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The Problem With Low End Security Bids


In the security industry, price is directly connected to quality. As tempting as it is to save on cost and accept the lowest bid from a security company, there are many reasons to think twice before accepting the lowest bid for security at your company. 

Before looking at the dangers of low-ball offers, the value of proficient security guards must be considered. There are many reasons why a company may want to employ outside security to help protect their assets. The very presence of a security guard alone can deter theft and other unlawful activities. A highly trained individual (or team of individuals) is the first line of defense for companies looking to protect themselves from criminal activity.  

According to Security Magazine, “More than 35% of lost sales are attributed to external theft/shoplifting. That is the most significant percentage of losses for retail stores. Coming in second with 24% in losses is internal theft/employee theft, followed by vendor and supplier losses of 21.47%, according to Organized Retail Crime.”

In addition to preventing shoplifting and vandalism, the presence of proficient security can contribute to a relaxed and at-ease consumer experience leading to sustained customer retention and greater profit margins.  

In addition to the money saved by preventing theft and damages, these are the other reasons why you might want to consider paying more for a security presence:

Regulation Neglect

The security industry is somewhat poorly regulated.  A qualified security company will have the insurance, licensing, qualification, and expertise needed to safely and responsibly carry out the services requested. Security companies that come in with the lowest bid may not be complying with the multiple regulations that rightfully should be expected from a quality security provider. That neglect opens your company up to unnecessary risks.

Early Termination of the Contract

Sometimes a security company realizes too late that they can not deliver the services for which they have been hired at such a low cost. The costs to perform the original contract may not be sustainable if the security company has submitted too low of a bid. They may terminate a contract without notice  as a result of their poor planning.  

Low Quality 

You really do get what you pay for in terms of security. Quality in the field of security goes hand in hand with heavy investments in staffing, development, training, equipment, management  and procedures.  

Desirable candidates for security positions are experienced and highly trained, often current or former law enforcement, probation  or parole officers . Such candidates rightfully are attracted to work that pays them according to their experience and dedication. By accepting the lowest bid from a security company, you are almost guaranteed guards that fit the caricature perpetuated by hollywood: lazy, unmotivated, and unqualified individuals with delusions of grandeur and the “wanna be cop”.  On the other hand, great security officers are vigilant, responsible  individuals dedicated to maintaining safe and secure environments.

In addition to low quality personnel, a security company that offers a low bid may be cutting costs on technology. A serious security company will have the types of gear , communication tools, and other equipment that ensure their guards are equipped to serve your business under sometimes challenging circumstances. 

Security is an invaluable resource to many retailers, venues, and communities.  Cutting costs in security is a risk not worth taking. By considering bids above the lowest offer you can protect yourself from unqualified and unprofessional security that may end up costing you much more than you saved. 

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