There are moments where we are considering investing in something and wish there was something like the Loss Prevention ROI Calculator available to help us decide if it is worth the investment. For example, several years ago I bought a printer from the store I work at and a new ink program from the manufacturer had just rolled out. I had to decide if the investment in signing up for the new program was worth it. I had two sons in college so I knew the printer was going to get a lot of use. The problem was I didn’t know how much printing would be done and trying to calculate that and how many prints I would get from an ink cartridge was difficult. I finally came to the conclusion it was “probably” worth the $10 a month to sign up for the ink program ($120 a year) vs. the guestimated amount of printing all the college papers would require. Well, the investment was worth it in the end and after the boys graduated I was able to drop to the next lower pricing scale of $5 a month. Retail owners have to make similar decisions when they are evaluating store inventory shortage numbers. Do they continue to take financial losses due to theft and operational errors or invest in a retail security system? If only there were a tool that would help make that determination in regards to return on investment.
The truth of the matter is, such a tool does exist. Loss Prevention Systems, Inc. (LPSI) is a company which helps retailer owners stop theft and shrinkage in stores, especially small and medium sized businesses. They provide information and training on shortage reduction but clients were asking about Retail Security Systems and if it was worth the investment or if they could even afford to purchase a system. LPSI created the Free Loss Prevention Calculator to address the issue. The link to calculator is found on the top of the LPSI webpage. The owner or manager only needs to key in their estimated annual sales and how much money they can spend on a Sensormatic security system. The calculator uses a flat estimated shrink of 1.2% (the average losses of a retail store in a year) and an assumed reduction to .65% (a conservative estimate of how much a business will reduce shortage by installing a system). The Loss Prevention ROI Calculator then shows how long it will take for the business to recoup their investment in the Sensormatic system. The bottom line is a Retail Security System will pay for itself over time.
I do want to clarify that a security system is not a one-time investment. There will be ongoing purchases of tags and labels to make. The electronic article surveillance towers and deactivation pads and some of the other accessories are one time purchases (not taking into account any upgrades a retailer may choose to add such as a people counting sensor if it is not included in the initial purchase package). The Free Loss Prevention Calculator will not take these into consideration. On the other hand the folks at LPSI would be happy to discuss what those costs may be and the options available to owners. For example EAS labels are cheaper than hard tags but may be more affordable in the short-term. Hard tags are more expensive but can be used over and over again. This reduces the need to continually buy new tags and can be a good long-term strategy. A mix of the two types of tags may be in order depending on the type of merchandise your store sells. I would suggest adding a couple thousand dollars into your estimates as you start to try out the Loss Prevention ROI Calculator.
That brings me to another feature of the Free Loss Prevention Calculator there is no tracking or registration required. That’s right, go straight to the tab and begin plugging in numbers. You can change figures to see what option would suit you best. You can print the results you like best but no one will be contacting you just by playing around with the calculator. If you do find a result you like you can then contact LPSI and discuss your options and what you need to do to start saving money on reduced shortage.
I took a chance on my printer and ink plan. With no resources available I had to decide if it was a good value or not. You can get a new retail security system with no risk simply by using the Loss Prevention ROI Calculator. Try it out and see how much you can save in reduced shortage, why wait to start saving money?
The Loss Prevention Calculator is important and we can help you with it. Call 1.770.426.0547 and let’s talk.
Stop Shoplifting -3 WC Blog 690
Sensormatic security tags-3
Sensormatic Security Tags Could Have Prevented This Attempted TV Theft
I get a kick out of each opportunity I get to stop shoplifting even when it isn’t taking place in my store. It happened again, the old Loss Prevention instincts perked up when I saw some suspicious activity in a big box retail store as my wife and I were shopping. As so often happens though when I run into these situations it could have been avoided had the merchandise been protected by using Sensormatic security tags. I will tell you about it in a moment but first I want to explain why I want every store owner and manager to understand the importance of security tags.
Sensormatic security tags are first a visual deterrent to someone who enters a store with the intention of walking out with merchandise they haven’t paid for. This means the reverse is just as true. If a criminal walks into a store and intends to steal and they do find merchandise that isn’t tagged they are going to be more inclined to steal it. Security tags aren’t hard to put on merchandise and believe it or not they are affordable. Security labels are designed for one-time use but come in bulk quantities. Hard tags are meant for multiple uses and stand up to extensive use. Multi-use also means there is little need for replacement tag purchases. It is a great way to save money while protecting what is important in your store. To make a system complete it requires installing Sensormatic pedestals at the front doors to the business. A quick visit to the Loss Prevention Systems, Inc. website and a click on their free ROI calculator and you can see for yourself how affordable all of this can be.
So now back to how my shopping trip turned into an adventure to stop shoplifting. My wife and I were walking down an aisle to pick up a box of trash bags and I watched a man pulling a large, black trash bag from a roll. He seemed to be talking to himself while opening up this single bag. I also noticed there was a shopping cart with only a 32 inch LCD television in it. The cart was blocking another customer so I asked the man if the cart was his so the woman and her child could get by. He apologized and moved the buggy. Well, that confirmed for me the cart and the television were his. At this point he started to talk to the woman telling her he was trying to see how big the bags were. I wasn’t buying his act. My wife and I got to the end of the aisle and I stopped and watched him. My wife asked what I was doing and when I told her she rolled her eyes as if to say, “Here we go again!” I watched as the man wheeled the buggy, television and his single trash bag down another aisle. I saw an employee, told him about my L.P. background and about the suspect and the television and suggested he get someone from L.P. or a manager. The suspect was in another aisle trying to place the bag over the television. I walked up and started to talk to him and commented that he had forgotten the rest of the bags an aisle over. He went back and picked up the package and said something about forgetting it. As he walked to another aisle I followed him and watched as he put the package of bags on a shelf. He attempted again to put the bag on the merchandise. Fortunately for him I happened to see where he “accidently” put the bags down again and took them to him. He acknowledged his error and put the bags in his shopping cart and moved the television to the bottom rail of the cart and proceeded to tell me he was going to check-out. Did I mention I also now saw a single can of beer in the child seat covered by the bags? A manager came up and asked me if I was okay. I told him the situation and he said he would tell the front door people and cashiers to look for him (not that he had walked far from us). So while I did not see the final outcome of this I do believe I did stop shoplifting of a television from taking place in this store.
While I enjoyed this game of cops and robbers it could have been avoided had Sensormatic security tags, specifically the Magnetic Alarming 2-Tone Wrap been used on this item. Since I can’t be everywhere at once, I recommend talking to the folks at Loss Prevention Systems, Inc. and find out how they can help you get your own Sensormatic system.
Sesnormatic hard tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.
I get a kick out of each opportunity I get to stop shoplifting even when it isn’t taking place in my store. It happened again, the old Loss Prevention instincts perked up when I saw some suspicious activity in a big box retail store as my wife and I were shopping. As so often happens though when I run into these situations it could have been avoided had the merchandise been protected by using Sensormatic security tags. I will tell you about it in a moment but first I want to explain why I want every store owner and manager to understand the importance of security tags.
Sensormatic security tags are first a visual deterrent to someone who enters a store with the intention of walking out with merchandise they haven’t paid for. This means the reverse is just as true. If a criminal walks into a store and intends to steal and they do find merchandise that isn’t tagged they are going to be more inclined to steal it. Security tags aren’t hard to put on merchandise and believe it or not they are affordable. Security labels are designed for one-time use but come in bulk quantities. Hard tags are meant for multiple uses and stand up to extensive use. Multi-use also means there is little need for replacement tag purchases. It is a great way to save money while protecting what is important in your store. To make a system complete it requires installing Sensormatic pedestals at the front doors to the business. A quick visit to the Loss Prevention Systems, Inc. website and a click on their free ROI calculator and you can see for yourself how affordable all of this can be.
So now back to how my shopping trip turned into an adventure to stop shoplifting. My wife and I were walking down an aisle to pick up a box of trash bags and I watched a man pulling a large, black trash bag from a roll. He seemed to be talking to himself while opening up this single bag. I also noticed there was a shopping cart with only a 32 inch LCD television in it. The cart was blocking another customer so I asked the man if the cart was his so the woman and her child could get by. He apologized and moved the buggy. Well, that confirmed for me the cart and the television were his. At this point he started to talk to the woman telling her he was trying to see how big the bags were. I wasn’t buying his act. My wife and I got to the end of the aisle and I stopped and watched him. My wife asked what I was doing and when I told her she rolled her eyes as if to say, “Here we go again!” I watched as the man wheeled the buggy, television and his single trash bag down another aisle. I saw an employee, told him about my L.P. background and about the suspect and the television and suggested he get someone from L.P. or a manager. The suspect was in another aisle trying to place the bag over the television. I walked up and started to talk to him and commented that he had forgotten the rest of the bags an aisle over. He went back and picked up the package and said something about forgetting it. As he walked to another aisle I followed him and watched as he put the package of bags on a shelf. He attempted again to put the bag on the merchandise. Fortunately for him I happened to see where he “accidently” put the bags down again and took them to him. He acknowledged his error and put the bags in his shopping cart and moved the television to the bottom rail of the cart and proceeded to tell me he was going to check-out. Did I mention I also now saw a single can of beer in the child seat covered by the bags? A manager came up and asked me if I was okay. I told him the situation and he said he would tell the front door people and cashiers to look for him (not that he had walked far from us). So while I did not see the final outcome of this I do believe I did stop shoplifting of a television from taking place in this store.
While I enjoyed this game of cops and robbers it could have been avoided had Sensormatic security tags, specifically the Magnetic Alarming 2-Tone Wrap been used on this item. Since I can’t be everywhere at once, I recommend talking to the folks at Loss Prevention Systems, Inc. and find out how they can help you get your own Sensormatic system.
Sesnormatic hard tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.
The overwhelming cause of shrink in your store is most likely due to Employee Theft. Knowing what to look for and how to prevent it from perpetuating is the key to a healthy business. There are several key indicators of potential dishonest employees that, with proper training, your managers can que in on and stop a theft before they happen; or minimize the loss once discovered.
Employee Theft Reduction Training should be standard for all supervisors and managers that you employ. As a business owner, you may not be in your store, on the floor every minute of every day. That is the reason you employ managers, right? Every Employee Theft case that I’ve ever worked or been a part of has had some of the same things in common. When you train your managers, make sure to discuss the following points, as they are almost universal.
Making Big Purchases
While this is often not a nefarious action, it can be a sign of Employee Theft. Most managers are aware of the financial situations of their employees. Managers know the employee’s salary that is to say. If you suddenly have an employee spending amounts that are much greater than what you are paying them, then something may be amiss. They could potentially be taking advantage of an employee discount for their friends and family.
Having Friends Come in the Store
It’s always great to have a family member or friend drop by work, especially if they bring food! Again, on the outset, it wouldn’t appear improper if this was a non-common occurrence. However, if you notice an employee that has friends coming into the store, especially if they are a cashier, then something may be going on beneath the surface. Part of any Employee Theft Reduction Training should also be how managers can review register activity, as well as how to operate your cameras. Those employees that always seem to have friends over could be giving away product, or failing to ring up all of their purchases at the cash register.
Complaining about Money and Hours
We’d all like to make more money, right? Most people have that desire, however employees who constantly bring up their pay rate and discuss their financial problems could be a huge red flag for a well-trained manager. If an employee feels there is no way out of their current situation, they may resort to stealing from you to either help their current situation, or as “payback” for you not paying them a wage they feel they are entitled to.
Taking out the Trash
While this may sound silly on the surface, be sure to include this tidbit in your Employee Theft Reduction Training. Generally speaking, no one is really thrilled to have garbage duty. I mean, it stinks! This task does present a perfect opportunity for Employee Theft, since chances are, the employee will have unfettered access to the back door, and will generally be unsupervised. You can limit this risk by always having a manager open outside doors and using clear plastic trash bags. Never let an employee, no matter how tenured, have full access to go in/out of your store without supervision.
Get more information on how to stop shoplifting, contact us or call 1.770.426.0547 today.
