of it as theft. A few dollars for lunch — their business, their money. But watched by a staff member, it looked exactly like what it was: taking cash without processing it.

That’s one of the harder things to sit with in small business retail. The standards your team follows aren’t the ones written down anywhere. They’re the ones you demonstrate every day, on the floor, in front of people who are paying more attention than you think.

Handle cash loosely and some staff will handle it loosely. Take shortcuts on process and some staff will take the same shortcuts. Not everyone, and not immediately — but you’ve shown them it’s acceptable, and that’s enough.

The practical response isn’t complicated. Run every transaction through the system, your own lunch included. Pay yourself properly rather than dipping into the till. Use your POS the way you expect your staff to use it. And when something looks off in your data, investigate it — not assuming the worst, but not ignoring it either.

The encrypted transaction data in this case did its job. It gave the conversation a factual basis rather than an accusation, which matters both for resolving the situation and for treating the employee fairly.

But the real problem wasn’t the employee. It was what the owner had been quietly teaching them for months without knowing it.

In our POS software we have tools available for early detection of employee theft, tools many retailers have used to catch theft earlier than they otherwise might.

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The right POS system or website for any retail business depends on the specific needs of the business. Tower offers POS software and websites made specifically for local small business retailers in a selection of retail channels. To see if we might help you…, request a free, no-obligation demo today.  

Call 1300 662 957 in Australia or 0800 444 367 in New Zealand. Or, email sales@towersystems.com.au. 

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