Weird, I was just trying to explain this to a manager yesterday, I need to go look for hidden microphones...
...I've tried in the past to explain this to others using retail "shrink" as an analogy. For those unfamiliar with the term, as I know it, the idea is that you assume a certain percentage of loss (in my experience, as shoplifting in a music store) and by writing that off, it allows you to focus your energies where they have more impact on profit. For example, placing the lowest-margin items in the most vulnerable parts of the store to deter theft of items where you really make money.
I'm glad someone took the time to write up a better explanation that I can now refer to.
...I've tried in the past to explain this to others using retail "shrink" as an analogy. For those unfamiliar with the term, as I know it, the idea is that you assume a certain percentage of loss (in my experience, as shoplifting in a music store) and by writing that off, it allows you to focus your energies where they have more impact on profit. For example, placing the lowest-margin items in the most vulnerable parts of the store to deter theft of items where you really make money.
I'm glad someone took the time to write up a better explanation that I can now refer to.