The High Cost of NOT Using Guard Management System
September 10, 2018
Are you still in MANUAL SECURITY Operations?

What is stopping you from implementing a guard management system?

If you are like a lot of the security companies I talk to, your #1 reason is probably cost. Well, what if I tell you it actually costs more to maintain the status of high-service-quality when operating manually than it does to work with a system like Xietryx.

You might be thinking: "Easy for you to say, you are the Xietryx guy”. I understand why you would be skeptical. Let us run the numbers so I can show how expensive your operational cost is if you are not using a computerized Guard Manages Solution like Xietryx - GuardTrack.

How much do you make on one property?

To calculate how much not using a guard management software costs, let us work with an example.
We will call them TP Security Services. TP is a local security company currently operating on ten properties.

To calculate how much one of TP’s properties is worth in monthly profit, we used our handy ROI (Return on Investment) calculator. TP’s lowest price-per-guard for their service is $200. The average profit margin for TP is 40%.
So, their monthly gross profit is at least $80.

How much does it cost to retain a Contract?

Let us take a look at TP’s client, we will call them SW Towers Co Ltd. SW Towers Co Ltd owes all ten properties currently managed by TP Security Services.

As long as TP delivers the services laid out in their contract, they will make at least $80 per-guard every month in profit from SW Co Ltd.

However, as we all know, delivering the services laid out in the contract is easier said than done. The property manager at SW Co Ltd has made it clear that if they catch TP slacking, they are moving on to the next Security Company.

In order for TP Security Services to retain the SW Towers Co's contract, The managers at TP need to (1) conduct adequate supervision and (2) provide detailed reports.

The Cost of Manual Supervision

TP uses a manual supervision model. To make sure their officers are in full uniform, not sleeping on the job, completing their guard tours, etc. TP has three supervisors on duty at all times conducting randomized post inspections, and nine supervisors in total on their payroll.

Let us say each of these supervisors is being paid around $300 per month. Then let us factor in the cost of their vehicles (plus insurance, maintenance, taxes, etc.) let us call that $300 per month per car for ten properties is $3,000. That is $5,700 total cost for supervision per month.

This cost is shared across all of TP's managed properties, so let's divide it by ten. That comes out $570 per month for supervising each of SW Towers Co property.

Some security companies have tried to offset the cost of supervision by having supervisors complete routine patrol activities like lockups while they are making inspections. However, this tends to mean that their quality assurance checks will not be as thorough or accurate as they ought to be. That is not going to work for a client like SW Towers Co Ltd who needs everything checked and reports submitted at the End-of-service-month .

GuardTrack improves your quality-of-service and gives you "Value for Money." See how much ROI is possible for you!

The Cost of Manual Reporting

In addition to the supervisors’ wages and vehicle maintenance costs, retaining a client like SW Tower Co Ltd also involves costs for reporting. SW Towers Co Ltd demands detailed daily activity reports, and they want to be kept aware of any urgent incidents. They also expect a security summary report at the end of each month.
Compiling these reports takes a supervisor or administrator a couple of hours every day. In addition, supervisors or dispatchers have to take time out of their days to send emails to the property manager at SW Towers Co Ltd when urgent issues come up. Let us estimate on the low side and call that about $300 per month in manual reporting costs for all ten managed properties.

So, how much does NOT using a guard management software cost?

To retain their SW Tower Co Ltd contract and keep their $80 per-guard monthly profits always rolling in, TP is spending about $600 per month on average. That is not exactly a great deal.

Guard management software like GuardTrack gives supervisors the ability to guarantee their officers are completing their duties as assigned without going on site. After implementing GuardTrack, our customers can reduce the number of supervisors on duty by about 60% — so TP Security Services could be operating with one supervisor instead of three.

Plus, SuperVix allows security companies to compile and deliver daily activity and security summary reports in minutes. You can even set the software to automatically send texts or emails to certain stakeholders when urgent incident reports are filed. Say goodbye to those reporting administration costs.

With a solution like GuardTrack, TP could actively retain the SW Tower Co Ltd’s contract while keeping much of their profits every month.

Suddenly the cost of guard management software doesn’t seem so high.

  GuardTrack & SuperVix best works for night and day guards compared to the traditional pen and paper reporting system which does not allow for such critical documentation components such as time and date stamped photos and checkpoint scan times, location, date, etc. The biggest benefit of Xietryx is being notified of incidents in real-time. This allows for our client’s to respond in a timely fashion to any urgent issues.  

Alvin Yaw Cienfield
I-SAT Solutions LLC
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