The ALERT Difference

 

Return on Investment

It can be difficult to quantify Return On Investment for security services, as we must consider not only price, but also a number of other, not necessarily tangible factors, including:

  • Responsiveness of local management;
  • Quality of security officers
  • Employee turnover
  • Employee retention
  • Employee training
  • Technology provided (and whether it enhances the security program)
  • How incidents are handled and how quickly follow up is received

To address the financial aspect of ROI, the ALERT competitive advantage is being a privately held, Florida corporation. With so many security firms now publicly owned or owned by private equity firms, they are under tremendous pressure to show substantial, short term profit growth from one quarter to the next. This pressure often results in national, international and regional companies cutting expenses to increase profitability, which often leads to less local supervision of security officers, less client contact, fewer training resources, reduced wages for the officers, fewer uniforms issued, increased turnover, frequent officer overtime and employee morale problems, just to name the most prevalent concerns..

General and Administrative (G&A) expenses can add up as well. Many large security companies have a multi-million dollar infrastructure to support. Despite all the talk of being organized around the customer, most companies are organized functionally: sales, service, product management and marketing. This makes them inefficient in developing and implementing a customer-driven local market strategy.

Unlike many of the regional and national providers ALERT does not have sales representatives and therefore passes these savings on to our customers. Our growth is organic, is initiated by company ownership and comes very often from referrals. For example, many providers pay their sales representatives a commission of 1% - 2% of revenue and are included in your "hourly bill rate". Other regional providers pay local branch managers a commission on new sales as they wear two hats: selling new business and managing existing business. This is dangerous as the focus is usually the next commission check – the newest customer.

At ALERT, we understand that quality security services are not and should not be based on lowest price, but rather on delivering world class service and value to our customers. Value can only be delivered if our cost of service exceeds expectations of the customer.

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