What does a Loss Prevention Calculator do? Does it keep track of the payroll a store spends on Loss Prevention Staff? Does it help keep count of the amount of merchandise being stolen from your store? Does a Loss Prevention Calculator tabulate the costs of installing anti-theft equipment? Perhaps you have never even heard of such a device. Device is not really an accurate description as it is more like an application than hardware. It isn’t something that you will go into a store and purchase. It is an online tool. As a matter of fact after you use the calculator you will be asking the question, “Can Loss Prevention Be Free?”
I know you have to be wondering if this article is some type of spoof. How serious can someone be if they are raising the question, “Can Loss Prevention Be Free?” It makes no sense, a video camera system costs money. Certainly hiring a Loss Prevention Associate in ANY capacity is going to require a paycheck. So how does this proposal sound intelligible at all? To begin with what we are talking about is the return on investment that a Loss Prevention System is going to put back to your store in savings. No, you won’t be winning a raffle and getting free equipment and set-up. But what I can guarantee is you will make an investment that is going to start reducing inventory shortage caused by theft, fraud and even some operational errors from day one. A Loss Prevention System from Sensormatic with electronic article surveillance towers, tags and deactivation pads can conservatively reduce your shortage by 30%. How do I know this? Well, I think after more than 17 years in the retail loss prevention field as both an Associate and a Manager I am well-qualified to speak on the subject. I have worked with a variety of theft prevention strategies and have kept shrink below 1% consistently. One of my best and most successful tools was the use of a Sensormatic system with a heavy emphasis on merchandise tagging procedures.
However, I am fully aware that people are going to be somewhat skeptical. Short of taking a blind risk and installing some kind of theft prevention system purchased on the internet on the cheap (and possibly getting burned in the process) how can you verify what I am saying? Go to the Loss Prevention Systems Inc. website and look on the top of the page for the ROI Calculator. Click on here (go ahead, it’s free and no one is going to start filling your inbox with unwanted spam) and you will see the calculator with a couple of fields of information to complete. You will notice you are not asked for personal information or any email or business name. Fill in the two boxes and the result is an estimate of how long it will take for a new Sensormatic system to pay for itself through the return on investment. Change the information you enter as much as you like it’s FREE, remember?! The Loss Prevention Calculator can give a good idea of what you can save over time.
Have I seen tangible evidence I can point to that a Loss Prevention System saved money for a store? I will give you a specific situation from a department store I worked for. We had a major shoplifting problem with a high end brand of shirts we sold. The shirts were displayed folded on a table display near a cash register. Despite the proximity to an employee the shirts were being stolen at an alarming rate. We finally started tagging the shirts with hard tags and the theft dropped significantly. The huge empty holes on the tables from stolen product of this brand began to fill back in and we again had product to sell. I saw the impact electronic article surveillance made in our store. I really believe the Free Loss Prevention Calculator will give an accurate (if not understated) idea of the impact a retail loss prevention system would have in your store(s).
“Can Loss Prevention be free?” Unequivocally yes it can be. It is not going to be free out of the box but you will have such an improvement in your inventory results that you will have no doubts. Calculate for yourself what theft, fraud and operational errors are costing you and look at the results of the ROI calculator. Then take time to calculate how you would use that savings to improve your business. The answers are a click away so what are you waiting for?
It is important stop shoplifting but it is just as important to find ways to prevent as much operational shortage as possible. In part 1 of this series I shared a recent story about finding merchandise during a transaction that could have resulted in shortage. A customer had placed 3 ring folders in a binder and failed to mention it as I rang the binder. I did look inside and discovered about $7 worth of merchandise. The operations on the front registers and how cashiers are processing merchandise can be a prime location for operational shortage. Aside from hidden merchandise there is the temptation to use a ‘quantity’ key when checking out a lot of merchandise that is the same. Scan the first item, do a count of the items and key in the total amount. It saves time over scanning each one right? Well maybe not. As I am working the back to school season I am finding a lot of issues with merchandise quantities that are wrong. One example was when I was looking for a specific colored folder for a customer. Our on-hands showed we had a certain number but I was unable to locate them. I encountered a similar problem with index cards and composition books. While Sensormatic systems can help prevent some operational errors as I mentioned in part 1, they can’t impact all errors. If merchandise is properly scanned and deactivated or tags are removed the system has done what it is designed to do. It did stop shoplifting and would have identified merchandise missed in a basket when merchandise was processed at the point of sale. It won’t have any impact on a register keying error or merchandise stocking errors on the salesfloor.
The on-hands problem was causing several problems. I had one customer looking for wide-ruled composition books for her child. I showed on hands of over a hundred but they were nowhere to be found. Having told the customer our system said we had plenty it led to a somewhat embarrassing situation for me. In another instance I had a customer looking for a certain style of index card. Our system showed we had a quantity of 35 I had to search and in the end I could only locate 10. At least we had them but we had 25 packages of index cards I could not account for. For the sake of this conversation let us assume the cards are priced at $1.00 each that is $25 in shortage. Were they stolen? I don’t think so (though I can’t completely rule it out since we don’t have tags on them to activate our Sensormatic systems). I believe cashiers were busy, got lazy and rang up one style of index cards counted the total in the sale and keyed in a quantity. They could easily have rung up a package of unlined 3×5 cards and failed to notice the other cards were 3×5 lined cards. It may seem like no big deal but if customers are coming to your store looking for an item and you think it is there and then it isn’t you are causing a huge customer service issue to yourself. Customers don’t go to places where they feel they can’t find what they want. To make matters worse if they have a poor shopping experience they may share it on social media. It also may delay your store replenishing the merchandise you need to get back in stock, leaving ugly holes on your store shelves.
Sensormatic systems are extremely effective when it comes to reducing theft and fraud and some operational shortage. Bill Bregar, the CEO of Loss Prevention Systems, Inc. a firm that helps small and medium sized retail stores prevent theft and fraud recommends this system to their clients. Store managers and owners must recognize that there is more to shortage reduction than to simply stop shoplifting. You must recognize where operational shortage happens and make that part of a larger shortage reduction action plan.
For more information on how to stop shoplifting, contact us or call 1.770.426.0547 today.
In part 1 of this series I discussed the value of an applicant management system not only for keeping hiring paperwork organized but also the value of the other parts of the hiring process. For example we looked at how retail shortage is climbing but despite this many employers are ending pre-employment background checks and drug screening. We established that there is evidence to suggest that those with prior convictions hired into retail positions have a greater tendency to steal than those without records. In part 2, I intend to delve into the issues surrounding substance abuse and why it is a concern that fewer retailers would be relying on this as part of their process for screening applicants.
If you missed the previous article you may not be clued into what I am referencing with respect to an applicant management system. Quite simply it is a program that has brought together all of pieces of a hiring process into one location. Many employers have their hiring process spread out amongst different functions. One computer has the application and an assessment tool. Paperwork is signed giving permission for the company to request a vendor to complete a criminal background check. Another waiver form is signed that allows the company to send the applicant to a contracted lab to complete a drug screening. Additional paperwork for the I-9 is signed verifying the candidate is eligible to work in the U.S. Let us not forget the forms for direct deposit, acknowledgement of receiving the company handbook and any other miscellaneous paperwork that has to be complete. All of this then goes into a file folder and stashed in a file cabinet. Then there is no guarantee the applicant will remember to bring back all of the papers they are to return with or the vendor mails documents and they get lost. Bill Bregar is the CEO of Loss Prevention Inc. and he is familiar with the headaches posed by mishandled files. That is the reason behind his company offering the applicant management system that will keep everything digitalized, up to and including electronic signatures for waivers for criminal background checks and drug screening.
I have always been in favor of pre-employment drug testing. As long as I have been in Loss Prevention I have felt that hiring those who use illegal drugs, drink on the job or show up hungover pose safety and security risks. In spite of the years of experience I have I recognize that there are people who will not be swayed by opinion. With that in mind here is some information from a U.S. government website. According to the National Institute On Drug Abuse:
•Employers with successful drug-free workplace programs report improvements in morale and productivity and decreases in absenteeism, accidents, downtime, turnover and THEFT (emphasis added by this author).
•Employers with long-standing programs report better health status among employees and family members and reduced healthcare costs.
NIDA.”Drug Testing.” National Institute on Drug Abuse, 4 May. 2017
With this information it would seem that an employer, especially a retail owner would be more inclined to enforce pre-employment screening to prevent theft (and accidents) rather than shrink from it (no pun intended).
So why are there indications that there may be a trend of moving away from drug screening? According to an article in the money section of time.com, “Why More Employers Are Skipping Drug Tests”, by Rebecca Greenfield and Jennifer Kaplan/ Bloomberg March 7, 2018, the writers give two reasons that shed light on the issue. “Drug testing restricts the job pool, and in the current labor market, that’s having an impact on productivity and growth.” They go on a little further in the story, “Failed tests reached an all-time high in 2017, according to data from Quest Diagnostics Inc. That’s likely to get worse as more people partake in state-legalized cannabis.” For retailers I ask the question, is it in your interest to discontinue screening applicants for illegal drugs because the applicant pool is smaller in an improving economy? The increased risk of theft and fraud, not to mention safety risks and ensuing medical costs should dictate a resounding, “NO”.
The increase in retail shortage is cause for employers to put MORE emphasis on background checks and drug screening, not less. The use of an applicant management system improves the efficiency and ease of the process. Don’t allow concern over applicant availability outweigh your concerns over operating a profitable and safe business. You owe that to your current employees and yourself.
Drug screening is important and we can help you with it. Call 1.770.426.0547 and let’s talk.
Retail owners and managers have you ever thought about how substance abuse can contribute to employee theft in your store(s)? Have you considered the negative impact an accident related to drugs or alcohol accident could have in your shops? Then there is the impact on morale, teamwork, productivity and customer service to consider if an employee is under the influence at work. According to mayoclinic.org, symptoms or behaviors of drug use may include:
•Feeling that you have to use the drug regularly
•Having intense urges for the drug that block out any other thoughts
•Making certain that you maintain a supply of the drug
•Spending money on the drug, even though you can’t afford it
•Not meeting obligations and work responsibilities, or cutting back on social or recreational activities because of drug use
•Doing things to get the drug that you normally wouldn’t do, such as stealing
•Driving or doing other risky activities when you’re under the influence of the drug.These are not all of the symptoms or behaviors listed by the mayo clinic and I did add emphasis to the last four behaviors noted. If you will notice these behaviors could have the impact on your business I am referring to. https://www.mayoclinic.org/diseases-conditions/drug-addiction/symptoms-causes/syc-20365112
If drug use or substance abuse can lead to problems in the workplace it means owners and managers have to find ways to prevent it from being an issue to begin with. If it does find its way into the workplace a manager has to be able to correctly identify a worker who may be under the influence of drugs or alcohol or the after effects (i.e. a hangover). Manager training to stop employee theft and Manager training to prevent drug use in the workplace is available from Loss Prevention Systems Inc. The training courses complement each other since the substance abuse issue can lead to a dishonest employee stealing from the store. A comprehensive training program will go into how pre-employment drug screening can significantly reduce the odds of hiring someone who uses illegal drugs. It will also provide instruction on how to identify employees who may be using narcotics or demonstrating signs of substance abuse and how to address those individuals in an appropriate manner.
Some of you may have experienced being tipsy at one time or another and believe you would be able to readily identify someone who is under the influence or hungover at work. It would seem unnecessary to have to go through manager training to prevent drug use that would help you identify what you believe you can already identify. That may sound logical but there is a problem with that line of reasoning. What happens if you aren’t seeing what you think you see and make a false assumption? Did you know that some signs of medical issues can mirror the symptoms of a person under the influence of alcohol or narcotics? Listed below are some of the symptoms associated with just two categories of drugs according to the Mayo clinic.
Some of the signs of marijuana use:
•Red eyes
•Dry mouth
•Increased blood pressure
•Difficulty concentrating
•Anxiety or paranoid thinking
Some of the signs of barbiturate use:
•Drowsiness•Slurred speech
•Problems concentrating or thinking clearly
•Dizziness
The lists go on but I also want to point out some signs of common illnesses that can be found in the users of the drugs I mentioned above:
•Hypothyroidism can cause thinking problems
•Conjunctivitis can cause eye redness
•Dysarthria can cause slurred speech
•Kidney disease and diabetes can cause high blood pressure
•Depression or sleep apnea may cause drowsiness
I will even tell you that as a U.S. Air Force Law Enforcement Specialist I was trained to be aware that a person with diabetes can exhibit symptoms that mirror someone who is intoxicated by alcoholic beverages. You have to be careful before making judgements. Without going through a class about manager training to prevent drug use you could very well make a mistake if an employee exhibiting unusual behavior.
Those who use drugs or alcohol and work for you can become liabilities to your place of business. Don’t wait for something to happen such as an employee theft or a drug or alcohol related accident before you face the problem. Receive training on how drug screening and drug use identification can save you time and money in the long-term.
There are plenty of reasons for store owners to use Sensormatic labels on merchandise and I experienced one of those reasons at my retail job last night. I was working on the salesfloor putting out merchandise, providing assistance to customers and jumping on a register as a back-up cashier. I had just completed a transaction at the register and the Manager on Duty called me on the radio. I responded to her request to meet her in the middle of the building. She told me of a suspicious customer in the store that she has dealt with before regarding questionable returns without receipts. She told me the woman was in the store and had a large handbag on her shoulder and thought the woman had taken something out of the bag. As a former Loss prevention Manager I assured the M.O.D. I would watch the customer so she could attend to other matters. I first went to the customer, greeted her and offered her assistance. I also used the moment to assess what she was holding, what she was looking at and to see if I could identify any obvious stolen goods. She only had a notebook in her hand and quickly refused my gracious offer to help her. She immediately left the aisle we were on and went down several more aisles near the front of the store. I pretended to put away merchandise but using my Loss Prevention skills, I positioned myself so I could observe her without being seen by her. The customer picked up a small box of laminating sheets, looked around and placed them under the notebook but she did not conceal them in a purse or bag. She walked past me as I continued to pretend I was working and she stopped at a table behind me. I positioned myself so I could continue to watch her without being obvious. The woman was mumbling to herself about prices then turned to walk out the door. She walked past the electronic article surveillance towers but no alarm sounded. I did know she still had the laminating pouches in her hand and called to her that she had forgotten to pay for the item. She initially acted like she could not hear but when I called to her again in a more forceful manner she turned, stepped back in quickly and handed the merchandise to me and left muttering a barely audible, “I forgot” as she scampered off to a waiting car.
The value of the recovered merchandise in this little box was $24! In the bigger scheme of things this doesn’t sound like a lot. But there is more to this story. The store manager called our sister stores in the area and alerted them that the suspect and a male who was driving the car she got into may have other stolen items. The M.O.D. wanted them to turn down non-receipted refunds from the couple. Sure enough, only a matter of minutes passed before she got a call from one of those stores. The woman had label maker tape and two other items she tried to return for a cash refund but no receipt. They turned her down. That merchandise was valued at an additional $30 or more. Not one of these items had an electronic article surveillance tag on them and therefore no alarm was sounded to deter her and/or provide me or the manager an opportunity to ask her about merchandise inside her handbag. To make the whole episode more incredible our store HAS Sensormatic pedestals at the entry/exit doors. The fact that the company only protects a limited number of SKU’s baffles me. The expenditure of a few more dollars to place Sensormatic labels on merchandise could have prevented the theft that did appear to have taken place.
Electronic Article Surveillance equipment when used to the fullest potential can significantly reduce merchandise shrinkage. It is so effective if used properly and employees are trained on proper alarm response that a system can pay for itself over time. Loss Prevention Systems, Inc., a leader in retail shortage reduction and helping stores increase profits, is so confident in the impact a Sensormatic system can have in shortage reduction they estimate a system can potentially reduce shrinkage by almost half (a conservative estimation in my professional opinion). They even offer a free Return On Investment Calculator to show how long it would take for a system to pay for itself.
Invest in Sensormatic labels and an electronic article surveillance and begin to reap immediate rewards. Just do me one favor. Put labels on everything! The results on your store profit line will make you glad you did.
Sensormatic labels are important and we can help you with them. Call 1.770.915.0547 and let’s talk.
