Security and Low Voltage profit margin benchmarks
The IRS reports what one-owner businesses filing Schedule C earn, by sector. Security and Low Voltage falls under Specialty trade contractors. For tax year 2023, 2,521,516 returns reported $257.8 billion in receipts, $80.4 billion in cost of sales and $40.5 billion in net income less deficit (the table gives thousands of dollars):
| Benchmark | Value |
|---|---|
| Gross margin | 68.8% |
| Net margin, owner pay included | 15.7% |
| Average receipts per return | $102,220 |
| Average net income per return | $16,054 |
The owner's own draw is not an expense on a Schedule C, so that net margin is mostly the owner's wage, not profit on top of it.
Where the money goes in security and low voltage
Security installs are equipment and labor, with cable runs as the hidden time. Monitoring and service plans are where the recurring margin sits.
Where security and low voltage margin leaks, and how to win it back
- Cable runs harder than quoted
- Equipment sold at cost
- Programming and app setup done free
- Return trips for devices that drop offline
- No service plan after the install
Ways security installers raise margin: price cable runs from a walkthrough; mark up equipment; charge for setup and programming; sell a yearly service plan.
Check your security and low voltage prices against the costs
The typical national prices from our sourced calculators are a check on whether your prices leave room for margin:
| Service | Typical | Range |
|---|---|---|
| Wired network (PoE) camera, installed | $140 | $100 to $180 a camera |
| Dome camera, installed | $200 | $130 to $270 a camera |
| Doorbell camera, installed | $213 | $125 to $300 a camera |
| PTZ camera, installed | $675 | $450 to $900 a camera |
| Network video recorder | $300 | $200 to $400 a unit |
| Cloud storage | $23 | $15.00 to $30 a month |
Work out the margin on each line of your menu, not just the big jobs. The usual security and low voltage menu: wired network (poe) camera, installed; dome camera, installed; doorbell camera, installed; ptz camera, installed; network video recorder; cloud storage; remote viewing setup; alarm panel and sensors; access control door; network cable run; yearly system check.
Overhead comes out of the margin before profit. In security and low voltage it includes general liability insurance, which Insureon's customers who are contractors as a group pay an average of $83 a month for; commercial auto at $270 a month on the same figures.
Work out your own margin
Put one recent security and low voltage job into the calculator above, or switch it to "My margin for the year" to set your year next to the IRS benchmark. A 50% markup is a 33% margin; the markup calculator shows the rest.
Sources
- IRS Statistics of Income: Nonfarm sole proprietorships, Table 2, income statements by industrial sector, tax year 2023, checked October 9, 2026
- IRS: SOI tax stats, nonfarm sole proprietorship statistics, checked October 9, 2026
- Insureon: Insurance cost for contractors as a group, checked October 9, 2026
- Fixr: Video surveillance camera installation cost, checked October 9, 2026
- Fixr: Home security system prices, checked October 9, 2026
- Bob Vila: Security camera installation cost, checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.