Inventory Shrinkage Prevention & Analysis

Identify and prevent inventory shrinkage, theft, and loss

Startup Cost
$25,000-$150,000
Difficulty
Advanced
Time to Profit
12-20 months
Profit Potential
$12,000-$100,000/month

Overview

Shrinkage prevention services generate $150,000-$1,200,000 annually with 75-90% margins.

In 2025, inventory shrinkage costs retailers billions.

Revenue from shrinkage audits and assessments ($5,000-$50,000), inventory counting for shrinkage analysis ($3,000-$30,000), loss prevention consulting ($10,000-$100,000), shrinkage investigation and root cause analysis, employee theft detection, and ongoing shrinkage monitoring.

Successful services conduct inventory audits to measure shrinkage, analyze shrinkage patterns and causes, identify theft and process issues, implement shrinkage prevention controls, provide loss prevention recommendations, and help reduce shrinkage percentage.

Retailers, warehouses, and distribution centers as clients.

Marketing through retail associations, loss prevention networks, shrinkage reduction ROI, retail industry specialization, and theft prevention expertise.

Required Skills

  • Inventory Shrinkage Analysis
  • Loss Prevention
  • Inventory Auditing
  • Theft Investigation
  • Retail Operations
  • Data Analysis

Pros and Cons

Pros

  • Inventory shrinkage significant problem for retailers
  • Can demonstrate clear ROI and savings
  • Consulting and counting revenue streams
  • Ongoing shrinkage monitoring work
  • Help protect retail profits

Cons

  • Need retail and loss prevention expertise
  • Shrinkage reduction challenging
  • Employee theft investigations sensitive
  • Results depend on client implementation
  • Competition from loss prevention consultants

How to Get Started

  1. Build shrinkage and loss prevention expertise
  2. Develop shrinkage analysis methodologies
  3. Create prevention and control frameworks
  4. Market to retailers with shrinkage issues
  5. Conduct inventory audits and shrinkage analysis
  6. Identify root causes and prevention opportunities
  7. Implement shrinkage reduction programs

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