Checkpoint security tags fit into the profit puzzle

The use of checkpoint security tags play an important role in the retail world other than protecting merchandise from theft.  The use of anti theft devices such as a checkpoint security system will significantly reduce retail theft and just as significantly if not more significantly boost profit margins.

Think about this if you are a retailer.  If you lose a $10 item, what is the effect that has?  Did you just lose $10?  Or if your net profit margin is 3% did you lose $7?  That is the thinking we hear from our clients when we first discuss this with them.

Think about this.  If the net margin on a $10 item is 3% then in order to produce $10 of profit to replace the stolen item you need to divide $10 by 3%.  That number is $333.33.  So if you lose $100 the sales required to replace that would be $3,333.33 and the numbers go from there.

According to the University Of Florida’s National Retail Security Survey large national retailers average about 2% net profit and lose around 2%.  These retailers typically have well managed Loss Prevention departments managing inventory and cash losses daily.

So an average retailer doing $1 mil will loose $20,000 if they have the same loss prevention program in place, most do not and lose double, triple, quadruple that and more.  Many do not really know what they are losing because they do not have programs in place to watch loss.

Back to boosting profits…you can easily cut your losses in half by using checkpoint security tags so let’s look at the effect on margin.  Go from a 5% loss to a 2.5% loss in a $1mil retail business that has a net margin of 3% before using checkpoint systems  anti shoplifting solutions then the $25,000 you saved bumps the net margin from 3% to 5.5% which is a 54% increase in net margin.

For more info on how you can boost profits by incorporating loss prevention solutions go to:  checkpoint security tags