The approaching peak season will inevitably provide opportunities, but small retailers cannot simply sit back and expect shoppers to surge through their doors and online checkouts. Instead, they need to plan proactively, not just on customer acquisition and retention, but on their bottom line – using that as their financial foundation. 

For retailers – typically stock-heavy businesses – one of the most impactful ways to do so is through real-time inventory management. But what is it? And what are the benefits for your business?

Inventory becomes insight

Real-time inventory management is the process of continuously monitoring and updating stock levels as transactions occur. From pen and paper to spreadsheets, the optimised process today occurs on inventory management software or a POS (point of sale) platform. When inventory records are updated as soon as a product is added, sold or moved – for example from a warehouse to shopfront – you can make informed decisions about purchasing, sales, and inventory control.

It’s about more than understanding what stock you have, and where it is, though. Effective inventory management enables you to improve your efficiency, profitability, and customer satisfaction. Real-time inventory software provides a clear and current view of inventory across multiple locations, which is crucial for managing supply chains, warehousing, and retail operations. 

This up-to-date inventory data helps you predict demand more accurately, allowing you to adjust your inventory levels to meet customer needs without overstocking or understocking. Understanding exactly how much stock you have on hand helps maintain optimal inventory levels, reduce holding costs, and minimise waste due to overstocking. 

Consider seasonal retailers. You don’t want to sit on excess winter stock and have not enough of your summer range. Through inventory management, you can make insights-driven decisions about how to shift your winter stock – through, for example, end-of-season discounts – and how much of your summer stock to order. It’s not just about what stock you hold, but where to store it too. For example, if certain items typically sell far more in store than online, have them in your bricks-and-mortar location rather than an online distribution facility.

Inventory management also enables you to streamline processes such as order fulfilment, restocking, and supply chain management, reducing manual errors and operational inefficiencies in the process. In some instances, if your inventory management allows you to establish confident, transparent long-term forecasts, it might even enable you to negotiate more favourable terms with suppliers.

It’s not just about your bottom line; accurate stock levels ensure that products are available when and where customers need them, improving service and customer satisfaction. In today’s omnichannel retail environment, where businesses – and their shoppers – are active online and in-store, it’s essential to have complete visibility over your inventory. According to Lightspeed’s Retail Insights and Shopper Sentiment Report, 42 per cent of Australians highly value being able to check accurate in-store stock availability online.

Today, when cashflow is uncertain, every dollar counts. Your inventory as a retailer is one of your most valuable assets, not just through sales of it, but through effective management of it. With peak season approaching and economic pressures persisting, establishing greater control and visibility over your inventory could be exactly what you need to improve cashflow, operational efficiency and customer satisfaction in the short-, medium- and long-term.

The post Is inventory management the key to profitability for small retailers? appeared first on Inside Small Business.

Consider Australia’s hyper-competitive retail sector. Retail marketing is the combination of tactics used to promote your business, acquire new customers, retain existing customers and build a strong brand presence. And the best thing is, it needn’t cost the earth. Here are just a handful of the many cost-effective ways you can fill your store without emptying your bank. 

Promote key information

Start with the basics. If you want people to find you, ensure your stock items, address, prices, website, contact details and opening hours are added to business listings and on the likes of Google and Facebook. Build free profiles on Facebook, Instagram and anywhere else your digitally-savvy shoppers are searching. Use hashtags and experiment with geotags on your post. After all, if you’re not there at the discovery phase, your business doesn’t exist.

Customer reviews

Your existing customers are your biggest, most influential advocates when it comes to reaching new audiences. They’re an incredibly powerful social proof that can either encourage people to visit your store or avoid it entirely. Almost nine in ten people trust what others say about a business through reviews, while Harvard Business School research found that a business’ average star rating translates to a five to nine per cent revenue increase. So, encourage your customers to leave them for you, and even consider incentivising them with the offer of a discount on a future purchase.

Search engine optimisation…

…or SEO is the process of increasing your ranking on search engines like Google. The better your SEO, the higher your store will appear when related keywords are searched. There are a number of easy ways to boost yours. For example, claim your Google Business Profile, use local keywords – such as ‘homewares retailer near me’ or ‘vinyl record store Newtown’ – optimise your website for mobile, add backlinks to your website (for example from social media, blogs or local directories) and encourage online reviews.

Promote special offers such as LTOs

‘FOMO’ is real, so tap into it. Limited Time Offers (LTOs) are a common tactic to attract potential shoppers because they are regarded as rare and special. If you decide to drop a new collection or discount a popular item, LTOs build it up as something unique enough to draw shoppers and help boost your sales for a short period of time.

Local event marketing

Local event marketing helps get your name out there. Handing out flyers or even hosting a sample stand at various local events are some examples of ways to use event marketing to your advantage. Think outside the box and find creative ways that help your business stand out from the rest. Consider posting QR codes in the local neighbourhood that link to your website.

Loyalty programs

A loyalty program is a great way to drive customer retention. Tied in with a POS, a loyalty program allows you to track customer buying habits and create campaigns around those habits. For example, you could offer shoppers a free product when they make a purchase over a certain value or a voucher to spend on their birthday (remember, LTO!). Or if you notice most of your shoppers purchase just one item, you could offer ‘buy two get one free’. Email marketing is one of the most cost-effective methods, making it great if you’re on a budget.

As interest rates and inflation continue to put pressure on small business budgets, it’s likely that you have a little less to invest in marketing than usual. However, that doesn’t have to come at the expense of impactful customer retention and acquisition strategies that work just as hard for your retail business as you do.

The post Impactful marketing strategies for any small-business budget appeared first on Inside Small Business.

What is a profit margin?

Gross profit is your total revenue minus the cost of generating that revenue. In short, gross profit is your sales minus the cost of goods sold. For example, if Vase#1 costs you $30 and is sold for $50, your gross profit is $20. If Vase#2 costs you $5 and sells for $40, the gross profit is $35. Although Vase#2 sold for less, its gross profit is higher, making it more profitable.

Profits as a dollar value will differ drastically depending on the value of the product, but by calculating it as a percentage it’s easier to establish a consistent picture. To do so, divide your gross profit on a sale by the revenue of the sale, then multiply by 100. So your profit margin for Vase#1 is ($20 ÷ $50 x 100) 40 per cent. A healthy profit margin varies greatly depending on the industry vertical. Your profit margin isn’t a ‘set-and-forget’ metric, it requires constant attention. Here are a few ways to help boost it.

Online store

As eCommerce booms and becomes a key way for contemporary Aussie shoppers to discover and engage with retail brands, an online store can help increase your exposure and sales. Plus, it has fewer overheads than a physical store. An online store to support your brick-and-mortar presence is an ideal way to build the ‘omnichannel’ approach consumers demand today.

Inventory management

One of the most effective ways to help improve profit margins is through inventory management, which enables you to determine which products sell quickly, which don’t and the margin on each. These insights, available through POS system sales reports, help you determine which products to stock up on to fulfil customer demand and how to prevent overstocking.

Sales forecasting

Many retail businesses are seasonal. If you specialise in beach accessories and next door sells winter gear, you’ll both have sales fluctuations from one month, or season, to another. Establish the habit of looking at annual sales reports and asking yourself which months do you make the most sales in? Do patterns persist annually? Use those patterns when planning your seasonal inventory purchasing. If you sell a higher volume of a certain product type in a given season, consider purchasing or producing more units to capitalise on its seasonality and maximise sales. By planning ahead, you may also be able to score advanced or bulk order discounts from suppliers, which will help improve your profit margin.

Operational efficiencies

Remember, it’s not just the cost of your stock that impacts profit margins. By streamlining your operations, you can increase profit margins. For example, investigate whether you could be using more cost-effective packaging, delivery methods and even in-store lighting. Time is money, so streamline productivity. Technology helps automate time-consuming tasks, like data entry, formulating sales reports or even the point-of-sale process.

These are just a few of the many ways to address your profit margin. Whether it’s increasing your average transaction value (ATV), building loyalty and incentive programs, or renegotiating agreements with vendors and suppliers, there are ways to spend less and sell more. If you consider applying them in your day-to-day operations and monitor their impact, you could optimise your retail store for long-term growth – even with challenging economic conditions.

The post How can small retailers increase their profit margins? appeared first on Inside Small Business.

For many small businesses, a key learning of the pandemic was the importance of being ready and willing to reject the notion “We have always done it this way”. Innovation, the ability to technologically pivot and reduce overhead costs were key to keeping businesses afloat during turbulent times.

The new year is well underway, and consumers are approaching post-pandemic waters with equal parts caution and optimism. There is a visible desire to dip back into the brick-and-mortar environment, as much as the rising cost of living will allow. So, how can small businesses demonstrate proactivity for the year ahead?

Here are three trends to keep on top of in 2023:

Nimble, flexible small businesses will flourish

Lockdowns demonstrated that the businesses – especially restaurants, cafes and bars – unwilling to modernise their operations were left behind by consumers and competitors. For example, the shift to online and QR code ordering continues to grow, with 27.3 per cent of Australian venues using QR codes in December 2022 compared to just 4.9 per cent in August 2020, according to Lightspeed data.

In 2023, businesses must adopt a similar level of change-agility. Cloud-based systems and automation save valuable time. This allows employees to dedicate their time to being more consumer-facing, with portable technology allowing them to focus on experiential retail and hospitality – a far cry from outdated, anchored hardware.

Consumers will continue to shop on-premise, demand for experiential retail will grow

Since realising the abilities to live, work and shop from home, consumers now seek an ROI when it comes to their time, and they expect more than a what-you-see-is-what-you-get transaction. In 2023, businesses must think outside the box when it comes to enticing customers through their doors. Westfield data has shown that 81 per cent of shoppers are willing to spend more in retail stores that offer rich shopping experiences.

Omnichannel marketing and data analysis are crucial to unearthing what products or services people are willing to purchase. Consensual consumer data collection can help unveil unnecessary costs, as well as introduce business owners to emerging trends and opportunities. For example, is it time to cut that unpopular brunch item? Time to introduce batch brew? And how can you identify, then segment, loyal customers? The decisions are in the reporting.

Small businesses will need to deal with labour shortages

Vacancies will continue to challenge small businesses as job positions become increasingly more challenging to fill. Pandemic-induced labour shortages mean that business owners must lean on in-depth reporting insights to maximise efficiency, automate and streamline operations through a consolidated tech stack. Wary of inflation and further interest rate hikes, employees are being more selective with the roles they apply for.

Businesses that automate where possible can then focus on encouraging return business and operating more cost-effectively. Systems that automate dull and repetitive employee tasks boost engagement and satisfaction – increasing both retention and motivation. Reconsidering the employee value proposition, concurrent to the appeal provided to consumers, is crucial in order to attract and retain talent.

The past few years have shown that small businesses are resilient, innovative and dynamic. Despite 2023 shaping up to be a year full of its own unique challenges and opportunities, small businesses can still find space to thrive if they are willing to integrate old-school roots with a new-school level of adaptability and technological innovation.

The post Cloud tech and reporting insights key to unlocking small-business growth in 2023 appeared first on Inside Small Business.

For small businesses, it is particularly difficult as talent shortages continue and COVID-induced closures impact their revenue. Now faced with record inflation, it is time for business owners to put a plan in place to help ensure they continue to operate viably and come out of what is a challenging period for companies of all sizes.

Inflation in Australia is sitting at 5.1 per cent – the highest the nation has seen since 2001. Meanwhile, wage growth is only 2.4 per cent. This means consumer spending may take a hit and we have already seen the cost of goods continue to rise.

These rising costs mean businesses in hospitality and retail are forced to mark up the cost of the goods they sell or face taking a cut from their revenue, just as they were starting to get back on track. To limit the negative impact and save money, there are a few strategies I would recommend business owners consider.

1. Rethink your product and service offering

It may sound obvious but reevaluating what you’re selling to customers can often be the best first step to beating inflation. Analyse customer purchases to see what is selling and what isn’t. Rejig your offering accordingly.

If there is something that isn’t selling well or the items needed to create the product have become too expensive, think about reducing or removing from your offering. Price increases are inevitable for the moment, so if you do keep the item on the menu or reorder stock, make sure it is worth it. Be transparent with customers and make sure they understand why prices have gone up – your loyal customers will appreciate this.

2. Focus on staff preservation

Every time a business has to recruit a new person, it costs them more than it would to retain staff. The latest figures from the HR Industry Benchmark Survey show the cost to hire has more than doubled over the last year, sitting at $23,860 per candidate, up from $10,500 the previous year. Create a culture and environment that will keep employees loyal to the business. This doesn’t always have to be higher pay, but often a safe space to work and somewhere where they feel they can achieve their goals.

Start by listening. Hear what it is that they love or hate about their job and then work on a plan to make it a place they want to come to every day. The employee experience is directly linked to the customer experience. Happy and loyal employees will be the greatest brand ambassadors for the business.

3. Invest in an all-in-one tech stack

Technology and digital transformation have done wonders for improving business efficiencies. Integrating technology systems can help reduce costs and people hours – something that has become increasingly important with the ongoing staffing shortages.

As time has gone on, it is likely businesses have found themselves working with numerous vendors and the costs can add up. Look for solutions that offer you the best value and where possible – if it is right for the business needs – opt for an all-in-one solution. This will help save money and offer a more seamless user experience for both staff and customers.

The post Three ways small-business owners can beat inflation appeared first on Inside Small Business.

Across the country workers have re-evaluated their relationships with work, causing business owners to restructure their internal operations where possible. In many cases, sadly, venues haven’t been able to combat the effects of the staffing crisis, and find themselves forced to close.

This is leading to a highly competitive hiring market, which I’m sure any business owner reading this can attest to. So, what exactly can employers in the hospitality industry do?

Firstly, look after your existing staff

Focus on retaining and protecting your existing staff. Listen to them and hear their needs. Often when staff leave it’s because a need isn’t being addressed, whether that’s needing their shifts to work with their home lives, needing to feel support from their manager with difficult customers, or their wages needing to be liveable.

Right now, one of the biggest needs that a lot of people are overlooking is the need to feel safe. Continue to have your staff wear masks when it makes sense, keep up signage that reminds customers to be COVID-safe, and support them if they’re feeling any cold or flu symptoms.

Treat each staff member with the same respect that you would have for friends and family, so that they don’t want to leave or work anywhere else.

Remain agile

The hospitality industry has continuously had to adapt in order to survive the past two years, and while this has been an extremely tough time, it’s important to acknowledge the positive impacts that these changes have made. For example, the increase in takeaway and delivery offerings has been a huge positive for both hospitality venues and customers.

While some changes have slid into the permanent operations for many businesses now, it’s important to keep sight of some of the short-term changes that can help support you and your team during staff shortages. Say you find yourself short-staffed for a dinner service, for example, being able to revert to a takeaway and delivery only service or a limited menu for the evening will help reduce the strain on staff and simultaneously keep revenue coming through the door.

Technology is your friend, not foe

One of the biggest positives to come out of the last two years for the hospitality industry is the advancements in technology to improve things like operational efficiencies and the customer experience. While technology is not a replacement for staff, it can help save time and resourcing, and actually enable them to focus on the parts of their role that are the most enjoyable, and true ‘value-add’ for customers.

Camp Grounds cafe in Tamworth, New South Wales, is one small business I have seen that has reaped the benefits of cloud-based technology. The iconic regional cafe once spent hours each day checking off inventory or manually placing orders with different suppliers but through introducing a cloud-based commerce solution, the business has been able to speed this process up and improve revenue.

Digital ordering has also taken off, offering a multitude of benefits. First and foremost, it minimises physical contact between staff and customers which reduces the risk of getting sick. By the same token, it can also help to have digital ordering in place when you do have staff shortages as customers can place orders through their smartphone at the table. This takes the pressure off those team members who are working, leaving them to focus on fulfilling the order and giving the customer a great overall experience.

While there is no one-size-fits-all solution, businesses can implement these suggestions to help drive staff retention and attract new employees. Make them advocates for your business and bring them on the journey as you make plans to revitalise your business and ultimately revive Australia’s hospitality industry. After all, we are all in this together.

The post Three ways small hospitality venues can win in 2022’s staffing shortage appeared first on Inside Small Business.

We’ve analysed industry trends and statistics to understand what customers are really wanting and to help hospitality businesses meet these expectations we’ve identified the top dining trends for 2022 below.

Trend 1: The domination of digital payments

Even before COVID, cash payments had been steadily declining due to the convenience of contactless payment options such as tap-and-go and digital wallets.

Considering 73 per cent of consumer payments are already digital, and consumers feel more comfortable dining out when there are contactless payment options, it’s imperative that venues have an integrated payment system for the future.

We recently partnered with app middleware platform, Doshii, which now provides our customers with an additional suite of tools that they can connect to their point-of-sale for seamless and efficient automation of operations, such as online ordering, reservation management, and staff rostering.

Trend 2: The rise in contactless ordering

QR codes have become an expected fixture of every venue over these past two years, and while they’ve largely been used to check-in, they’re also a popular method for contactless ordering – 57 per cent of consumers have indicated that QR technology would make them prefer one venue over another.

Ordering via a QR code at the table provides safety and convenience for customers as well as staff. But perhaps the most interesting reason to pay attention to this trend is that customers are spending an average of 25 per cent more when ordering via a table QR code than by traditional means.

Trend 3: The acceleration of food delivery

Take-away and food delivery have long been a staple in the hospitality industry, and online delivery has been growing for years. There’s no sign of that stopping: we’re expecting the number of Australians who use an app or delivery platform to order their food to more than double by 2025.

Alongside this continued demand for quality online food delivery, COVID restrictions created an opening for hospitality businesses to capitalise on takeaway alcohol. Customers loved the variety of venue-bottled cocktails and growlers of beer, and we can expect wine to be a popular addition to dinner delivery orders.

Trend 4: The focus on sustainability

The conscious consumer market has grown quickly, with nine out of ten Australians expressing concern about the environment and sustainability. Environmentally friendly practices such as sourcing local produce, reducing paper and plastic waste, and being proactive against food waste have all become important considerations for customers.

If given the option, consumers choose to support their local venues that also care about sustainability.

Hospitality businesses have a lot to gain by becoming environmentally conscious too. Just focusing on reducing food waste can result in thousands of dollars being saved each year – right now, 40 per cent of the food bought for inventory ends up in the bin. On top of that, you’ll be creating goodwill with potential customers and the local community, as well as doing something great for the environment!

The hospitality industry has a great opportunity to embrace the post-COVID future of dining. Customers and staff have become accustomed to technology being part of their dining experience, and even prefer the convenience and safety it allows. But, quality service and experience will always top the priority list, so the task for all businesses is to make use of technology to enhance the dining experience.

The post What does the future of dining look like? appeared first on Inside Small Business.