They began experiencing serious fraud and inappropriate behavior from their employees. The company estimated a loss of between Rmb9.3 million and Rmb10.5 million, equivalent to more than 5% of Sunshine's total domestic sales. Since Sunshine uses RFID/ERP system, managers can cheat the system. Every four hours, head office receives information about the point of sale, these managers took advantage of the inability of top management to control aspects at the local level. Although head office was responsible for setting promotion deadlines, branch managers were not trustworthy. By doing so, branch managers were able to sell sweaters at the original prices and pocket the difference. Another thing branch managers would do is report a higher discount rate to head office and pocket that rate.