CHAPTER
Understanding The Billing Rate
For Your Contract Security
Force
Although this article was written for the benefit of security guard service buyers, it will give you an understanding of what you might expect from prospective customers. It gives my take on what buyers should be looking for in security guard proposals.
In this article, we discuss one of the most important aspects of selecting a contract security guard vendor: Understanding the billing rate.
The billing rate that your bidders provide is the result of adding up all the costs associated with staffing your property, plus a number that represents what the bidder wants to make from the contract.
The largest portion of that billing rate is usual y the wage rate of the guards.
Determining the Contract Security Guard Wage Rate
The most important component of building and maintaining a successful contract security force is ensuring that your guards are being provided adequate compensation. In order to do so, you as the contract manager must determine how much other businesses are paying for security guards within your area for similar scopes of work. This amount should be the benchmark by which contract managers judge contractor bids, and in no case should the contractor’s proposed starting wage be lower. As part of the bid evaluation, you should request a wage rate analysis for your area from any potential bidders. By ensuring adequate compensation for the contract staff at your facility, you’ll be able to help reduce the amount of turnover that you deal with. In addition to providing the wage rate analysis, each bidder should be required to state what wage that they are proposing in their bids.
Tip: If you have a high rate of guard turnover, 9 times out of 10 the wage rate at your site is probably too low.
Security Guard Benefits
In addition to the wage rate, the contract manager has to ensure that the security guards are also given benefits that will help retain top talent at your location. Some of these benefits can include:
1. Company supplied uniforms
2. Vacation days
3. Sick days
4. Medical benefits
All benefits should be outlined in the bidders proposal. The most economical way to pay for these benefits is to have your contractor bill you directly for them. When directly billed, these costs, which are typical y hidden in a comprehensive billing rate, are billed by the contractor only when they occur. This is more advantageous to you as the contract manager because you’ll only pay for benefits that your security officers receive. By using direct billing, costs associated with temporary and part time employees are also reduced. A greater level of benefits can then be given to officers who are employed longer.
Your Billing Rate Breakdown
Although wages and benefits are two of the best indicators of the quality of your guard force, they are not the only ones. To understand the security programs that your bidders are providing, you must look at the program in its entirety, and the best way to do that is by requesting a line item breakdown of your billing rate with each bid.
That billing rate should include (at a minimum):
1. Wages
2. Payroll taxes
3. Risk/Insurance
4. Expenses
5. Gross margin or Markup
Most security guard contractors use pricing tools similar to the one below that will generate billing rates based on the resources that they’ll allocate for your location.
As you can see from this sample pricing page, it would be relatively easy for two bidders to come up with the same billing rate but propose radical y different services.
Ethical and credible contractors should embrace this approach to billing rate review with open arms. This allows for an apples— to-apples comparison of their pricing models and protects them from incurring costs that are uncompensated. However, the most profound impact of evaluating your billing rate is on the behavior of the security guards themselves. When security officers feel like they’re being treated fairly, they’re much more likely to exhibit the positive behaviors that you desire: Attention to detail, professionalism, and alertness.
20 Things To Consider For
Your Security Guard Proposal
When you’re asked to submit a proposal for providing security guard services, it can be both an exciting and anxious time. Your proposal can get you excluded from consideration, invited to a formal presentation, or even win you a contract. Any time that you submit a security guard proposal, you can typical y expect stiff competition.
Fortunately, a well-written proposal can help set you apart from the crowd. So when you’re invited to submit a proposal, always take the time to craft a great response to make the best of the opportunity.
Elements of a Good Security Guard Proposal
Like many things, writing a security guard proposal is a process. The first five basic steps of that process include knowing your product, knowing your prospect, knowing what you want them to do, quickly writing the first draft, and writing all the easy information first.
Following those steps will get you well on your way to drafting a great response. However, in addition to those steps, you should also consider the following:
1. Table of Contents
In most cases, security guard proposals are fairly lengthy. In order to make it easy for the reader to find the information that they’re looking for, be sure to include a table of contents. If you’re using Microsoft Word, adding a table of contents is relatively simple.
2. Page Numbers
Always include page numbers to help the reader quickly find information.
3. Internal Links to Information
If you’re submitting an electronic copy of your proposal, including a table of contents will easily allow your reader to click a link and be taken directly to that section. Also, consider linking other text as necessary.
4. Electronic Copy
If you can, submit an electronic copy of your proposal. It makes it possible for the recipient to share it with others.
5. Executive Summary
A security guard proposal typical y exceeds 25 pages. Make it easy on your reader by submitting an executive summary of the information that your proposal contains. If they would like to read more, they can proceed to that relevant section via your Table of Contents.
6. The Customer’s Perspective
Many proposals are written from the security guard company’s perspective and talk about what the company brings to the table.
However, the proposal should specifical y address the reader’s concerns and state how you’ll make their job easier and property safer.
7. The “I” Perspective
Remove as many of the following words as possible: We, me, us, and/or I. Replace them with: You, your, and/or yours. Doing so will convey more concern for the reader’s needs.
8. Customization
Although it’s easy to just substitute names and repeatedly use the same proposal … DON’T. Take the time to customize each proposal to address the specific needs of the reader. Show them that you understand their problems and explain how you’ll address them.
9. Additional Solutions
In addition to security guard services, ALWAYS include other solutions that you’re capable of providing. Security officers cannot solve every problem, so have a way to address some other challenges as wel .
10. Pictures of Uniforms
Always include high-resolution images of your uniforms and officers.
11. Technology
Incorporating technology into your proposal is a must. Whether that technology is reporting software, tour tracking software, or remote camera viewing, customers want their vendors to provide innovative answers to help solve their problems.
12. Media
In the digital age, you should be leveraging as many tools as possible to showcase your company in the best possible light. If you’re submitting an electronic proposal, don’t forget to link to any video, graphic, or published content that you’ve developed.
13. Documentation
Be sure to include an up-to-date copy of your license, insurance, and resume, as well as all other relevant certifications.
14. References
When asked for references, include as many as possible. Always use references that are similar to the property that you’re bidding on. Also, include a brief description of a problem that you solved at the property.
15. Tell a Story
Remember that people love stories. Try to include at least one story that highlights a problem that you were able to solve for a similar client.
16. Be Brief
A common fault in many proposals is that they use more words than necessary to express an idea. In your proposals, you should ruthlessly edit them to remove unnecessary words, redundant expressions, and any clichés.
17. Include Reports
Include samples of the reports that you’ll be providing to the client, such as any summaries, analytics, metrics, or key performance indicators.
18. Include an Appendix
In keeping with the concept of being brief, try to put supporting documentation in an appendix that the reader can refer to as necessary.
19. Use a Response Checklist
You’re probably submitting the information in response to a Request for Proposal (RFP). If so, make a list of all the requirements outlined in the RFP and check off each one as you go along. Also, reference each item with a page number where it can be found
20. Easy-to-Understand Pricing
Lastly, make sure that you include a breakdown of your pricing to help the reader understand what they’re getting.
Although a well-written security guard proposal doesn’t guarantee that you’ll win a bid, it does give you the chance to make yourself stand out from your competition. Make sure that your proposal is clear, concise, persuasive, and speaks to the reader’s needs.