6 Ways Video Surveillance Saves Retail Profits

Bogus Claims

Many convenience stores forego real security systems due to the initial costs. This sounds good in the short term but the cost of the surveillance system shows to be miniscule compared to the ballooning costs of fighting, or worse, paying out, a fraudulent insurance claim. A simple slip and fall scam can costs hundreds of thousands of dollars due to an inability to provide video evidence to the court supporting the company’s case that the premises were kept clean, in good order, and free of debris at the time of the incident. According to the Coalition against Insurance Fraud, nearly $30 million is lost by businesses due to insurance fraud. Thorough video coverage can be the difference between a fraudulent claim being thrown out and the company paying for damages to the petitioner, their legal team, and the increases in insurance fees.

Talking to a video surveillance specialist honestly about your business and risks can be of great benefit. The specialist can then evaluate and develop a strategy and coverage map that will allow you a sense of peace that a bogus claim will not blindside your employees, company, and profitability.

Financial Services

Loss Prevention

Theft comes in three places: external, internal and vendor. According to the Centre for Retail Research, internal theft, those thefts committed by employees, are five to six times that of traditional shoplifters. In retail establishments, the POS system is a gold mine due to transaction/return fraud. Video surveillance measures, a guardian system, reduces the incentive to steal from the cash drawers. In addition keeping an eye on employees checking in vendors is also a key to reducing shrinkage. Because the vendor is delivering goods, it is the employees’ job to verify that all goods and services have been delivered, this can be beneficial to companies holding employees accountable for their performance in these duties if shrinkage occurs during delivery, along with claims of fraud against vendors for shorting the orders being delivered. This can then become a tool in recovering lost expenses and saving the bottom line.

Surveillance companies can evaluate your businesses needs and recommend where your profits may be walking out the door and into a thief’s pockets.

Lost Productivity

We have all had those days when we just aren’t feeling motivated; but when it become an issue to productivity is often a difficult decision. Behavior versus training is often the deciding factor in such situations. These can stem from an employee’s perceived lack of value to growing tired of the job. Video surveillance can often provide a trail of conduct that allows employers to better improve the employee’s situation. It provides the opportunity to address the root cause for a lack in productivity, allowing for issues to be aired out, understood better, retraining to occur, position swaps, and other means to bring productivity back to profitability levels. The costs of training, hiring and loss of work, far outweigh the cost of a good surveillance system when it can lead to better retention.

Wrongful Termination

States have the ability to force an employer to pay part, or all, of an employee’s pay if their termination was deemed without grounds. Though originally written with the intent to prevent discrimination in the workplace, the laws tend to have the ill effect of allowing fraudulent claims of wrongful termination to cost businesses millions. Because of this, surveillance allows for video evidence, similar to a paper trail, of poor conduct that leads to a termination to be provided. By countering with evidence, a company can then show that an employee was correctly terminated based on provable grounds of misconduct, lack of productivity and other means stated within company guidelines accepted by the employee. This keeps profits in the company and out of the fired employee’s hands. Make sure that your business is covered by talking with a reputable video surveillance company that can evaluate your business and show how you can save on such costs.

Legal Fees

Courts are expensive. Legal fees mount quickly in any of the above examples due to retention of a legal team, damages being paid out, and hours of lost time and productivity. Think about how many projects could be completed, how many orders shipped, how many meetings conducted, compared to the cost of a legal challenge. For a small business, a legal fight can literally bankrupt the business; costing employees their jobs, owners their livelihoods and all at the risk of having decent preliminary evidence that could easily dismiss a case before it gets to court. It is always a wise decision to have a lawyer available, but not at the expense of a good eye in the sky watching over your business. The costs are simply better spent elsewhere.

Reduced Premiums

Insurers can be costly, but they aren’t heartless. When installing a security system, you should call your insurer to inquire about discounts for video surveillance systems. You might be surprised that by reducing the risk of fraudulent claims, the insurer will take that into account and lower your rates or deductible based on that reduced risk. By being proactive in your security, many insurers see your business as a value that they simply can’t turn down. Make sure to take advantage of these discounts, if available, and then call a video surveillance expert to install your system quickly to reinvest those savings in your peace of mind.

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