The Enemy Inside: Employee Theft Is Killing Your Smoke Shop

Chad Wade
The Enemy Inside: Employee Theft Is Killing Your Smoke Shop
Let’s get this out of the way:
Your biggest threat isn’t a competitor across town — it’s behind your counter.
If you run a smoke shop and you haven’t been burned by employee theft yet…
you’re lucky — not smart.
Because it’s happening in this industry every single day — quietly, aggressively, and sometimes right under camera.
You can’t afford to be naive anymore.
 The Reality: It’s Worse Than You Think
You trusted them.
You trained them.
You gave them a key.
And they’re stealing from you anyway.
Here’s what it looks like in the real world:
  • Discounting products for friends under the table
  • Giving away free wraps or disposables “just this once”
  • Pocketing cash sales
  • Faking returns and issuing themselves store credit
  • Clocking in and not working
  • Ringing up one item, bagging three
And the worst part?
Most of it never gets caught.
If you think that sweet, reliable cashier of yours isn’t skimming when no one’s watching…
you’re already the mark.
 The Damage You Don’t See
  • $50 a day in “little stuff” turns into $18,000+ a year
  • Lost trust from your other employees who see it happening
  • Inventory numbers that never add up
  • You blaming customers for shrink — when it’s internal
It bleeds your business out slowly, until one day your profits are gone, and you don’t even know why.
 How to Spot It
Start by trusting the math, not your gut.
Red Flags:
  • High-selling items with low reorder frequency
  • Cameras mysteriously “not working”
  • Regular cash shortages under the same person’s shift
  • Discount abuse
  • Extra long smoke breaks
  • Friends and family hanging around the shop too long
You don’t need to be paranoid.
But you do need to stop being blind.
 How to Lock It Down
Here’s how real shop owners protect their stores:
1. Cameras. Everywhere.
  • Multiple angles, especially at the POS and back room
  • Audio recording if legal in your state
  • Cloud storage — don’t rely on a glitchy DVR
2. Tight POS Permissions
  • No manual price changes
  • No unauthorized voids
  • Password protect everything
  • Every discount must have a reason code
3. Daily Reconciliation
  • Count that register every single day
  • Match POS numbers with inventory sold
  • Randomly audit footage from slow hours
4. Never Let Employees Manage Inventory Alone
  • Two-person system for restocks, shipments, and inventory pulls
  • Surprise counts once a week
  • Barcode scanners or digital tracking — not clipboard guessing
5. Fire Fast
You catch theft?
Zero chances. Zero warnings. They’re gone.
If you “let it slide,” the message is clear:
This shop is easy to rob.
 What Good Owners Understand
This isn’t about being harsh.
It’s about protecting your business — and your team.
When you run a tight ship:
  • Honest employees stay longer
  • Theft drops
  • Morale goes up
  • Your margins stop disappearing
And you stop waking up wondering where your profits went.
Final Word from Chad Wade
You don’t need to be a detective — just an owner who actually gives a damn.
Theft is happening in your shop.
Right now.
The only question is: Are you going to stop it?
Or are you going to keep bleeding out and blaming slow sales?
This is your business.
Lock it down.
Or prepare to lose it one cart, one blunt wrap, one “hook-up” at a time.
 Want help setting up theft-proof systems or POS protections?
Let’s get your shop bulletproof.
 Go to ChadWadeTV.com and let’s fix the leaks before they sink your business.