The Cisco Select Certified Partner: CorData, Inc.

"Video surveillance works for us. We average 200 customers and at least $1000 in sales per day, but we don't see any thievery," says Pastor John Fichtner, CEO of a 4-employee, 8400-square-foot retail thrift store.

Theft at a store like this would typically exceed $60 a week. But IP video cameras prevent theft here. Before this nonprofit business opened in March 2009, it integrated 16 Cisco PVC2300 Business Internet Video Cameras onto its Ethernet LANs.

"We aimed the video cameras on the 'hot zones' [the physical areas prone to shoplifting or employee theft]. It was easy to set up, and it wasn't expensive," Fichtner says.

The Network: Keep It Simple

The new store operates on a tight budget, and its staff has little time or inclination to focus on technology. "But we knew we needed a network to do business," Fichtner says.

In late 2008, he called in a Cisco Select Certified Partner (a reseller that specializes in serving small businesses). "We told Gary Beckstedt [the partner's director of operations] our goals and needs, and we emphasized how wary we are of complex technology."

The partner obliged. "First, we designed a small-business network that would let the store efficiently communicate and conduct business," says Beckstedt.

The Cisco IP and 10/100 Mbps Ethernet network, installed in less than three weeks, provides both the store and its remote donation center with Internet-connected telephony, data, and video communications. The two sites' LANs uplink through Gigabit Ethernet backbones to a fiber-optic connection that combines them into one network, which is managed remotely by the partner for a few hundred dollars a month.

Advanced Surveillance

For loss prevention, Fichtner took the advice of his newly hired store manager: Deter theft by using video to prevent crime in real-time. The store uses no hidden video cameras; they are all visible.

Installed over two days, the store's Cisco video surveillance system prevents theft by using these technologies:

• Coverage of all "hot zones" by 16 cameras that are powered through Ethernet cables dropped from the ceiling and are wall-mounted quickly with three screws.
• Two large monitors at the store entrance, hanging prominently above the checkout station, that publicly show images from all 16 cameras simultaneously, and one camera in full frame.
• "Cameras that are incredible high quality," says Fichtner; the cameras' features include motion detection and a wide aspect lens.
• Local storage of up to 21 days of recordings from all 16 cameras, on one PC with a 1-terabyte hard drive that is automatically backed up to a server.
• Local administration done easily by nontechnical staff. "We actually haven't had to adjust anything; the system works like an atomic clock," Fichtner says.
• Web-based system management that enables remote configuration, diagnostics, and maintenance, using each camera's IP address and a virtual private network (VPN). (The newer Cisco PVC300 Pan Tilt Optical Zoom Internet Camera also provides remote control of pan, tilt, and zoom.)

"This system cost us only half what traditional [closed circuit TV] security companies bid, and it's twice as good," Fichtner says. The 16-camera system cost the store $8,500 all-inclusive, including installation.

ROI from Higher Income

The video surveillance increases the store's income by reducing "shrinkage" (loss due to shoplifting, employee theft, paperwork errors, and supplier fraud). Using 2008 retail industry metrics estimating that 1.52 percent of sales are lost to shrinkage (44 percent of it to employee theft, 35 percent to shoplifting), this new store's loss prevention solution will pay for itself within 2.5 years, faster as sales ramp up.

The store's return on investment (ROI) may surpass the industry numbers for two reasons:

• "You'll probably be surprised at this: People tend to steal more from thrifts than other types of retail stores," says Fichtner.
The recession. Criminologist Richard Hollinger recently told the press that the use of surveillance cameras in thrift stores is a reflection of the times. "The shrinkage rate is up, and the shoplifting numbers are up," he says.

The higher the ROI for this business, the greater its benevolence: 100 percent of the store's income goes to the poor.

Next Steps

• Find an experienced local Cisco partner that meets your specific needs
• Learn more about the solutions used by this customer: Cisco Smart Business Communications System, wireless access points, and video surveillance