Customised security, the new trend - Smartphone alerts latest innovation
Published:Sunday | August 29, 2010 | 12:00 AM
Mark Titus, Business Reporter
Hit by the global recession that has resulted in a downturn in segments of their business, operators of private security companies in Jamaica, numbering more than 220, have been staying afloat and generating better sales by changing strategies and tailoring more of their services to the particular demands of their clients, who are seeking to contain costs.
"We have seen a slight increase in security-coverage requests," said Sharon Wignal, the general manager for corporate service for Ranger Security.
But the increase in business is not in absolute terms, as clients try to keep some necessary security coverage while spending less.
"Security is not inexpensive, so you will find persons making requests for partial coverage (such as for) for part of the day," Wignal told Sunday Business.
Wignal is of the view that by being able to respond positively to the more customised security requests of their customers, security companies have been improving service delivery.
"So we now have a higher calibre of security offerings, which is a response to this new level of demand."
The latest product innovation, in response to customer needs, is the personalised panic button.
KingAlarm Services Limited, has poured US$70,000 into the introduction of a panic- alarm system deployed on smartphones.
Pressing the button will send off an email that help is needed, plus send the GPS location of the client. The charge: J$1,000 monthly.
Hawkeye Electronic Security Limited has introduced a similar product, whereby cellphones with WiFi connection will be configured and the left bottom button used as a panic switch. The cost is also J$1,000 monthly, but prepaid annually for the first year's subscription, or J$12,000. The customer has the option of the six-month package for $7,500. The company will respond if required.
Traditional security services such as armed guards and dogs have suffered in the business downturn caused by the recession.
Kenny Benjamin of Guardsman Group says the issue is one of affordability.
"I don't think there is so much of a drop in demand for private security services as there is drop in the ability to pay," he told Sunday Business.
The 25-year-old Ranger Security, which last year bought another security outfit, Exmil 2009 Limited, based in Ocho Rios, reports that its revenues are mostly generated from electronic devices.
But as Stephen Rhoomes, the marketing manager of Hawkeye Electronic Security Limited, pointed out, clients are now prioritising even those purchases.
"Most times, some persons, depending on their activity, will start off with just a panic system, but those who want to ensure that there isn't any break-in, will include our intrusion system, and steadily, we are getting some business where that is concerned," he said.
"Our vehicle-tracking product has been doing very well," he added.
Saving money
Rhoomes said there were two components to the tracking product. On the one hand, there are the on-demand client or individuals who are simply worried about their cars being stolen or hijacked. On the other hand, there is the fleet-management side, mainly for companies involved in logistics or delivery services.
"They will start to see savings to their fleet immediately after installation, because that will give the manager access to the vehicles wherever they are in Jamaica."
The base cost of the system is J$21,000 for equipment per vehicle, plus a monthly J$2,500 monitoring fee.
For Hawkeye, the recession has especially affected business by way of a major falloff in sales of bigger ticket items such as CCTV surveillance and access-control systems.
"So some of those big contracts that we are used to seeing we are not seeing, (which) does affect your bottom line, your balance sheet, and your turnover for the year significantly, but the difference is that these are not recurring revenues, but rather one-off sales," said Rhoomes.
KingAlarm, a direct competitor to Hawkeye's range of services, is also reporting better business through innovation and service-delivery changes based on new demands from clients.
The firm recently acquired a fleet of armoured sport utility vehicles to be used in an exclusive escort service targeting high-profile individuals. Managing director John Azar has said KingAlarm will soon be introducing an investigation arm.
Specially trained security personnel
Responding to calls from key clients for specialised high-end security, the company will also be introducing an elite batch of specially trained security personnel for a smaller, more exclusive market.
Its personal-tracking service via smartphone, in addition to sending a distress signal to KingAlarm's monitoring centre, allows users to simultaneously have a text or email message sent to emergency contact persons of their choice after generating a panic alarm.
"Our growth since inception has been constant, not a sharp increase," said Azar of the 10-year-old firm.
"We have been able to keep our costs at a minimum, even in an economic downturn."
Azar is forecasting even brighter days ahead for the electronic-security side of the business even as the provision of static security contracts.
The cumulative effect of wages and other payments, including insurance, uniforms and laundry, is making security personnel more costly than automated options, with major implications for additional job losses.
"As static security guard costs increase, the thrust is more and more towards electronic security because electronic security is, in my opinion, more effective, (and) as a matter of fact is a lot more cost-effective," Azar said.
Benjamin, says Guardsman is developing a new training institute for security personnel and has introduced a programme "where we are recruiting university graduates, with a minimum first degree, as trainee managers".