THE NEW RMR PLAYBOOK

For dealers in the modern age of security, recurring monthly revenue (RMR) is not just "nice to have" anymore it's a necessity to keep up with the fast-moving security and fire and life safety industry that puts convenience, accessibility, and flexibility front and center. The services model has made waves in the industry over the past few years and has generated new opportunities for security dealers to capitalize on service-based offerings to generate RMR. In the alarms and video monitoring industries especially, dealers are finding new ways to leverage RMR to drive stronger profits, retain customers, modernize operations, and simplify planning and budgeting processes

Suppose dealers want to better keep up with evolving customer demands, maintain consistent revenue, and stay at the forefront of an always-changing industry In that case, they may need to position themselves as solutions providers rather than traditional security product installers, and the numbers support this possibility According to a report from SecurityInfoWatch, 68% of security integrators and consultants said that their RMR had increased significantly compared to 2022 as a result of service-based solutions

The RMR model's core value lies in delivering valuable ongoing services to customers, which is equally important as creating and selling tangible products. Services that enhance RMR are a valuable addition to dealer portfolios especially those that have traditionally focused on generating revenue exclusively from one-time sales.

BY WOODIE ANDRAWOS PRESIDENT, NATIONAL MONITORING CENTER

Dealers aren’t the only ones who benefit from this approach Customers also benefit from consistent updates, maintenance, and personalized support Monthly subscriptions also keep customers around for longer periods of time and enhance satisfaction when compared to traditional product sales This ongoing engagement strengthens the relationship between dealers and customers by positioning them as reliable and valuable service providers

Although one-time hardware sales aren't going anywhere anytime soon, generating RMR from services is the way forward for dealers Video and alarm monitoring solutions are a great starting-off point, as they are uniquely suited to generate high-value RMR due to their ability to deliver a consistent and reliable revenue stream in an increasingly competitive market. As the industry faces challenges from DIY solutions and low-margin hardware sales, software offerings allow dealers to differentiate themselves by offering ongoing, cloud-based support and surveillance.

By augmenting one-time sales for the as-a-service model, dealers can embrace continuous, subscriptionbased services that reduce attrition and enhance profitability through higher margins and longer-lasting contracts Beyond generating predictable revenue and extending customer contracts, monitoring services offer dealer businesses an opportunity to add value to customer businesses by staying at the forefront of emerging technology trends and opening up new avenues for integration and modernization Cloud accessibility, IoT integrations, and other recent advancements in monitoring technology are attractive features to end users looking to modernize their security posture, and dealers can position themselves as the goto provider of comprehensive, compatibility-focused solutions by offering the right services to drive differentiation. As a result of shifting their focus to include in-demand, future-proof solutions, dealers can invest in innovation, training, and infrastructure, strengthening their competitive position and ensuring long-term success in the evolving security sector.

Monitoring will always be a key component of recurring revenue for security dealers, but it shouldn't become their only source of income As long as alarms, video surveillance, and intrusion detection systems are in use, there will be a lasting demand for professional third-party monitoring to ensure people and property's safety while reducing false alarms However, the industry is constantly evolving, and our approach to driving value for dealers and end users should also evolve The latest solutions are transforming how technology is viewed and implemented And the dealers ready to move beyond traditional methods and adopt new strategies for long-standing issues will be ahead of the curve.