Advice for small business retailers: with EFTPOS use up, here are tips for mitigating the bank cost

Here at Tower Systems we share business advice with our small business Point of Sale software users regularly through emails and other platforms, to help them run more successful and enjoyable businesses.

Recently, we have provided advice on addressing concerns about EFTPOS fees. As a result of the coronavirus pandemic, use of cards has risen considerably, adding a layer of cost to small business retailers that they cannot easily mitigate. We put together advice for small business retailers on how to deal with this, through their POS software and through key management decisions they can make.

Here is what we first sent to our customers over a month ago…

With the use of EFTPOS higher now, here are some tips to help insulate your business from a higher operating cost compared to cash.

1. Promote cash. Check advice from the Royal Australian Mint on handling cash during COVID19.
2. If you use Tyro, offer cash out as that cuts your fee to $0.00. We love Tyro EFTPOS – it’s fast, easy and safe.
3. 99c. Use 99c pricing wherever possible. Pricing psychology suggests that 75c, 90c, 95c and similar are seen as the same as 90c.
4. Price smart. We know from  pricing experts that $12.99 is seen the same as $13.99, that $16.99 is seen the same as $17.99, that $18.99 is seen as the same as $19.99, that $28.50 is seen the same as $29.99 … you get the drift..
5. Bundle. Package multiple items into an easy shop bundle. This makes price comparison harder and allows you to creep on price.
6. Have excellent impulse lines at the counter. An extra item or two I the basket drive purchase value beyond what the shopper may have approached the counter with. How do you know items are excellent? Their performance, trial and error.

Practical advice like this is common from us as we serve our small business retailer POS software users with ways they can work on their businesses to improve return as well as business enjoyment. It is advice that comes from our own well of us running ships ourselves, from using our own POS software in our own shops. It helps us walk in the shoes of our customers.