For a business to be successful, it must be able to maintain a positive profit margin. Every retail operation desires to have a popular product, but that success also brings a greater risk. The more popular a product, the more prone to thefts it becomes. As thefts or product loss become greater, the effect can be a lowering of the profit margin to the company. In order to retrieve financial security, the company must implement or enhance a loss prevention program. In trying to employ the proper personnel, it becomes very beneficial to find security personnel with loss prevention education. Due to the upswing in security related jobs, this education has come from a school or security college that specializes in loss prevention and/or security operations.
For every item of merchandise that is lost to theft, damage or other loss, there is a direct negative effect on the company's bottom line. This shrinkage, as it is called, refers to the amount of product available for customer purchase. Every time an item is removed from the shelves illegitimately, its profit potential is lost. A simple example is as follows:
A retailer pays $25 for fifty candy bars and receives $50 in the sales of the candy, resulting in 100% profit. The same store sells cell phone accessories at the same rate of return, but each item costs them $5. At the end of the week, five cell phone items have been lost due to theft for a loss of $25.
Essentially the candy sales, instead of being profitable, merely covered the loss of the other items. Loss prevention education expands this concept and provides greater detail into the planning and development of a loss prevention plan. According to the National Association for Shoplifting Prevention, 35 million dollars are lost due to theft each day.
Loss prevention education is designed to educate on not only loss to theft, but on damage and other ways in which shrinkage occurs. This knowledge leads to security policies that improve the company's ability to retain products for sale and to reap the benefit of the profit. Some of the concepts covered are physical security and liability law. Loss prevention education often covers the demographics of shoplifters and employee thefts in order to better protect the products.
Over the last several years, security has been an ever increasing area of employment. Loss prevention has proven to be a vital asset to many retail companies. Some companies, such as Coca- Cola, have integrated security qualifications in middle managerial positions. This constant attention to security and loss prevention offers many opportunities for a graduate of a security college.
Given the latest trend towards security, many opportunities lie ahead for those who have undergone some form of loss prevention education. As these job opportunities grow, so does the chance to take further courses from a security college. Even everyday jobs that traditionally may not have had security functions, now find themselves needing at least some understanding of loss prevention principles. Anyone desiring a position in the security field would benefit by finding a quality security school and learning the principles that can send them on an enjoyable journey.
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Dan Sommer works for Henley-Putnam University, a leading educational institution in the field of Strategic Security. For more info on Henley-Putnam University, loss prevention education, security college, call 888-852-8746 or visit us online at http://www.Henley-Putnam.edu
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