Retail Ideas And Other Random Thoughts

Most retailers work hard to get the best rates on credit card transactions, but fail to ask about the additional rates that can be charged and when they will be charged.  Did you know it is estimated that 70% of all credit card transactions are processed at a higher rate than the base rate? 

Why, you might ask.  Credit cards with ‘points back’ programs are typically charged at a higher rate.  Someone has to pay for those points and usually it is the retailer processing the card. 

Other things that can raise a rate are things such as not getting address verification information if you have to manually enter a card.  Not getting the CVV number if you are accepting online transactions.

Always remember to ask more questions when getting a rate quote on your credit card fees.  Find out what the true cost of your transactions will be before you are charged.  Here is information on fees for typical businesses that might surprise you – True Cost of Credit.

The US Small Business Administration says over 50% of Americans are employed by the 30 million small businesses in the US.  About 4.3 million businesses with 19 or fewer employees closed during the fourth quarter of 2007 through the fourth quarter of 2008, according to the Bureau of Labor Statistics.  The government is pledging to invest $150 billion over the next decade on energy technology and says that could create 5 million jobs.  Isn’t saving jobs far easier than creating new jobs?  This recession has wiped out 7.2 million plus jobs.  If the government had made an effort to help shore up small businesses, rather than throwing crap on the wall to see what would stick, most of the small businesses that closed would still be around and unemployment would not be this huge problem.  Small business, not big corporations are what make this such a great country, but is anybody listening in Washington?  Click here for more information on software to run your small business!

POS Software systems evolved from mechanical cash registers in the early 1900s’. The early systems were little more than hand cranked making change cash tills that produced a “Z” Tape. The cash register “Z” tape was a journal that gave you a broad overview of the day’s transactions. The “Z” tape did not give you a lot of in depth information, but was the start of departmental reporting and exception reporting.  ProphetLine POS Software still produces a similar report that gives you a five second overview of your store activity.  Some functions and ideas are still relevant and have stood the test of time. 
The first computer-based POS Software systems were introduced in 1973 by IBM, which were large mainframes with proprietary client/server software.  That same year was also the beginning of UPC/EAN barcode readers and in 1986; IBM introduced PC-based POS Software systems.
I guess the point of this blog is that most of the POS Software ideas have been around for a long time, it’s the speed and how you use the information gathered that is important and is it affordable to small retailers. Retailers need to do what they do best, which is be on the floor selling, and not be confined to a computer in the back. Your POS Software should do more than just simple point of sale tasks and fully integrate all the essential store functions. Even small retailers can now expect fully integrated accounting, inventory management, open to buy forecasting, customer relation management (CRM), integrated credit, debit gift card service, rentals, and small business financials. Because of this wide range of functionality, today’s POS Software is truly your full functioning Retail Management System.

A simple hi, how are you, what can I help you with will go a long way in making a sale.  I was running out of toner for a laser printer in my office and on an impulse, went to Office Depot to purchase one.  I couldn’t find the product number I needed and couldn’t find anyone that could help me, even though there were plenty of employees in the store.  I went back to my office, logged in on Amazon and made the purchase.  I know it wasn’t a large sale, but it was an easy sale if someone would have asked, can I help you?  

When retailers don’t simplify their technology needs, they will limit the motivation and creativity their employees need to grow the business.  If the employee task becomes difficult and unmanageable because all the applications don’t work well together, the software implementation will fail.  Empower employees with technology that will make their work rewarding, easy to accomplish and watch the bottom line grow.  An example of this would be, a good customer walks in and you go to the point of sale station and immediately have all that customer’s past purchases, preferences and buying habits in front of you.  This is impressive and will create a simplified one-on-one selling experience. 

ProphetLine POS/Inventory Management Software is a complete package that manages all crucial tasks seamlessly from front to back.  The next time your employees complain the POS Software and store technology is to complicated, maybe they are right.          

If you are not currently involved in a gift card program, you need to start.  It’s one of the fastest growing segments in retailing.  Click this link back to ProphetLine’s Blog to read more.

Donald Trump can have a new slogan this year.  Now that Plutoed has been voted in as the word of 06, Trump doesn’t have to say “You’re Fired”; he can say “You’re Plutoed”.  I’m not sure how much relevance that will have in Disneyland, with a Pluto working there, but it is a nice change around the office instead of hearing you have been demoted, you’re Plutoed. I hope all you retailers have a Great and Happy New Year and avoid being Plutoed. 

“The internet is not something you just dump something on. It’s not a truck. It’s a series of tubes. And if you don’t understand, those tubes can be filled and if they are filled, when you put your message in, it gets in line and it’s going to be delayed by anyone that puts into that tube enormous amounts of material, enormous amounts of material.” –Senate Commerce Committee Chairman Ted Steven (R-AK), explaining the workings of the Internet during a debate on net neutrality.  If only POS Software was this easy.

It’s not easy being a small retailer in these day and ages.  It takes fortitude, vision and good timing.  I tell everyone the reason I was a small entrepreneur was because no one would hire me.  A general business major with a background in golf is not the most impressive resume.  I was over qualified for some positions and under qualified for the good positions.  It took a little luck, good timing and hard work to make a go of it.  I salute all of you that have made the decision to be on your own and fight the big box retailers.  From all of us at ProphetLine POS Software/Retail Systems, Have a great holiday season and a prosperous New Year. 

I have a sign on my office wall that says; everything comes to he who waits, as long as he works like hell while he waits.  A small business person has limited resources to compete with the big box retailers and hard work, finding your niche markets and out hustling your competitors is the only way you can make it.  It’s interesting that Best Buy is expanding their Geek Squad, because they realize that service is the only way they can obtain a good growth factor.  Adding more services to your business will separate you from the crowd.  Have a great Holiday Season.