USING IN-HOUSE GUARDS

PROS

• Greater control of quality and appearance of officers. Customer service and response times are directly monitored.
• Guards can be trained to trouble-shoot basic security system problems.
• Officers may have greater loyalty to a dealer. He/she is more personally connected and responsible to the dealer.
• Can be marketed as a bundled service.
• Enables better communication with customers. Information is delivered directly to the dealer rather than through a third party.

USING SUBCONTRACTED GUARD SERVICES

PROS

• Less work for a dealer because background checks, training, hiring and firing of officers are all out sourced.
• No purchase of extra patrol vehicles (and insurance, gas & licenses) required.
• Usually it is easier to fire a subcontractor than an employee for poor performance.
• For small dealers, subcontracted guard services are better equipped to field an adequate number of patrol cars to cover a large service area.
• Can be marketed as a bundled service (although not as easily as if a dealer uses its own employees.)

USING IN-HOUSE GUARDS

CONS

• Potentially greater liability exposures and increased insurance cost.
• Requires different management and personnel skills. Patrol officer work requires a completely different mentality than that of a security technician. Management may not be prepared for or experienced in dealing with these types of employees.
• Workers compensation and other employee benefits costs increase.
• More vehicles (and the required insurance, upkeep and licenses) must be purchased for patrols.
• Greater number of employees must be supervised.
• Dealer is directly responsible for background checking, training and licensing of guards.

USING SUBCONTRACTED GUARD SERVICES

CONS

• Guard services may not be available in certain areas.
• Less control of quality and appearance of officers. Customer service and response times not easily verified.
• Guards usually are not as well trained in electronic security.
• Potential for unscrupulous subcontractor to provide confidential information to competitors or steal business (this can be prevented with confidentiality agreements and noncompete clauses in the contract).
• Contract between the dealer and subcontractor is needed. Legal expenses will be incurred if counsel is hired to draw up contract.
• Because a third party is involved, there may be a delay in communicating customer issues to the dealer.