Friday, September 27, 2013

Security (Part 1)


We enjoy the company of armed security in our store.  We have since 2008.  The intent of this weaponized presence is to discourage the armed robberies of thousands of dollars worth of mobile devices.  This is not entirely alarmist as there have been a handful of these robberies all over the nation--a couple of which came to a fatal end.  Yet, I believe there is a better response to potential terror than wasteful spending. 
When I think of how much money it is costing The Company to staff these retired policemen 14 hours per day, multiplied by over a hundred locations, I can’t help but think there’s a better use for that money.  Everyone knows it’s possible--develop a software that kills, disables, ignites or explodes stolen equipment the second the serial number is registered on the network.  If the major networks would agree to join forces in this venture, stolen phones would be worthless.  Instead, we’re hemorrhaging money on security--bleeding through the bandage.  The Company is also fostering a situation in which the consumer feels violated because a thief can turn profit on or use the stolen equipment.  
The third question after someone has a phone stolen is typically, “Can the person who took the phone use it?” The answer, for now, is still 'yes.'

Our store in the heart of Los Angeles, open seven days a week and closed for three major holidays, requires 4732 hours of security per year.  At the $50 per hour charged by a private security company, that’s $236,600 for our location alone.  There are 8 stores in the area, 44 in the district, and so on.  That’s 10 million dollars per year without leaving Southern California.  A discerning individual might suggest that dedicating a fraction of these expenditures to developing a way of preventing it would be money well-invested.  I know safety is always priority number one in public (just as accessory sales are priority number one in private), but this spending is absurd.  It’s time to make balanced decisions when it comes to risk prevention.  Consider the risk, evaluate the odds.  “Better safe than sorry” comes with a price that someone has to pay.  Remove the temptation and the sin will be avoided!  People will only steal what they can either use or sell.  Make the stolen product worthless and it won’t be worth stealing.  And you can't tell me we're protecting the accessory losses.  You remember the markup on those, right?

Oh, and in the event of a robbery during open hours, these security guys have strict orders to never give chase.  Not that any of them can--most are collecting pensions and worker's comp from the LAPD while they nurse an injury sustained on duty.

Our last security guard’s name was Jerry.  Ex-cop, always a marine, he was a nice enough guy, if a little talkative.  The security company was fine, but these guys were mercenaries with their own endgame in mind.  Jerry would stand by the front door, watching to see which cars pulled into the parking lot.  If they appeared to be expensive cars, he would approach the driver, ask them what they did for a living and then explain why they would need his security for it.  Jerry was always telling me that someday I would need personal security.  I appreciated his optimism, and I hope he’s right.  But he’ll have to forgive me if I don’t hire someone who is always looking for the better opportunity.  And hell, for $50 an hour, I can learn jujitsu. 

Jerry would unabashedly approach celebrities, start dropping all the names of people he’s protected and offer up his services for the future.  His loudest claim to fame was being on Tupac's security detail the night he was shot--something I, personally, would omit from my own resumé.  And, while I appreciated his entrepreneurial spirit, I often questioned his attention to his surroundings.  Demo phones were stolen from our sales floor weekly.  We would sometimes find the back of a phone just dangling from its supposed security device.  Chords were cut and thieves walked or ran out, depending on whether or not the alarm sounded.  Because Jerry was still in the middle of a law suit against the LAPD regarding his ankle injury, he wouldn't move a muscle.  Instead, he would secure the area and assure everyone that everything was okay.  He was more affirmation, less asset protection.  We should have hired a life coach.

One day, Jerry approached one of my coworkers to see what kind of deal he could get on a Bluetooth headset.  This headset, the one Jerry had his eye on, was retailing for $100.  My coworker, John, said he would see what he could do.  

At the time, John happened to be working with a lady who worked for the United States Postal Service(Jerry had no problem interrupting transactions and initiating conversation).  She was equally garrulous and struck up a friendly conversation with both Jerry and John.  USPS and LAPD had an instant connection as they both collected wages for loitering in a cell phone store.  USPS learned that Jerry was interested in the Bluetooth headset and offered her assistance.  Employees of the USPS get a 50% discount on all accessories in the store.  Some of them take advantage of this discount and spread the love around to friends and family.  Technically, as long as the transaction takes place on the proper account, we can sell as many as we like.  

John rang up the headset at the discounted price of $50 and off Jerry went to secure the store or find potential future employment.  John finished his transaction with the customer and we all eventually left for the day.  One week later, Cock Bombay approached Jerry out front and lit up a cigarette.

“That’s a nice headset,” he puffed, “you get it here?”

(cont'd)