What would be a good pricing strategy for a Security Guard Business?
What price will you set for the service/solutions? Explain reasons for this price and your pricing approach.
Explain the major influences on setting your price. How has it been determined? Be specific. Estimate costs and use this as part of your justification for pricing and pricing objectives. Are there any pricing constraints?
Describe your pricing objectives.
Describe your Pricing policies or guarantees and how you’re pricing compares to the competition?
There are many different ways for a business to set its prices. In this answer, I will discuss two possible ways to set prices for a security guard business. These two methods are competitive pricing and cost-based pricing.
One way to set your prices is by determining how much it costs you to produce your service and then adding some profit margin to that number. In this case, you would determine how much you would have to pay your security guards, how much you would have to pay your office staff, and how much you would have in overhead. You would then decide what percentage of profit you need and set your price accordingly.
A second way to set your prices is by looking at what the competition charges for the same service. If you are competing with other companies, it makes sense that your prices will have to be at least somewhat similar to theirs. In this strategy, you survey other firms to find their prices. You then decide if you think you can get away with charging a higher price or if you think it would be better to set a lower price. This would depend a lot on factors like whether you are just getting into the business and whether you have some way that you can claim that your service is better than those of your competitors.
These are the two most commonly used strategies for setting prices.