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Did you know that retail crime, such as shoplifting, robbery, and vandalism, costs Australian businesses up to $9 billion each year? There are about 150,000 shops in Australia, so on average, these crimes cost $60,000 a shop.
Running a retail shop is a dream for many, but keeping profits healthy can be a challenge. One enemy is "shrinkage," which is the loss of inventory and, often more importantly, cash due to theft. While concerns about cyber hacking are primarily in the news and are certainly a concern, for most retail shops, the more significant threat comes from closer to home – employees and customers! The good news? Your POS (point of sale) software can be your best friend in the fight against shrinkage.
The Usual Suspects: Employees and Customers
Employee theft might seem surprising, but it's a common issue. Maybe it's a cashier taking a little extra from the register daily, like "voiding" a few sales to pocket the cash. Customers can also be creative – think of the sneaky barcode swaps where less expensive barcodes are taken off items and put on dearer items (the banana trick). Another popular idea is to give you only some of the items to scan. These actions might seem small but can add to a significant financial headache over time.
How POS Software Fights Back
Here's how your POS software can be your secret weapon against employee and customer shrinkage:
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Catch Ringing Up the Wrong Register: Assign specific roles and permissions to each employee. This way, a cashier can't process returns without a manager, or a manager can't open the cash drawer freely, reducing the opportunity for mischief.
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One Register per person: One computer can drive many cash registers. There is no reason why each staff member cannot be audited.
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Goodbye, Phony Voids: Your POS System tracks every transaction, including voids. Check voids regularly. This makes it harder for someone to void and then "disappear" the sale.
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Eagle Eye on Inventory: Use your POS to track inventory levels closely. Sudden unexplained drops could indicate missing items, and you can investigate before the problem gets bigger. Most large shops today run on cyclic stocktakes and we strongly suggest that your shop does it too. Once a year for a stocktake is not enough.
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Barcode Blues? No More: When ringing up transactions, ensure the item's description matches the item. Some sneaky customers might try to swap barcodes for a cheaper price.
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Surprise Audits! : Use your POS system's built-in reporting tools (x-Offs) to run random audits. This keeps everyone honest, knowing they might be the next one checked.
Real-Life Example
We had a client who discovered he was losing a surprising amount of inventory at his music store. He couldn't figure it out after implementing our POS system with stricter access controls and real-time inventory tracking. Guess what? The "disappearances" stopped!
The Final Note
Protecting your business's initial dream means you need the right tools to protect it. If well-configured, your POS System can act as a security guard, making it much harder for anyone to steal from your shop. By combining intelligent software with good business practices (like clear policies and employee training), you can keep your shrinkage under control and your profits healthy.
If you want to learn more on how to configure your POS system to fight shrinkage now, you can contact our support team.
