OK, I confess. When I was about eight years old, we kids thought it a great lark to steal a handful of sweets from the corner shop near the picture house. The old lady who ran the shop could barely make it from the back of the shop to the counter when her only security device, a bell, rang to let her know we were there.
She didn't have CCTV, DVR, EAS, RFID, or any other acronym to deter us. She could barely make it from one end of the shop to the other. It was GC (guilty conscience) that put a stop to it, but had I thought there was even a slim chance of being caught, I would have behaved myself in the first place.
It's not pleasant to acknowledge that not only armed robbers and other professional criminals are a threat, but also that a small proportion of the important people in your life - customers and employees - might try to steal from you. It's no fun catching people in the act, so the emphasis is on prevention. Here are some examples of the things you might want to discourage around your place.
Armed robbery: Petrol stations and C-Stores, particularly those open 24 hours, are vulnerable because there tends to be cash on the premises in the lonely early morning hours. These crimes can place your often young employees directly in the firing line.
Drive-offs: Forecourts by their very nature are easy to leave without paying. The Australian Association of Convenience Stores survey in 2003 found that the value of drive-offs averaged $92 per store per week for Tier 1 locations and $240 for Tier 2.
Shoplifting: It's amazing what a new closed-circuit television (CCTV) system will reveal. At one newsagent, the little old lady who came in everyday to buy a newspaper was also stuffing a handful of greeting cards into the pages of the paper. Greeting cards are not cheap items, and C-Stores are putting more expensive items in easy reach of customers. Batteries, cosmetics, CDs and DVDs are all tempting and easy to pocket. If you sell liquor, be wary of the customer who walks into the beer fridge for a case and replaces some cans with a big bottle of Chivas Regal.
Slipping and falling: With the trend towards litigation in recent years, some insurance companies will not cover you for public liability unless you have a system of monitoring high-risk areas. Genuine accidents can happen but so do scams.
Shrinkage: Security companies have endless examples of discovering "free fuel to mates" and "taking a couple of cases of Coke for a party" when CCTV cameras are first installed. They estimate that between a half and three-quarters of shop theft is by employees.
Shirking: This is a sensitive issue - watching employees to make sure they are working and doing the right thing from keeping the shelves stocked to maintaining required food service standards. You don't want to know these examples.
This list is not meant to make you paranoid, nor is it intended to make you lose trust in your honest staff and customers. The challenge is to encourage everybody (including naughty children) to do the right thing by making it clear that if they do the wrong thing, they will probably get caught.
From the retailer's perspective, the numbers are compelling. It may only be $50 - a tank of fuel, a couple of cartons of Coke, or a bottle of whisky - but how many litres of petrol or cans of Coke do you have to sell to get this back. Losses are estimated at 1% to 4% of sales. When margins are slim, that's a big chunk of profit. With an effective system, losses from shrinkage are nearly eliminated.
In the past you might have thought the systems were not up to the task and cost too much, but in recent years technology has both improved the quality and brought the cost down. You can get a new system or upgrade your existing system for as little as $1,000 or as much as $100,000. Hitech CCTV offers a leasing solution for as little as $38 per week. The key is to get a system that suits the task in your business.
"The retailer needs to base the security system on the level of risk, says David Such, Regional Manager (Australia), ADT Security.
"You need to do a risk assessment. For example, we have a standard risk assessment guide and can give advice based on our experience in the area and in the industry. It's no good putting a security system and forgetting about it. You need to think about physical security and electronic security, and policies and procedures. It's no good having a security system if nobody turns it on."
Let's start with what thieves are ultimately after - cold, hard cash. By protecting your cash you are also protecting your staff. Tank Security Pty Ltd specialises in equipment that keeps cash secure on your premises - clearance safes, note acceptance vaults and coin dispensers.
"Clearance safes have evolved over the past few years and are now accepted industry practice for cash management," says Vince D'Angelo, Marketing Manager, Tank Security. "They are now being used across the retailing industry and are compatible with all POS configurations."
This compatibility is important. These days, note accepting vaults with note readers accept the cash and record the deposit against the time and individual staff. The cash is allocated to the employee's time on the POS. Not only are armed robbers deterred by the prospect of poor takings, but internal shrinkage is reduced and staff is protected from unfair dismissal. Similarly, timed access to coins reduces the amount of cash available. Most of your cash is in a secure place all the time - and accounted for. The deterrent effect needs clear, visible signs letting everyone know your cash is secured.
"With a single capital outlay of $5,000, the system pays for itself in the first year," says Vince D'Angelo. "The cash is so secure, financial institutions are considering accepting electronic transmission of data as cash at bank. This will also have a positive impact on working capital."
The other issue to consider with cash is taking it to the bank.
"It is a worry that many service station and C-Store owners are still carrying their own cash to the bank, or worse getting employees to carry it," says Matt Baker, Operations Manager, NISS Security. "Their employees may not be covered by Work Cover for injury or death if carrying cash is not part of their job description."
The smaller retailers tend not to use external cash management companies because the full service is too expensive. NISS Security will pick up and transfer cash to the bank (and return with change if you need it) for around $20-$35 per pick up.
"We specialise in pick-ups under $50,000 in Victoria and New South Wales," says Matt Baker.
When black and white CCTV was first installed with time-lapse VCRs by the major oil companies in the 1980s, it was a significant advance on panic buttons. The only problem was that high-quality systems came at a high price.
In much the same way as digital technology is transforming the way we live, it has transformed CCTV surveillance in retailing. The heart of the new systems is the DVR (digital video recorder).
"Digital recording means better performance, longer storage and integration with POS," says Andrew del Biondo, General Manager, Camvex (Vic) Pty Ltd.
Now security companies are offering a range of CCTV solutions that take advantage of the new technology. Camvex supply Poscam which connects digital images to POS transactions so that the details of the receipt are printed on the video recording. Under-ringing and no-sales are common employee crimes. With Poscam, you can ask the system to flag exceptions such as voids and refunds, and be notified when they occur.
"This interface technology has been available for 15 years but with digital, it is now affordable and effective," says Andrew del Biondo.
The big gains in quality and price have been in the past four years.
"Everyone should have a CCTV system now," says Peter Rae, Managing Director, Electronic Security. Peter Rae has been in the CCTV business for 20 years, and confirms that CCTV with DVR is now standard equipment.
"Retailers can buy systems with up to 16 cameras off-the-shelf," says Peter. "The software is user-friendly and you can access the video via the phone line or the internet. This is very useful if you have more than one site."
You can even watch while away on holidays! If you include a CD burner, it is easy to give the police a copy if there is an incident. A CCTV at the register is essential to deal with the rise in credit card fraud. You can view all cards and the person who presents them at the console. This has a good deterrent effect.
Hitech CCTV specialises in CCTV, and Managing Director, Joseph Novak, agrees that a CCTV system is as important as an alarm system.
"Everyone has an alarm system because they think that they need security at night when the shop is empty, but you need security all the time", says Joseph.
Paul Hicks, Sales Manager with Smartt Group, puts it this way: "It is a computer with eyes, and you can view your business over the internet 24-7 from anywhere in the world. With VCR technology you record 2.5 pictures per second for a day; digital records up to 100 pictures per second for a couple of weeks. That's a lot more information and storage."
Queensland-based Smartt Group has been in the security business for three years, and started supplying CCTV this year in response to requests from customers.
Modern CCTV systems can also be effective in deterring drive-offs. The challenge with drive-offs is a clear record of number plates under varying lighting conditions. This means it is as much about the camera as it is about the recording equipment.
"Consideration must be given to location of cameras and quality of pictures when designing a CCTV system for a convenience store," says Garry Hollow, National Manager, Tank Security.
"Knowledge of lighting conditions is critical in camera placement, as are the type of lens and the light control functions. While there are inexpensive cameras that offer good quality resolution, it has to be remembered that seeing a silhouette in front of a beautiful picture of your forecourt means that your investment can only serve as a deterrent, not a tool to assist you in the management of your business."
Options include the PTZ (pan, tilt, zoom) camera that automatically zooms until it has a clear read of characters; dome cameras that are vandal resistant and difficult to steal (yes, on the forecourt people steal cameras); light sensitive mechanisms that switch between colour in daylight to black and white in low light; and interface systems that point the camera to the pump being used.
Some of these technologies, though continually evolving, are still expensive. This is because DVR technology is cheap but digital camera technology is not.
One option is to put a standard video camera together with a DVR.
"We have found that the best quality camera is a hand-held camcorder," says Con Andronicou, Managing Director, Zecorp. "By mounting the camcorder on a pivot, the camera rotates to the pump locations and stops to take pictures in a pre-set sequence. It then zooms to read the registration number based on a pre-set distance and focus. With DVR storage you retain a week's worth of pictures.
"The system takes clear pictures in all light conditions and sometimes can identify the person as well as the registration number."
There are pros and cons with different types of systems and you should check them out and see what suits you and your budget best. A Regocam camera can be added to an existing system for around $1,500 - about half the cost of PTZ camera.
As digital equipment becomes more "intelligent" we find more uses for it. It is no longer just about security. The same technology can be applied to monitor work performance, control access, assess insurance claims, and manage inventory, sales and marketing.
These days CCTV needs to be at the hot spots for litigation and not just at the hot spots for theft.
"Slip and fall litigation is on the rise and is very costly," says Matt Baker. "Cameras in key areas can provide vital pictures of the fall and let you know whether it is genuine or set up by customer."
For some high-value products, CCTV may not be enough.
"The amateur, impulsive lifter won't even see the cameras because they can't help themselves, says Greg Mealing, Director, Se-Kure Controls. "And the professionals will look for areas of vulnerability."
For tighter security, EAS (electronic article surveillance) may be the way to go. It is installed in all 7-Eleven stores. Another option is to place high-value items in locked cases but this is not practical if there is only one person in the shop at the console.
Another option is "benefit denial" devices. They don't stop theft but make it pointless. For example, Se-Kure Controls supplies a range of devices such as polycarbonate boxes for CDs and DVDs with metal teeth that destroy the case and graphics if forced open, and keepers for batteries, film and razor blades.
"Retailers want to be able to display products in the open because they sell better that way," says Greg Mealing. "But, they don't want them stolen. Our products are inexpensive, easy and quick to put on and take off, and reusable."
A combination of CCTV and EAS can do more than prevent theft and shrinkage when all systems are integrated. They are a powerful source of information.
"The integrated system is a data management tool that can analyse sales patterns," says Mark Gentle, Director Sales and Marketing, Checkpoint Meto. "The system can even record the reaction of consumers to different products and report back to the retailer," adds David Such.
Integrated systems create a safer working environment, one where your staff can focus on your customers, and the concept is expanding to encompass all aspects of asset management.
The future for some retailers is full integration of all management systems using RFID (radio frequency identification). Large retailers have already stepped into this brave new world in Europe and the United States. Major retailers are set to follow here. Checkpoint Meto forecast that RFID will be the emerging technology in stores during the next decade.
From source tagging by manufacturers and suppliers, through inventory control and marketing, to sales and security, systems will read the code and turn it into useful information for operators such as sending an alarm to let you know what is going out the door not paid for, to creating an order when stock is low and reporting on customers' preferences.
"As these systems are deployed other applications will emerge," says Mark Gentle. "We are moving to a different paradigm - from stand-alone security to total asset management that includes security. Checkpoint Meto can provide a one-stop shop for all elements of the system."
Wireless is tightening security in other ways because it is flexible - much more flex than a cable.
"ADT Security is the only company in Australia with its own wireless network," says David Such. "We can monitor and store video off-site. With a chain of stores, you can transmit one store's pictures to another store. We also track assets such as ATMs ripped out of the wall and towed away."
A variation on the wireless theme is Microlatch, wireless because it uses finger prints to control access.
"In the past, restricted access was inefficient and sometimes, ineffective," says Christine Scott, Marketing Manager, Securicom. "Microlatch is simple to use and relies on a single administrator adding and deleting finger print records as required. No more lost cards, missing keys and forgotten pin numbers."
Although Securicom may need to design special locks in some applications, Microlatch is suitable for consoles, cigarette cabinets, display cabinets, areas where cash is kept, and workshops - anywhere you want to restrict access. Specialising in home applications as well as small- to medium-sized businesses, the cost is affordable.
The baffling range of options means that it is not easy to choose a system. Don't let that put you off. Security is a central component of your business and should receive the same attention as other core systems. There are a large number of suppliers out there ready to help.
Even before you ask, do a preliminary assessment of your security needs. What are your risks? What is your budget? Then, get the experts to show you what they can do. No matter who you choose, make sure they will be there for support, maintenance, and system upgrades. With electronic and digital technology you need a partner who will be there for the long-term.