Cost-Benefit Analysis of Surveillance Systems
When considering investing into a surveillance camera system it is necessary to compare the costs and benefits. The initial cost of production and installation is the biggest portion of maintaining surveillance systems. After the implementation of the system, maintenance and repair costs compromise a small percentage of costs associated with surveillance systems. Benefits of investing in a surveillance system tend to be industry-specific but general benefits include theft deterrent, prosecution of criminals for damages, financial recovery and protection against false insurance claims. Due to substantial variations between businesses in installation costs and the difficulty of estimating monetary weight of benefits; benefits and costs will be discussed non-monetarily. Overall though, we can determine that the long-term benefits of a well-designed and functioning surveillance system far outweigh the short-term costs.
Initial installation costs depend largely on business type, physical size, and the types of security solutions needed. For example, an apartment community may need a much larger and more complex system than a warehouse monitoring system. Our surveillance systems are very dynamic and are designed to fit your business needs including affordability. The obstacle to businesses is paying upfront while financial benefits may not be retrieved for weeks or months. This may lead to companies putting off installation which can lead to further costs and damages incurred.
The next cost associated with security systems is maintenance and repair. Maintenance costs may include camera cleaning, software upgrades, and hardware replacement due to normal wear and tear. Camera hardware may include electrical wiring for the camera or wireless transmission components, depending on installation. These costs are very minimal in comparison to initial investment costs, but still pose an expense. Systems tend to be relatively stable and only occasionally will a problem arise.
The overarching benefit of a surveillance system is increased profitability. After paying the original cost, the system will provide benefits for the life-time of your business. As previously stated, benefits are usually industry-specific, but some general benefits are applicable to everybody. The greatest general benefit is increased prosecutions of criminals. If somebody damages your property or steals something from your store or business, having physical evidence guarantees that you will be awarded for your losses. Recovery minimizes the expenditures on damages, consequentially increasing your bottom line.
Not only is prosecution assured, but the presence of cameras can prevent criminals from acting at all. Theft deterrent is a huge benefit that is produced by the installation of security systems. Theft can occur in several business types from retail to warehouse, and even apartment complexes. Prevention of theft and other delinquent activity can save money through reduction of administrative costs. Administrative costs may include court fees for prosecution or paying somebody to retrieve and view footage. Cameras also allow for the reduction in security personnel which can increase revenue for your business.
Security systems increase profitability and revenue differently across businesses. Surveillance cameras located at entrances and exits in apartment communities can help identify suspects if a crime is committed, making tenants feel safer and better off. Identification of suspects is extremely important in creating a secure residential community. A “tough on crime” reputation will deter potential lawbreakers from targeting your property making residents feel more secure and rent can be raised accordingly.
Prevention and prosecution of crime is one of the largest benefits of investing in a surveillance system. Another significant benefit is increasing the safety of a working environment, particularly those in warehouse and distribution. Employees that know they are being watched are more likely to adhere to safety rules and regulations. This can also prevent false or faulty insurance claims brought upon your business. Furthermore, if an accident occurs, appropriate changes can be made to safety standards to prevent future accidents. Safer working conditions and reduction in work-place accidents can have profound impacts on profitability.
The benefits that are generated from increased security and surveillance are abundant. The increase in revenue year after year will in short time pay for the system itself, then benefits will be a pure increase in cash flow. Prevention and reduction in theft, more secure living communities, safer working conditions, and ensured prosecution of criminals can massively benefit your business.
For a detailed analysis on how a surveillance system may benefit your organization, contact Gotcha Surveillance at 678-430-3116 or email@example.com