What’s stopping you from implementing guard management software?
If you’re like a lot of the owners I talk to, your #1 reason is probably cost.
Well, what if I told you that it actually costs more to maintain the status quo than it does to work with a company like Silvertrac?
You might be thinking: “Easy for you to say, you’re the Silvertrac guy,” and I understand why you would be skeptical. Let’s run the numbers so I can show you what I mean.
How much do you make on one property?
To calculate how much not using guard management software costs, let’s work with a hypothetical example. We’ll call them Typical Security Services. Typical is a local security company currently operating on ten properties.
To calculate how much one of Typical’s properties is worth in monthly profit, we used our handy ROI calculator. Typical’s lowest price-per-hour for their accounts is $20. The average profit margin for a company their size is 16%, according to Robert H. Perry. So, for a 168, their monthly gross profit is at least $2,250.
How much does it cost to retain an account?
Let’s take a look at one of Typical’s 168s, we’ll call them Stoneview Tower.
As long as Typical delivers the services laid out in their contract, they’ll make at least $2,250 per month in profit on the Stoneview account.
However, as we all know, delivering the services laid out in the contract is easier said than done. The property manager at Stoneview has made it clear that if they catch Typical slacking, they’re moving on to the next guy.
In order to retain the Stoneview account, The managers at Typical need to (1) conduct adequate supervision and (2) provide detailed reports.
The Cost of Manual Supervision
Typical uses a manual supervision model. To make sure their officers are in full uniform, not sleeping on the job, completing their guard tours, etc., Typical has three supervisors on duty at all times conducting randomized post inspections, and nine supervisors in total on the payroll.
Let’s say each of these supervisors are being paid around $2,000 per month. Then let’s factor in the cost of their vehicles (plus insurance, maintenance, taxes, etc.) — let’s call that $500 per month per car. That’s $19,500 total cost for supervision per month.
This cost is shared across all of Typical’s properties, so let’s divide it by ten. That comes out $1,950 per month for supervising Stoneview.
Some security companies have tried to offset the cost of supervision by having supervisors complete routine patrol activities like lockups while they’re making inspections. However, this tends to mean that their quality assurance checks won’t be as thorough or accurate as they ought to be. That’s not going to fly with a client like Stoneview.