Lost Products, Lost Profits: 9 Loss Prevention Tips Your Business Needs
- 23 Aug, 2018
Shrinkage is a dangerous problem that most businesses face at one point or another. With $45 billion lost every year to shoplifting, finding ways to prevent it is extremely important for any business.
Stock loss can occur in many ways. Sometimes, it is simple theft by outside sources. Other times it's done at the hands of disgruntled employees. Either way, there are ways to limit stock loss.
If you are interested in learning more about how loss prevention works, keep reading!
1. Create an Effective Loss Prevention Plan
When it comes to loss prevention, one of the most important things to consider is how much revenue are you losing each quarter.
Looking at the cold hard facts will tell you exactly what kind of shrink your business is facing. Once you've determined just how much money you are losing every financial year, you'll be able to come up with a plan for stopping it.
Consider improving your stock management. This usually means improving your stock counting skills. If you have an up-to-date idea of just how much stock is on your shelves, you'll be able to tell more quickly when you might have lost some.
Making a plan will keep you organized and better yet, keep your shelves organized as well.
2. Motivate Your Management Team
Having a motivated management team will decrease your chances of becoming a victim to your employees. Empowering your management team and creating a welcoming environment for your employees will keep your staff happy. In addition, this will also help keep your shrink low.
Communicating your prevention plan with your staff will get them on your side. Having a management team that is aware of your seriousness in preventing severe revenue loss will improve your chances of stopping shrink.
3. Monitor All Employee Doings
If your employees are unhappy in your business, that could lead to shrinkage. There are several kinds of employee theft. The most obvious one is theft of money. To that end, consider placing security cameras near your cash registers.
This will help you keep an eye on your employees and their cash drawers. It's also an important safety feature. If the worst happens and you experience a robbery, having functioning security cameras will help you catch who may have robbed you.
It's also important to keep an eye on your merchandise. Keeping up-to-date on your stock will help you determine if your employees are walking out with your items.
4. Increase Signage Throughout Store
One of the greatest deterrents to would-be thieves are signs placed throughout your store.
When placing your signs, make sure you choose locations where thieves would commonly head towards. Place them in locations that may not be easily observed by staff on the floor.
And when choosing the wordage, make sure to use firm language about the level of prosecution that may be received if a theft occurs. This will clearly express your business's seriousness on theft and what you will do to prevent it.
5. Consider Who You're Hiring
When it comes to decreasing any employee theft that may occur in your business, making sure you have hired a professional and reputable staff is important. Run extensive background checks on any person you are interested in hiring.
It's always important to remember not to use background checks as a chance to discriminate though. That practice is illegal and will do more to harm your company than any petty thief.
Extensive background checks should investigate an applicants financial and criminal history. It's also a good idea to contact references to determine an applicant's personality and get a more in-depth look at their employment history.
Do not offer a position to a potential applicant until all background checks and reference checks have been made. This guarantees that anyone you hire is truly up to speed on just what your business stands for.
6. Add Some Mirrors to Your Sale Floor
Adding some observation aids to your business will help prevent future thefts.
Security mirrors will help you keep an eye on your employees, your customers and all doings that may happen on your sale floor. When investing in some observation mirrors make sure you consider the types you will need and how they'll be marked.
7. Improve Your Customer Relationships
Building relationships with your customers is just as important as the relationship you have with your employees.
Starting a dialogue with the people who shop in your store will make them feel important. This will also limit the chances they have to steal from you. Emphasize how important it is for employees to greet customers and chat with them when they are seen on the sale floor.
Increasing customer and employee relations will both improve your business and limit your shrink.
8. Invest in an Alarm System
When it comes to loss prevention, one of the most important things to invest in is an alarm system.
Having a chime on the door that warns you when it is opened or someone steps through, will help you know when people are on your sale floor. Also consider a chime for the stock room or backdoor as well Discuss with your loss prevention team what kind of alarm system to invest in. Having a wide range of options will help keep your loss prevention plan well-rounded.
9. Hire a Loss Prevention Team
Working with law enforcement to keep your employees and business safe is always a smart decision.
Loss prevention teams will provide security to your store and will also serve as a deterrent to any thieves that may walk through your door. Many loss prevention contractors work with law enforcement to receive training on what to look for when it comes to stopping habitual thieves.
They'll also be trained on how to react should a burglary occur and possibly get out of hand.
Make Loss Prevention Your First Priority
Investing in a security camera system that can give you a bird's eye view of your business is wise and can aid in loss prevention.
Paired with mirrors, chimes and a focused staff, you'll see a decided lack of shrinkage throughout the fiscal year. Contact us for more advice on security items that can help keep your business safe.