Debating How to Sell RMR

By Brian Rhodes, Published Jul 11, 2012, 08:00pm EDT (Info+)

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

*** *** **** ** ****** ************ of "******* ******** ** *********" *****:

*** ********* *** *** *******'* **** intriguing ******, **** ********* ** ********:

  • *** ** ****: ***** ********* & installation ** *****-**** ******. *******, ***** profits **** ******* ****. [**:**]
  • **** *** *****: ** ********* ***** to ******* *** *******, **** **** sign * ****** **** *** '*********' monthly ********. [**:**]
  • **** *******: ** *** **** ** equipment **** ** ********, **** ***** single ********* ******* **** **** ********. commentary ******** [**:**]
***** *********

** **** *****, *** ****** ***** in **** ************ ********* *** ****/********** Alarms ********. ******* ****** ******* **** the ********* ** *** ******** ** an ***** **** *** ******** *********** companies. *************, ***** ************ *** ****** control ******* **** **** '*******' *********. Once *** ***** ******* ** ********* there ** ** ********* ** ****** revenues, ****** ***** ********** ********* **** often ****** *** ***** ***** ****** installation. *** **** ** ********** *******'* offers *** ** ****** *** ********** integrators ** ** ***-***** ********. ** the ********* ****, ** ******* *** webinar's **** ******* ** *** **** can ** ********.

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***** ** ********* ********* **** ************ thin *******, * ****** ** ******* *** many ***********. *** ******* ** ***** as * *********** ***** **** ******** between ****, **** *********** ** ***** shared. **** ****, **** ******** *** significantly ****** ******* ** ** ****** region. **** ************** ********** '***** ********' practices ******* ** ****, *********:

  • *****, *****, *** ****** ********:**** ************ ** * '**** ******' activity, *** **** ******* ** ******* new ****, ** ******* ** ********. This ******** ******** ********* *** ****** work ** *** ********** *** *** to ***** **** *** ******* *****.
  • **** *********** ******:***** ******, *** ***** ** ********** most ********* ** ************ *** ****** systems *** ******** ** *********** *** building ******** ****** '**** ******' *************. Consequently, *** ***** *********** ******** ** these ********* ********** ****-******** *** **** the ***** **** ** ***** **** experienced ************.
  • ***** *********:**** ********* ** ****** ****** ***** on ****, *** ******** ***** **** installed. ******* *** ************ ** ****** options, ***** *** ********* ***** ********* as * '****-*******' ****, ********* ** 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 reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports