from The Wizard of POS

Expand your profits with some amazing tips in this weeks round up. Learn how to cross sell the proper way, learn the truth about how customers look at service and how to use your POS to boost profits using one simple feature. If you have products that didn’t sell well and they are stored in boxes in the back room take a look at a few creative ideas to sell them. Don’t be crazy like Cracker Barrel and store items for years to bring them out every couple months at their porch sale just to repack them again to be stored for the next sale.

1. New ‘2D barcodes’ puts info at the tip of your camera phone – An interesting concept developed by ScanLife and Jagtag puts versatile information in the hands of the consumer by using a cell phone camera. The 2D bar code could deliver a vast amount of information if implemented and used in the United States. The company advertising a product puts a 2D bar code in place, the consumer snaps a picture of it with their cell phone and receives information about that product on the cell phone.

At first I was thinking there is no way I would walk through the grocery store snapping pictures of bar codes. Then as I continued to read the article they offered some innovative suggestions such as newspapers displaying them for recipes, placing the bar codes on promotional posters and Sears using them for product reviews. Now that’s a concept. I could see myself using it for a product review or an informational how-to video.

2. How Small Retailers Can Clear Out Excess Inventory – Short but sweet article with a few great tips on clearing out excess inventory. Don’t tuck it away in the stock room for next season use one of the four solutions given by this article to actually make a profit from items that don’t sell as well.

3. Cross-Selling’s Time Has Come – Cross selling can either fail miserably or work like gangbusters. To increase your overall profits and make cross selling a breeze there are a few lessons you need to learn about the correct way to approach your customer. Although the author of this article uses the example of selling software type products, the general tips and information applies to any retail industry.

Put yourself in the customer’s shoes and approach them using one or all of three angles of product problem solving. The article also goes into the two most common pitfalls that you must avoid when cross selling.

4. The five myths of customer service: What you don’t know is hurting your business – This is the most compelling article of the week and a must read for any small retailer. John Goodman not only gives you the 5 myths of customer services but also gives you the fact that debunks the myth, a short example and an action to prevent it!

Do you think the lowest price drives customers? Do you think out of stock and discontinued items are ok with your customers? Do you think that complaints and returns have dwindled so your customers are satisfied? Read the facts and Think Again!

5. Take the Next Step with Your System – This article may be geared towards the dry cleaning industry, but it applies to any company that uses new or old point of sale equipment in their business. The key point is capturing customer data not just any data, but the correct information needed to track sales and promote growth in profits. Many small retailers use their POS as an inventory control device rather than using it to their advantage collecting customer information.

Train your staff to enter the correct customer name, address and email address and you will have a new marketing venue at your fingertips. Take full advantage of your point of sale equipment to help improve management, simplify operations and get to know who your customers really are.

Usually in the first paragraph I give an insight to the articles in the weekly round up, but not this week. Today I am using the space to say Happy Birthday to the Bar Code. Without it where would we be? Hard to believe that it was 35 years ago that NCR demonstrated it’s first scanning system. In less than two months after that, Wrigley became the first company to produce a product (a pack of chewing gum, of course) with a UPC that could be scanned at the local supermarket.

Lee Nicholson VP of MIS puts it best

“When that package of Wrigley’s gum moved across the scan window, and a laser beam ‘read’ the bar code imprinted on the package, it was the beginning of a new era for retailing.”

1. Smartphones and Emerging Markets: A New Technology Revolution? – The introduction of the smartphone (Blackberry, iPhone and G1) has transformed the way that consumers have access to so many things via the ability to download new software applications. Who will build these applications that could bring a whole new world together? That would be Frogtek, a project that began in the classroom at Columbia Business School.

Doing what students do best, they plan to develop an application that will be used for “mom & pop” retail stores. We all agree that many of these small retail shops keep inefficient sales records, so their first application will be an inventory and accounting management tool. This will allow small retailers to use a smartphone as their point of sale device and the camera will double as a bar code reader. The phone will then generate sales, inventory and profitability reports that will be uploaded and securely stored on Frogtek servers.

2. Malls court smaller, private retailers on temporary leases – As a small retail business you might have never thought of opening a shop in the Mall along the side of large retailers like Sears or Macy’s. Think again! This article outlines the need of malls to pull in small mom and pop shops to keep their malls alive. Almost every mall in the country has vacancies due to large corporation bankruptcies or cut backs. Who else to offer that prime space too…Small retailers. Many malls are offering short term temporary leases with favorable rents, sometimes as much as 50% less than long term tenants. The article goes into detail with many testimonials from small businesses around the nation that are taking advantage of this great opportunity.

3. Interactive mall game aims to bring in patrons, get them to stay longer – While you’re opening a new branch in the mall think about this amazing way to keep customers wandering the mall looking at all your great specials. BarZ Adventures has created a interactive mall video game called Ranger Quest. It operates through a handheld device and encourages consumers to walk through the mall and explore their surroundings. It’s a type of choose your own adventure where they will follow clues to find hidden locations in the mall, then  collect evidence to complete the mystery. The game is extremely customized on the consumers shopping preferences and retail locations can be written into the software to encourage traffic flow. For example a hidden clue on a giant sign that has a One Day Only Special Sale at your location.

4. Email Marketing Success Is About Relevance – As I have said before email marketing is a remarkable way to keep a long term relationship with your customers. It’s effective, low cost and profitable if you keep it relevant and targeted. Customers enjoy receiving email from companies that they like and trust. According to a recent study by Forrester Research 84% of customers look forward to the sales and deals form their favorite retailer. The author Lisa Barone gives 6 awesome tips on keeping your email marketing campaign relevant to the customer.

5. Role Of Technology Expanding – With the PCI compliance deadline fast approaching, convenient stores must evaluate their current POS systems to ensure that they are up to date with the latest technology. If the current point of sale system supplier has not developed a way to comply with the new standards or have not validated their testing the POS must be upgraded. Convenience stores should not look at this in a bad way. Although it may be expensive to upgrade, it will be far less than the fine imposed if they are not compliant and with a new upgraded point of sale the store will run much more efficiently.

Advancing technology has become one of the most talked about topics in the retail industry. This week we bring you more information on the use of RFID with mobile coupons and the first software driven drink dispenser. Also included is some sound advice on asset based loans, features you should be using with your point of sale that most likely you’re not and the power of POP displays.

1. The Dangers of Asset-Based Loans – Excellent article that all small retailers need to read because it concerns them the most. Getting caught up in an asset based loan can be an easy way to obtain fast cash for operations, but it has many dangers. An asset based loan is determined by your available inventory and it’s possible that if your inventory falls below a certain level you will have to start paying large chucks of cash back to the loan company. Another issue is that the value of your inventory is based on “liquidation” price not retail value.

An asset based loan may not be a bad choice in every situation, but it must be evaluated carefully. Read this article carefully and then base your decision on the knowledge you gain.

2. Dairy Queen tests stickers for targeted mobile coupon campaigns – Dairy Queen has teamed up with Tetherball to bring customers mobile coupons using RFID technology and stickers. The sticker or “tag” is affixed to the customers’ mobile phone and they activate it by sending a text with the ID number on the tag to the control center. Every time they make a purchase they are uniquely identified at the point of sale terminal and they can be sent promotional offers based on past purchases via SMS text messages or mobile coupons that can be redeemed in the store.

Jay Highley, the COO of Tetherball states:

“Mass adoption of mobile marketing using barcoded coupons just hasn’t happened because it’s far too complicated with a plethora of technical and user issues at the point of redemption,” Highley added. “Our solution doesn’t use mobile coupons with barcodes, or for that matter, require any type of mobile screen visuals to redeem offers.

3. Coke’s RFID-Based Dispensers Redefine Business Intelligence – RFID, which stands for radio frequency ID is truly amazing technology that Coke is putting into place for their new software dispensers. This may be unattainable to most small retailers, but with all technology the time will come that it will be an affordable, norm solution. Understanding the incredible features and implementation now will put you way ahead of the game when that time arrives.

Coke’s new Freestyle drink dispenser will contain 30 cartridges that will mix up to 100 varieties of sodas, juices, teas, and flavored waters. Each cartridge will contain an RFID chip that will send data back to the company giving them important data on customer preference and even if the dispenser is low and needs to be refilled.

4. Five underutilized features of the modern POS – James Bickers at the retail customer experience provides you with the five things you should be using your point of sale for that more than likely you don’t. These features may be the most ROI-rich capabilities. Do you use your POS for suggestive selling, remote management or data mining and product assortment? Head on over and read this article for tips on improving your overall profit line.

5. POP ism!! – Extensive and informative article on the effectiveness and use of Point of Purchase displays. The author describes two basic types of customers and the impact that numerous POP displays can have on their decision to by a product. Described are the elements of effective visual merchandising as well as options for point of purchase displays. Did you know if you have a large window in the front of your store that can be the best source of POP there is? Learn more in this strategic information packed article.

A sign of the times, the technological times. This weeks round up features automated shelf stocking, a way to change your advertising in less than 10 minutes and using your cell phone to redeem coupons. I have also included a couple articles that will help any small retailer with customer service, using email lists to contact customers and the release of a fast full color point of sale printer.

1. Witron system aims to fully automate shelf replenishment – Never frustrate a customer with empty shelves again. Wiltron, a German logistics company has introduced SRS or Shelf Replenishment System. The concept of this system is to let machines replenish your stock from the back side of selves so there is no interference with the customer. Although the design would need to make room for such things as conveyor belts, lifts and sensors you have to admit this is a great idea.

The article states that a system like this would never be able to stock an entire store automatically, which leaves room for the human touch. Keep reading about this interesting concept at Retail Customer Experience by clicking the title of the story.

2. Research: Retail digital signage market to triple by 2013 – The Retail Customer Experience is at it again! Delivering a great article on digital signage and retail business.

Retail digital signage comes in an array of display types and functions. They can be LCD screens or video displays used indoor or outdoor for merchandising, brand communication and special advertising.

“Competition is getting fierce among retail outlets, and they are seeking innovative ways to attract new customers and increase average transaction size and frequency of visits among existing clientele — making digital signage a perfect fit for their needs,” said Sanju Khatri, principal analyst for signage and professional displays at iSuppli.

Not to mention the response time is rapid between the changing of the sign and when the customer actually sees it. You could easily run a 50% off sale in a matter of minutes letting all your potential customers know.

3. Mobile Coupons – This is a great new way for manufacturers and retailers to entice customers by letting them save money without cutting the conventional coupon. Grocer such as Kroger, Randalls and ShopRite are teaming up with companies such as Samplesaint and Cellfire to let customers select and use mobile coupons that interest them.

An estimated nearly 3 billion mobile coupons will be issued at nearly 7 billion dollars in discounts by 2011. What a way to run customer service with an incredible convenience.

4. Study Looks at What Works for Building Email Lists – If you’re a brick and motor small retailer you may not think this article applies to you, BUT it does! Email marketing is essential to building strong relationships with customers which in turn increases sales of any type.

Many large retailers have already implemented this type of advertising and communication. Have you been to a store and they ask for your email address as you are checking out at the point of sale? This is an effective strategy to reach your target customers in a whole new way. A way that is convenient to them and a way you can build a solid trust offering them valuable content about your products or services.

This is a must read for any business that is either familiar or unfamiliar with email marketing. Bring your business to a whole new marketing level that will have your profits soaring.

5. Primera’s Full-Color POS Printer is Now Shipping – Great news for the point of sale industry…Primera has released an incredibly fast POS printer that is compatible with any Windows or Mac that allows USB connectivity. The PX450 is small and compact making it easy to place on a counter top and it can print an average size coupon in less than 5 seconds! Read our review of Primera’s PX450 Full Color Point of Sale Printer.

Company: Primera
Product: PX450 Color Printer
Price Range: $1495
Where To Buy: Primera Store

PX450 Color POS Printer Overview

Primera’s PX450 color POS printer is a compact, fast, reliable printer intended for use at retail point of sale and other point of issue applications. Primera offers a great example on the product page of why you should choose a color point of sale printer.

A recent study indicated that consumer redemption rates of coupons printed in color were up to 25% higher than coupons printed in black and white.

The PX450 will print out a typical 4” x 2.5” full color coupon in less than five seconds although the built in guillotine cutter lets you print, cut and dispense any length form. That makes this POS printer is perfect for printing coupons, receipts, tickets, name badges, wristbands and other types of narrow-format output.
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A proposed state sales tax for over 30 states could cripple your profits or employee sick days could hurt customer service. Theft always means profit loss and your competitor could be outselling you with better product packaging. Learn details about what could make or break your business in this weekly roundup.

1. Eye-tracking service helps retailers strengthen shelf presence – This article explains a valuable new service offered by User Centric. They are a user research firm based in Chicago that is offering a way to analyze consumers’ eye movements when viewing package design.

As you know effective packaging can increase a products sale and that’s critical in today’s dwindling economy. Shoppers might not always know exactly what draws them to a products packing, but their eye movements provide all the details.

Read on to learn about a service that can show you how your product stands up to the competition.

2. Will States Kill on line retail? – By far this is the most important article of the week for online retailers. Over 30 states are considering taxes on all internet purchases which could be a huge crisis across the board. With over 14,000 different taxes codes and rates for each individual purchase can you image the hiccups in present shopping cart software? Not only would you have to keep the tax code up to date, but the paperwork alone would be phenomenal.

This could spell doom for many online retailers to the point that the states would eventually gain nothing. No online retailers, no taxes to collect. The author urges you to contact your representatives in Washington regarding this issue and allows you to use their letter if needed. Take action against this crazy proposition Today!

3. Video of my Sweetheart – “Sweethearting” may be something that you have not heard of but it’s a big problem in the retail industry. Sweethearting is a popular way in which employees steal using a friend or family member.

The example given in the article states:

Remember when you were in high school and your boyfriend slipped an extra large-fry into your order for free? And you said to your friends, “what a sweetheart!” Well, there you go.

This technique costs the industry around $13 billion a year with an estimated 30% of employees using it at least once during their employment. The author discusses a company that can help with advanced video surveillance and recognition technology.

4. 4 Steps To Managing Your SMB’s Online Reputation – No matter what the size of your company is your online reputation means everything. This informative article at Small Business Trends gives 4 incredible tips to protecting your reputation with online consumers. This is a must read for any online business considering the rise in social media that brings a whole new meaning to “word of mouth”.

5. Point-of-Sale Printers May Trigger Asthma – The biggest talked about story of the week presented at Forbes.com talks about the dangers of chemicals used in thermal receipt printing. This is not a new concept, but one that has been proven by the New England Journal of Medicine which followed one 62 year old woman that had been exposed to thermal printing for a long period of time.

There is no large concern for panic on this issue, yet it’s something you should be aware of, as you or your employees print from a point of sale thermal receipt printer.

This week’s roundup has everything to do with the internet. From coupons to videos the way retailers are reaching online customers is ever changing. The possibilities of expanding your business and profits through the internet are virtually endless if you have the right tools and knowledge. Here are a few ideas to help you evolve as an online retailer.

1. Drugstore.com reports big uptick in online coupon usage – Drugstore.com states that the number of online orders coming from customers searching for bargains is up over 90% this year. They are experiencing a dramatic increase of more than 75% of visitors on their coupon and clearance pages.

This article is great inspiration for improving profits and attaining loyal customers. Perhaps you could offer a few online coupons or a weekend clearance sale to drive visitors to your site. You could gain a whole new loyal customer base.

2. Retail Has Changed Forever – A very interesting article that talks about the retail industry splitting into three parts companies that compete on price, companies that compete on uniqueness and companies that just can’t compete. It goes on to say that the comparison shopping is made easy with the internet making it hard for some companies to compete such as Circuit City who recently closed their doors.

The article gives some great tips on competing through uniqueness to differentiate your business. Of course the obvious one is to offer unique products but it also discusses value added services and customer experience.

3. The Top 7 Mistakes Small Retailers Make On-line – James Dobson, Internet Consultant goes over the top 7 mistakes that small retailers make online that can hurt their sales and business. This is a must read for any online retailer even if you think your doing great. Don’t be disappointed by your online efforts take these tips from James and implement them immediately to see proven results.

This article will help you with marketing, naming, customer service, order fulfillment and so much more. Learn the top seven key parts to being a successful online retailer.

4. Sprint to Offer Mobile 3G Wi-Fi Device – The way that you conduct business outside of the office could change forever with the announcement of Sprints new Novatel Wireless MiFi 2200 intelligent mobile hotspot device. The device will connect to Sprints 3G network and add up to five wi-fi enabled devices.

This is an important move ahead technology for small retailers that want to offer products outside their traditional stores such as a flea market or community event. Sprint give the following example: Portable retail: Five vendors at a local art fair have kiosks in close proximity. Accessing one MiFi 2200 device signal, they each run a credit card point-of-sale device over WiFi and have secure backhaul.

Read our Review of the Sprint Novatel Wireless MiFi 2000.

5. Small retailers report success with online video – This is a small article with a BIG idea! What a great way to market your business or products, using video hosting services to get your message out. In a recent survey by vzaar a diamond retailer saw a 65% sales increase in four months after adding video reviews. If you’re looking to increase awareness and sales of your business this gives you great insight to video marketing.

Company: Sprint
Product: Novatel Wireless MiFi 2200
Price Range: $100 after a $50 mail-in rebate, bundled with a new two-year service plan.
Available: First week of June 2009

Novatel Wireless MiFi 2200 Overview

Sprint’s Novatel Wireless MiFi 2200 intelligent mobile hotspot device will be available the first week of June 2009. It will allow you to connect up to five Wi-Fi devices simultaneously to Sprints 3G network. The MiFi 2000 creates a localizes Wi-Fi connection that any device equipped with Wi-Fi can use such as laptops, desktops, iPhone, MP3, game consoles and much more. The device is small and provides a built in battery that will run up to 4 hours or 40 standby hours with a single charge. The MiFi 2000 is equipped with security using WPA2-PSK, WEP and SPI Firewall. Sprint anticipates that businesspeople will be interested the device when traveling or out of the office.

Novatel Wireless MiFi 2200 Features

• Easily fits in the palm of your hand
• Brushed aluminum finish
• Provides mobile broadband Rev A Internet access wirelessly
• Supports up to five WiFi-enabled devices
• Simple to connect with Hands-Free Activation (OMA-DM). No software installation required
• Universal Wi-Fi compatibility
• Advanced security through WPA2-PSK, WEP and SPI Firewall
• Battery provides four hours of user time, 40 hours standby on single charge
• MiFi GPS capabilities to take advantage of select location and mapping applications, such as getting driving or walking directions or finding the best restaurant nearby

In this weekly roundup there is everything from yard sale regulation to customers buying directly through advertisements. Grab a cup of coffee and find out what new regulations the CPSIA has put in place, how to bring your product directly to the consumer and some great tidbits on point of sale.

1. Analysis of the New Retailer’s Guide for the CPSIA – Informative article that outlines the good and the bad of the new Consumer Product Safety Commission Retailer’s Guide. Ian, the author, places a direct link in the beginning of the article to directly download the guide.

Some of the good news is there are tables and illustrations to help understand what the law is. That way you know what can and can’t be sold, avoiding jail time or a hefty fine!

The bad news sounds much worse for the average mom and pop shop or an everyday American trying to make a buck. You see even the common yard sale falls under these “new” guidelines! Yep, your garage sale now is regulated by the government. You have to read this to believe it.

2. Wireless Point Of Sale And Mobile Marketing Increases Business Profits – This article contains some great facts about how using a wireless POS can increase your profits. The cost of implementing pays for itself quickly and you will never turn back from this mainstream technology.

The example for the hospitality industry sells the concept of wireless point of sale immediately. Staff can take orders at the table eliminating the line at the stationary POS as well as relieving the kitchen of getting multiple orders all at once. This drastically improves wait times and customer service.

Imagine the possibility of a wireless mobile POS at stadiums, trade shows, race tracks, casinos and more!

3. Take the Webstore to the Customer – This is a short article featuring a different approach to traditional e-commerce. I included it because it’s such a remarkable idea everyone should be using it! A company named Avenda has enabled customers to purchase items from the Avenda webstore directly in the advertisement without leaving the current website. What a way to boost sales!

4. Internet ticketing firm TicketLeap now at the box office, too – TicketLeap Anywhere is a web based box-office ticketing program just released by TicketLeap. They provide internet ticketing services for small to midsize events.

TicketLeap Anywhere is different from other web based ticketing programs. This product allows any person to use their computer to sell tickets to their event or any event. TicketLeap came up with this product in response to customer requests and it is catching on quickly.

5. XP Mode in Windows 7 is no cop out – This is a practical, real experience of one user trying to decide if he should upgrade the point of sale software client to Windows 7. He describes the process he went through using XP Mode to enable the POS software to run correctly. This may be a very informative article if you are considering running Windows 7 with your current point of sale software.

6. BONUS – Kudos to MerchantOS for being featured on InYourShirt.tv! Click here to view the video!