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How to Win In-House Contracts as a Private Security Company

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How to Win In-House Contracts as a Private Security Company

For a long time, the contract security industry has faced fierce competition. A limited number of large companies dominate the market and hundreds of other security guard businesses battle for what’s left of the contracts.

2020 is no different. The top 5 security guard companies account for $17.1 billion of the $28 billion contract security market. For every other security company, staying on top of trends is critical for success in the industry.

Robert Perry’s white paper on the U.S. Contract Security Industry is one of the best resources to follow these trends. One opportunity in the security industry that the paper talks about is contract security companies winning contracts with businesses that currently use in-house security.

There is an estimated $15 billion in potential revenue from converting in-house security to contract security. But many security guard companies are not moving on this opportunity.

This article will look at 3 advantages of contract security over in-house security. You can work these advantages into your sales strategy to win more contracts with these businesses.

  1. Cheaper Security Costs
  2. More Experience & Training
  3. Security Technology

If you want more information on this topic and other trends in the security industry, make sure to register for the Virtual Physical Security Summit. Robert Perry will be the keynote speaker on Day 1 and will be going over the 2020 white paper as well as how to have long-term success in the contract security industry.

1. Cheaper Security Costs

If you run your own security business, you know that business owners are constantly thinking about their bottom line. One of the biggest advantages for a company to use contract security services, instead of keeping it in-house, is that it is much cheaper.

In-house security requires a business to cover all kinds of extra costs like recruiting, onboarding, training, insurance, and benefits. Hiring 1 employee costs an employer an average of around $4,000, and healthcare benefits can be as much as 9% of employer costs per employee.

Contract security is often sold as one flat, hourly guard rate. Not only are you providing the security guard and paying their salary, you also cover all of the associated costs with maintaining the roster, working them into that flat, hourly rate.

When a company hires security officers in-house, they need to be extra careful when they decide to change their roster size. As a contract security provider, you can easily increase or decrease coverage for a client as needed.

Lastly, contract security companies can more easily offer additional security services. Take mobile patrols for example. An in-house team would have to invest in the vehicle itself, any extra training or licensing, and other costs.

As a contract security provider, you either already have mobile patrol teams in place or can more easily subcontract a company that offers mobile patrols. Plus, since you are spreading the cost across your entire business, it keeps the rates lower for a client, making them even more likely to give you the contract.

More Experience & Training

Highlighting the experience and training your security guards have is one of the best cases you can make to win a contract from a company currently using an in-house team. Of course the first step is making sure that your guards and supervisors are properly trained.

Thinkcurity is a great resource for general knowledge like training security supervisors to be true leaders. On top of that, training that is backed up with certifications is very helpful. Organizations like CALSAGA and ASIS can provide your officers with certified training that will look great to any potential client.

When you have experienced officers, you will stand out in the industry and will be in a good position to win contracts - even without being the lowest bid. If you trust the quality of service provided by the officers you employ, you can wow a potential client even further by showing the steps you take to have high accountability and transparency in your operation.

Experience means more than just the amount of years each one of your security guards has worked in the industry. Your experience as an owner is a huge value add to a company whose focus is not on security services.

Because of this, if you’re looking to win over in-house contracts, start with businesses that are in industries or require services that you have the most experience in. Your resume as a security service provider in the specific areas they need help with will be a very convincing argument even before you get to talking about your rates.

Security Technology

Technology is becoming more and more important to the private security industry every year.

Depending on the size of your security company and what kind of services you offer, there is a wide range of security technology and software solutions you can use to improve operations.

Regardless of size, every guard company should have some level of security incident reporting software. Small operations need at least a simple software solution to collect quality data from the field and keep track of officers during guard tours.

Larger security companies probably will require more sophisticated security software. Command center (GSOC) and visitor management features are key to handling larger contracts with more specific needs.

Artificial intelligence (AI) technology is becoming more popular in security - especially with tools like AI integrations with remote guarding.

Whatever security technology you have incorporated into your business can give you an advantage when trying to win over an in-house security contract. Already having technology that’s worked into your guard rate is likely to be appealing to a potential client.


With all of the competition in the private security industry, keeping your eyes open for new opportunities is critical to growth and long-term success for your security company. If you are interested in going after in-house security contracts, these 3 advantages should absolutely be highlighted during the proposal process.

Still want more hands-on advice? Watch the replay of the Virtual Physical Security Summit and watch Robert Perry’s keynote speech on long-term success in the security industry.

Rob Kirk
Rob Kirk
Rob Kirk is the host of the Thinkcurity webinar series and a content marketing specialist at Silvertrac Software. He has a passion to bring high-quality information on a variety of topics to the security industry that will help security companies of all sizes go to the next level.

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