Profit Loss: The Tip of the Iceberg
Profitability is the key to success for any business. When you consider 82% of all businesses fail due to poor or negative cash flow, profit loss is a looming problem for all businesses.
Every year theft accounts for nearly $13 billion in losses with no signs of slowing down.
Considering certain industries operate on a very slim profit margins, the situation can put you in dire circumstances. Many businesses such as food and drug stores, as well as convenience stores typically operate on a 1.5% to 3% profit margin.
Profit Margin is Key
A loss of $50 doesn’t seem dire. But at a 3% profit margin, this means that your business has to sell $1,667 worth of merchandise to recover from a $50 profit loss due to theft.
And then it only increases exponentially. To recover a $450 profit loss, you’ll need to sell $15,000 worth of merchandise.
This is a major problem for businesses which is why nearly 30% of all companies end up having to close their doors due to losses attributed to theft.
Finding a solution to eliminate and prevent these profit losses is critical to the success of your company.
Focus On Your Employees
As a business owner, the people that are working for you and representing your company are fundamental to your overall success. When you consider 75% of employees have committed some form of theft, it is crucial to vet, hire, and train the best employees.
A valued, well-trained team of trustworthy employees increases the chance of having repeat customers. And your profit margins will remain high if employees are not stealing.
Make a Plan for Profit
If you don’t have a clear plan to reduce theft and keep your profit margins high, your company will ultimately succumb to substantial financial loss.
Having a system that can track these losses will make the job of any business owner easier.
DIGIOP offers custom software solutions which helps:
- Improve the customer experience
- Increase operational efficiency
- Facilitate training
- Protect assets, employees, and customers
- Prevent loss at the registers
- Identify shoplifters in real time
DIGIOP offers ELEMENTS, a video management system, giving you the ability to view and direct your business in real-time, from anywhere. DIGIOP CARBON is a cloud-based insights platform delivering results across your entire enterprise.
See how ELEMENTS and DIGIOP CARBON work together to transform your business, eliminating profit loss.