Mastering your security guard pricing strategy ensures you can create accurate, competitive proposals that win clients and help your security company remain profitable. 

Our guide breaks down how to calculate your security guard costs, including a free pricing tool that allows you to quickly input your numbers and generate a tailored proposal for your clients that’s a win-win for both parties. 

You'll also learn:

• Key factors that influence security guard pricing
• Common pricing mistakes and how to avoid them
• How to use our security guard pricing tool to calculate your rates accurately
• Why Belfry is the perfect solution for managing your security operations and pricing

Let’s kick things off by discussing the importance of accurate security guard pricing. 

Why accurate security guard pricing matters

Setting the right price for your security guard services is a critical step toward building a successful business. It has a major impact on your profitability, competitiveness, and client satisfaction.

Here's a look at why accurate pricing is so vital based on the aspects we mentioned:

• Profitability: To ensure your business thrives, you need to charge enough to cover all your expenses. Using a security guard pricing tool can help you factor in all these expenses and make sure your rates are profitable.
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• Competitiveness: The security industry is competitive, and your prices need to reflect that. Typical hourly rates for security guards can be anywhere from $11 to $25, though rates can exceed $50 for specialized services or high-risk assignments.
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• Client satisfaction: Transparent pricing builds client trust and helps avoid disputes over hidden fees or surprise rate increases.

Figuring out how much security guards make and how much to charge for their services requires a deeper understanding of the key elements that influence pricing. 

Factors that influence security guard pricing

Now, let's take a look at the key factors that influence your pricing:

• Wages and labor costs: Determining how much a security guard makes means you should consider many variables. Location matters, as does experience and the type of work involved. You'll also need to account for overtime pay and benefits. 
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• Overhead costs: These costs include insurance, office space, equipment, uniforms, and providing ongoing training for your guards. Make sure to include these costs in your pricing to make sure your business remains profitable.
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• Shift complexity: Some shifts are more demanding than others. Armed security shifts on nights, weekends, and holidays often require higher pay to attract potential hires. If your clients need coverage during these times, your pricing should reflect the added cost.
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• Regulatory compliance: It's important to stay up-to-date on local labor laws and minimum wage requirements, as these can vary by location. Be sure to factor any legal obligations into your pricing.
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• Market competition and client expectations: Research what your competitors are charging and what clients in your area are willing to pay. Finding a balance between competitive pricing and meeting client expectations is crucial.

If you want a more detailed look at specific startup costs, take a look at our article for a complete breakdown of the expenses of running a security business. Our guide answers questions like “How much is private security per hour?” and “How much does a security guard make?” 

Remember: A security guard pricing tool can be very helpful when it comes to calculating your costs and setting your rates. More on that coming up. 

How to calculate your costs with our downloadable security guard pricing tool

We’ve created a handy security guard pricing tool to make the process of calculating costs much easier. With it, you’ll be able to calculate weekly costs, including overhead and desired profit margins, and even factor in overtime and holiday rates. 

Download our security pricing tool. You can open the Google Sheet, make a copy, and customize it for your business. 

Step-by-step guide to our security guard pricing tool

With just a few simple steps, you can calculate how much to bill clients for the week and ensure you see profitable rates for your security guard services. Here's how it works:

Step 1: Apply your desired profit margin

We added a section where you can add your desired profit margin. This will automatically calculate the necessary markup to guarantee you achieve your profitability goals.

Step 2: Input guard wages and number of shifts

Start by entering the hourly wage for your security guards. Remember to factor in any variations based on experience, location, and duties. Then, input the number of hours per week you need to cover. This will give the tool a foundation for calculating your labor costs.

Step 3: Enter overhead costs

Next, account for key business expenses. Input your annual overhead costs for this contract, including insurance premiums, vehicle expenses (if applicable), uniform costs, and any other operational expenses you incur.

Step 4: Include additional costs

Remember you need to account for unbilled holiday pay and overtime. There’s a dedicated section in our security guard pricing tool to add those extra costs into the equation, making sure your pricing accurately reflects the full scope of your expenses.

Step 5: Generate a final rate

Once you’re done, you should be able to generate a final hourly bill rate for your security guard services, providing a transparent pricing breakdown that you can confidently share with your clients. 

With our security guard pricing tool, you’ll no longer rely on guesswork. It's a great solution for taking control of your finances and setting your security business up for success.

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Common pricing mistakes and how to avoid them

Here are some frequent mistakes security companies make when setting their rates, along with practical solutions to help you avoid them:

• Underestimating overhead costs and compliance fees: It's easy to focus on the obvious costs like wages, but don't forget about those less visible expenses. Think insurance, equipment, uniforms, training, and compliance fees.

Solution: Use a detailed tracking system to monitor all your expenses, not just the big ones. This will give you a clearer picture of your true overhead costs and help you factor them into your pricing accurately.

• Ignoring the impact of overtime and holiday rates: Offering competitive pay for overtime and holidays is crucial for attracting and retaining good guards. But failing to factor these higher rates into your pricing can eat into your profits.

Solution: Build overtime and holiday rates into your pricing model from the get-go. This ensures everybody is properly compensated for those extra labor costs.

• Failing to adjust for market trends and competitive pricing: The security industry is always evolving. What your competitors were charging six months ago might be different today. Ignoring trends and competitor pricing can make your services less attractive.

Solution: Regularly review your pricing strategy. Stay informed about industry trends and keep an eye on your competitors. Always be ready to adjust your rates as needed to stay competitive.

• Not accounting for changes in staff or client needs over time: As your business grows and evolves, your staffing needs and client demands will change. Failing to adjust your pricing accordingly can lead to unexpected financial pressure.

Solution: Regularly evaluate your pricing in light of any changes in your business, such as increased staff, new client requirements, or rising operational costs. This approach will help you maintain profitability and keep clients happy at the same time. 

Why Belfry is the perfect tool for managing your security guard pricing process

Upon reading our guide, you should now know how security guard pricing works, and perhaps you’re even using our security guard pricing tool. 

Now, it’s time to take your business to the next level with Belfry.

Belfry is an all-in-one security management platform that offers an all-encompassing suite of features to simplify your security operations. This includes giving you per-shift profitability metrics, so you know where your business is healthy and where you might need to make adjustments.

Here's how Belfry helps you master your pricing strategy:

• Track hours automatically: Belfry's software solution monitors shifts and hours worked in real time, providing precise data for accurate billing and payroll.
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• Handle overtime and holiday pay: Belfry helps calculate extra costs for overtime and holidays based on the data you provide for scheduled shifts. This way, costs are always up-to-date, guards are properly compensated, and clients are accurately billed.
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• Simplify scheduling: Optimize your workforce and avoid overstaffing. Belfry's scheduling tools make it easy to allocate guards effectively, providing full coverage while controlling labor costs.
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• Invoice accurately: Belfry integrates shift data with invoicing, helping ensure clients are billed accurately and on time.

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