Would you ever consider sharing your billing rate breakdown with your customers? I think you should, I know most, if not EVERYBODY out there is like “Are you crazy?”. Well let’s talk about it. I think that one of the major reasons that the security guard industry struggles, is because we are not able to attract the talent necessary to provide the high quality service that security guard companies and your customers would like. I could be wrong, but I think one of the problems is that security guard service buyers are not in tune with what goes into your billing rate.
Let’s take a minute and put yourself in your buyer’s shoes. If someone came to you, as a security services buyer, with a $15/hour billing rate I think many buyers think that the security officer’s pay would be the lion’s share of that rate. Think back to the first time you figured out all of the things that have to be baked into that billing rate. I’m pretty sure that you were as dumbfounded as I was, so I don’t think that many buyers understand the reality of security guard services billing rates because they haven’t had to calculate a billing rate.
Or worse yet, if the buyer knows what the billing rate is and what the officers’ wage rate is, they might just be thinking that you’re this greedy company owner who won’t pay your employees a better rate because you’re more interested in raking in huge profit dollars.
Now compare those 2 situations to an informed buyer who understands what all of your overhead is and knows that you are only making 7 or 8% of that billing rate. I think that becomes a much different conversation than what you are used to having when you are submitting a proposal or looking for a billing rate increase.
With that being said, if you currently share your billing rate details with your customers I’d love to hear about the results. Or if you think I’ve lost my mind, I’d love to hear the reasons why. Either way please leave your comments below.
About the Author
Courtney Sparkman
Founder of OfficerBilling.com and OfficerApps software suite
With 15 years of experience in operations and business development, Courtney is a trusted voice in the security industry. He is a renowned author, speaker, and YouTube creator dedicated to helping security guard companies thrive. His career began as a co-founder at Cequr Security and later as Director of Business Development at Diamond Detective Services. Currently, he holds a private security contractor license, a degree in Agricultural Economics, and a Master’s in Emergency Management from the University of Chicago.
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