Loss prevention is an umbrella term for the steps which a company takes to prevent theft on their physical property. Every business, regardless of whether or not they are in retail, should have a plan in place to counter theft as well as a company policy for addressing it. The retail industry experiences theft more than any other, so it’s paramount that managers and store owners work together to find a strategy that is best suited for their facility. The best strategies involve working alongside a Los Angeles security company that specializes in retail theft.
What Are Loss Prevention Services?
Loss prevention services are offered security services in Los Angeles to protect assets belonging to your company. Security service employees can work without or without uniforms to effectively prevent theft anywhere on the premises. The presence of a uniformed guard from a Los Angeles security company may deter some thieves from entering your building, but not all, so we make sure to offer comprehensive coverage of your entire property.
- Preventing auto theft by patrolling parking perimeters
- Customer service training
- Retail theft prevention services
- Undercover detection services such as mystery shoppers
Why Is Retail Theft Prevention Important?
This might sound like a strange question to ask. After all, ‘loss prevention services’ is very straightforward – except the name alone only explains what it is, not what it does or how it does it. There is more to it than preventing someone from walking out of the store with something that they didn’t purchase.
The most important reason to consider loss prevention through security services in Los Angeles is the consequences of loss, also called shrinkage. When shrinkage is too high, there are numerous consequences such as:
- Profits decrease
- If profits are too low you may need to close your location. This is the worst-case scenario and it sounds very extreme, but it does happen.
- Prices will increase
- If prices are too high you can damage your reputation amongst even your most loyal customers
- It can also interfere with your ability to pay your employees and cover business expenses such as building rental fees and restocking your inventory
Why Does Loss Happen?
There are two types of loss that a business might experience, which happen in different ways for different reasons. An internal loss occurs when a member of the company steals from the store, and an external loss occurs when someone who is not a member of the company steals.
Internal theft is also referred to as employee theft. What sets it apart from external theft, aside from the fact that it is committed by employees, is that internal theft can refer to inventory, money, or company property. Employees have immediate access to office supplies and personal items belonging to their coworkers. The reasons vary from person to person, but here are some of the most common ones.
- The item was in an unrestricted or unsupervised area without asset protection
- The employee has a history of theft, inside or outside of the office
- The employee felt entitled to the item and that it was not technically stolen
- The employee is frustrated with their job or treatment at work and wanted ‘revenge’ on the workplace
- The employee wants to hurt the company directly
- The employee will be leaving their position soon and feels that they can get away with it
- The belief that everyone else does it too, and that makes it okay
External theft is more than slipping something into one’s pocket or hiding it inside of other merchandise. External theft also refers to any kind of tampering or vandalism committed to creating the illusion of a genuine purchase, such as removing the packaging or altering price tags. Some shoplifters will bring something to an employee’s attention to try and make their alterations seem valid, but they are also more prone to getting caught when they do this. For example, some shoplifters bring a piece of merchandise to an employee with a fake price tag claiming that it fell off. If the employee notices the ‘mix up’ they can get an accurate price tag but keep an eye on the customer while they shop. If the employee doesn’t notice they may attach the fake price tag unknowingly. External retail theft occurs for a variety of reasons, which are oftentimes part of a bigger issue that the retail industry alone cannot address. What business owners can do, however, is get proactive in creating their retail theft prevention strategy. This prevention strategy often begins with a search for ‘security companies near me.
Why HillQuest Security?
Or you can skip the search and stay here to learn more about the best security services Los Angeles has to offer. HillQuest Security is a Los Angeles security company that is known nationwide for going above and beyond. We work with your budget to create a proposal unique to your facility and services so never pay more than necessary. Ready for your free evaluation? Get in touch with our Los Angeles security team today and tell us how we can help you. Not in the area? That’s not a problem. Our loss prevention and security services are not exclusive to the Los Angeles area. We offer our unbeatable asset protection services and other types of security services in the Miami area too.