Is Private Security Service Worth the Investment?

The premise of private security is that you do not want to pay for security services that are not worth the investment. The private security industry should have a better value proposition than the retail security industry.

Unfortunately, the security industry is not regulated, and as a result, you have to choose between security providers that provide a good value proposition and ones that do not.

Some of the reasons you may not want to hire a private security firm are:

1. Security is not in the business of selling to the public; instead, it is in the business of protecting assets. Thus, the more security you hire, the more expensive the security services are to the firm.
2. Security is a labor-intensive business. Most security firms have high labor costs, so it may cost more to hire security services than it would to hire and train the guards.
3. Security may not be in the business of providing the cheapest service. The main advantage to a security firm is that it is a “no frills” option. Most of the time, the security firm does not offer additional services.
4. A security company may not have the capacity to provide you with services that you require. You may need additional security service, such as video surveillance, that a security firm may not be able to provide.
5. A security firm may not be able to provide you with the service you need in a timely manner. Security firms need to pay security guards, train them, and get them to a location in a timely manner.

What does that mean?

A firm has a solid value proposition when the firm provides services to you that are worth more than the cost of the services.

If you think about it, the retail security industry provides its customers with a value proposition that is not worth the investment.

You have to purchase a security system from a retail store. Retail security services do not save you any money. In fact, they are usually more expensive than if you would hire a private security firm.

Another example of a value proposition that does not work is the prepaid calling plan. You buy a prepaid calling card from a retail store, and you can call anywhere for a very low rate.