What should I charge for home surveillance?

1. Stuart Warner

   There are two main ways to set your charges, cost plus and market rate, and it’s useful to take both into account:

   1 — Cost Plus
   You estimate all your costs for a job and then add a profit margin.

   Costs come into two main categories:
   a – Variable costs that only arise because you carry out a particular assignment. So this might include security equipment you supply at this location, your travel costs, payment for any other supplies or labour on that assignment. Clearly you must set a price that is more than these variable costs

   b – Fixed overheads that will be there whether or not you carry out a particular assignment. Examples are business insurance, bookkeeping costs and the cost of your vehicle and tools. You need to charge enough in a year to cover these overhead costs too.

   The third element is your profit. So your sales price, less your variable costs, less your fixed overheads is your profit.

   2 — Market Rate
   Do you know whether customers in this line of business expect an hourly charge or a daily charge or simply a fixed quote for a job? Also, how do other surveillance companies set their rates and how much do they charge?

   The ideal position is where the market rate is much higher than the rate you would set if you simply looked at your ‘cost plus’ calculation. You might then set your prices just below market rates which would give you a decent profit.

   You may also find some useful information at the web site below. I’ve given a link to an article on the importance of positive cash flow.

   Good fortune

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