Checkpoint Tags don’t always stop theft, and that’s something every retailer needs to understand. Just last week, I was talking with a friend who is a general manager for a very small retailer. It’s a family owned business with just a handful of stores. He was telling me how they were getting absolutely hammered in a particular product line and convinced the owners to invest a small amount of money into security tags for the product, a more expensive pair of shoes. What he told me next is something I’ve heard time and time again, and I thought I’d take a moment to address this with anyone out there who feels the same way. He told me that even with the Checkpoint Tags in place, he was still losing product to theft.
Let’s take a minute and look at this issue from a global perspective. Let’s assume that in his store, he would lose about 10 pairs of shoes per week due to theft. Coming from a background in that business, I can tell you that is a very conservative number. In past lives, I’ve been in stores where every single pair of shoes are secured with a Checkpoint Tag, and the store still lost product. Why? I’ll get to that in a minute, but let’s get back to the scenario. Those 10 pairs of shoes retail, on average, $100 a pair, so we can say that this small store sees about $1,000 in loss every week, equating to just about $50k by years end, maybe more. Wouldn’t you like to have a spare fifty grand laying around? How could your store benefit from that much in additional sales?
Now, in this same scenario, with the same amount of loss, the managers decide to deploy some Checkpoint Tags to combat the loss. Let’ assume they secure every pair of shoes. Chances are, it’s going to reduce their theft, but not by 100%. It’s a safe bet to assume that they will still lose 3-5 pairs per week. Why? Shoplifters make their living from stealing from you, and no amount of security will stop their actions altogether. As a manager/owner, you have to do what you can to limit your exposure to loss. You have to understand that you will never, and I mean never, completely eliminate shoplifting losses.
Then why bother? Remember that $50k loss estimate from above? Even if you reduce that number by 50%, you’re still saving your store $25-30K a year, with a very small investment. There aren’t too many things out there that will give you a 50% ROI, but a simple Checkpoint Tag can. The tags also serve as a great physical deterrent to theft as well. I’ve seen shoplifters shy away from an item just because it had a hard tag affixed to it. It’s a great way to implement a solid control in your business, and while you can never eliminate all losses from theft, you can get your losses down to a more manageable and acceptable level.
For more information, contact us at Prevent Shoplifting Loss, or call 1.770.426.0547