What is Source Tagging?
Source Tagging is the process by which disposable Electronic Article Surveillance (EAS) anti-theft labels are incorporated into merchandise at the manufacturing, packaging, or third party level. Source tagging allows products to be protected from theft by applying the label inside the product or packaging. By applying the label at the source, tagging compliance is consistent, important product information is not covered by a label, your brand and product is protected from grey market thieves and the packaging is not defaced.

How are requirements for Source Tagging goods identified?
Most retailers ask that your product be Source Tagged if it falls in a high shrink category, no matter if the actual product itself has a high shrink level or not. The reason for this requirement is that when items in the category are tagged while other products are not, the theft actually shifts to the untagged products. This is called “Theft Migration”.

Why do I have to tag low cost items?
Retailers look at the overall impact to the product margin. As an example, if you have a low product cost and the product is sold at a 40% margin but the shrink is 10-20%, the overall impact is significant. Many retail buyers choose not to carry products based on the risk of high theft or they choose to lock up your product; deterring not only theft but more importantly, sales.

How will I know if my product has to be Source Tagged?
Your retail buyer will notify you if the product has a tagging requirement. This is usually discussed in the negotiation process. This allows you the opportunity to discuss the impact to you and to negotiate additional shelf space, end-cap promotions, cross merchandising, floor displays and pricing. You are always ahead in the game if you offer a secure product at the start of the discussions.

Will I have to provide Source Tagging for all of my customers?
Many retailers have different formulas of determining what products have tagging requirements, however, most high theft items are identical from retailer to retailer. If you are tagging for one, it is likely you will be asked to tag for all.

Can I charge my customer for Source Tagging?
The cost to Source Tag is strictly part of negotiations in the buying/selling process. Your company should determine whether you are providing a value-added feature to your product or whether you will pass on this cost to your customer.

Do I have to put labels on 100% of the product or can we apply a percentage?
In most cases all retailers require 100% tagging. There might be a few exceptions that you can discuss with the retail buyer.

If there are two technologies, do I have to apply both labels?
In most cases the answer is yes. Both AM and RF customers who Source Tag require you to provide products that are Source Tagged with their chosen technology. You should determine the best approach for your operation; whether you apply two labels on the products or you maintain separate inventories. Many products, because of size or metal content, will not support both labels.

Why can’t retailers choose just one technology, having one label that works with both?
While both technologies are proven to reduce in-store theft, they have different benefits. RF technology is limited to cover a 6-foot doorway while AM can cover larger openings. RF technology is sensitive to all metals and liquids, while AM is only sensitive to ferrous metal. RF systems and labels are traditionally less expensive than AM. Retailers choose the technology that best fits their environment and their budgets.

If I Source Tag how do I guarantee that my product is not locked-up?
There are no absolutes, however, by agreeing to Source Tag, you increase your negotiating power for product placement and additional products in the line-up. If you sell a high-theft, high-risk item, you might be asked to add additional theft prevention such as tamper-proof packaging; this is determined by the retail buyers and their Loss Prevention department.

Why is TAG Company not listed as a certified lab on any of the retail web sites?
TAG Company is relatively new to Source Tagging and is initiating the registration process with the Source Tagging retailers. Make no mistake; retailers welcome the company’s participation, as they see the benefit of an additional certified supplier of Source Tagging products and services. TAG Company launched its 58 kHz label in September. Prior to the launch, there was only one source available to purchase 58 kHz labels. Because of TAG Company’s innovation in developing the label, you now have a choice of vendors.

Are your labels high-speed applicable?
Yes. We offer 6,000 label rolls for Series 58 (AM) and 8,000 label rolls for Series 8.2 (RF) for high-speed automated application. There are 5 rolls in a case of 30,000 labels for Series 58 and 4 rolls in a case of 32,000 for Series 8.2.

Will I need different applicators for each technology?
No! In most cases the applicators have been designed to apply either label by simply changing or adjusting the tamp heads. You can get more information by contacting the providers listed below.

Can the labels be inserted into the product itself?
The location of the label is determined through the certification process. Many retailers request Phase III tagging which is defined as the insertion of the label in the product itself. Phase III offers a higher level of security for high cost items. Many products, because of material content or space restrictions are not suitable for Phase III tagging. See the section on label placement for description of Phase I, II, and III tagging.

Can TAG Company certify RF and AM labels?
Absolutely, we are equipped to meet your needs, no matter what the technology requirement. TAG Company is the only EAS provider who promotes both technologies.

Why does the product have to be certified?
Many products contain materials that affect the performance of the label by blocking the signal. By having TAG Company certify the product you are assured that the label will work. Certification gives the retailer confidence that the merchandise is protected and that it will alarm at the door, should the product be stolen.

What Applicators do you recommend?
We recommend you contact the following companies for automated applicators: