Debating How to Sell RMR

Author: Brian Rhodes, Published on Jul 11, 2012

RMR proponents claim it is a cure-all for cash-strapped integrators. One company, Integrator Support, is focused on helping security installers become profitable 'service' oriented businesses. In this note, we examine a recent webinar positioning the value of why integrators should sell RMR solutions at every opportunity.

Webinar Overview

*** *** **** ** ****** ************ ** "******* ******** ** Solutions" *****:

*** ********* *** *** *******'* **** ********** ******, **** ********* in ********:

  • *** ** ****: ***** ********* & ************ ** *****-**** ******. Instead, ***** ******* **** ******* ****. [**:**]
  • **** *** *****: ** ********* ***** ** ******* *** *******, have **** **** * ****** **** *** '*********' ******* ********. [20:27]
  • **** *******: ** *** **** ** ********* **** ** ********, only ***** ****** ********* ******* **** **** ********. ********** ******** [50:20]
***** *********

** **** *****, *** ****** ***** ** **** ************ ********* the ****/********** ****** ********. ******* ****** ******* **** *** ********* of *** ******** ** ** ***** **** *** ******** *********** companies. *************, ***** ************ *** ****** ******* ******* **** **** 'project' *********. **** *** ***** ******* ** ********* ***** ** no ********* ** ****** ********, ****** ***** ********** ********* **** often ****** *** ***** ***** ****** ************. *** **** ** Integrator *******'* ****** *** ** ****** *** ********** *********** ** an ***-***** ********. ** *** ********* ****, ** ******* *** webinar's **** ******* ** *** **** *** ** ********.

Bid ** ****: We find this the most controversial claim, and also the most shortsighted. While it may result in a higher proposal 'close rate' through undercutting competitive bids, it accelerates the***** ** ********* ********* **** ************ **** *******, * ****** ** ******* *** **** ***********. *** ******* is ***** ** * *********** ***** **** ******** ******* ****, this *********** ** ***** ******. **** ****, **** ******** *** significantly ****** ******* ** ** ****** ******. **** ************** ********** 'alarm ********' ********* ******* ** ****, *********:

  • *****, *****, *** ****** ********:**** ************ ** * '**** ******' ********, *** **** ******* to ******* *** ****, ** ******* ** ********. **** ******** inspires ********* *** ****** **** ** *** ********** *** *** to ***** **** *** ******* *****.
  • **** *********** ******:***** ******, *** ***** ** ********** **** ********* ** ************ and ****** ******* *** ******** ** *********** *** ******** ******** around '**** ******' *************. ************, *** ***** *********** ******** ** these ********* ********** ****-******** *** **** *** ***** **** ** their **** *********** ************.
  • ***** *********:**** ********* ** ****** ****** ***** ** ****, *** ******** stuff **** *********. ******* *** ************ ** ****** *******, ***** the ********* ***** ********* ** * '****-*******' ****, ********* ** spent ** ********** ******** *******.

Sign *** *****: This strategy appears lifted directly from the used car lot. Inferring the customer is accepting liability when they decline monitoring services capitalizes on their fear and uncertainly. Worse, the resulting signed 'waiver' has no legal value. Not only does this strategy dishonestly represent the consequence of declining service, it can potentially backfire when if the customer signs it and expects compensation from the provider when an event occurs.

Bury *******: By divulging only the 'monthly payment' rather than 'acquisition cost', dissecting the 'true' cost of the hardware and services is cloudy. While this strategy may be effective when dealing with hapless residential alarm customers, very few large purchase orders are cut without discrete accounting of what is actually being purchased, and professional purchasers will not approve vague charges. In the case of large systems, equipment purchases may be capitalized and depreciated, and this information must be separated. In effect, this strategy limits prospective customers to the small, token installs, which places it at odds with the 'RMR cures all' concept of sustaining business.

***** *********

Do *** ********: When selling hosted/managed services, the #1 rule is being honest and not overpromising features. We wholehearted agree with this, and based on our own experiences think it is necessary to describe how 'assumed functions' are made different through the hosting platform. For example, hosted video systems perform differently than 'host bound' systems - framerates and bandwidth for starters - and addressing those differences is vital.

Blunt *********: The webinar recommended reading prospect's body language during the pitch. If they get uncomfortable during the RMR portion, directly ask why they are uncomfortable with hosted/managed services. While directly confronting confusing issues is vital during any sales process, abruptly stopping the sales pitch and asking point blank 'whats the problem?' could create more distance on the issue and ultimately backfire. We do not disagree that addressing concern is a vital part of the sales process, it is important to let the customers address their questions on their own terms. Simply 'wearing the pants' on tough selling lends itself to being a high-pressure technique that many customers loathe and will subsequently avoid.

Stay *****: A benefit of the RMR relationship model is that it precipitates 'stickiness' in picking up additional business. In our experience. this advice rings true. The concept is that when an integrator submits regular invoice, the proximity makes it easy to pick up subsequent work. However, this concept is nothing unique to RMR companies, and most integrators have some form of '******** ************ **********' ******** ** ******* ** *****.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Pelco Favorability Results on Dec 02, 2016
This is the first in a series of studies of manufacturer favorability. 100+ integrators rated and explained their views of each manufacturer. We...
Hikvision CEO Declares 'We Do Not Cut Rates" on Dec 02, 2016
Hikvision has led another press trip to China, and this time Hikvision's CEO is sharing insights into their competitive strategy, including...
Distributor Offers Local Job Site Delivery on Nov 30, 2016
Local distribution branches are a big differentiator for many integrators, as they facilitate quickly picking up supplies locally without having to...
Selecting Wood Drill Bits For Installers on Nov 29, 2016
Running cables through studs is common for roughing in residential and some older commercial installs. To do this, you will need to drill holes in...
Top Surprises in the Video Surveillance Industry 2016 on Nov 29, 2016
  The top 3 surprises of 2016 for integrators surveyed by IPVM were: The race to bottom, repeating 2015's Top Surprise Result New -...
3VR Sales And Marketing Execs Out, Company Shifting on Nov 22, 2016
Two executives are out at 3VR, both after relatively short tenures at the company. 3VR's CEO says this is part of a shift to cover new markets....
Cut Install Time 50% Claims Magdaddy on Nov 21, 2016
Modern commercial buildings frequently use open web steel joists that makes running cabling very challenging. Cables need to be run near to but not...
Top Manufacturers Gaining and Losing 2016 on Nov 21, 2016
Hikvision has been the top gaining manufacturer in IPVM's annual integrator survey the past 2 years (see 2015 results and 2014 results). Can they...
Dahua Launches Aggressive Hikvision Style Sale on Nov 16, 2016
If you can't beat 'em, join 'em. This seems to be Dahua's strategy, first mimicking Hikvision in portraying themselves as an American treasure,...
Longse vs Dahua and Hikvision Tested on Nov 16, 2016
For many, even $100 cameras are too expensive. That is where spam king Longse comes in with their relentless offer of ~$20 cameras. In our past...

Most Recent Industry Reports

XiongMai Master Password List Emailed By Chinese Spammer on Dec 05, 2016
XiongMai created an international uproar as their devices drove massive botnet attacks of major Internet sites. After pledging to recall cameras...
Hikvision Cloud Security Vulnerability Uncovered on Dec 05, 2016
A security researcher uncovered a critical vulnerability in Hikvision's global cloud servers. This vulnerability allowed an attacker to remotely...
Door Operators Access Control Tutorial on Dec 05, 2016
Doors equipped with door operators, specialty devices that automate opening and closing, tend to be quite complex. The mechanisms needed to...
Pelco Favorability Results on Dec 02, 2016
This is the first in a series of studies of manufacturer favorability. 100+ integrators rated and explained their views of each manufacturer. We...
Hikvision CEO Declares 'We Do Not Cut Rates" on Dec 02, 2016
Hikvision has led another press trip to China, and this time Hikvision's CEO is sharing insights into their competitive strategy, including...
Network Security Audit App (March Networks) Examined on Dec 01, 2016
Verifying one's video surveillance devices are locked down against common cybersecurity vulnerabilities is increasing important, as hacks using...
FLIR Acquires Drone Manufacturer For $134M on Dec 01, 2016
FLIR has acquired Prox Dynamics, a Norwegian maker of small military-grade drones, for $134M.  FLIR president Andy Teich provided additional...
Down to $50 IP Cameras From Honeywell on Dec 01, 2016
$100 IP cameras are literally old news. And you do not need to buy from spam email vendors anymore to get $50 ones. [premium_content] You can...
Distributor Offers Local Job Site Delivery on Nov 30, 2016
Local distribution branches are a big differentiator for many integrators, as they facilitate quickly picking up supplies locally without having to...
Dump Axis and Hikvision, Arecont Will Pay You on Nov 30, 2016
Do you want to get rid of your Avigilon, Axis, Bosch, Hanwha Samsung, Hikvision, Pelco or Sony cameras? Now, Arecont will pay you to dump them for...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact