When it comes to pricing security services, there can be a tendency to think of Bill Rates as ‘just a number’ that we try to strike an aesthetic balance with on a proposal or pricing sheet. We can have a general sense of what ‘looks good’ to a client and what we think it takes to hire the right person. The reality is that building the right Bill Rate requires a solid understanding of a number of potentially complex components. Our notions of what is appropriate can quickly become archaic or not take into consideration critical factors that apply to specific positions.
We must come to realize that guessing is not a strategy. Whether you’re putting together a proposal, negotiating a new contract, or reviewing an existing agreement, the hourly rate you propose must reflect both your true costs and the value your team brings to the table. Undervaluing your services can jeopardize long-term profitability—and overpricing may push potential clients toward competitors.
At Security Engineers, we take a disciplined, transparent approach to pricing that supports quality service, frontline readiness, and sustainable growth. In this guide, we’ll walk through the key elements that go into a security officer’s hourly rate—and how understanding these factors can help you make more informed decisions.
Why Accurate Pricing Matters
Contract security is a competitive business. We all want to win contracts—but not at the expense of our ability to deliver, retain officers, or protect the brand.
If your pricing is too low:
- You may win short-term deals but lose money over time.
- You might not be able to attract or retain high-caliber officers.
- Supervisors and officers could face burnout from under-resourced schedules.
If your pricing is too high:
- You risk losing bids to leaner, smarter competitors.
At Security Engineers, our goal is balance: competitiveness in the marketplace combined with sustainability and responsiveness on every post. Our pricing model reflects that.
These are unavoidable costs tied to each individual officer on the ground:
Wages
This is the base hourly pay each officer earns. At Security Engineers, we tailor this based on geography, job complexity, and client requirements.
Payroll Taxes
This includes Social Security, Medicare, unemployment insurance (state and federal), and workers’ compensation—typically 11–13% of wages.
Benefits
Medical coverage, PTO, and any applicable 401(k) contributions fall here. At SEI, we view these as essential investments in employee satisfaction and retention.
Uniforms & Equipment
From high-visibility outerwear to body-worn cameras and radios, we ensure every officer is equipped for safety, professionalism, and compliance.
Training
Our officers go through licensing, onboarding, and site-specific training. Non-billable hours like ongoing certifications or drills must also be factored in.
Pro Tip: Don’t forget to account for non-billable time—such as HR meetings, equipment checkouts, or post adjustments.
Indirect Costs You Shouldn’t Overlook
These are operational expenses that enable us to deliver high-quality service—whether or not they’re assigned to a single officer:
Administrative Staff
Behind every officer is a team: HR, payroll, scheduling, compliance, and contract management. These professionals ensure daily operations run smoothly.
Software & Systems
We invest in proprietary reporting tools, GPS-enabled patrol verification, incident logging platforms, and mobile response systems that increase efficiency, accuracy, and transparency.
Insurance
We maintain robust insurance coverage (general liability, auto, workers’ comp, and umbrella) to protect our clients, our officers, and our company.
Recruiting & Turnover
From job postings and background checks to onboarding costs, recruiting is constant in this industry. Our approach emphasizes professionalism and alignment with client culture.
Vehicles & Fuel
For mobile patrol or multi-site contracts, transportation costs can be significant. Our fleet is professionally maintained to ensure reliability and uptime.
Office Overhead
Phones ring. Lights stay on. Office spaces, utilities, and operational supplies are all part of the equation.
Even if these costs don’t show up on a job site, they are fundamental to service delivery—and essential to a pricing strategy that sustains the business long-term.
Let’s take a sample scenario for illustration. These numbers are illustrative and would vary by market and scope, but they provide a helpful framework:
Category | Cost Per Hour |
Base wage | $17.00 |
Payroll taxes (approx. 12%) | $2.04 |
Insurance & workers’ comp | $1.75 |
Uniforms & equipment | $0.50 |
Training & certifications | $0.50 |
Admin & operations support | $2.00 |
Scheduling & supervision | $1.25 |
Software & reporting tools | $0.75 |
Total Cost | $25.79 |
Add profit margin (30%) | $7.74 |
Recommended Bill Rate | $33.53/hour |
Your actual rates may vary depending on contract complexity, location, client risk profile, service level expectations, and required officer skill sets.
Common Pricing Mistakes to Avoid
Underestimating indirect costs
If you’re not pricing for insurance, supervision, or tech systems, you’re paying those costs yourself.
Not reviewing rates annually
Wages, benefits, and tech costs rise year over year. Build in flexibility or revisit pricing annually.
One-size-fits-all pricing
Each site is unique. The risk profile of a gated community differs from that of a regional hospital or manufacturing plant.
Forgetting about shift coverage
24/7 coverage requires backup officers, scheduling contingencies, and supervisor availability.
Final Thoughts
At Security Engineers, we believe that smart pricing is good service. It supports better-trained officers, faster response times, and the infrastructure needed to exceed expectations. It allows us to remain responsive, professional, and competitive without compromising quality.
Pricing isn’t just about closing the sale—it’s about keeping your promises after the contract is signed.
Whether you’re estimating a new opportunity or reviewing an existing contract, our team is here to support you with the knowledge, tools, and transparency to price effectively and profitably.
FAQs About Calculating Rates
How often should I review pricing?
We recommend reviewing annually or anytime there’s a significant shift in wages, service expectations, or cost structures.
Is it better to offer flat or site-specific pricing?
Site-specific pricing ensures you’re matching resources to risk and value. One-size-fits-all often leads to undercharging or misalignment.
Should I share rate breakdowns with clients?
Transparency builds trust—but balance it with discretion. Educated clients appreciate knowing what they’re paying for.
Can software help calculate accurate rates?
Yes. At Security Engineers, we use internal tools and benchmarks to make informed, data-driven pricing decisions that reflect both cost and value.
Have Questions? Let’s Talk.
If you’d like help navigating pricing for a specific site or proposal—or simply want to better understand our approach—reach out. We’re here to help you succeed.