I have often been on the many who believe large shopping centres make an absolute fortune by marking up all items and claiming that "theft is factored into the cost".
I innocently used think this was a blatant excuse to increase their margins and make extorsion look legal.
However recently I have discovered that this is a valid, if not needed, arguement just to maintain a reasonable chance of breaking even.
Over the past few months we have been stocking hobby equipment and have experienced first hand the effects of stealing. Previously we had a large problem with hobby paints getting stolen and the price of those paints had to rise. Why you ask? Simple mathmatics.
The margin that is placed on the paints is minimal due to the fact that we mark our products down from retail. So when you consider that we have to buy the paints in packs of 6 it works out like this. One paint gets stolen. To cover the cost of that stolen paint we than have to sell a further 4 to break even. So in a box of 6 paints we will make profit on 1 of those paints. Pointless.
Just today I had someone remove a small miniature from the shelves. This particular model I have to sell another 2 of the same style just to break even on the cost of the first. So this hard to move item will cost me more in the long run.
So my opinion of these larger stores has mellowed.
Even ignoring the financial costs I just cannot fathom why someone else would consider they have the right to steal from a small store? Not only will this effect me personally but it is also going to effect every other legitimate user of the store as cost increases accross the board are considered. So there selfishness effects everyone that uses the store.
It amazes me that the world can justify actions like this as accetpable because "they make too much" or "I need that more than they need the money".
Or maybe I was just bought up in an era where responsibility and respect where common place, not the exception.
