Is shrinkage costing you money?

For many businesses, shrinkage is a very real problem, and one that not many know how to control. Any business can be affected by this experience—from retail and restaurant establishments to medical and dental offices. In order to determine whether or not your business is being affected by shrinkage, you need to understand the different kinds.

Internal shrinkage typically occurs as a result of employee or staff irresponsibility. Your employees might be stealing merchandise, putting things in the trash, or giving stuff away. For example, employees in the restaurant industry might give their friends a free soda or small treat (something that they can grab themselves without needing the kitchen to make it), leading to loss of sales. Or perhaps, maybe damaged product ends up in the trash instead of on the clearance rack. At any rate, internal shrinkage does nothing to boost your sales.

External shrinkage results from sources outside of your staff and employees. Maybe a customer stole something or accidentally walked out with unpaid merchandise. An example would be a mother trying to shuffle her kids out of your establishment before one of them has an epic meltdown, failing to notice that the other one has picked something off one of your shelves and walked out the door with it. Obviously there will always be people who will deliberately steal or shoplift from your establishment. Either way, you lose money on sales.

In order to avoid shrinkage, there are several security measures that need to be taken.

  • Cameras: these should be installed in an area that is visible to everyone. They help deter people from stealing, staging slip ‘n’ falls, and even medical malpractice. You can watch the tapes to make sure nothing out of the ordinary is going on while you’re away from your business.
  • Pilfer alarms: these are stand-alone devices that sound when someone accesses an area without permission. The doors remain unlocked while the alarm sounds. This type of security helps avoid theft of meds or supplies in supply rooms and allows only managers or those given permission to open the doors.
  • Security system: a security system with an alarm helps to protect your business and assets after hours. You can post that there is an alarm system and then set it up to immediately notify a security service or the police should somebody choose to break in.

Community Commercial Security has been serving Orange County and the surrounding areas for nearly 20 years. We are the experts in helping you protect your business, employees, and assets. If you believe that your profit margin is suffering because of shrinkage, contact us today at 714.777.6132. We look forward to serving you!

 

 

 

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