Stop! Losing Your Premium Product Strategies to reduce shrinkage and initiate subtle security measures in your dispensary. By Susan P. Tarrant The inventory spreadsheets usually tell the story. How many frames are missing at the end of each quarter? One missing frame is easy to blame on an accounting error. Three becomes a little suspicious. Where the heck did 10 frames go? That's money out of your pocket, and it's probably a bigger problem than just lackadaisical inventory control. It's much more likely to be a problem of theft. Optical shops have a unique security problem compared to most other retail situations. Every product is small and fits easily into a pocket or purse. And the very nature of eyewear invites patients/customers to pick the product up, try it on, pick up another pair, and try that pair on... and so on. Couple that with the fact that part or all of your inventory is pricey, highly desirable premium product and all that "touching" can mean trouble. Most eyecare professionals are reluctant to integrate security measures into their dispensaries and practices because they don't think of themselves as retail outlets, open to the same risks of theft as, say, department stores. But you are retailers if you carry product... and you do. Therefore, security should be a concern of yours. Taking the time to look at various aspects of your operation and how they might be open to predators can create marked results in your quarterly inventory... meaning there will be more frames where they should be. Limit Vulnerability One of the easiest ways to keep watch over your frames is to keep them at a controllable level. If you limit the number of pieces that are out and accessible, you automatically limit their vulnerability. This is especially true when you carry a lot of premium frames. "Security was a real concern for us when we designed our store, so we created a lot of custom drawers for our frames" says Sharon Katzman, owner of I-Optics, an optical boutique in Sarasota, Fla. Katzman carries high-end product exclusively, and the drawers allow her to avoid having all of the inventory out on the floor. "When you don't have a lot out on display, it's a lot easier to see when one is missing," she explains. Although the drawers aren't locked, and aren't necessarily "off limits" to customers, Katzman says she finds customers are reluctant to go searching through the drawers. Most dispensaries also carry little items like contact lens solutions, eyedrops, and the like that can be easily stored behind the counter on a shelf, or in a locked cabinet. Little things, when constantly taken from you, add up to a lot of dollars.
Be Aware Limiting your "accessible" product is just one step toward tightened security. Staying aware of the signs of a potential shoplifter is key to running a tight (and secure) ship. According to The Retail Manager's Guide to Crime Prevention by Liz DeFranco, who writes extensively on retail security issues as well as optical issues, effective security measures begin with open eyes. "Beware of people who don't look like they fit in with the store or area," DeFranco writes. "An overcoat worn in July, for example, is a good clue that the shopper may not be there to buy. Also, be on the lookout for 'booster bags' or boxes, especially if they're from stores not in your shopping center or strip mall." In addition, share these "danger signs" with your staff -- they are your eyes and ears, and are often your first line of defense against shoplifters. Providing your staff with the proper training is key. If your optical shop is hit by a shoplifter, inform the stores around you as well as the police. Sometimes shoplifting is part of a pattern of thefts in a specific area. DeFranco suggests using staff meetings to discuss suspicious behaviors and how to react to a shoplifting situation. Inviting the mall security officer (if applicable) or local police to provide pointers can further educate your staff, she writes. Frequently, they can provide training booklets to help your employees spot trouble.
Hello, May I Help You? Perhaps the best psychological deterrent is to simply acknowledge your customers as they enter your dispensary. Not only is that the cornerstone to good customer service, but it shows a potential shoplifter that they've been "seen." Reinforcing your expectations of an excellent level of customer service is an effective method of combating shrink and making sales, writes DeFranco. "Shoplifters don't like to be approached or identified, so attentive employees can thwart potential thieves simply by doing their jobs well," she explains. Katzman agrees, and uses friendly customer service as a way to deter any potential ne'er-do-wells. "People steal when they walk into a retail area and no one notices them," she explains. "I think people use that as an excuse to shoplift." Katzman's answer? Customers are greeted upon entering the store, even if staff is busy waiting on other customers. "Nobody gets too far into our store without someone looking up and saying 'hello,'" she says. "We let people know we acknowledge their existence here." The folks at I-Optics follow up that friendly greeting with attentive service, encouraging sales and discouraging crime. It's a routine that is reinforced in staff meetings. "If you're selling to people, they don't have time to steal," she says. Employee Threat Nobody likes to think about it, but the people you trust most with your product could be the ones taking from you. While the majority of employees are indeed honest, business owners can't afford to ignore the existence of a few bad apples. Sometimes, it's your employees pilfering the premium product. Sometimes, the employees have their hands in the till. Either way, it's stealing... from you. Following are some precautions to prevent such sticky-fingered behavior (provided by Ron Kern of Georgia-based D.A.I. Investigations): Job functions. Separate purchasing, receiving, and accounting roles to reduce the autonomy in any one job. It's easier to defraud when working as a solo act. Employees who share duties would have to be in collusion to steal from you. Key control. Never leave office keys hanging on a nail, in the lock, or thrown in a desk drawer where they can be "borrowed" and duplicated. Cash control. Close the register after each transaction. Provide receipts for everything. Create a policy that requires verification from the employees of voided transactions or under-rings. Conduct surprise cash counts. Sure, big-ticket items like high-end eyewear packages are often paid by charge or check, but that doesn't mean you don't have a lot of cash at hand. Remember the managed care customer, who may have a relatively small co-pay and will often pay in cash when he or she visits. There are also the smaller ticket items, such as accessories, that often are cash-and-carry. Those transactions are the most vulnerable to staff theft, says DeFranco. An employee is much more tempted to pocket a $5 transaction than an easy-to-track $300 transaction. If you think these precautions are designed for larger retail outlets than your small dispensary or boutique, think again. While you might not have a dozen employees and a large showroom floor, you are still at risk. Everyone is. Adapt these principles to your situation, and stay guarded. Your high-end product -- something you've invested a lot of money into -- depends on it. EB
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Article
Stop! Losing Your Premium Product
Strategies to reduce shrinkage and initiate subtle security measures in your dispensary
Eyecare Business
February 1, 2000