Prevent Theft and Get Your ROI

To prevent theft is a main staple of the loss prevention world. Yes there are other areas of inventory loss such as paperwork errors and they are important. However, it is the threat of theft that has to be foremost on a business professionals mind. What good is it to have sales and loose all the profits to theft? You can have robust sales and be loosing money if it is being stolen out from under you.

Think of it this way, if you have a 2% profit margin and $100 is stolen from you are you simply out $100? NO, you have lost $5000.00 ($100/.02). That means you will have to sell an additional $5000 to BREAK EVEN on a $100 loss. Depending on your business that could be the total sales for an hour, day or a week. Also, keep in mind that you will not survive long in business with these kinds of losses.

So let’s prevent theft. It’s cheaper and there is a return on investment (ROI). If you are a retail store and you do not have a particular item in stock because they are stolen frequently then your legitimate customers can’t buy them so they go down the street to someone else who has them. Oh, and that same customer also purchases everything else they need at your competitor simply because it is easier. After a while they stop coming into your store. Always look at theft prevention as an ROI.

If you have a wholesale or warehouse environment the same thing applies. If you do not have the goods to ship then your customers will go elsewhere. Prevent theft to begin with and your profits will climb. The great thing about this is that it does not involve adding any new customers. You are simply keeping the money you should be earning on the bottom line.

One other thing to keep in mind. If you don’t think you have a theft problem, “it can’t happen to me”, “my people wouldn’t do that to me” or any other thought like this then you probably have a bigger problem than most since you are ignoring it.

For more information: prevent theft or call 1.866.914.2567

Posted September 13th, 2010 by Staff Writer and filed in prevent theft

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