In todays age, more and more people do not want Central Station monitoring and just want to monitor it themselves on their smartphones. Why have a cop show up to your house, because the wife forgot to turn off the alarm, and then have to pay for the cop showing up? It can be a hassle.
However, the Upper Middle Class and the Rich are still willing to stick with the Central Station as they do not want to deal with things themselves. The RMR that is dissapearing is from the sub-class between the Middle Class and the Upper Middle Class.
How do you come up with new means of RMR? By finding a competitor of Dropcams, one that will partner with Alarm Dealers, and provide hosting service and alarm video to your smartphone. Why don't people buy DropCam? Because the vast majority of people do not want the hassle to set it up themselves or amazingly do not know about it, because it means nothing to them, yet home security does from a trusted source. Alarm dealers could also get into the hosting business on a local level and use a variety of Residential cameras.
On a similar note - Many police departments will not go to your house unless you are onsite and verify your house is being broken into or has been broke into. Video evidence is not enough. Yet police will go if the Central Station contacts them.
Thanks Jeremiah, but I'm more curious about the system integrators that install and service technology (access control, video, etc.) into the commercial / industrial markets. They've been trying for years to grow their RMR and haven't been able to. There are exceptions, but as a whole their RMR:Total Revenue ratio is a pretty low %.
Chris, with regards to access and video RMR, what are the products or offerings one will provide that generate RMR?
The 'best' video and access products are almost never services. Sure, you can resell Axis AVHS hosted video but it's not really competitive (ditto for Genetec VSaaS). On the access side, there's Brivo and.... not a lot else.
My perception is that it is primarily driven by the overall value / competitive positioning of the products / solutions on the market not being services / RMR generators.
Somenew business is coming from the maintenance. Lots of cutsomers discover that their IP systems need maintenance but can't be done the same way analog was . Preventive and corrective maintenance of IP devices is probably the most complex things to do because you don't even control what has been installed... but.... if you survey well, get trained and can takeover large installations, it does bring nice regular revenues. ( I know because i'm training some large Services Facilities companies moving from Analog DVR to IP/VMS/NVR and discovering the process and the knowledge are completly different .. (just the optical propreties are common sometimes)
Requires more trained people, more accessories, more pre sets, backups, tests, and so and so
Analytic is an other way to bring higher revenues. Instead of proposing low end price competition , you bring a solution with a configuration and knowhow (and real on site testing at night ...during no moon raining days) - based on regular practice and continuous improvements (like LPR don't even think to be good if you install once per quarter) When you sell thermal cameras and analytic,you know why you are here...
Then ... you can become master of the universe. Making detection works with good results where other just false positive with poor embedded crossing fence, never working in outdoor darkness Just need one camera among 50....to win the market and kill the competitors. then I agree, propose counter measure with Alarms / Access control ... a complete solution
By the way: analytic maintenance requires specific process and knowhow...and shorter preventive operations...
We have worked on this for years. From our perspective only, our clients, mostly businesses not residential, absolutely and positively will not allow vendors onto their networks; and they do not want their employees data to be shared under any circumstances (credit a strict interpretation of Sarbanes-Oxley). We have a few who we have arrangements with, but for the most part, it is a no-go. When you see what is happening to businesses of all types, shapes and sizes with regards to hacking, you really cannot blame them. As IT and Information Security Managers become more and more involved in the decision process, they have a much larger voice than ever before, and that will only continue to grow. I don't even remember the last designed job we worked on that IT did not have a seat at the table.
Another factor is still the cost. Smaller business owners weigh the cost of hosting along with privacy issues and just decide it is not worth it. For them, they prefer a pay-as-you-go plan. Mid-sized decision makers see the cost of RMI over 20, 30 or 50 sites and decide it is cheaper to do it in house. They are looking for something simple to operate but powerful enough to manage multiple sites easily.
But by and large, access to networks in any form is our largest stumbling block.
Interestingly enough, for the mid to large customer base we are finding a nice substitute for traditional RMI sources is on-going training and licensing. There is not nearly as much work for us day to day, and if the customers want to continue to operate their own equipment they have to maintain their certifications and pay for seat licenses and software updates annually. Some even pay for direct access to manufacturers help desk. I was skeptical about it until I saw the inner-workings and numbers.
There is more than one way to skin that cat.
One of the hidden reasons is the fact that sales people have an alternative to the solutions in the cloud. If a customer balks at a hosted access control option, they can take the easy route and propose a client server solution. Most of the time, they're paid more on the client server product anyway, so why risk confrontation with a client?
It's not magic, but you have to set the ground rules early in each sales engagement. Be sure to remind the client from the very first discussion, that not one single camera manufacturer offers an onsight repair service or warranty reimbursement program to authorized dealers, so once this system is installed, what's your expectations of maintenance and support?
Be sure to let the client discuss their plans in detail. It's likely they are automatically thinking that your quote is going to include this, but not necessarily as a line item, and it's likely they'll think it's forever. Haha.
We're fortunate, in that we've been 100% managed services in our IT business for almost 25 years, and have invested in RMM and automation tools and can demonstrate strong committment to managing IT/IP technology, so you do need to step up and actually have a proactive monitoring / management / response capability, and not just try and sell prepaid hours. You have to commit the offering a single flat rate to keep their systems running.
All of the technology industries suffer the same issues, I.T., Telephony, CCTV, etc. And an underlying issue is the Sales Comp plan that rewards on the margin of the sale. You may want to include a bonus that pays the first full maintenance payment and declining amount for the next few months...
IPVMU Certified | 06/22/14 08:24pm
Because most commercial/industrial end users are smart enough to realize that most RMR services aren't in their best interests.
I find these discussions somewhat confusing and missing the point. For the commerical markets, most clients are inclined to buy service agreements. I have grown two firms (sold one), and had recurring revenue representing 25% of our annual revenues. Even though the technology has changed over time, the needs are still the same - - fix my problem quickly. I have written a book on this as well.
It is true that it takes time to create a strong recurring revenue stream, but it is easy to do. Those that say that they cannot do this do not understand the basic force driving client decisions, especially with larger systems.
Strong Proprietary Product Base with limited dealerships
Give Products away at low cost , with great strong longterm lease agreements and contracts that permit no one to service or sell products with out you getting a commision for sales,service or installs.
Sell Products and Services on Time , Not Price
Set Up dependable responsive networks of companys for service and return callbacks , support
Make sure that your equipment is disposable and self stick , ease of installation so the customer can do all the labor themselves
Charge for a yearly commitment to service & support , not on call basis
Use a lot of offshore support channels that can lookup manuals and not know anything , but what they read from the manual.
Fully developed and in place by the big companys.
But there is still no place like the boys club where you get the contracts because your in the club or family .
Who is a good example of this today ADT - Control 4 ?