Retail loss prevention system pays for itself

December 2, 2010 by Leave a Comment

Checkpoint systems retail loss prevention technology will pay for itself in a few short months…and then it is a huge money maker. 

Let’s take a look at some actual statistics that point out how the Checkpoint systems technology effects the numbers.  Price Waterhouse Coopers conducted a survey recently where they watched 98 sku’s in a supermarket chain, four locations, for fourteen weeks.  There were four weeks pre Checkpoint Systems install and ten weeks post install.

Working with store management, they identified high shrink items and determined pre install shrink levels.  They then performed weekly inventory counts to determine results.

PWC found that these 98 sku’s went from over $1,000 per week in shrink to $306 per week in shrink.  That is a reduction if inventory shrinkage of 69.79%.  They also found that sales increased by 9.2% because more stock was available for sale to paying customers.

If we simply look at the shrink reduction we can make some calculations.  The average retailer with $1mil in annual revenues and a shrink rate of 3% is losing $30,000.  Reducing the shrink by 69% equals $20,700 less shrink.  This $20,700 goes directly to the bottom line profit margin.  Again the average retailer is seeing a net margin of less than but let’s use 3%.  So the net profit goes from $30k to $50.7k which is also a 69% jump in margin.

The average Checkpoint Systems retail loss prevention install for a one door retailer is less than $5k.  You could buy four of these systems in one year with the reduction in loses.  And consider the improvement on the overall numbers of the business…it’s a no brain-er.

For more info visit: retail loss prevention 

 

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What is Loss Prevention Security?

December 2, 2010 by Leave a Comment

 

Although I get this question asked of me indirectly, it is an interesting question to me, “what is loss prevention security”?  Many retailers consider their burglar alarm as loss prevention security and it is to an extent, but only when the doors are closed, no one is in and the alarm is set.  That makes it more of a “loss alert” than prevention security.  The reality is most retail loss occurs during business hours.

The next most popular “I have loss prevention security” comment is in regards to their camera system. And again 99% of these systems are not actively in use for prevention.  Retail camera systems – CCTV surveillance for retail, are typically in “set it and forget it” mode.  In fact, most retailers never even check their recording device any more since DVRs will automatically overwrite recorded info firt in first out.  In other words, no one is sitting in front of the monitor watching the cameras during business hours in order to prevent theft.  The shoplifters know this by the way and couldn’t care less when they see cameras in place.

Maybe you think of a uniformed security guard as loss prevention security, which if they are actually trained on loss prevention and understand how to prevent and process theft, they are a good source of loss prevention security.  Trained people always trump installed systems.  However, very few retailers can afford 24 hour security personnel.

The best installed loss prevention security is active in nature like an EAS (electronic article surveillance) system.  Checkpoint Systems is the leading EAS installer and you will see their systems in store like Kohls, Target, Old Navy, Gap, CVS, Walgreens, Rite Aid and so on.  These are active systems because they alert the store employees immediately when theft is attempted.

Even then the systems full benefit will not be realized without good employee interaction.

For more info visit: loss prevention security 

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How to prevent shoplifting

December 2, 2010 by Leave a Comment

If you are reading this you are likely a retailer who has recently experienced loss looking for ways to help prevent shoplifting.  If you have been in business a little while you know that inventory shrinkage – inventory loss is going to happen and there is only one way to not have any, close the doors and send every employee home.  It is a matter of reducing your losses to a reasonable acceptable level.

Let’s fix some thinking about CCTV: cameras do not prevent shoplifting on significant levels.  Cameras will deter the impulsive shoplifter who is not your typical thief.  Not worth the investment to simply deter that group.  Amateur and professional shoplifters know that no one is watching the cameras and they totally ignore them.

Your burglar alarm is a mute point…it is only in use when you are closed.

The use of an EAS system (electronic article surveillance) such as a Checkpoint system will prevent shoplifting better than anything else short of hiring loss prevention security agents to walk the store. 

The presence of the Checkpoint system will keep most shoplifters out…studies show 85%.  And this majority makes up the most losses.  What’s left are the professional who will steal no matter what, but thank goodness they are the minority.

So number one way to prevent shoplifting is employ security personnel, second best, install a checkpoint system.

For more info visit: prevent shoplifting 

 

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Checkpoint tags strong tool for retail theft prevention

December 1, 2010 by Leave a Comment

Many retailers have discovered that checkpoint tags are great tools for retail theft prevention.  These retail anti theft devices are part of the Checkpoint Systems product line designed to give retailers control over losses, boosting sales and profits.

Checkpoint systems also owns Alpha High Theft Security products which manufactures many  retail anti theft devices focusing on items that may be tougher to secure or are especially targeted theft items such as razors, baby formula, CD & DVD items, hand bags, shoes, belts, accessories, cologne, health & beauty items, drug products, eye wear and more.

Clothing boutiques are a prime target for the professional shoplifter who steals to re sell.  Note to boutique owners: these shoplifters are likely among those who you think are your best repeat customers.  They always go back where the pickins are easy.  They blend in and look like your best customers and they buy things.  In the meanwhile they clean you out.

Using checkpoint tags for retail theft prevention works in a few ways.  It will stop the impulsive and amateur shoplifter from even attempting theft.  Once they see the presence of a checkpoint security system they will likely not enter or walk right back out.  This is a strong deterrent that will send 85% of the shoplifters on to unprotected stores.

The professional shoplifters may attempt theft anyway.  If they are slowed down enough they will not come back.  Using genuine checkpoint tags or the Alpha tags will slow them down and prevent retail theft.  The manufacturing of these products is much better than the cheap Asian copies that are available all over the Internet…and you have to watch closely to avoid those.  The copies are often advertised as ” checkpoint tags ”  but the fine print will reveal they are not genuine checkpoint tags manufactured by checkpoint systems.

The genuine checkpoint tags have much more sophisticated materials and technology which means they perform better than any other tags in every way.

For more info visit:  checkpoint tags 

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Investing in Checkpoint Security Systems for an increase of profit

December 1, 2010 by Leave a Comment

In a market with many options for retail anti theft devices , a business owner must do his or her homework in order to make the best selection that is appropriate for their business. Checkpoint Security systems are an option that pays off – in increased profits and reduced shrink.

Increased sales and profits are what every business owner is after.  A solution to theft is checkpoint tags , so that the potential loss incurred can be turned around into profit.  Doesn’t that sound like a great solution?
Profit just does not occur without considering retail theft prevention .

Profit is what every business needs to survive…so that is where the focus must lay. Retail anti theft devices must be utilized to maximize profits and reduce what takes profits from your store.

Checkpoint security tags can be used to help prevent theft in your store.  By simply implementing anti shoplifting techniques, your merchandise is more protected.  This means that it is available for your honest customers to purchase. Checkpoint labels activate EAS alarms if they are taken out of your doors without being purchased.  Alarms sounding at the doors are not what a shoplifter wants to encounter…

Shoplifters do not want attention when trying to steal your merchandise.  So give them all the attention that you can – in the form of a checkpoint security system . Remember prevention is the best anti shoplifting tool to stop shoplifting !

For more information about checkpoint security systems , checkpoint tags , checkpoint security tags , anti shoplifting , checkpoint labels or Checkpoint security system contact us at retail anti theft devices or call 1.770.426.256.

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Signals that indicate employee theft – Part 7 of 10 – Atlanta Georgia

December 1, 2010 by Leave a Comment

Signals that will expose possible employee theft or internal theft with goods or money.

  • Certain salespersons who, with a certain regularity, certainly higher than average, are found to have accepted false or stolen credit cards or other false documents. This often indicates collusion. In exchange for accepting the false card or document the salesperson may add an extra amount to the invoice. The difference is subsequently taken from the till without a loss showing.
  • The discovery of non-branch products on the premises can indicate the presence of a private-shop-within-a-shop. For their own account, one or more employees buy products for cash and sell them on. Barmen/maids may also bring their privately bought bottles and sell them at bar prices, pocketing the income.
  • A employee that is involved in internal theft is often recognised by his or her own deviant behaviour. Exaggerated preparedness to do extra or work overtime have already been mentioned, but note also a reticence to delegate, or not to take holidays or only take short ones. Delegation or absence could lead to discovery.  Someone keeping everything locked up when other employees would not, or breaking off telephone conversations when someone approaches may be indications of fraud.
  • If a company closes for an annual holiday period, the amount the fraudster has ‘lost’ during the enforced holiday period will often be made up during the days after a return to work. The result is a sharp increase in the company’s losses during this period.
  • If a sudden rise in telephone or Internet costs is noted, it may be a good idea to ask for a specification or check the computer log. This may reveal visit to pornographic sites or telephone numbers, or surfing the net at the company’s expense.
  • Sometimes physical characteristics play a role. The most frequently seen in perpetrators whose motive is prestige is the possession of company keys or a key-card with general authorisation. Such a person derives status with every jangle of their key ring or use of the card.

All types of employees can be involved in employee theft or internal theft . Do not over look someone who does not have access to cash. Could they be submitting falsified expense reports, or stealing your customers credit card numbers. Employee theft and internal theft can also show up in the relationships your employees have with Vendors and Delivery People.

I know I keep saying this but remember it is less expensive to have an over all prevention program in place and conduct an occasional employee theft investigation than the other way around. Most of the time an employee theft investigation only takes a day or two but prevention is still the key.

Watch for more parts to come in future blogs!

For more information about internal theft or employee theft contact us at employee theft investigation or call 1.770.426.0547 – Atlanta Georgia

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Checkpoint Systems ROI can be immediate, usually in a few months

November 30, 2010 by Leave a Comment

The ROI of installing checkpoint systems for retail theft prevention is dramatic over time and better yet is realized very quickly.

Let’s suppose we have a clothing boutique with annual revenues of $1mil.  Typically these smaller retailers are highly susceptible to shoplifting and employee theft losses due to low staffing levels.  Many times we see these boutiques being operated by only one person.  This makes controlling shoplifting very difficult when there are more than a couple customers present.

Retailers like this with $1mil in annual revenues will often have inventory shrink rates of over five percent, but let’s say they have good loss prevention processes in place and they only have a shrinkage of 2%.  If they are doing average with management they are seeing a net profit of around 2% as well.

In this scenario, utilizing checkpoint systems for retail theft prevention will cut the inventory shrinkage in half at least.  So that takes losses from $20,000 annually to $10,000 annually.  That extra $10,000 transfers directly over to the profit margin.  So the original $20,000 in profit margin jumps to $30,000…that is an increase of fifty percent in net profit margin!

And the average clothing boutique retailer likely only has one door into / out of the store.  One set of checkpoint antennas will protect the store, and not including install or  checkpoint labels / checkpoint security tags the antennas cost Between $1,700 and $2,700 per pair new with warranty.

Based on $2,700 the ROI in this case would be in less than three months, after that the checkpoint systems is a money maker!

For more info visit: checkpoint systems / retail theft prevention 

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Past Behavior Revealed in an Employee Background Check

November 30, 2010 by

Past Behavior Revealed in an Employee Background Check

How much do employers expect to find out from an employee background check?

Realistically, that depends on the depth and scope of the investigation, but the answer is that there is plenty that can be determined from even the most basic of background checks.

The first example is the information that can be obtained from a criminal background check.  Determine which jurisdictions are most likely to yield information and center your search there, whether it’s a county court search or a statewide repository.

The results will provide the employer with facts that will be useful in making the hiring decision.  No record found?  Great, the applicant has had no serious issues with the court.  Remember that juvenile records are generally not released to the public.

Misdemeanor conviction?  As a rule, these less serious violations probably won’t prevent an employer from hiring an applicant unless the charges are for theft or battery.  A felony conviction might preclude hiring someone as a matter of policy.

Also revealed might be tendencies toward violence (fighting, battery, assault); drug or alcohol abuse (possession, distributing, DUI, possession of alcohol under age, public intoxication); or other detrimental behavior (fleeing or obstructing police, disorderly conduct, trespass).

Although past behavior may be an indicator of future acts, it’s important to remember that the employee background check should be considered only as a part of a larger process in determining the suitability of a candidate.  Always look at the circumstances and relativity of any facet of the results when making the hiring decision.

Questions about employee background checks?  Call 770-426-0547 or click here for more information.

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Clothing Security Tags Prevent Theft

November 30, 2010 by

Checkpoint Systems clothing security tags  are great tools in the arsenal of retail theft prevention.  These clothing security tags are available in different colors, sizes and options for tagging high end / boutique clothing that you do not want to puncture with the typical pin attachment.

How the checkpoint clothing security tags work is via RF (radio frequency) circuitry built into them that will react to the checkpoint security systems antennas installed at entry and exit points for the purpose of retail theft prevention.  The  clothing security tags will generate a signal when they are positioned in range of the checkpoint antennas and set off the alarm.  This will alert staff of the potential theft occurring and also alert the shoplifter that they are in trouble.

Less retail loss due to theft means more product available for sale and studies show that equates to a boost in sales.  Price Waterhouse Coopers recently found just under 10% increase in sales with one retailer who installed a checkpoint security system.

Less losses also mean boosted profits.  Loose one $10 item and it will take the average retailer an additional $500 in sales to earn enough profit to recover from the loss.  If you  stop shoplifting losses the effect on profit margins are easily 50% to sometimes 100% increase in net margins.

Using a checkpoint security system will also increase employee awareness of potential shoplifters keeping more eyes on your merchandise and processing issues more effectively.  Systems like this will send a message through the shoplifting community that the retailer is serious about retail theft prevention and the thieves will move on to other unprotected stores.

To learn more visit:  clothing security tags 

 

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Understanding differences in security and loss prevention

November 30, 2010 by Leave a Comment

As a loss prevention professional I run into retailers and business owners on a regular basis who get a little confused about the differences between security and loss prevention.  These two areas work together and are typically different systems, and sometimes are the same thing.

Wiki defines loss prevention this way: “loss prevention (in some retailers known as asset protection) is a form of private investigation into larceny theft. The focus of such investigations generally includes shoplifting,package pilferage,embezzlement, credit fraud and check fraud. “Loss prevention” or “LP” is used to describe a number of methods used to reduce the amount of all losses and shrinkage often related to retail trade.

Usually when I introduce myself to a retailer they say “we have a security system”.  See the disconnect in the wiki definition and the response?  Security personnel or burglar alarms are tools used in a loss prevention plan to accomplish the goal of preventing theft.  You could say that these tools are the tactical side and the program is the strategic side.

Left alone with no one actively using these tactical tools, like a camera system, results are often minimal at best.  Camera systems do not deter amateur thieves because they know no one is constantly watching them, if they are even turned on.  Burglar alarms are not armed during business hours when shoplifters are active.  Employees know the systems from the inside and known how to defeat them.

Consider consulting a loss prevention security professional to get an assesment of your current situation and recommendations of how to position yourself to prevent theft both internal and external.

For more information visit:  security and loss prevention 

 

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