Cleaning up graffiti, repairing damaged property, replacing assets and inventory… when a criminal targets your business it can add up quickly. But that isn’t the only cost of crime.
When there’s repeated criminal activity in your local community, it can have an indirect effect on your business. In this blog, we take a look at some of the indirect costs of crime on your business in Western Canada and why that means you need to invest in a robust security solution.
#1 - Fewer customers
When the public feels like there’s a lack of safety in and around your business, they’re less likely to visit. This will lead them to search for an alternative, meaning your customer base will shrink and so will your profits.
If, for example, customers are constantly dealing with negative comments and harassment as they walk into your grocery store, they will probably travel farther to visit a competitor with less loitering. If a mechanic is constantly dealing with overnight damage to customers’ cars, those customers will go elsewhere to get their vehicles serviced.
While customers don’t necessarily blame the company for the crimes that happen to them, they will do their best to avoid the situation when possible.
#2 - Reduced growth
When you have to pay to replace and repair lost and damaged property, you are having to spend funds that you would have invested in your company in other ways, usually to improve and grow your business.
This may have been investing in a new piece of equipment to increase supply or convenience, expanding your building or providing additional services to your customers. Whatever your next big move is going to be, it will be put on hold so that you can get back to the status quo.
#3 - Lost advertising spend
Similarly, when you have to spend money to reverse the effects of crime, you are losing money that would have been otherwise used on advertising. This means you have less money to attract new customers and increase visits from current customers. This will further reduce your customer retention and opportunities for growth.
#4 - Spoiled reputation
Over time, continued crimes and the presence of criminals could cause your brand and location to develop a bad reputation. People will start to attribute your brand with one that attracts a rougher audience.
Even when your company is insured, these losses are more difficult to reverse. It takes a lot of money to change the bad feelings people associate with your business – sometimes it can’t be done at all.
#5 - Lost time
As a business owner, you likely spend a lot of time trying to deter crime and change opinions. This includes the time spent asking people to leave your property, talking to customers to ensure they feel safe, cleaning up messes left by hooligans and stressing about what you can do to change the situation. This is time and energy that is better spent growing your business.
To ensure your business doesn’t become a hot spot for crime, you need to be proactive. This is the only way you can avoid losing profits and wasting money reversing the effects of crime.
One of the best ways to deter crime and show your customers that you are taking the necessary actions to protect them is by installing a state-of-the-art monitored security system.
Not only will a well-known security brand, like Sonitrol, prevent criminals from committing crimes in the first place, if they do commit a crime, monitored surveillance will help ensure the culprit is apprehended.
To find out how an investment in security can lead to greater profits, contact us today. We would be happy to discuss the financial benefits a monitored security system can have for your business.
