Shrinkage as a Percentage of Revenue

 

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To preserve financial health and profit margins, organizations should seek to minimize shrinkage. Excess shrinkage can drive up inventory carrying costs, which are often taken into account when an organization sets prices, especially for high-value items. However, in a competitive market with high levels of price sensitivity, there may not be much room to raise prices. Implementing proper protection practices such as controlled access can help reduce theft and fraud. 

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