Alpha Shark Tags-3 WC Blog 331
Return Fraud-4
Wardrobing-3
Return Fraud And Wardrobing Will Wane When You Begin Using Alpha Shark Tags
Have you ever had to go to an event and needed to buy an outfit for that one evening? How about a holiday party that you want to look good for but you really didn’t want to have to splurge on a new dress or suit? Over the past couple of years I have had a couple of graduations to attend for my children and while I would have been happy wearing my slightly snug, 1987 light blue sports coat, my wife would not permit me to do so. She says it is out of date (I contend it is retro and I would be a trend setter). She also says I have put on a few pounds since then, so it is too tight. I believe the jacket does not need to be buttoned and besides, the jacket just shrank in the closet and only needs stretched out. The few extra pounds are strictly muscle, attributed to a strict diet of protein (ie; hamburgers from my favorite fast food protein take out restaurant). Regardless of our disagreement I did breakdown and purchase a new sports coat, tie, and shirt. Now I would point out, I rarely wear these items, I wear business casual at one of my jobs, and a company polo shirt and slacks to my second job. Even my church clothes are my business casual attire. In my mind I could have saved the money on the new duds, but apparently I would have embarrassed my family. The jacket and tie sit in my closet waiting for the next big event. There are some people however, that make purchases for a specific night out or event, wear the clothes and return them for a full refund. This is a form of return fraud known as wardrobing and is a financial drain on retailers. A method to prevent this fraud is when a business uses Alpha Shark Tags on their garments.
When wardrobing takes place the “customer” is basically borrowing the merchandise for one or two activities and returning it. They are careful to conceal or remove clothing tags so they cannot be seen when the item(s) are worn but can be easily replaced or unhidden when they are ready to refund the purchase. The Alpha Shark Tags are brightly colored devices that are pinned to a location on an article of clothing where they can be seen if worn. Unlike retail anti-theft devices, the tags are removed at home by the buyer not at the point of sale. Once cut off, the tags cannot be replaced and the store can enforce a no-return policy. The tags do not interfere with the fit of a garment so there can be no excuse for removing the tag just to try on the merchandise. If the tag is intact and all manufacturer tags and receipts are present a retailer can give the appropriate refund for a return.
As a former Loss Prevention Manager and Manager On Duty I have had to deal with wardrobing fraud and it is more prevalent than you may imagine. The merchandise is returned with the receipt and if a reason for the return is needed, usually the excuse is that the clothes just didn’t fit right. There were many times I was called by the return desk personnel to look at merchandise being returned and there would be a stain from make-up or perfume or cologne odors. I couldn’t turn down the refund because clothes frequently get make-up stains on them just from being tried on in the fitting room. Perfume, cologne and even body odor smells could also permeate clothing when tried on so it wasn’t enough reason to decline a refund. Make no mistake, the activity is return fraud because the person has no intent to keep the merchandise, they don’t even want to rent it their intent is to borrow and return. It isn’t a criminal act however, since there are no laws broken and store policies are being followed. Unfortunately there is a cost associated with return fraud. Frequently merchandise that has been used for wardrobing quite often has to be significantly reduced in price, causing loss of profit margin. In the worst cases the clothing has to be marked out of stock and destroyed, costing the store the full retail value of the item.
You don’t need to be victim of return fraud and you don’t have to lose customers due to overly burdensome return policies. Use Alpha Shark Tags on all articles of clothing and improve the bottom line for your store.
Alpha Shark Tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.
Have you ever had to go to an event and needed to buy an outfit for that one evening? How about a holiday party that you want to look good for but you really didn’t want to have to splurge on a new dress or suit? Over the past couple of years I have had a couple of graduations to attend for my children and while I would have been happy wearing my slightly snug, 1987 light blue sports coat, my wife would not permit me to do so. She says it is out of date (I contend it is retro and I would be a trend setter). She also says I have put on a few pounds since then, so it is too tight. I believe the jacket does not need to be buttoned and besides, the jacket just shrank in the closet and only needs stretched out. The few extra pounds are strictly muscle, attributed to a strict diet of protein (ie; hamburgers from my favorite fast food protein take out restaurant). Regardless of our disagreement I did breakdown and purchase a new sports coat, tie, and shirt. Now I would point out, I rarely wear these items, I wear business casual at one of my jobs, and a company polo shirt and slacks to my second job. Even my church clothes are my business casual attire. In my mind I could have saved the money on the new duds, but apparently I would have embarrassed my family. The jacket and tie sit in my closet waiting for the next big event. There are some people however, that make purchases for a specific night out or event, wear the clothes and return them for a full refund. This is a form of return fraud known as wardrobing and is a financial drain on retailers. A method to prevent this fraud is when a business uses Alpha Shark Tags on their garments.
When wardrobing takes place the “customer” is basically borrowing the merchandise for one or two activities and returning it. They are careful to conceal or remove clothing tags so they cannot be seen when the item(s) are worn but can be easily replaced or unhidden when they are ready to refund the purchase. The Alpha Shark Tags are brightly colored devices that are pinned to a location on an article of clothing where they can be seen if worn. Unlike retail anti-theft devices, the tags are removed at home by the buyer not at the point of sale. Once cut off, the tags cannot be replaced and the store can enforce a no-return policy. The tags do not interfere with the fit of a garment so there can be no excuse for removing the tag just to try on the merchandise. If the tag is intact and all manufacturer tags and receipts are present a retailer can give the appropriate refund for a return.
As a former Loss Prevention Manager and Manager On Duty I have had to deal with wardrobing fraud and it is more prevalent than you may imagine. The merchandise is returned with the receipt and if a reason for the return is needed, usually the excuse is that the clothes just didn’t fit right. There were many times I was called by the return desk personnel to look at merchandise being returned and there would be a stain from make-up or perfume or cologne odors. I couldn’t turn down the refund because clothes frequently get make-up stains on them just from being tried on in the fitting room. Perfume, cologne and even body odor smells could also permeate clothing when tried on so it wasn’t enough reason to decline a refund. Make no mistake, the activity is return fraud because the person has no intent to keep the merchandise, they don’t even want to rent it their intent is to borrow and return. It isn’t a criminal act however, since there are no laws broken and store policies are being followed. Unfortunately there is a cost associated with return fraud. Frequently merchandise that has been used for wardrobing quite often has to be significantly reduced in price, causing loss of profit margin. In the worst cases the clothing has to be marked out of stock and destroyed, costing the store the full retail value of the item.
You don’t need to be victim of return fraud and you don’t have to lose customers due to overly burdensome return policies. Use Alpha Shark Tags on all articles of clothing and improve the bottom line for your store.
Alpha Shark Tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.
Pre-employment Screening- 4 WC Blog 275
Employee background checks-3
Background check company-4
Job Performance, Employment Terminations And Dishonest Employee Interviews Can Be Dangerous; Pre-employment Screening Can Make It Safer – Part 3
Whoever thinks about a discussion with an employee as having the potential to be dangerous? Well, I can look back over my career and I have had several instances of employees threatening me or themselves during job terminations and internal theft interviews. I had one young man I was releasing for performance issues and during the discussion he pulled out a box cutter and threatened to kill himself. I had several dishonest employees threaten to “get me later” as I was confronting them about their theft activity. I have even had an employee get mad at me when I was speaking with him about his job performance and what I expected of him to improve. None of these are pleasant conversations. I much prefer to give praise or recognition, who doesn’t? The reality is, we as managers HAVE to have the tough talks with our employees and when we don’t we damage team morale since others feel they have to work harder. We damage the store reputation because that employee’s performance reflects how the business is run. If the person is stealing then obviously it hurts profits and if they are intimidating or dangerous it scares employees and customers. If we have to have the really hard conversations involving job termination or employee theft, we have to prepare ourselves AND our environment. I am going to give a few pointers on how you can be ready for the hard talks with your employees. I do want to make a point first, if you aren’t using a background check company to conduct pre-employment screening before you are making hiring decisions, you could be making these talks harder and more dangerous.
A background check company that does pre-employment screening investigates the pool of applicants you send them. They validate application information such as dates of employment, criminal history, education qualifications and even driving history checks. If the pre-employment screening turns up omissions, information such as a violent past, or contradictions, an employer can remove the applicant from consideration. This is the type of information you can use to help make your workplace safer.
Tips to prepare for a conversation with an employee before talking to them about involvement in theft or the need to end their employment:
• Make notes on what it is the employee has or hasn’t done that has brought you to this point. If you haven’t reviewed your facts and you are addressing something out of suspicion or because you are angry, you can make an error and the employee can make strong rebuttals.
• Stay calm and don’t allow the employee to get your temper worked up. The employee may get mad or insulting, that is natural. Staying calm on your part diffuses the situation.
• If you conduct employee background checks, review the employee’s file for pertinent information you may have overlooked that could help you in challenging the employee’s defensive arguments. Have the employee file with you, but it should be for your review, don’t offer to put it in the employee’s hands.
• Prepare the office space where the conversation will take place. The office and especially the desk should be sterile. Any loose object on a desk can be used as a weapon. If the employee goes into a rage, you don’t want them to have an object available to throw or hit with.
• Have a witness sit in and take notes (or appear to take notes in the case of a termination). The appearance of being outnumbered can be a deterrent to violence.
• Do sit so you have access to an exit. If the employee becomes violent you don’t want to be trapped in the room.
• Be prepared with a cell phone and number to the police or ready to call 911 if the employee becomes violent or threatens violence.
• Report any threats by the employee to the police, even if you believe they are benign. “I’m going to get you” is a general statement but should be reported to the police to have the report on file.
These are a few ways you can conduct a safer conversation and minimize the opportunity for violence. Conducting employee background checks through a background check company also minimizes the chance you will have that violent person on staff.
Use employee background checks and pre-employment screening to improve your chances of hiring the best workers for your team. You will reduce the number of negative conversations you will have to conduct and when you do have to conduct them you can be more confident you will be safe doing so.
Get more information on Pre-employment Screening, contact us or call 1.770.426.0547 today.
Whoever thinks about a discussion with an employee as having the potential to be dangerous? Well, I can look back over my career and I have had several instances of employees threatening me or themselves during job terminations and internal theft interviews. I had one young man I was releasing for performance issues and during the discussion he pulled out a box cutter and threatened to kill himself. I had several dishonest employees threaten to “get me later” as I was confronting them about their theft activity. I have even had an employee get mad at me when I was speaking with him about his job performance and what I expected of him to improve. None of these are pleasant conversations. I much prefer to give praise or recognition, who doesn’t? The reality is, we as managers HAVE to have the tough talks with our employees and when we don’t we damage team morale since others feel they have to work harder. We damage the store reputation because that employee’s performance reflects how the business is run. If the person is stealing then obviously it hurts profits and if they are intimidating or dangerous it scares employees and customers. If we have to have the really hard conversations involving job termination or employee theft, we have to prepare ourselves AND our environment. I am going to give a few pointers on how you can be ready for the hard talks with your employees. I do want to make a point first, if you aren’t using a background check company to conduct pre-employment screening before you are making hiring decisions, you could be making these talks harder and more dangerous.
A background check company that does pre-employment screening investigates the pool of applicants you send them. They validate application information such as dates of employment, criminal history, education qualifications and even driving history checks. If the pre-employment screening turns up omissions, information such as a violent past, or contradictions, an employer can remove the applicant from consideration. This is the type of information you can use to help make your workplace safer.
Tips to prepare for a conversation with an employee before talking to them about involvement in theft or the need to end their employment:
• Make notes on what it is the employee has or hasn’t done that has brought you to this point. If you haven’t reviewed your facts and you are addressing something out of suspicion or because you are angry, you can make an error and the employee can make strong rebuttals.
• Stay calm and don’t allow the employee to get your temper worked up. The employee may get mad or insulting, that is natural. Staying calm on your part diffuses the situation.
• If you conduct employee background checks, review the employee’s file for pertinent information you may have overlooked that could help you in challenging the employee’s defensive arguments. Have the employee file with you, but it should be for your review, don’t offer to put it in the employee’s hands.
• Prepare the office space where the conversation will take place. The office and especially the desk should be sterile. Any loose object on a desk can be used as a weapon. If the employee goes into a rage, you don’t want them to have an object available to throw or hit with.
• Have a witness sit in and take notes (or appear to take notes in the case of a termination). The appearance of being outnumbered can be a deterrent to violence.
• Do sit so you have access to an exit. If the employee becomes violent you don’t want to be trapped in the room.
• Be prepared with a cell phone and number to the police or ready to call 911 if the employee becomes violent or threatens violence.
• Report any threats by the employee to the police, even if you believe they are benign. “I’m going to get you” is a general statement but should be reported to the police to have the report on file.
These are a few ways you can conduct a safer conversation and minimize the opportunity for violence. Conducting employee background checks through a background check company also minimizes the chance you will have that violent person on staff.
Use employee background checks and pre-employment screening to improve your chances of hiring the best workers for your team. You will reduce the number of negative conversations you will have to conduct and when you do have to conduct them you can be more confident you will be safe doing so.
Get more information on Pre-employment Screening, contact us or call 1.770.426.0547 today.
Free Loss Prevention Calculator-3 WC Blog 277
Can Loss Prevention Be Free?-3
Loss Prevention Calculator-3
Can’t Afford A Loss Prevention System To Prevent Shoplifting? You Can If It Pays For Itself – Find Out With The Free Loss Prevention Calculator
There is a television commercial out that I get a kick out of when I see it. It has a worker standing in front of his boss and he is being told he is going to get a pay raise. The employee thanks the boss and then tells him he doesn’t want it. In the next scene a father brings a birthday gift to his daughter who is sitting at a table and he tells her she received another present and she turns it down. The point of the commercial is that people don’t turn down free offers, especially when they will benefit from them. I don’t know about you but I take a chance at the offer of free things frequently like a sweepstakes to win my house mortgage to be paid for a year…I just entered that one today. My wife spends time entering a publisher’s sweepstakes looking for $5,000 a week for life. I even took the time to take a car key in to a dealership to try to win a new car. After I irritated the saleslady who spent half an hour trying to convince me to apply for a loan for a car I told her I had no intention of applying for I was allowed to try my key and lost. Nonetheless I took a chance on the possibility, as slim as the chance was that I might get a free car. Would it make sense to turn down an offer to use a Free Loss Prevention Calculator to find the answer to the question, “Can Loss Prevention be free?”
I have your attention now don’t I? Can Loss Prevention be free? The answer is yes, it can be free. As a store reduces its’ losses due to theft, and even some operational issues, stock shortage or merchandise shortage goes down. That reduction in losses comes from the installation of a Checkpoint Electronic Article Surveillance (EAS) system. The savings from reduced shortage pays for the system and then adds profit to the store once it is paid for. So the next question is going to be what will it cost me to find out how I can get this free system? There is absolutely no expense and better yet, no registration that will generate unwanted phone calls or emails. To use the Free Loss Prevention Calculator you go the website, enter your store(s) annual sales information and how much you would be willing to spend on a Checkpoint EAS system and the Loss Prevention Calculator tabulates the information. The Loss Prevention Calculator assumes a 1.2% shortage rate for all stores (this is about average for retailers across the nation) and estimates that a Checkpoint EAS system would reduce a store’s shortage to .65%. The result shows approximately how many months it will take for the system to pay for itself, affirming the answer to the question, “Can Loss Prevention be free?” There is an option for printing out the information for future consideration if an owner/manager wants to think about it. No registration, no fees, no follow-up phone call or emails, just a free loss prevention calculator for all to use.
For a small business owner on a tight budget that can pose some interesting possibilities. Right now you may be running a store or a couple of stores that are getting by, but could be much more profitable if an EAS system were installed. If you could prevent product from being stolen, you would not have to sell as much merchandise to make up for the losses you are experiencing. When I was a Loss Prevention Manager we estimated it required selling 10 units of an item to make up for the profit loss of one stolen unit of that product! Think of it like this, if a $1 pack of gum is stolen, you have to sell 10 packs of that gum to make up for that single theft. That is a lot of selling to turn a profit. Now, instead of a $1 pack of gum, what if the item is a $20 stolen pair of jeans? You are selling at least $200 in jeans to make a profit. That might be a little easier for a big box store to do, but for the small or medium store that becomes a challenge. Now put that $20 pair of jeans back on the shelf and have it available for your paying customers. A much brighter picture isn’t it?
Try out the Loss Prevention Calculator and see how affordable a Checkpoint system can be. Then imagine your store(s) becoming more profitable with less effort.
Need information on the Free Loss Prevention Calculator? Give us a call at 1.770.426.0547 now.
There is a television commercial out that I get a kick out of when I see it. It has a worker standing in front of his boss and he is being told he is going to get a pay raise. The employee thanks the boss and then tells him he doesn’t want it. In the next scene a father brings a birthday gift to his daughter who is sitting at a table and he tells her she received another present and she turns it down. The point of the commercial is that people don’t turn down free offers, especially when they will benefit from them. I don’t know about you but I take a chance at the offer of free things frequently like a sweepstakes to win my house mortgage to be paid for a year…I just entered that one today. My wife spends time entering a publisher’s sweepstakes looking for $5,000 a week for life. I even took the time to take a car key in to a dealership to try to win a new car. After I irritated the saleslady who spent half an hour trying to convince me to apply for a loan for a car I told her I had no intention of applying for I was allowed to try my key and lost. Nonetheless I took a chance on the possibility, as slim as the chance was that I might get a free car. Would it make sense to turn down an offer to use a Free Loss Prevention Calculator to find the answer to the question, “Can Loss Prevention be free?”
I have your attention now don’t I? Can Loss Prevention be free? The answer is yes, it can be free. As a store reduces its’ losses due to theft, and even some operational issues, stock shortage or merchandise shortage goes down. That reduction in losses comes from the installation of a Checkpoint Electronic Article Surveillance (EAS) system. The savings from reduced shortage pays for the system and then adds profit to the store once it is paid for. So the next question is going to be what will it cost me to find out how I can get this free system? There is absolutely no expense and better yet, no registration that will generate unwanted phone calls or emails. To use the Free Loss Prevention Calculator you go the website, enter your store(s) annual sales information and how much you would be willing to spend on a Checkpoint EAS system and the Loss Prevention Calculator tabulates the information. The Loss Prevention Calculator assumes a 1.2% shortage rate for all stores (this is about average for retailers across the nation) and estimates that a Checkpoint EAS system would reduce a store’s shortage to .65%. The result shows approximately how many months it will take for the system to pay for itself, affirming the answer to the question, “Can Loss Prevention be free?” There is an option for printing out the information for future consideration if an owner/manager wants to think about it. No registration, no fees, no follow-up phone call or emails, just a free loss prevention calculator for all to use.
For a small business owner on a tight budget that can pose some interesting possibilities. Right now you may be running a store or a couple of stores that are getting by, but could be much more profitable if an EAS system were installed. If you could prevent product from being stolen, you would not have to sell as much merchandise to make up for the losses you are experiencing. When I was a Loss Prevention Manager we estimated it required selling 10 units of an item to make up for the profit loss of one stolen unit of that product! Think of it like this, if a $1 pack of gum is stolen, you have to sell 10 packs of that gum to make up for that single theft. That is a lot of selling to turn a profit. Now, instead of a $1 pack of gum, what if the item is a $20 stolen pair of jeans? You are selling at least $200 in jeans to make a profit. That might be a little easier for a big box store to do, but for the small or medium store that becomes a challenge. Now put that $20 pair of jeans back on the shelf and have it available for your paying customers. A much brighter picture isn’t it?
Try out the Loss Prevention Calculator and see how affordable a Checkpoint system can be. Then imagine your store(s) becoming more profitable with less effort.
Need information on the Free Loss Prevention Calculator? Give us a call at 1.770.426.0547 now.
