Price Wars Are Killing Private Security Agencies 

- Deepak Pandey

One of the biggest mistakes most private security agency owners make is this:

They compete on rates.

“Sir, I’ll give you guards cheaper.”  

“Sir, I’ll match the lowest quotation.”  

“Sir, I’ll reduce my margin.”

And slowly…  

They kill their own business.

Let me tell you something from ground reality.

In the private security business, price is not the real problem.  

Trust is.

Security agency owners don’t lose clients because they are expensive.  

They lose clients because the buyer feels unsafe, uncertain, or unsure.

Think like a client for a moment.

A client is not buying a guard.  

He is buying peace of mind.

He is worried about:

- Guards not reporting on time  

- Absenteeism on festivals and elections  

- Background verification  

- Discipline and behaviour  

- Police issues  

- Compliance, PF, ESI, licences  

- Night calls when a guard is missing  

Now ask yourself honestly.

Will a client risk all this just to save a few thousand rupees?

No.

The problem is…  

Most agencies don’t communicate value.  

So the only thing left to discuss is price.

When you compete on rates, you attract the wrong clients.  

Clients who:

- Change vendors frequently  

- Delay payments  

- Negotiate every invoice  

- Don’t respect your team  

- Treat guards like daily labour  

Low price clients come with high headache.

High quality clients don’t ask, “How cheap are you?”  

They ask, “Can I trust you?”

Big agencies understand this very well.

That’s why they don’t panic when someone quotes lower.  

They stay calm.

Because they know one thing.

Clients who choose only on price will leave only on price.

And clients who choose on trust will stay for years.

Instead of reducing rates, work on reducing risk for your client.

Be the agency that:

- Solves problems before they arise  

- Has backup guards ready  

- Communicates clearly  

- Handles compliance properly  

- Takes responsibility instead of giving excuses  

Position yourself as a partner, not a vendor.

A vendor is replaceable.  

A partner is not.

When you stand for reliability, accountability, and trust,  

price becomes secondary.

Yes, some clients will still go to the cheapest option.

Let them go.

They were never your ideal clients.

Your job is not to win every deal.  

Your job is to build a stable, profitable, stress-free business.

So stop competing on rates.

Compete on:

- Reliability  

- Trust  

- Consistency  

- Relationships  

- Peace of mind  

Because in the private security business…

The cheapest agency struggles.  

The most trusted agency grows.