In 2023, Retail NZ estimated that retail crime cost Kiwi businesses over $2.5 billion a year. Maybe you’re one of the business owners who have been affected by theft, or maybe you’re taking preventative measures to ensure you don’t end up as one of the statistics for 2024. Regardless, you’re in the right place. Here at Integrated Security Services, we’re helping commercial business owners conduct their own cost-benefit analysis for 24/7 Alarm Monitoring in order to promote savvy security investments.
Understanding 24/7 Alarm Monitoring Systems
24/7 Alarm Monitoring Systems are the ultimate safety net. At their core, these systems comprise sensors, control panels, and communication networks that work together seamlessly.
Sensors detect any unusual activity, triggering an alert to the control panel, which then notifies a monitoring centre. However, the real magic lies in the round-the-clock oversight provided by professional monitoring teams who can promptly respond to emergencies, dispatching help when needed. This continuous protection offers unparalleled peace of mind, knowing that no matter the time of day or night, your safety is always prioritised.
The Costs of 24/7 Alarm Monitoring Systems
Fortunately, the first step with Integrated Security Services is free. We offer a no-obligation site survey to understand your building’s layout and security needs. After our inspection one of our team members will give you a quote.
Initially, purchasing and installing the necessary hardware, such as alarms, sensors, and control panels, will have an upfront fee. This could range from $1,000 to $3,000 depending on the complexity and quality of the system. Of course, this is just an estimate and you may find that your system costs significantly less or more to install.
Once the system is installed, you’ll incur recurring fees for the monitoring service, typically ranging from $30 to $60 per month. These fees cover the constant surveillance provided by professional monitoring centres, ensuring your property is always protected.
Additionally, there might be the occasional extra costs for maintenance, upgrades, or false alarm responses. We recommend contacting a member of our specialised team and asking about any of these potential hidden costs to help create a comprehensive budget.
The Benefits of a 24/7 Alarm Monitoring System
Continuous monitoring is one of the most powerful deterrents when it comes to crime. Studies show that 83% of thieves try to find out if a business has a security system before attempting a burglary. This means the presence of a 24/7 alarm monitoring system actively discourages potential intruders. Additionally, professional monitoring ensures help is on the way as soon as an alarm is triggered. This rapid response not only makes all the difference in preventing criminal activities but as a result, is highly effective in reducing losses.
Having a monitored alarm system can also lead to substantial savings on insurance premiums for businesses. Many insurance companies offer discounts to clients who invest in these systems, recognising the reduced risk of incidents such as theft and vandalism. When considering your cost benefit analysis, we recommend asking your insurance company about potential discounts.
The best benefit extends beyond the monetary benefits. The peace of mind provided by 24/7 alarm monitoring systems is invaluable. Business owners and employees can feel secure knowing that their premises are under constant surveillance. This enhanced sense of security not only boosts employee safety but also improves morale, as workers are more comfortable and focused in a protected environment. Ultimately, the reassurance that comes with knowing your property is always guarded translates into a more productive and stress-free workplace.
Conducting a Cost-Benefit Analysis
We understand that deciding on any investment is a difficult choice. Because of that, we’ve provided an easy step-by-step cost analysis template to help streamline the process:
1. Identify All Relevant Costs:
- Initial Setup Costs: Include your quoted expense for purchasing and installing equipment.
- Ongoing Costs: Account for maintenance, operation, and subscription fees.
- Potential Hidden Costs: Consider unexpected expenses like upgrades or repairs.
2. Quantify Potential Benefits:
- Tangible Benefits: Consider reduced theft and lower insurance premiums. When crafting a budget, take into account the specific value of equipment or goods at your place of business.
- Intangible Benefits: Enhanced employee morale, customer trust, and peace of mind.
3. Compare Costs and Benefits Over a Specific Period:
- Use a timeframe (e.g., 1 year, 5 years) to evaluate total costs and benefits.
Hypothetical Example of a Cost System Analysis
Let’s break things down with a hypothetical Cost System Analysis. Consider a medium business installing a 24/7 alarm monitoring system. The initial costs include $1,500 for alarm system installation and $1,000 for equipment. Ongoing expenses are $50 per month for monitoring and $200 annually for maintenance, totalling $3,300 in the first year.
On the benefits side, the business experiences estimated savings of $4,000 per year from reduced theft, $500 per year from lower insurance premiums, and $1,000 per year from increased sales due to improved security. This totals $5,500 in benefits for the first year.
Comparing these figures, the net benefit for the first year is $2,200. In subsequent years, without additional initial costs, the annual net benefit increases to $4,700.
If you’d like to conduct your own cost benefit analysis, Calculator academy offers a calculator.
Conclusion
Investing in a 24/7 alarm monitoring system is a strategic move that offers substantial benefits far outweighing the costs. Enhanced security, reduced losses from theft and vandalism, lower insurance premiums, and increased peace of mind collectively provide a compelling case for businesses to adopt these systems. By leveraging the advanced solutions from Integrated Security Systems, you’re ensuring your business is always protected and ready to thrive in a safer, more secure setting. Make the smart choice today and invest in a system that offers far-reaching benefits beyond just the bottom line.