We Heard’ya: “No More Contracts!”

Since 24/7 Security came into the private security industry, we’ve been delving into every facet of what makes a security agency successful. It’s not simply crunching numbers and comparing ourselves to the “big guys.” Success, to us, is defined more comprehensively. At 24/7 Security we view success as a business model that is both profitable and beneficial to the client. The best way to accomplish that latter, and equally important, aspect of our business model is surprisingly simple: listen.
The most common agreement you’ll find between a security agency and its clients is the annual contract. Why is that? There are plenty of answers and most (but not all) of it is spin. Let’s speak plainly, shall we? Here’s an example, you call a security agency for a quote. The sales person on the other line offers you two prices: a month-to-month price and an annual price. The former is unquestionably more expensive. The purpose: simple, to get you into annual contract, i.e. more money for the security agency. Is there anything wrong with that? Well if you subscribe to the notion that “it’s always been that way and no one seems to be budging on the matter, so yeah,” then please stop reading now.
We disagree. Here’s a sobering question for the industry: if our service is as stellar as we tout, then shouldn’t that essentially guarantee service renewal year after year?
The competition, filled with pride, shouts, “Of course!”
Let’s press some more.
Shouldn’t stellar service be stellar from day one and every day after, week after week, month after month?
“No comment.” Feedback from the microphone pierces our ears as the competition marches out of the press room with an awkward bustle.
Let’s face it: if the service is so wonderful, so “stellar,” then the contract’s term period should bear little to no relevance; true or not? We say, “True.” Actions speak louder than words. Wanna see if you’re dealing with a straight shooter? Wanna see if the security agency sincerely does offer “stellar” service? Then just ask them for their annual rate in a month-to-month contract. If the answer is no, then so should yours be.
Let’s be fair: there are circumstances where an annual contract is prudent. However, those are few and far between. You’ll usually find that in the world of big business, government contracts, certain multiple location requirements, and sometimes even when multiple decision-makers are involved. Why: there are a lot of factors that make an annual contract mutually beneficial. The client, for example, may want some sort of guarantee of service over a long-term period. There are situations where one month is too short a time span for provisionary reviews, etc. We need to always look at both sides of the coin. Not all annual contracts are lopsided deals in favor of the security agency.
Let’s be realistic too: if you’re a small to medium size company and are looking for security services at your place of business, then maybe an annual contract is not for you. It’s not for most all our clients. They have month-to-month agreements and haven’t left us yet. I think we might be onto something.
“Competition? Start listening.”

We Heard’ya: “No More Contracts!”

Since 24/7 Security came into the private security industry, we’ve been delving into every facet of what makes a security agency successful. It’s not simply crunching numbers and comparing ourselves to the “big guys.” Success, to us, is defined more comprehensively. At 24/7 Security we view success as a business model that is both profitable and beneficial to the client. The best way to accomplish that latter, and equally important, aspect of our business model is surprisingly simple: listen.
The most common agreement you’ll find between a security agency and its clients is the annual contract. Why is that? There are plenty of answers and most (but not all) of it is spin. Let’s speak plainly, shall we? Here’s an example, you call a security agency for a quote. The sales person on the other line offers you two prices: a month-to-month price and an annual price. The former is unquestionably more expensive. The purpose: simple, to get you into annual contract, i.e. more money for the security agency. Is there anything wrong with that? Well if you subscribe to the notion that “it’s always been that way and no one seems to be budging on the matter, so yeah,” then please stop reading now.
We disagree. Here’s a sobering question for the industry: if our service is as stellar as we tout, then shouldn’t that essentially guarantee service renewal year after year?
The competition, filled with pride, shouts, “Of course!”
Let’s press some more.
Shouldn’t stellar service be stellar from day one and every day after, week after week, month after month?
“No comment.” Feedback from the microphone pierces our ears as the competition marches out of the press room with an awkward bustle.
Let’s face it: if the service is so wonderful, so “stellar,” then the contract’s term period should bear little to no relevance; true or not? We say, “True.” Actions speak louder than words. Wanna see if you’re dealing with a straight shooter? Wanna see if the security agency sincerely does offer “stellar” service? Then just ask them for their annual rate in a month-to-month contract. If the answer is no, then so should yours be.
Let’s be fair: there are circumstances where an annual contract is prudent. However, those are few and far between. You’ll usually find that in the world of big business, government contracts, certain multiple location requirements, and sometimes even when multiple decision-makers are involved. Why: there are a lot of factors that make an annual contract mutually beneficial. The client, for example, may want some sort of guarantee of service over a long-term period. There are situations where one month is too short a time span for provisionary reviews, etc. We need to always look at both sides of the coin. Not all annual contracts are lopsided deals in favor of the security agency.
Let’s be realistic too: if you’re a small to medium size company and are looking for security services at your place of business, then maybe an annual contract is not for you. It’s not for most all our clients. They have month-to-month agreements and haven’t left us yet. I think we might be onto something.
“Competition? Start listening.”

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