| Why contract out security services? | | | | the more you specify; the more accurate and |
| I can immediately think of four reasons. First is the | | | | comparable the respective bids will be. |
| increased value an outsourced company brings to the | | | | What comprises the cost of security services? |
| table because of its professional staff and experience | | | | The cost of security is found in the difference |
| in the security industry. This depth and breadth of | | | | between the client's hourly bill rate and the guard's |
| experience and knowledge is offered because of | | | | hourly pay rate. That difference between bill rate and |
| relationships with other clients that have faced the | | | | pay rate is the result of an equation based on the |
| same or different challenges. The second reason is | | | | value of particular line items, which vary company to |
| the cost. Simply put, because of the expertise and | | | | company. Examples of these variable items are liability |
| experience that the vendor brings, the financial weight | | | | insurance because it fluctuates due to claims against |
| of training, recruiting, hiring and providing benefits for the | | | | the individual company. Another is worker's |
| employees is considerably less to the client than | | | | compensation insurance which fluctuates in suit. |
| administering these programs in-house. Third is the | | | | Corporate and branch salaries, marketing, cost of |
| transfer of liability from the client to the security | | | | bidding projects, and rent are examples of general |
| company. The security company bears the legal load | | | | administrative expenses that differ. Paid holidays, paid |
| and ramifications of particular incidents that could occur | | | | sick time, medical and dental benefits, and more are |
| on your property. Lastly, and in my opinion, most | | | | also factors. Therefore, it's important to know what |
| importantly is the peace of mind an effective security | | | | the benefits are and how much they cost per individual |
| company can provide so you the client can focus on | | | | per month in order for you to make a fair comparison |
| the everyday business that defines you as a | | | | of one company to another. Lastly is profit which will |
| company. | | | | vary depending on the company's prerogative. |
| Why Change Security Vendors? | | | | Whether it's low, high or normal, it is a direct example |
| Change vendors when the value is gone, plain and | | | | of their business model. Security is an industry where |
| simple, but you have to know what's valuable to you | | | | the quality of service should dictate the cost of the |
| as an individual client. If you have a small budget and | | | | program. Never should the cost of security dictate the |
| need a low bill rate, know that's what you value. If it's | | | | quality of service. |
| superior management and executive accessibility, than | | | | What are good questions to ask security companies |
| know that's what you value. If it's a vendor that can | | | | and why? |
| accommodate a client on a national basis, than know | | | | Four questions that quickly come to mind are the |
| that's what you value. When value isn't there anymore | | | | following: First, Who are your competitors? This is |
| and when your vendor's program no longer represents | | | | important because you want to know what niche a |
| you as a client anymore, it's time to change vendors. | | | | company serves. This will help you gauge whether |
| However, certain values have repercussions. Low bill | | | | they are the correct fit for you and your property. |
| rates will produce low wages. National vendors might | | | | Second, what are the responsibilities of the salesman |
| not give you specific attention on a local level. And | | | | and his guidelines for selling work? This is important |
| having a phenomenal program with high-end personnel | | | | because it will reveal management structure and |
| combined with strong management will cost you more. | | | | should address a well designed business model. You |
| You just have to know what you value the most and | | | | want to be treated as an appreciated client and not as |
| work off of that. | | | | a number of hours. Third, how many hours are |
| What are important things to include in an RFP? | | | | assigned to the area manager? This question will give |
| First things first, an RFP must be designed to allow you | | | | you an idea of attention you'll be receiving and how |
| to compare "apples to apples". This is especially | | | | loud you'll have to shout to be heard. Finally, how many |
| important when it comes to the financial proposal from | | | | accounts has a company lost in the past year? This |
| each potential vendor. To achieve this, the pricing | | | | general question might be the tip of the iceberg in |
| structure must include the itemized list of costs to | | | | regards to attrition rates, wages, performance, and |
| include wages, bill rate, necessary insurance coverage, | | | | client satisfaction. The commitment to understanding |
| employee benefits costs, as well as vendor overhead | | | | your needs, defining them in the RFP, and asking |
| and supervision structure. A well defined scope of | | | | quality questions of your vendor to produce a perfect |
| work included in the RFP will allow the vendor to | | | | fit is the difference between a long term value-based |
| completely understand the "job" requirements and | | | | relationship and starting the process over and over |
| price accordingly. When preparing the RFP, remember | | | | again. |