While most people already know this, there may be some who haven’t yet learned one of the most absolute truths for dealers and integrators in the security industry: recurring monthly revenue (RMR) is the key to success. In the near term, a steady stream of predictable monthly revenue grows profits and makes it easier to plan for expenses like labor and equipment. In the future, if and when a business is sold, its valuation will be based on a multiple of that RMR.
The best way to grow this all-important factor is through services, primarily ongoing maintenance contracts to ensure customers’ systems continue to function properly, and central station monitoring to provide law enforcement response to alarms if needed. However, in addition to alarm response there are any number of add-on services that bring greater value to end users’ systems.