What A Security System Can Save You In Shrink? Try The Free Loss Prevention Calculator To Find Out
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.