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Security and alarm firms hit hard by gas prices

Companies forced to increase rates, implement new vehicle policies
BY JOEL GRIFFIN, ASSISTANT EDITOR
SecurityInfoWatch.com
Updated: 02-6-2009 1:41 pm
Photo courtesy stock.xchng/tome213
Private security firm owners and alarm dealers have been forced to pass on gas surcharges to customers and implement new company vehicle policies for employees to try and reduce their fuel costs.
Photo courtesy stock.xchng/jzlomek
Fleet managers for various security dealers are looking into GPS systems to not only help them better manage their routes, but also to cut down on employee misuse of fuel cards.

As the price of fuel continues to increase across the country, security companies, particularly alarm dealers and private security firms, are struggling to compensate for lost revenue at the pump.

The solution for most of these companies has been to adjust their rates or make their customers pay an additional fuel surcharge in an effort to help offset the skyrocketing cost of doing business.

In certain cases, however, taking these types of money-saving measures have either not been effective enough or have forced customers to look elsewhere for their security services.

Greg Valdez, CEO and co-owner of CBI Security, a guard services firm based in Salt Lake City, Utah, said that he’s been forced to raise his rates on alarm companies, who use the company’s guards to respond to reported disturbances in the city.

Though they needed to charge $35 per alarm response to offset their fuel costs, Valdez said he didn’t feel right raising rates that high on his clients and adjusted the price to $25.

"All the client does it pass that off on their client, so we actually took 20 percent less and settled on $25," he said.

Before the recent fast-paced rise in fuel prices, said Valdez, the price of an alarm response would have fluctuated between $15 and $17.

Despite the increase, Valdez said that they have lost very few clients and that many of those who left came back shortly thereafter due to the quality of service they received.

Making vehicles changes to keep business moving

In an effort to keep the alarm patrol division running at CBI, Valdez said the company recently purchased four mopeds and three bicycles for officers to use, which should help reduce their monthly fuel bills. CBI has also purchased two motorcycles for their growing two-wheel division.

Prior to the spike in gas prices, Valdez said his company’s fuel bill averaged around $13,000 a month, but that has recently increased by more than 60 percent to an average of nearly $21,000 per month.

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