top of page

EXPLORING NEW APPROACHES IN THE PREVENTION OF SHOPLIFTING AND UN-TRIED OPTIONS FOR AUSTRALIAN RETAILERS TO EFFECTIVELY COMBAT THE COST-OF-LIVING CRISIS IN A COST-EFFECTIVE MANNER: PART 3.

Part 2 of this series explored various shoplifting prevention options and introduced unattended dispensing as an effective consideration. 



Here are some determining factors that will assist in establishing whether unattended dispensing is going to be a good fit for your business or not.



Products that require explanation, need assembly or require the intervention of a salesperson to close the deal are not ideal – though in certain product categories it makes sense to utilise a “demo” product and sell the items from a dispenser. 



The broad criteria that define the products suitable for selling from unattended dispensers are:



Value, size, shape, demand, desirability and susceptibility to theft.



VALUE: High ticket items that are small and easy to conceal [especially perfumes, fashion accessories, electronic products]


SIZE: Although there are now dispensers from which a car can be purchased, practicality is a factor


SHAPE: The ability to dispense flawlessly is the prime objective. Non-symmetrical products can only be sold from dispensers with robotic arms – [financial viability could be questionable]


DEMAND: Most dispensers are capable of one transaction at a time – in high traffic areas contingency for multiple POS facilities are required


DESIRABILITY AND SUSCEPTIBILITY TO THEFT: Providing the product fits with the criteria above, this is one of the most effective ways of preventing shoplifting.



IMPLEMENTATION PLAN: An implementation plan for the incorporation of unattended dispensing should include: 


DATA COLLECTION: current shoplifting losses, dispensing machine capital cost, machine maintenance and real-time reporting module costs, payment system and transaction costs, current security costs that may be able to be dispensed with, potential labour savings and


public liability and insurance costs.


SCENARIO ANALYSIS: best-case, worst-case and most likely, to test various assumptions.


FINANCIAL MODELLING: The most useful in evaluating the effectiveness of unattended dispensing are these: Cost-benefit analysis, Return on Asset [or return on investment, though ROA is to my mind more useful to evaluate the efficiency of the new machines in generating earnings] Payback Period, Internal Rate of Return, Net Present Value and Sensitivity analysis which will be useful for understanding how sensitive your investment’s outcomes are to changes in key assumptions.



In PART 4: How unattended dispensing can grow your business, where it will save you money, conveniences and consumer attitudes +  case studies.



Comments


Hi,
I'm Leah

I'm a paragraph. Click here to add your own text and edit me. I’m a great place for you to tell a story and let your users know a little more about you.

Post Archive 

Tags

No tags yet.
bottom of page