While many security dealers on the SDM 100 Report describe 2018 as an “average” year, the numbers show 5 percent growth in RMR and some peculiar market forces at work that may be shifting generalist dealers to become specialists.
PSA TEC had plenty of advice to offer security integrators on how to set up their business for managed services success. Here are some of the best tips and tricks gleaned from the various seminars on the topic.
‘Tis the season for many retailers to start seeing a spike in profits — why should your company be any different? Whether you’re in the red or safely in the black, who doesn’t want to think about adding to their bottom line? Here are a few ways you can get a jumpstart on earnings and maybe even begin the new year with some new profit-adding tactics.
Attrition is the measurement of customer dissatisfaction, which, for the most part, is company-caused. However, some attrition of recurring monthly revenue (RMR) in recent years can be related to the effects of the recession on the security channel. Overall, in 2011 — the latest year for which data are available in the annual Attrition Measurement Study — the industry experienced mixed results depending on the size of a company and its location.
In past years, the end of a calendar year signaled “acquisitions season.” As the year ends and companies endeavor to take advantage of much needed tax breaks, the industry typically is flooded with news of mergers and acquisitions (M&A). In recent recession years, this seemed an indication of the security industry’s resilience and ability to thrive while other industries faltered. However, 2011 seemed quieter than others and we set out to find out why, while the industry continues to do well, merger and acquisition activity is down.
Acquisitions are down among dealer companies, but that's not necessarily bad; Tyco closes Visonic deal; Honeywell partners with luxury homebuilder in the U.S; Harkins takes over Schovich; Industry says goodbye to John W. Mabry Jr.; and more.
Even in a tight economy, RMR opportunities continue to grow. Some may surprise you, while others are new twists on existing opportunities. The overall consensus? RMR opportunities can be found everywhere.
It is time to abbreviate the abbreviation. For decades, the security industry has strongly associated recurring monthly revenue (RMR) with monitoring, namely alarm monitoring. The connection is so strong to alarm monitoring that some define RMR as recurring monitoring revenue. Whether the “M” stands for monthly or monitoring one could almost argue for removing the long-standing connotation by taking the letter out — shortening RMR to recurring revenue (RR). Indeed, a broader application of RMR opportunities in both the residential and commercial sectors, combined with increasing technological capabilities and admirable industry creativity is enabling dealers and integrators to gain RMR via multiple forms that stretch far beyond monitoring and alarms.