This is the 3rd and final article discussing your Return On Investment (ROI) when using CounterPoint in your business. Today, I want to cover "shrinkage" – a real problem for many merchants. Why? Because the largest amount of taken items is done from within – not by shoplifters. And far too many software packages aren't designed to protect a store's inventory from its employee's.
The shrink average for stores is 5% to 8% of annual revenue and 60% of that shrinkage comes from inside. CounterPoint contains various tracking measures – both within the software and with compatible 3rd party products such as surveillance equipment, for example. CounterPoint supports biometrics as well as tracking by employee-assigned cash drawers. Multiple exception reports, including End of Day processing, show actions by users that are outside the accepted parameters. For example: excessive voids, overrides, price changes to name a few. Even better is the fact that employee menus can be set to disallow these features without a manager's approval.
ROI Example of How Shrinkage Affects Your Bottom Line (Assume 1M in Annual Sales)
– Assume that 6% of annual income is lost to shrinkage.
– 6% x 1.0M = 60K.
– 60K x 60% (internal theft) = 36K
So if you catch every incident, you've added $36,000 to your bottom line. Even if you only catch 50% – that's still a bottom line increase of $18,000 .
If the areas we've covered in the last few weeks are a concern for you, I'd suggest taking a look at CounterPoint. We aren't just words – we can show you how it works! For deatils Contact CCS.
Until next time ~Norma