Using checkpoint security tags to protect merchandise from shoplifting theft will keep inventory on the shelves, leaving more available for sale, boosting sales and boosting profits. You can easily increase your net margins by 50% by implementing a loss prevention security method such as using checkpoint systems anti theft devices.
Let’s look at an example of how reducing losses will boost profits. Take a retailer selling $1mil per year with a net margin of 2% and an inventory shrink rate of 2%. Most retailers not using a system to protect their inventory are losing more than 2% but I want to be conservative in my example. 2% net margin & shrink means $20,000 net profit and $20,000 in shrink. By using checkpoint security tags you will see at least a 50% reduction in shrink (many see over 75%). And let’s say there is no bump in added sales even though typically there is a 5 to ten percent bump there simply due to having more merchandise available for buyers. The 50% reduction in shrink equates to $10,000, which goes directly to the profit margin side of the books. An added $10k in profit is a 50% increase on profit margin. So now you land at a 1% shrink rate and a 3% net margin rate.
Again these numbers are conservative. We have seen shrink rates well over five percent…imagine cutting a six percent shrink rate in half and how that would add to net margins! Whatever you save from theft is purely added profit…another way to look at it is it takes your profit to replace your lost inventory. So consider using checkpoint security tags to protect your merchandise and boost your profits. To learn more visit checkpoint security tags