One of the biggest fears of business owners with retail space is the theft of their inventory, money, or time. Also known as “loss,” different types of theft can have a massive impact on a business’ bottom line. Protecting against it should be a top priority. Ready to learn more about the basics of loss prevention and how it helps businesses? Keep reading for everything you need to know.
Loss Prevention
Loss prevention is the set of procedures that a retail business operates to prevent the loss/theft of inventory or money. Loss prevention policies are put in place to help ensure that the business keeps profits high and stock well-managed. Store greeters checking receipts, security cameras, and inventory audits are all ways that a business can keep an eye on potential loss.
Types of Loss
Many retail owners or managers might only think that loss is related to theft or other illegal activity, but that isn’t the case. There are several forms of loss that can affect a business each day. Here are the main types of loss that need to be prevented.
- Customer Theft
Also known as shoplifting, customer theft is the most apparent type of loss that a business will experience. Not all customer theft is merely walking out with a small item in the pocket; shoplifter techniques are always changing and getting increasingly creative. Security cameras, greeters, attentive fitting room personnel, and detectors can help prevent this type of loss.
- Employee Theft
Employee theft happens less via stealing inventory and more often at the cash register. An unscrupulous employee may overcharge a customer for a particular item and pocket the excess, or they may simply take cash from the register. Overall, employee theft results in the highest amount of loss every year.
- Pricing Errors
Pricing errors are an excellent example of a type of loss that isn’t technically unlawful. Mistakes in pricing, especially during large sales, can occur often. Accidentally marking down items can cause loss that can be hard to identify.
- Vendor Errors
If the vendor is to supply the retail store with inventory on a regular basis, administration needs to double-check each delivery against the order. Often, a regular order will go unchecked, which makes it easy for intentional theft or accidental loss to occur.
You Need Loss Prevention
If your goal as a business owner is to make your business profitable, you need loss prevention. While you probably already have a few things in place to prevent loss, there are always areas that could use more improvement. Upgrading the security systems or hiring more workers to walk the floor are simple first steps.
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