As a property or operations manager, you scrutinize every line item in your budget. Security, in particular, is often viewed as a “cost center”—a necessary expense with no clear financial return. You pay for guards and alarm systems, hoping they prevent incidents, but proving their value in dollars and cents is a constant challenge.
However, modern proactive security is different. It’s not just an expense; it’s a strategic investment designed to protect your bottom line.
This guide provides a clear, step-by-step framework to help you calculate the ROI of remote guarding and build a powerful business case for making the switch.
Step 1: Calculate Your Current Annual Security Costs (The “Before”)
First, to understand your potential return, you must accurately calculate your current total security expenditure. This goes beyond the obvious bills.
Direct Costs: The Predictable Expenses
This is the easiest part. Tally up the annual cost of:
- On-site Security Guards: The average salary for a security guard can be substantial. According to the U.S. Bureau of Labor Statistics, providing 24/7 coverage with multiple guards is a significant operational cost.
- Traditional Alarm Monitoring: Include the monthly fees for your passive alarm system.
Indirect Costs: The Hidden Financial Drain
These are the expenses that result from your current system’s failures. As we detailed in our article on the hidden costs of security, these can include:
- False Alarm Fees: How much did you pay in city fines last year?
- Theft & Vandalism: What was the value of stolen equipment or the cost of repairs?
- Operational Downtime: How much productive time did your team lose dealing with incidents?
- Insurance Premium Hikes: Has your premium increased due to security incidents?
Total Current Cost = Direct Costs + Indirect Costs
Step 2: Estimate Your Savings with Remote Guarding (The “After”)
Now, let’s calculate the “return” side of the investment. This comes from two main areas: cost reduction and loss prevention.
Cost Reduction: Immediate Savings
This is where the ROI of remote guarding begins to take shape.
- Reduced Guarding Expenses: Proactive remote guarding is often significantly less expensive than paying for 24/7 on-site guards while providing more comprehensive coverage.
- Elimination of False Alarm Fees: Because our system uses AI security verification, it eliminates over 95% of false alarms and their associated fees.
Loss Prevention: The Biggest Financial Win
This is the most powerful component of your ROI. Preventing just one significant incident can often pay for the entire system for a year or more. For example, if your typical theft or vandalism incident costs your business thousands in damages and downtime, preventing that single event represents a massive return.
Total Annual Savings = (Guard Cost Reduction) + (False Alarm Savings) + (Prevented Loss Value)
The ROI Formula: Putting It All Together
Now you have all the components to evaluate the investment. The formula for calculating your security ROI is simple:
ROI (%) = ( (Total Annual Savings – Annual Cost of New Solution) / Annual Cost of New Solution ) * 100
While the exact cost of a proactive solution like OHZ is tailored to your property’s specific needs, the logic of the return remains constant.
Consider a common scenario: a mid-sized commercial property currently relying on overnight security guards. By switching to a remote guarding solution, they might reduce their direct security spending by over 50%. Even before factoring in the prevention of a single theft or vandalism incident, the investment often pays for itself through direct cost savings alone.
When you then add the value of preventing just one significant incident—which could be valued at tens of thousands of dollars in assets and downtime—the ROI becomes immediately and overwhelmingly positive.
The goal isn’t just to spend less; it’s to invest smarter.
Beyond the Numbers: The Intangible ROI
Finally, the ROI of remote guarding isn’t just financial. It also includes:
- Improved Staff Safety: Fewer confrontations and risks for your team.
- Operational Peace of Mind: Knowing your property is actively protected 24/7.
- Enhanced Brand Reputation: A secure, well-maintained property builds trust with clients.
Ready to build the business case for smarter security?
