5 Steps to Identify Your Target Market

Accepting payments, managing your finances, and paying recipients should be simple. Unfortunately, this isn’t always the case. Our research shows the majority of Australian business owners are dissatisfied with their business banking. The truth is, most merchant services solutions aren’t built to help your business thrive. That’s where Zeller comes in. Today, we’re launching Zeller — giving Australian merchants affordable, accessible, and innovative tools that enable businesses to get paid, access their money, and manage cash flow — without ever having to set foot inside a bank. We’re reimagining business banking through powerful new technology, backed up by local support and personalised service. An innovative SME alternative to business banking “Innovative” isn’t a word usually heard in the context of merchant services. Finding integrated financial solutions to grow and support your business often requires you to weave together multiple products from different providers, which typically means longer processing times, more paperwork, and a more frustrating experience. Large enterprises benefit from financial solutions tailored to their specific needs; traditional banks have shown that they’re more than willing to pour resources into supporting big business. However, this comes at a cost to the everyday Aussies behind our small to medium sized businesses. SME owners are typically forced to fit the traditional banking mold, suffering through archaic onboarding processes only to be hit with high fees, lock-in contracts, and slow processing times when the paperwork is complete. For new business owners, this can present what seems like an insurmountable hurdle to starting and growing a venture. With 67% of businesses stating they would prefer a non-Big 4 bank, it’s clear that Australian business banking is fundamentally broken. A lack of innovation from the incumbents means merchants like you are overlooked and underserved, at a time when they should be thriving. Businesses need new tools, technology, and support to grow. And that’s why we built Zeller. What’s in the box Zeller is all-in-one payments and finance solution for Australian businesses. It helps to accelerate your business cash flow by giving you a next-generation EFTPOS terminal, a free business transaction account, and free business Mastercard, all in one box. 1. Zeller Terminal Our research revealed that 71% of business owners using clunky EFTPOS terminals regularly consider switching providers. High costs and expensive fees, slow deposits that impact cash flow, and a lack of local support are all common reasons for businesses looking to switch. The majority of Australian business owners are dissatisfied with outdated EFTPOS technology currently on the market. Zeller Terminal is an all-in-one card payment and EFTPOS solution. Our next-gen payment terminal allows you to accept every payment from every customer – Zeller Terminal accepts contactless devices, contactless cards, chip cards, magstripe cards, and will soon also accept alternative payment methods such as Alipay and ZipPay. As new payment methods continue to emerge and shape the way Australians pay for products and services, Zeller Terminal will adapt to support Australian businesses to grow. Read more about Zeller Terminal . 2. Zeller Transaction Account We understand that being able to effectively manage and access your cash flow is key to the long-term survival of your business.  That’s why we make sure your funds are available as quickly as possible after taking payment from a customer. Zeller Transaction Account is included free when you sign up for Zeller. Your account is instantly ready to use, giving you real-time visibility over your settlements and spending — no lengthy paperwork required. When you take payment through Zeller Terminal, funds are settled directly into your free Zeller Transaction Account within the day. You also have the option of sweeping your funds into any existing bank account, and they’ll be accessible as soon as your bank allows. Read more about Zeller Transaction Account . 3. Zeller Mastercard By giving you the tools to accept payments, store and settle funds, and spend your money, we're significantly reducing the time it takes for you to get access to your funds. According to the Australian Bureau of Statistics, more than 60% of small businesses close within their first three years — and the most cited cause for business failure is poor cash flow. As a business owner, fast access to your funds to pay your staff, suppliers, or buy product, is imperative. Read more about Zeller Mastercard . By seamlessly combining these services into a fully integrated solution, Zeller significantly reduces the time businesses spend on finding a merchant services provider, completing lengthy applications, getting set up, and connecting disparate payments and financial services solutions — all while speeding up your business’s cash flow. Watch the video to see how Zeller works in more detail. Your business, your way Merchant services should work the way your business needs, allowing you to pick and choose the business banking products you need to sustain and grow a profitable business. With Zeller, you have the option to choose the parts you need – Zeller Terminal, Zeller Transaction Account, and Zeller Mastercard work just as powerfully together as an integrated solution as they do alongside your existing products. Learn more about our EFTPOS machines and how our newly launched products are changing business banking for the better.

How to find the right price to maximise your profits and keep customers happy. The importance of appropriately pricing your products cannot be understated. Too high and you could lose out to more affordable competitors, too low and you could struggle to break even. Finding the right pricing strategy is key to boosting your business’s growth trajectory. Whether you’re starting a brand new business or reevaluating your pricing, this article outlines the five essential steps you should be taking to correctly price, or reprice your product or service. From calculating your costs, to understanding your customers, doing market research, monitoring sales and implementing price changes: this article guides you through the art and science of pricing. 1. Calculate your costs The very first thing you need to do when deciding on a price is to calculate how much it costs you to make or deliver your product or service. You need to identify all the direct costs – that is, raw materials or components, labour costs, packaging, shipping and any manufacturing costs. You then need to consider your indirect costs, these include rent and utilities, staff salaries, marketing or advertising, general supplies and insurance and taxes such as GST. Once you have a good idea of what each product or service costs your business, you can use one of the most simple pricing strategies: cost-plus pricing. This strategy involves simply adding a markup to the cost of your product or service. For many retailers that are on-selling pre-made products, this is a common pricing method that works well. However, it does rely on your cost calculations being accurate. So, to ensure you’re not undercutting yourself, it’s important to also factor in market demand and competition. 2. Research your competitors If you’re entering or operating in a crowded market, it’s critical that you understand what the going rate is for your product or service. Do your own market research by looking online, signing up for newsletters, monitoring social media or by discreetly going into your competitors’ stores or speaking to their customer service. If you discover that your proposed pricing is far higher or lower than competing businesses, identify why. Is your product or service lacking something that your competitors are supplying? Are you offering a customer experience or convenience that your competitors are not? If your proposed pricing is in the ballpark of the existing market, then you have a few strategic options. You might choose to adopt penetration pricing, by setting a relatively low price in order to quickly attract customers to try the product, with the view of increasing prices once your business has gained some traction. Or, if your product is new or highly innovative, you may want to initially set your prices higher than your competitors in a strategy that is known as skimming pricing . This capitalises on the willingness of early adopters to pay a premium. Then you can gradually lower your prices to target broader market segments. Or, you could simply opt for competitive pricing, whereby you set your prices close to or just under what your competitors are charging. Whatever you do, it’s important to remember that your competitors’ costs and customers aren’t identical to your own. So, the aforementioned strategies will always work best for your business if you implement them in alignment with your production costs and your customers’ spending capacity. 3. Cater to your customers Getting to know your customers is one of the most important business lessons you’ll ever learn. What they value and what you offer them can make or break your business; so it pays to listen. Talk to your clients and find out what they’re looking for, then bring them more of it. If you don’t have face-to-face interaction with your customers, having a customer contact management solution will help offer insights into their purchasing behaviour. If you’re operating within a demographic that values quality, they’ll likely be prepared to pay a premium for well-made goods or white-glove service. If this is the case, your business could benefit from implementing a value-based pricing strategy , which focuses on the perceived value of the product or service. Consider the benefits, quality, and uniqueness of your offering, and price your product or service accordingly. Or, if you are aiming to create an image of prestige, you could opt for a premium pricing strategy , whereby you purposefully set a high price to position your product or service as luxurious, exclusive, and superior quality. If your customers are searching for a bargain, either you’ll need to find ways to reduce your production costs to ensure your prices stay low, or you could adopt the loss leader pricing strategy. This involves deliberately selling certain products at a loss, in the hope that customers will purchase other, more profitable items as well, making up for the initial loss. For businesses catering to a mix of customers at both ends of this spectrum, having a tiered pricing strategy will help you accommodate the diverse needs of your clientele. By offering a range of prices, you cast a wider net for reaching potential customers. 4. Track your sales Once you’ve decided on a pricing strategy, it’s time to evaluate whether it’s working or not. Having a simple, integrated process that easily shows you what’s coming in, and what’s going out is key in this process. Whether you’re accepting payments via an EFTPOS terminal or through invoicing , Zeller’s all-in-one solution is a great way to evaluate your cash flow. Business expenses can be paid for using the Zeller Debit Card or through a direct debit from the Zeller Transaction Account , and sales can be tracked via an online dashboard and mobile app , giving you an insightful visualisation of your business cash position. Seeing the net balance of your funds over time will quickly tell you if your pricing strategy is working or not, and moreover, it will enable you to identify spending patterns, which can inform whether or not you implement a dynamic pricing strategy . Adjusting your pricing to align with sales peaks or troughs – whether over days, weeks, or seasons – can help bring in customers when business is slow, or capitalise on demand at busier times. Similarly, if your business operates in different locations, being able to compare your sales in different venues can help you implement a geographical pricing strategy if necessary, where you adjust your prices to local market conditions. 5. Adjust your prices (if you need to) After monitoring your sales for a period of time, you might decide you need to change your tack. If this means decreasing your prices, most customers will welcome the change. Just make sure you can reassure them that the quality of your product isn’t also decreasing. If, on the other hand, you need to bump up your prices, there are a number of ways to go about it to ensure you don’t get your customers offside. Soften the blow by offering discounted bundles when several products or services are purchased together as a package. Improving the quality of your product, or adding in extra features, benefits, or improvements can also help to justify the increase in price. Alternatively, consider incremental increases over time to allow customers to adjust to the changes gradually. Or implement psychological pricing by rounding them down from the nearest whole, $9.99 for example. Timing is also an important factor. Generally, the beginning of the financial year (after the sales) is a good time to adjust your prices. Otherwise, identify when your busiest season is, and implement the changes then. If you’re worried about backlash, notify your clients of the price increase either in-store or via email, and clearly explain the reasons. Educating your customers and being transparent with them will help build their trust and loyalty. Finding the right price starts with the right tools. Understanding your costs, customers, positioning, competitors, and ideal profit will help you pinpoint the pricing strategy that’s right for your products. However, it’s important to note that it’s unlikely you’ll ever choose one strategy and stick with it. Your approach will adapt and change over time and in line with the market, which is why it’s important to remain agile. Equipping yourself with the right tools to help you regularly evaluate your pricing will ensure you’re always ahead of the curve. Zeller’s end-to-end solution is your number one ally when it comes to tracking your business cash flow and using sales data to strategically grow your business.

Keep more money in your retail business by learning where you can reduce tax. Running a retail business comes with many expenses. There are the initial costs of starting a shop — such as buying or renting equipment and obtaining necessary licenses — as well as ongoing costs, including staff salaries, inventory, rent or mortgage payments, and much more. Bringing in a profit after all of these expenses can feel nearly impossible at times. However, familiarising yourself with all of the tax deductions potentially available to you will help to keep as much money as possible in your business, while complying with tax law. Here are eight categories of retail tax deductions you should be aware of. 1. Product purchases Everything sold in your store is tax deductible as a cost-of-sale. These products need to be purchased from somewhere, and the cost of stocking a store can be significant. Whether you buy the products from a distributor as they are, or purchase the materials to make the products yourself, the purchases are tax deductible. Associated costs, such as packing and delivery costs, are also deductible. Make sure to also write off any lost or damaged stock in order to claim a tax deduction. 2. Advertising and marketing costs Advertising or marketing activities you undertake to publicise your retail store and sell stock are generally tax deductible, whether that’s social media ads, billboards, flyers, or another form of advertising that connects with your target market. Even business cards are tax deductible. If you’re considering opening a retail store, or growing your existing retail store, it’s also worth noting that the cost of hiring a marketing consultant is also tax deductible. One commonly missed deduction is the cost of advertising vacancies. Many retailers will have accumulated costs for finding and hiring new employees post-lockdown — these can be claimed as a deduction. 3. Business insurance Business insurance is an essential expense for many businesses. However, there are many different types of insurance. For example, general liability insurance covers some of the costs a business may face in fighting a lawsuit, whereas loss of income insurance protects a business when an unexpected event or tragedy forces a business to close its doors and lose out on profits. Visit the Australian Government website to learn more about the different types of business insurance and what they cover. Whether or not your business insurance expense is tax deductible will depend on your individual situation. As a general rule, retail business owners can claim a deduction for most operating expenses . Insurance premiums, including fire, burglary, accident or disability, professional indemnity, public risk, motor vehicle, loss of profits, or workers’ compensation are included in the definition of operating expenses. Just make sure the insurance policy is owned by the entity responsible for paying the expenses (i.e. you or your business). 4. Property costs The rent you pay for the store itself is tax deductible. If you own the property the store operates from, the mortgage is a tax deduction — as is the land tax. Water, electricity and rates are also tax deductible expenses. For retailers operating a solely online retail store, it’s worthwhile doing the maths to work out which of your home bills contain a portion of tax deductible expenses. Occupancy expenses, running expenses, as well as expenses involved in using your car to travel for business purposes — such as sourcing new stock — are all tax deductible. 5. Capital expenditures A capital expenditure is something that improves existing business assets or overall business operations, and for that reason is usually tax deductible. Capital expenditures for retail stores can include: cash registers EFTPOS payment terminals store fittings and fixtures in-store security systems accounting software and more. The temporary full expensing scheme allows business with a turnover of less than $5 billion to immediately deduct the business portion of the cost of eligible depreciating assets. Those assets need to be first held, used or installed ready for use by 30 June 2023. 6. Staff salaries (including superannuation) Retailers need staff to cover the floor, serve customers, process new stock arrivals, arrange merchandise and take inventory. The cost of staff can be considerable, especially if you require more senior employees such as floor managers and supervisors. Salaries should be competitive — otherwise, potential candidates will likely choose to work elsewhere, and you may find yourself spending time regularly hiring and training new staff. Luckily, staff wages are tax deductible. As an employer, you are also required to pay any workers earning at least $450 per calendar month a contribution to their superannuation fund. These super contributions are also tax deductible. Sole traders can even claim a deduction for their own super contributions, through their personal tax return. It’s also important to note that the 2021/22 Federal Budget contained a significant change to superannuation. On 1 July, the super guarantee will increase by 0.5 per cent. It will continue increasing by 0.5 per cent until it reaches 12 per cent, in 2025. It's important to note that the, according to the ATO, all JobKeeper payments are treated as  ordinary income and should be declared as such. Where wages are paid on top of government payments, the normal rules for deductibility apply . 7. Fringe benefits Providing fringe benefits is one way some businesses attract and retain quality employees. A fringe benefit is a perk offered to a person specifically because they are a valued employee. These perks provide an additional incentive to work for a particular employer. Fringe benefits can be anything from insurance bundles to tuition reimbursement, or a parking space — which is generally highly valued by workers. The cost of providing fringe benefits is generally tax deductible, so businesses can leverage this opportunity to attract and keep staff. If, like many Australian merchants, you are struggling to find and retain staff since reopening doors — keep this in mind for the next financial year. 8. Tax expenses There are often costs associated with lodging taxes, including the price of hiring an accountant or bookkeeper to keep track of cash flow throughout the year, or working with a tax agent to lodge the necessary paperwork. Having a Business Activity Statement prepared is also tax deductible, as are the costs of complying with an ATO tax audit and objecting to a tax assessment you think is incorrect. Bonus tax deductions for retailers Considering upgrading your business' tech tools? If you've noticed inefficiencies in your tech stack, now's the time to make changes. The government's Small Business Technology Investment Boost enables you to claim an additional 20 per cent deduction for the cost of expenses and depreciating assets up to a maximum of $100,000 per annum. If your EFTPOS terminal frequently drops out, for example, it might be time to upgrade to a machine that supports both Wi-Fi and 4G connectivity. Zeller Terminal protects against internet outages by offering the ability to connect to Telstra's 3G and 4G network via Zeller Sim Card, so no matter where business takes you — you can accept payments from customers. There are also new bonus deductions to help you train new employees and upskill existing staff. For every $100 you spend, you can claim a $120 tax deduction through the Skills and Training Boost. Both of these new measures were announced in the 2022/23 Federal Budget . Tips for retail workers We’ve gone over some of the expenses retail business owners can claim as tax deductions to save money when tax time rolls around — but what can employees of retail stores claim? A retail employer should inform their employees about all of the deductions retail workers can claim on their income tax returns. Below are some expenses that often apply to retail workers. Uniforms: If a retail worker has to purchase a job-specific uniform for work, that is considered a business expense, and it is often tax deductible. Clothes bought to match a dress code, such as khaki pants and a polo, are not tax deductible. However, more industry-specific items like a chef’s coat, police uniform or protective gear are generally tax deductible. Learn more about the qualifications for tax-deductible clothing items. Travel expenses: Any transportation or lodging cost that a worker incurs for their job is considered a travel expense. These expenses are often tax deductible, whether it’s paying for a parking space or a hotel room for a work conference. Equipment: Any equipment a retail employee must purchase for their job is a business expense, and likely tax deductible. Equipment can include something as expensive as a tablet or something as affordable as a clipboard. Educational expenses: If an employee spends money on improving their knowledge and expertise within their field of employment, the money they spend could be considered an educational expense. This can range from conferences and seminars to classes and textbooks. For example, if you run a flower store, your employees might want to take part in a floristry course. Home office expenses: Given the nature of a retail worker’s day to day tasks, this deduction may only apply to your managers and senior staff. Any staff expected to work from home can likely include deductions for costs associated with setting up their home office. This includes internet and telephone fees that are work related, as well as the cost of equipment like a desk, monitor, keyboard and more. Preparing your business for tax time The general rule of thumb is that most expenses incurred in the running of your business can be claimed as retail tax deductions — whether the costs are incurred in an effort to generate a profit, or protect the business’ assets. The above guide is a brief overview of what both your retail business and your employees could be claiming. Make sure to consult a financial advisor or accountant to discuss your specific circumstances. To fully prepare your business for the end of the financial year, schedule time to speak with your accountant or financial advisor. Please note this article is for educational purposes only and does not constitute advice.