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Anyone worked in the security biz?

Discussion in 'Business Forum' started by Alex1, Aug 17, 2006.

  1. Alex1


    May 16, 2006
    My brother is a former Force Recon (Marine Corps) and is starting a private security business. He is a good guy, but can barely add past his fingers, so I'm trying to help him. A typical job for him involves providing security for a nightclub. I have several questions:

    1. What is the average profit margin in the business? For example, if he incurs $100 of cost on a job, what should the markup be?
    2. When estimating costs for a job, by what percentage should it be increased to cover unanticipated cost overruns?
    3. Can you give me any other advice or tips for him?
  2. geminicricket

    geminicricket NRA Life member

    Apr 26, 2001
    Lewisville, TX USA
    Good luck to him. Private Security is a tough business to find an unexploited niche in. What's he thinking of doing? Bodyguarding celebrities by day or rattling padlocks by night?

    The prime commandment for business success is to "Know your market".
    His standard fee will start somewhere and adjust as he learns what the market will bear.

    The way my rich sister decides what to charge is very subjective. If she knows that there is no other supplier who can deliver the item in a timely fashion, she charges and gets a big price. If she knows that the customer can get the same thing somewhere else, she gets close to that price and adjusts it upward for the value she puts on her timeliness of delivery. She started her light industrial business with no prior experience or education.

    The way my less rich sister decides what to charge in her landscape design company seems to be $100/hr for thinking, $100/hr for doing, and 100% markup for buying. People pay, and then give her "Thank You" cards. She did a job for one guy 2 years ago and charged him $40,000. He called her back for some touch-up work and she charged him $10,000. She started her business after working for a landscape design company for a year after getting her landscape design education.

    His decision to be an independent businessman will serve him well, and he will learn, by asking, studying, observing, and failing, but it will all serve him well.

  3. Alex1


    May 16, 2006
    Thanks gemini. Sounds like you should go into business with sis! He plans on doing nightclub security.
  4. I hope he has considered insurance costs.
  5. To the individual running a firm: it is a very cut throat environment with a large amount of barebones undercutting going on. For a nightclub focused firm he would have to prove he can deal with drunks without killing the individuals, busting them up too bad, develope a great repore with local law enforcement and governments agencies too.

    For general security the largest firm in Ohio pays way under the State's recommended rate of $15.00/hr, that is $10.00/hr for armed officers.

    I have worked as an officer twice in 30 years and it and in my opinion it sucked both times! Everyone is treated like an idiot and must be 100% brain dead or sell out any individual initiative. The client doesn't want you there abd is always correct even when they are dead wrong. The environment has way too much political posturing for my politically incorrect mind set.

    Perhaps going to school on the G.I. Bill for law enforcement and serving with a department for at least three to five years before striking out on his own would be in order first.

    RANT ON I.M.E. morons run most of the firms and they violate employement laws without question, if your state has any laws left on the books. :shocked: :upeyes: :sad: RANT OFF!