Price Optimization

Price Optimization seems to be the new buzz word in retail. Price Optimization software helps companies determine the optimal price for a product based on many factors such as gross margin %, competition, private label to national brand gap, demand (price elasticity) and brand linking. Additionally, the software utilizes historical data and predictive algorithms to produce price recommendations. What price should I sell this item for to create the highest gross profit for my company?

Price Optimization programs are driven by proprietary forecasting engines. These engines are based on sophisticated mathematical algorithms originally developed for scientific research and military planning. Airlines began using these solutions in the 1980s to instantly price fares based on variables like booking lead time, flight date and connections, time of day, service class and customer preference. The programs required enormous processing power only available in super computers and primarily used by large companies like airlines that could justify the investment.

With the advances of hardware and the arrival of faster and cheaper servers, companies have been developing software engines to run on these servers while creating an affordable solution for smaller businesses. The results can be churned out in a reasonable amount of time, allowing a merchant to make more informed decisions on their day to day price strategies.

As the programs make their way into the independent grocery industry, grocers are finding that they can increase their bottom line by 1-2% through the use of these tools. By looking at the detailed information the software provides, they’re able to see potential problems with price strategies that had once been hidden in rolled-up data.

Where is the future of this technology? Only time will tell, however with the competitive nature of the landscape, this could be the next tool that will help the independent level the playing field with the competition.

IBM Consumer Survey

The IBM Institute for Business Value conducted a survey of 30,000 U.S. retail consumers to understand what drives consumers’ behavior and spending patterns across several retail categories, grocery being one of many. This survey showed that consumers have changed shopping behavior but rely on retailers they trust.
• 59 percent of consumers have less discretionary budgets than in the previous year
• 91 percent of consumers are sacrificing in some spending areas
• 31 percent of consumers increased spending at primary retailer over the past two years
The current market conditions have forced consumers to make tradeoffs and change their spending habits. The IBM survey data indicates that shrinking wallets have compelled shoppers to make more cautious buying decisions, restricting their purchases to essential items. Retailers must expect and plan for these modifications in behavior.
Visit http://support.stcr.com/Newsletter/ShopperAdvocacy.pdf to read more about the IBM survey and their findings.

POS Maintenance

Holiday season shopping means a high volume of sales in a short period of time. With a high workload and little down time, registers may endure stress levels that can lead to malfunction or breaking. When one component of a lane breaks or stops working, the lane is rendered useless. Fewer lanes available can lead to longer wait times for customers. The last thing a customer wants after shopping all day is to be waiting in line.

With the proper care your registers can endure the stress of the holiday shopping season. Here are some tips to keep your current hardware in top working condition. Check your connections on pin pads, keyboards, scanner scales, monitors and all other components on a weekly basis. Be sure to clean and wipe down cashier stations regularly. Clean up any spills in proximity to any hardware immediately. Have your cashiers and managers report any small incidences or minor malfunctions right away, to prevent them from becoming a much larger issue.

By carrying hardware maintenance on equipment your store will be ready. Without maintenance you may still receive service but at the cost of parts and labor Hardware maintenance agreements can be viewed as an insurance policy for your POS system. You insure your home, car and personal health so why not your business. Call your STCR representative at (607) 757-0181 for more information.

IBM SurePOS 500

IBM recently announced a sleek, powerful new line of point-of-sale systems (POS) with advanced features and functions designed to help retailers create smarter, more dynamic and efficient business operations capable of helping reduce costs, manage risk and energize the consumer buying experience through improved customer service and shopper checkout time.

This latest edition of the IBM SurePOS 500 is among the first retail systems to deploy next generation infrared (IR) touch screen with inadvertent touch screen technology that reduces the risk of unintentionally registering a touch. The innovative touch screen never needs recalibrating, therefore improving accuracy and speeding up transaction times. The highly accurate display permits maximum light transmittal and significant glare reduction to create the highest possible image quality, even in sunlight. In addition, due to retail hardening on the touch screen, it is totally sealed to resist damage from accidental spills.

The IBM SurePOS 500 Express is the industry's leading compact point-of-sale system designed with small to midsized customers in mind. The new Express model provides clients the ability to capture real-time information and new insights at the POS that drive effective customer service initiatives and help ensure the right merchandise is in stock at the right time. By providing employees greater access to product and customer information at point-of-sale, retailers can deliver better customer service, improve employee productivity and, ultimately, deliver smarter business outcomes.

IBM is the only retail vendor to offer retail hardening, deep sleep automation, tool free serviceability and Light-Path and Remote Management capability on a single platform. The unique combination of innovative IR touch screen technology, tool free retail-hardened system design, a biometric fingerprint reader, along with Remote Management Agent and Light-Path diagnostics, is designed to keep point-of-sale systems up and running. IBM clients get a level of reliability, performance and security that is unmatched in the industry.

STCR Business Systems has been selling, installing and supporting cash register systems for 42 years. We are an IBM Premier Business Partner with the in-house expertise to install IBM systems and train your personnel in the most professional manner. For more information about the SurePOS 500 Series, contact STCR Business Systems at (607) 757-0181.

Honest Weight Food Co-op

Honest Weight Food Co-op recently installed STCR’s IBM SurePOS registers running the SMS POS application. The SMS system was selected for its flexibility to meet the unique needs of the Food Co-op. Some of the unique features being utilized are integration for memberships, Scan Genius, UNFI pricing, Cooperative Advantage promotions, inventory control and multiple years of sales history. Alexandra Juhre, IT Coordinator at HWFC, says "We seriously considered four POS systems and we chose SMS for its robust architecture, extensive data storage and retrieval, customizable integration and reporting and its comprehensive support for promotions and coupons. Together with on-site hardware support through IBM and 24/7 Help Desk support from STCR, this package clearly delivered more value than the competition."

The Honest Weight Food Co-operative (HWFC) is a for-profit; member owned and operated health food retail business located in Albany, New York. The organization began as a buying club in the fall of 1976 and was located in the basement of a home in Albany. The full title of the organization was the Honest Weight (No Springs) Food Co-op, named after the motto on a scale made by the Toledo Scale Company. In subsequent years, “(No Springs)” was removed from the name.

The Co-op has plans for a new store in 2011 featuring approximately 17,000 square feet of flexible retail space. Highlights of the plan include a full-service deli & bakery, juice/coffee bar, expanded departments, a large community room, teaching kitchen and meeting space.

Datalogic's Magellan 8500

Are your scanner scales ready to handle the new GS1 Databar coupons coming in January 2011? The Datalogic Magellan 8500 is the right hardware to keep your business running smooth and your customers happy. The MG8500Xt adds many improvements that will enable the Magellan to maintain the number 1 world ranking for stationary scanners that Datalogic has held for 3 years. Below is an over view of the Magellan 8500Xt - scanner scale.

New PreScan™ Queue-Busting Software Option
Low Energy Consumption

Highest performing POS bar code scanner available
New for Magellan 8500Xt
New Upgraded Processor and New Software
Improved performance on hard-to-read labels
Excellent performance on GS1 DataBar™ codes
New Magellan Scale Technology
The fastest scale settling time in the industry @ 495ms
Patented All-Weighs® Scale Platter
Smaller under-counter footprint
Fits in competitive scanner check stand cutouts
Improved Serviceability
Reduces the Total Cost of Ownership (TCO)
New sub-platter design
New finger-friendly lift handles
Improved calibration sealing
Easy-to-clean contoured optics enclosure
Benefits:
Reduces service times
Easier to calibrate
Easier to keep clean
SurroundScan®
Reads All 6 Sides for Very High Performance
SurroundScan® 3D Scanning™ vertical and horizontal scanning (360° x 2)
Reads bottom, top and all 4 sides
Optimized for both sweep and presentation scanning
Benefits:
Reduced orientation requirements improve productivity and ergonomics
Performance & Flexibility
New Upgraded Processor
Improved performance on hard-to-read labels
Excellent performance on GS1 DataBar™ codes

STCR Business Systems has been selling, installing and supporting Magellan Scanner/Scales for many years. STCR is an IBM Premier Business Partner with the ability to install POS systems and train your personnel in the most professional manner. For more information about Magellan scanner scales, contact STCR Business Systems at (607) 757-0181.

GS1 Databar

How many times have complicated, expired or poorly functioning coupons aggravated your customers or slowed down your front end? With the release of the new GS1 Databar coupons in January 2011 many of these costly issues will be resolved.

The GS1 Databar is a new form of UPC that contains almost seven times the information of past UPC formats containing 72 digits of information. In this repository of information you will be able to enforce with a single scan a start date, expiration date, up to three purchase requirements along with the save value. No longer searching for expiration dates while your customers wait will speed up your front end and save you money.

Additional features, such as Coupon Shuffling, which ensures coupons, will apply to matching items. Also, new prompts to indicate a cashier to return a coupon when a discounted item is voided will increase your stores efficiency and lead to happier customers. GS1 support is one of the many new features available in the upcoming IBM POS system. Call your STCR representative at (607) 757-0181, to see if your system is ready to take advantage of the new GS1 Databar.