Retail Traffic Counting – 3 WC Blog 697
Door Counting Sensor – 4
Proper Use Of Retail Traffic Counting Data Drives Sales
I had not thought about the importance of retail traffic counting or its relationship to conversion rates until recently in my retail job. Quite honestly I had never even heard of retail conversion rates as a measurement tool until three years ago. It happened that our store manager, with whom I have a great working relationship, was talking to the employees working one night about our conversion rate and I asked him more about it. He told me the company was adding it as a measurement (everything in large retail chains is measured these days) to the store reporting tools. Well I learned that the company was concerned about the amount of measured foot traffic versus the number of transactions. They had installed cameras at the doors and a door counting sensor to track this activity. As I thought about it I understood and realized it could be a very beneficial measurement if used properly. The key word here is properly. Unfortunately these types of measures can also be a nuisance when used on their own without keeping it in context of a larger sales picture.
By now you can probably figure out what a retail traffic counting system does but you may not know that if you have a Sensormatic electronic alarm system (EAS) tower you might be able to add a counter quickly and easily. The Sensormatic door counting sensor can be incorporated into many existing towers OR if you do not have an anti-theft system yet you can purchase one with the counting sensor installed. If you are not sure you need an anti-theft system I would like to ask you to visit the Loss Prevention Systems, Inc. website and learn more about the advantages of having a system and how it can save you thousands of dollars a year (hint: You might even want to take a look at their ROI Calculator, it is free to use and you will see how a Sensormatic system can pay for itself).
When used in a sensible manner data retrieved from a door counting sensor is useful in everything from planning to scheduling and even measuring the effectiveness of advertising and new product lines. Here are the perks of measuring door counts:
• When a store embarks upon a new advertising campaign the door counts will give a picture of how many more people have visited the store when compared to prior days. Increased foot traffic can be an indicator of a successful ad campaign.
• Retail sales receipts only give a partial picture of store activity. You can see how many transactions you had but you don’t know how many shoppers were in the store. The advantage of retail traffic counting is that you can compare the number of people that were physically in the store to sales transactions. The difference will be a good estimate of how many opportunities were missed for additional sales. Managers can strategize to pick up those missed sales.
• A traffic counter also pinpoints the activity by times of day. The advantage of knowing peak traffic in the store is a manager can allocate payroll more efficiently. Schedule more staff during those busy times so that customer service is optimized. Customers who would have walked out empty-handed may be persuaded to make the purchase they were on the fence about.
These are effective methods for using data that can help drive sales and manage payroll allocation.
What is a nuisance is when such data is used to penalize a store for not meeting an arbitrary goal. Not meeting that goal means risking bring the wrath of some faceless, higher corporate power down upon the collective head of the store management team. Well, that may be a slight exaggeration but the numbers do seem arbitrary and often scores are assigned as red, yellow and green. Score less than a green and a manager does begin to feel pressure. Stay under a green score too long and your store starts to be a focus store and after that a problem store. Having experienced the pressure of staying green rather than simply understanding numbers and working to use them to my advantage I know it can lead to an unnecessarily high stress situation.
To all of you store owners I say this, buy a Sensormatic security system WITH the door counting sensor. Enjoy the increased profits you will see with reduced theft from the EAS technology. Increase efficiency and improve sales with the proper analysis and planning gleaned from the data of a door counter. Don’t stress about it just get started with a call to Loss Prevention Systems, Inc.
Retail Traffic Counting is important and we can help you with it. Call 1.770.426.0547 and let’s talk.
I had not thought about the importance of retail traffic counting or its relationship to conversion rates until recently in my retail job. Quite honestly I had never even heard of retail conversion rates as a measurement tool until three years ago. It happened that our store manager, with whom I have a great working relationship, was talking to the employees working one night about our conversion rate and I asked him more about it. He told me the company was adding it as a measurement (everything in large retail chains is measured these days) to the store reporting tools. Well I learned that the company was concerned about the amount of measured foot traffic versus the number of transactions. They had installed cameras at the doors and a door counting sensor to track this activity. As I thought about it I understood and realized it could be a very beneficial measurement if used properly. The key word here is properly. Unfortunately these types of measures can also be a nuisance when used on their own without keeping it in context of a larger sales picture.
By now you can probably figure out what a retail traffic counting system does but you may not know that if you have a Sensormatic electronic alarm system (EAS) tower you might be able to add a counter quickly and easily. The Sensormatic door counting sensor can be incorporated into many existing towers OR if you do not have an anti-theft system yet you can purchase one with the counting sensor installed. If you are not sure you need an anti-theft system I would like to ask you to visit the Loss Prevention Systems, Inc. website and learn more about the advantages of having a system and how it can save you thousands of dollars a year (hint: You might even want to take a look at their ROI Calculator, it is free to use and you will see how a Sensormatic system can pay for itself).
When used in a sensible manner data retrieved from a door counting sensor is useful in everything from planning to scheduling and even measuring the effectiveness of advertising and new product lines. Here are the perks of measuring door counts:
• When a store embarks upon a new advertising campaign the door counts will give a picture of how many more people have visited the store when compared to prior days. Increased foot traffic can be an indicator of a successful ad campaign.
• Retail sales receipts only give a partial picture of store activity. You can see how many transactions you had but you don’t know how many shoppers were in the store. The advantage of retail traffic counting is that you can compare the number of people that were physically in the store to sales transactions. The difference will be a good estimate of how many opportunities were missed for additional sales. Managers can strategize to pick up those missed sales.
• A traffic counter also pinpoints the activity by times of day. The advantage of knowing peak traffic in the store is a manager can allocate payroll more efficiently. Schedule more staff during those busy times so that customer service is optimized. Customers who would have walked out empty-handed may be persuaded to make the purchase they were on the fence about.These are effective methods for using data that can help drive sales and manage payroll allocation.
What is a nuisance is when such data is used to penalize a store for not meeting an arbitrary goal. Not meeting that goal means risking bring the wrath of some faceless, higher corporate power down upon the collective head of the store management team. Well, that may be a slight exaggeration but the numbers do seem arbitrary and often scores are assigned as red, yellow and green. Score less than a green and a manager does begin to feel pressure. Stay under a green score too long and your store starts to be a focus store and after that a problem store. Having experienced the pressure of staying green rather than simply understanding numbers and working to use them to my advantage I know it can lead to an unnecessarily high stress situation.
To all of you store owners I say this, buy a Sensormatic security system WITH the door counting sensor. Enjoy the increased profits you will see with reduced theft from the EAS technology. Increase efficiency and improve sales with the proper analysis and planning gleaned from the data of a door counter. Don’t stress about it just get started with a call to Loss Prevention Systems, Inc.
Retail Traffic Counting is important and we can help you with it. Call 1.770.426.0547 and let’s talk.
Sensormatic Systems-3 WC Blog 688
Stop Shoplifting-3
Electronic Article Surveillance-3
Sensormatic Systems Remove Opportunity For Theft Part 1
I was reading an interesting article about how the removal of opportunity can decrease theft and I was in agreement with the writer but I wanted him to include how Sensormatic systems could be helpful also. The article, “Reduce Employee Theft by Removing Opportunity”, by Garett Seivold, in Loss Prevention Magazine, Oct 4, 2018, was spot on with the suggestions he made. He discusses the options of analytical tools that are available to retailers but points out “…a hefty price tag is frequently attached.” Mr. Seivold also touches on the fact that the labor market is getting “tighter” and this makes it more difficult for employers to be selective in hiring. The article then focuses on one aspect of opportunity that employers can improve on to reduce employee theft, providing employees with a secure locker system for storing personal belongings. The locker system he references has clear doors which allow managers to see what is in a locker but still gives the employee individual security. I like this approach to internal theft but I am going to add my two-cents to the conversation. Let me be clear, Mr. Seivold does not seem to be arguing against retail ant-theft devices and electronic article surveillance so I don’t want to leave that impression. I am only going to add that owners can prevent employee theft AND stop shoplifting by including Sensormatic systems in a store.
I agree that analytical tools can be expensive and to be honest, if a store manager is not careful in working with data it can become very time consuming. My take on Loss Prevention comes from nearly 17 years of retail L.P. experience. I have also been a Freight Flow Manager and I have seen the way data overload can become overwhelming and basic operational management (whether it is store or L.P. operations) become secondary. The impact can be counterproductive though the idea behind all of the reporting tools was supposed to improve efficiency. One of the ways to address the problem of theft is to focus on prevention tactics. Absolutely removing opportunity is an important part of a sound strategy. Another component that should not be overlooked is electronic article surveillance as an affordable and proven means of deterring employee theft and to stop shoplifting at the same time. A quality security pedestal at the entrance and exits of stores and a program of thoroughly tagging all merchandise in a store goes a long way in shortage reduction. By using a combination of Sensormatic labels and hard tags (depending on the merchandise being protected) crooks will find it difficult to steal without a significant risk of being caught. That risk is the deterrent that impacts shoplifters and dishonest employees, no one WANTS to be caught and be sent to jail.
I said that Sensormatic systems are an affordable option for business owners. They are affordable and I am not talking about second-hand or refurbished equipment. If you take the time to go to Loss Prevention Systems, Inc.’s website you can find a free ROI Calculator that can calculate for you not only how much you can reduce your shrinkage you can see how short a time frame a new system would pay for itself in shrinkage reduction. There are additional upgrades that can enhance the way you display and sell merchandise but a basic system with electronic article surveillance tags is very affordable.
Opportunity is a requirement for criminals to be able to steal from stores, Mr. Seivold is correct. The ability to identify those opportunities and knowing how to eliminate them is another matter altogether. In Part 2 we will explore some additional ways to reduce and eliminate opportunity for your workers to steal from you and we will also stop shoplifting along the way.
For more information on Sensormatic systems contact us or call 1.770.426.0547 today
I was reading an interesting article about how the removal of opportunity can decrease theft and I was in agreement with the writer but I wanted him to include how Sensormatic systems could be helpful also. The article, “Reduce Employee Theft by Removing Opportunity”, by Garett Seivold, in Loss Prevention Magazine, Oct 4, 2018, was spot on with the suggestions he made. He discusses the options of analytical tools that are available to retailers but points out “…a hefty price tag is frequently attached.” Mr. Seivold also touches on the fact that the labor market is getting “tighter” and this makes it more difficult for employers to be selective in hiring. The article then focuses on one aspect of opportunity that employers can improve on to reduce employee theft, providing employees with a secure locker system for storing personal belongings. The locker system he references has clear doors which allow managers to see what is in a locker but still gives the employee individual security. I like this approach to internal theft but I am going to add my two-cents to the conversation. Let me be clear, Mr. Seivold does not seem to be arguing against retail ant-theft devices and electronic article surveillance so I don’t want to leave that impression. I am only going to add that owners can prevent employee theft AND stop shoplifting by including Sensormatic systems in a store.
I agree that analytical tools can be expensive and to be honest, if a store manager is not careful in working with data it can become very time consuming. My take on Loss Prevention comes from nearly 17 years of retail L.P. experience. I have also been a Freight Flow Manager and I have seen the way data overload can become overwhelming and basic operational management (whether it is store or L.P. operations) become secondary. The impact can be counterproductive though the idea behind all of the reporting tools was supposed to improve efficiency. One of the ways to address the problem of theft is to focus on prevention tactics. Absolutely removing opportunity is an important part of a sound strategy. Another component that should not be overlooked is electronic article surveillance as an affordable and proven means of deterring employee theft and to stop shoplifting at the same time. A quality security pedestal at the entrance and exits of stores and a program of thoroughly tagging all merchandise in a store goes a long way in shortage reduction. By using a combination of Sensormatic labels and hard tags (depending on the merchandise being protected) crooks will find it difficult to steal without a significant risk of being caught. That risk is the deterrent that impacts shoplifters and dishonest employees, no one WANTS to be caught and be sent to jail.
I said that Sensormatic systems are an affordable option for business owners. They are affordable and I am not talking about second-hand or refurbished equipment. If you take the time to go to Loss Prevention Systems, Inc.’s website you can find a free ROI Calculator that can calculate for you not only how much you can reduce your shrinkage you can see how short a time frame a new system would pay for itself in shrinkage reduction. There are additional upgrades that can enhance the way you display and sell merchandise but a basic system with electronic article surveillance tags is very affordable.
Opportunity is a requirement for criminals to be able to steal from stores, Mr. Seivold is correct. The ability to identify those opportunities and knowing how to eliminate them is another matter altogether. In Part 2 we will explore some additional ways to reduce and eliminate opportunity for your workers to steal from you and we will also stop shoplifting along the way.
For more information on Sensormatic systems contact us or call 1.770.426.0547 today
Sensormatic Labels-4 WC Blog 687
Stop Shoplifting – 3
When To Use Sensormatic Labels vs. Hard Tags
When is it appropriate to use Sensormatic labels versus a security hard tag on merchandise? This may sound like an odd question but I bring it up because of something I noticed in a major department store the other day. I was helping my wife look for a new purse (not that I was much help, I think I was more there to amuse her) and while she was trying on purses, checking zippers and looking for all of the necessary hiding places she requires of a handbag, I was looking at the security tags being used. Like I said, I don’t think I was much help to her. I noticed that many of the purses had electronic article surveillance labels on the manufacturer’s hang tag. There were a few very expensive bags with hard tags on them. I put on my Loss Prevention Manager hat and began questioning the reasoning for the tagging as it was being done in this store.
Sensormatic labels are great to use to stop shoplifting and the acoustic magnetic labels are easily detected when a thief carries tagged merchandise through an electronic article surveillance tower. It is important for a store owner to remember that the labels may have a strong adhesive but if they are attached to a manufacturer’s hang tag the hang tag can usually be pulled off without any real effort exerted. A hard tag may be a better option in these types of situations. This brings up the question when are Sensormatic labels the appropriate anti-theft device?
Personally, I like the acoustic magnetic labels for smaller, boxed merchandise that is not a high theft or high dollar item. A great place to start is the health and beauty section of a store. Plain toothbrushes, bottles of mouthwash, bottles and boxes of aspirin and other lower price point pain relievers. The Sensormatic HBC Label is designed to protect smaller and thinner cosmetic merchandise items. Store brand products are not as popular among criminals as name brand goods so these tend to be good choices for labels in order to stop shoplifting. Other areas to consider for electronic article surveillance labels can be writing utensils such as pens and pencils, crayons and markers. You might even tag budget cd’s and dvd’s with labels. I do recommend that new release movies, high end pen sets, and other items would be better protected in a Sensormatic Safer anti-theft device.
So while I have mentioned additional items for protecting merchandise available from Sensormatic it has to raise a question among some readers about which products are best for their particular stores. Bill Bregar, Founder of Loss Prevention Systems, Inc. has the answers for retailers of any type of wares. Whether your store is a clothing specialty store, an antique shop or a corner market, Bill and his team can guide you in your efforts to reduce theft and increase profitability. That is what HIS business specializes in and they have been doing it since 1983! Loss Prevention training, stock shortage risk evaluation and action planning, theft investigations and even employee background checks and pre-employment drug screenings are services they offer in addition to Sensormatic systems. Bill can find the right solution to fit your store and you will be amazed at what you can save when you begin to take the right combination of steps to stop shoplifting and cut down employee theft.
Sensormatic labels are a cost effective way to deter criminals from stealing from your store. I have listed many of the items I would recommend them to be used on. When the merchandise is higher priced and a sure target of criminals other Sensormatic devices are in order. But, no matter what it is that you need to protect, Loss Prevention Systems, inc. has the solution.
Sensormatic labels are important and we can help you with them. For more informtation contact us or call 1.770.426.0547 and let’s talk.
When is it appropriate to use Sensormatic labels versus a security hard tag on merchandise? This may sound like an odd question but I bring it up because of something I noticed in a major department store the other day. I was helping my wife look for a new purse (not that I was much help, I think I was more there to amuse her) and while she was trying on purses, checking zippers and looking for all of the necessary hiding places she requires of a handbag, I was looking at the security tags being used. Like I said, I don’t think I was much help to her. I noticed that many of the purses had electronic article surveillance labels on the manufacturer’s hang tag. There were a few very expensive bags with hard tags on them. I put on my Loss Prevention Manager hat and began questioning the reasoning for the tagging as it was being done in this store.
Sensormatic labels are great to use to stop shoplifting and the acoustic magnetic labels are easily detected when a thief carries tagged merchandise through an electronic article surveillance tower. It is important for a store owner to remember that the labels may have a strong adhesive but if they are attached to a manufacturer’s hang tag the hang tag can usually be pulled off without any real effort exerted. A hard tag may be a better option in these types of situations. This brings up the question when are Sensormatic labels the appropriate anti-theft device?
Personally, I like the acoustic magnetic labels for smaller, boxed merchandise that is not a high theft or high dollar item. A great place to start is the health and beauty section of a store. Plain toothbrushes, bottles of mouthwash, bottles and boxes of aspirin and other lower price point pain relievers. The Sensormatic HBC Label is designed to protect smaller and thinner cosmetic merchandise items. Store brand products are not as popular among criminals as name brand goods so these tend to be good choices for labels in order to stop shoplifting. Other areas to consider for electronic article surveillance labels can be writing utensils such as pens and pencils, crayons and markers. You might even tag budget cd’s and dvd’s with labels. I do recommend that new release movies, high end pen sets, and other items would be better protected in a Sensormatic Safer anti-theft device.
So while I have mentioned additional items for protecting merchandise available from Sensormatic it has to raise a question among some readers about which products are best for their particular stores. Bill Bregar, Founder of Loss Prevention Systems, Inc. has the answers for retailers of any type of wares. Whether your store is a clothing specialty store, an antique shop or a corner market, Bill and his team can guide you in your efforts to reduce theft and increase profitability. That is what HIS business specializes in and they have been doing it since 1983! Loss Prevention training, stock shortage risk evaluation and action planning, theft investigations and even employee background checks and pre-employment drug screenings are services they offer in addition to Sensormatic systems. Bill can find the right solution to fit your store and you will be amazed at what you can save when you begin to take the right combination of steps to stop shoplifting and cut down employee theft.
Sensormatic labels are a cost effective way to deter criminals from stealing from your store. I have listed many of the items I would recommend them to be used on. When the merchandise is higher priced and a sure target of criminals other Sensormatic devices are in order. But, no matter what it is that you need to protect, Loss Prevention Systems, inc. has the solution.
Sensormatic labels are important and we can help you with them. For more informtation, contact us or call 1.770.426.0547 and let’s talk.
Sensormatic Systems-3 WC Blog 663
Stop Shoplifting-3
Stop Shoplifting AND Operational Shortages Part 3
In part 1 I discussed the way Sensormatic systems can assist store owners in reducing operational shortage. We have also looked at how they can curb or reduce vendor related merchandise shrinkage. As we finish out this series I want to discuss a few other operational issues that contribute to shortage. It is important to remember that operational shortage is a separate concern from efforts to stop shoplifting and internal theft. These are errors and mistakes in processing and handling merchandise that can be just as costly as theft but may not get the same level of attention as theft does. The reason for this series is that in the past week I have encountered each situation. I have also had to deal with the resulting customer service issues brought about by each problem.
This past week I was assisting a customer in finding tabbed dividers for his child who was preparing for school. The customer found a package he wanted and as he started to place it in his shopping cart I noted that the packaging looked a bit unusual. I asked if I could look at it more closely and he permitted me to do so. It turned out it was a multi-pack of the dividers still in the clear, shipping cellophane wrap. There were approximately 8-10 individual packs still wrapped and could have been unintentionally rung up as a single unit if I had not caught it. In other words rather than selling 8 or 10 packages at roughly $3.00 each (a total of $24-$30) we could have theoretically sold all 8 or 10 units for $3.00. That would have been bad enough. To make matters worse, there were about 10 such packages that had not been properly processed when the merchandise was stocked. Assuming there were 10 units in a package multiplied by 10 packages, the shortage could have been almost $270! Some people are thinking that this would not have happened and the error would have been caught quickly before all of the packages could have been sold. That is not necessarily so. There are people who look for stocking errors and purposely take advantage of them. My customer was not entirely happy about the catch I made but he said he understood. No, it is not the same as trying to stop shoplifting but not addressing these problems can be just as costly if not more so.
Since we are on the topic of operational issues that cannot be prevented by a Sensormatic system let’s discuss compactor security. Does your store have a compactor? If not, how about an outside dumpster? Who is responsible for tossing trash in your business? Do employees throw out their own boxes, packaging, etc.? Does your store keep a lock on the compactor if you have one? If it is locked, do you limit who throws away the garbage and does anyone inspect what is being tossed? As a former Loss Prevention Manager I was actively involved in the operational integrity of the store. I ensured our managers were in compliance with company policies regarding compactor security because the risk of shortage due to carelessness was that great. I would conduct audits of boxes and trash that were waiting to be tossed and I would find merchandise that was overlooked during the freight flow process. There were times I would find merchandise that was to be thrown out for vendor credits and some items had not been processed through reverse logistics. I was reminded of this source of shortage when my daughter, an area manager for another retailer was telling me how an employee had left several boxes of shoes in a box by their compactor waiting for a manager to throw it out. Had she not been careful about what she was throwing in they would have incurred shortage in shoes. It also would have made the store short of that shoe size and affected potential sales had a customer wanted them and they weren’t available. Managers don’t need to stop shoplifting in order to save shortage from happening.
A Sensormatic system can make a huge difference in shortage for store owners willing to invest in them. They are a serious deterrent to shoplifters and dishonest employees and they will identify attempted efforts to steal. They can also curb some operational shortage, though not all of it. That is why it is important to contact Loss Prevention Systems, Inc. for a consultation on how to prevent theft, fraud and shortage for a thorough review of your shrink risks. You will be surprised at how much you can save by spending on Loss Prevention.
Sensormatic systems are important and we can help you with it. Call 1.770.426.0547 and let’s talk.
In part 1 I discussed the way Sensormatic systems can assist store owners in reducing operational shortage. We have also looked at how they can curb or reduce vendor related merchandise shrinkage. As we finish out this series I want to discuss a few other operational issues that contribute to shortage. It is important to remember that operational shortage is a separate concern from efforts to stop shoplifting and internal theft. These are errors and mistakes in processing and handling merchandise that can be just as costly as theft but may not get the same level of attention as theft does. The reason for this series is that in the past week I have encountered each situation. I have also had to deal with the resulting customer service issues brought about by each problem.
This past week I was assisting a customer in finding tabbed dividers for his child who was preparing for school. The customer found a package he wanted and as he started to place it in his shopping cart I noted that the packaging looked a bit unusual. I asked if I could look at it more closely and he permitted me to do so. It turned out it was a multi-pack of the dividers still in the clear, shipping cellophane wrap. There were approximately 8-10 individual packs still wrapped and could have been unintentionally rung up as a single unit if I had not caught it. In other words rather than selling 8 or 10 packages at roughly $3.00 each (a total of $24-$30) we could have theoretically sold all 8 or 10 units for $3.00. That would have been bad enough. To make matters worse, there were about 10 such packages that had not been properly processed when the merchandise was stocked. Assuming there were 10 units in a package multiplied by 10 packages, the shortage could have been almost $270! Some people are thinking that this would not have happened and the error would have been caught quickly before all of the packages could have been sold. That is not necessarily so. There are people who look for stocking errors and purposely take advantage of them. My customer was not entirely happy about the catch I made but he said he understood. No, it is not the same as trying to stop shoplifting but not addressing these problems can be just as costly if not more so.
Since we are on the topic of operational issues that cannot be prevented by a Sensormatic system let’s discuss compactor security. Does your store have a compactor? If not, how about an outside dumpster? Who is responsible for tossing trash in your business? Do employees throw out their own boxes, packaging, etc.? Does your store keep a lock on the compactor if you have one? If it is locked, do you limit who throws away the garbage and does anyone inspect what is being tossed? As a former Loss Prevention Manager I was actively involved in the operational integrity of the store. I ensured our managers were in compliance with company policies regarding compactor security because the risk of shortage due to carelessness was that great. I would conduct audits of boxes and trash that were waiting to be tossed and I would find merchandise that was overlooked during the freight flow process. There were times I would find merchandise that was to be thrown out for vendor credits and some items had not been processed through reverse logistics. I was reminded of this source of shortage when my daughter, an area manager for another retailer was telling me how an employee had left several boxes of shoes in a box by their compactor waiting for a manager to throw it out. Had she not been careful about what she was throwing in they would have incurred shortage in shoes. It also would have made the store short of that shoe size and affected potential sales had a customer wanted them and they weren’t available. Managers don’t need to stop shoplifting in order to save shortage from happening.
A Sensormatic system can make a huge difference in shortage for store owners willing to invest in them. They are a serious deterrent to shoplifters and dishonest employees and they will identify attempted efforts to steal. They can also curb some operational shortage, though not all of it. That is why it is important to contact Loss Prevention Systems, Inc. for a consultation on how to prevent theft, fraud and shortage for a thorough review of your shrink risks. You will be surprised at how much you can save by spending on Loss Prevention.
Sensormatic systems are important and we can help you with it. Call 1.770.426.0547 and let’s talk.
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.
