How Much Should My Security Company Charge

how much should my security company charge

How Much Should My Security Company Charge:

Have you asked the question, ‘ How much should my security company charge ?.’ Please take your time and read through the blog and you will get your answers. We hope to assist individuals or businesses who are wanting to start their own security Guard Hire Business set the right Hire Prices.

This information will use the Australian Securities Industry as an example. If you are reading this from an overseas country, this content should be able to help you understand how to charge clients for security officers hire.

 

Also, read the following:

 

Security Guard Pricing Tool (formula)

To cut a long story short, most business professionals agree that to set a good price for any product or service; you need the following formula ( Wages/Product cost +50% = exact hire amount you should charge)

In other words, what is the Minimum or Award wage of Security Guards in your country or state, add 50% of that, and you will get the amount to charge for Security Guard Prices?

If you use that Formular, it will help you pay the right wage, pay taxes, cover your running expenses/cost and also make a good profit.

 

Don’t Run Yet

Hold on one minute, don’t just run with the above formula yet. Sometimes if you add 50%  on top of employee wages and charge your client, you may lose a lot of business; especially if you are a small start-up security guard business.

My Story: I have committed a considerable amount of time researching security hire price list (no, it wasn’t by phishing other companies’ prices). And I discovered one of the main reasons I lost quite a lot of Security Contracting opportunities, was because I wasn’t setting my pricing right. If I had known what I know now, I would have secured very good security guarding contracts which I lost.

For a startup. I will advise you to charge between 30% -40% on top of employee wages, and you should be able to charge your client the minimum and pay all your staff the correct wage and make a decent amount of profit, 37% +wages should do.

 

How Much Should I Charge for Security Services (more answers)

A breakdown of the 3x Security Hire Templates/Prices. The pay rate mentioned below is the Australian Security Award Wage, Level-1. Note, these prices are subjected to a minimum of 3% increase every 1st July in Australia, and you can set the formula base on your running cost.

 

Words Meaning in this write up:

Margins Profit
Superannuation  Employee Pension
PH Per Hour
Gst Government Tax

 

  1. Casual Formula (28.4%): Employee Wages  +Gst +Supernuation+Running Cost +Margin = Rate (              )
Gst: 10% (ph)
Employee Tax: Deduct employee tax directly from their wage
Superannuation: 9.4% (ph)
Running Cost: 5% (ph)
Margin: 4% (ph)
Employee Current Casual Award Wage-2019
Mon-Fri 6 am-6pm  Mon-Fri 6pm-6am Sat Sun Pub/Holiday
$27.38ph $32.13ph $38.33ph $49.48ph $60.23ph
What this rate is suitable for

 

a.        Casual One-off Adhoc, Events Jobs

b.        Private events, parties or community events

 

 

 

  1. Casual Security Rates

This particular rate is suitable for small businesses/clients who might hire an emergency security guard (ADHOC) for their site, Business or homes also, clients who might require security guards for private events function, etc.

You can use this rate when you are not tied to a contract. It helps you to charge low, but at the same time; pay your casual security guards the right/award wage and make some small profits of about 5% of what you charge per hour.

The advantage of this rate is, you pay your employees as casual, without the obligation of paying other entitlement that is only reserved for full-time employees.

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2. Full Time Rate Formula (39.5%) : Employee Wages +Gst +Supernuation + Leave + Running Cost +Margin = Rate (             )

Gst: 10% 10% (ph)
Employee Tax: Deduct employee tax directly from their wage
Superannuation: 9.4% (ph)
Annual, Long Service and Sick Leave: 10% (ph)
Running Cost: 5% (ph)
Margin: 5% (ph)
Employee Current Casual Award Wage-2019
Mon-Fri 6 am-6pm  Mon-Fri 6pm-6am Sat Sun Pub/Holiday
$21.90ph $26.65ph $32.85ph $43.80ph $54.75ph
What this rate is suitable for

 

a.        Small Ongoing Security Site

b.        Casual One-off Adhoc, Events Jobs

c.         A small site with full-time contracts

 

 

  1. Full Time and Part Time Rates

This particular full/part-time rate is designed for little margins, this allows you to secure security contracts at a low prices/rate but at the same time meet your employer responsibilities and pay your employee the right/ward wage.

It also means you will have to engage the guards who will be working for you or at the site as full/part-time employees. The wages paid to full/part-time employees (including annual-sick leave) are lower than what you pay casual staff.

Warning: When you use this rate, it may not give you room to pay for overtime etc. So, you must watch the roster and make sure no one does over time (above 38hrs a week)

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3. Advance Contracting Rate Full Time Rate Formula (45%) : Employee Wages +Gst +Supernuation + Leave + Running Cost +Margin = Rate (           )

Gst: 10% (ph)
Superannuation: 9.4% (ph)
Employee Wages: Also deduct Employee Wage Tax From the Wages Deduct employee tax directly from their wage
Annual, Long Service and Sick Leave: 12% (ph)
Running Cost: 7.2% (ph)
Margin: 6.4% (ph)
Employee Current Casual Award Wage-2019
Mon-Fri 6 am-6pm  Mon-Fri 6pm-6am Sat Sun Pub/Holiday
$21.90ph $26.65ph $32.85ph $43.80ph $54.75ph
What this rate is suitable for

 

a.        Sizeable Long Term Security Site/Contract

b.        Risky Adhoc, Events Jobs

c.         Large MutinatinalCompanies of Government Tenders with full-time contracts

 

 

  1. Advance Contracting Rates

This particulate rate is suitable when going for big corporate, government, companies contract/tenders. Such entities can afford quality security guards, and pricing won’t be much of a concern. Such sites/contracts may require you to provide quality and well-trained security guards with your company uniforms etc.

Take note most contracting sites will require security guards to perform duties of between Level 2-4 Security guards. So, you will need to re-adjust how much you charge your client based on the Level of Security Guard duties at the site and pay the guards accordingly. If you are unsure what Level of Security Guard duties is at the client site, please click on this NES Link.

This contracting rates may look high, remember this; when you are looking to provide a professional security guard hire services to Big  Businesses, Government, etc. Your mus meet your responsibility as an employer, and if you provide them with low bid/price, it may scare them off.

 

Some of your employer responsibilities are, paying the right security guard wages, allowances (annual, sick, long-service leave, overtime, first aid allowance, firearm allowance, higher duties allowances, etc.) So, this particular security contracting rate will help you cover those costs if you make an adjustment based on the Security Officers Duties/Levels, pay grade and other business/cost factors.

An advance full contracting rates like this, it will afford your security company the ability to sub-contract security work to other companies during a busy time of the year. Inturn the subcontracting company can afford to pay their security guards the right/award wage to.

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Note: Make sure you lock the client two a minimum 12 months contract.

 

Vital Tip: You may choose to adjust the price/% based on what works for your company but, always charge rates that will allow you to pay your employees the correct wage.  You wouldn’t want to be dragged to Fair Works Obubdsman or Court in the future for paying incorrect wages.

It is essential to read more on the National Employment Standards (NES) in regards to security guards entitlement wages etc. It will help you meet your responsibility as an employer towards your employees.

Also, read the following:

Security Award Wage

To learn more about National Security Award Wage in Australia, please google this term ‘Security Award Wage”, and this line may come up first (Security Services Industry Award [MA000016] Pay Guidewww.fairwork.gov.au › ArticleDocuments › security-services-industry).  Click on it, and you will get a copy of the Securit Services Award wage.

We Offer For Sale Security Hire Price Templates

If you don’t have time to create a Security Hire Price Templates for your business/client, please send us an email, and we will create 2-3 Security Services Hire Templates Exclusive to your Business. These templates will be in word format so your clients can fill it up using their mobile phone, tablet or computer.

We can also assist you in creating Price Templates specific to Security Tenders/Contracts you are going for.

Alternative Price

You can choose to create an approved/registered Enterprise Agreement between your employees and your business. A lot of Businesses find such Fair Works Commission Registered Agreement to be less complicated to operate and cheaper for their businesses. Click on the link to learn more about the Registered Agreement.

Also, see:

Conclusion

Your security Business is unique, only use  Security Hire Price Templates that are designed for your Business. Charge clients base on the value and quality of service your security company offer’s. If you believe your company, guards and service are premium, then charge accordingly. Don’t forget to charge right, so as cover your cost’s, employee entitlements, and your margins

 

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