06

Nov 2014

Building RMR

Recurring monthly revenue (RMR) is a fickle little anomaly of the security industry. Everyone’s trying to get more, perhaps not fully understanding the ramifications of what’s involved.

RMR takes into account many factors, including cash flow and margins from existing customers, creation costs, attrition, loaded labor, market proposition, competition, technology and accounting metrics. But with thorough due diligence, literally and figuratively, the security dealer and systems integrator can leverage RMR to increase company value — for financing, mergers and acquisitions, equity transactions — and simply to boost the overall health and viability of the company.

Some businesses are a natural for generating RMR, like alarm monitoring, a security mainstay; however, that too has dwindled due to market saturation and competition. Previously high margins from hardware and equipment installations have also descended into single digits. Some firms — generally larger integrators — continue to garner larger, project-based revenue streams that add cash flow to the equation; but most installing companies have taken a step back from the boxes and instead go for regular, predictable cash flow.

The Value Proposition

Envysion, located in Louisville, Colo., is an RMR star, gaining customers with a value proposition of enabling companies to consistently follow through with their brand promise using video intelligence and associated managed services. In 2006, Envysion launched with a goal of creating a video platform that would eliminate the barriers of traditional video surveillance and transition the service into a broadly utilized and powerful strategic management tool providing actionable insights to businesses. Today, “Envysion Insights” ties video to critical company data, providing operators instant and actionable intelligence that ultimately allows these businesses to dramatically increase their profitability.

Read the full article on Security InfoWatch

Article Published By Deborah O’Mara on Security Infowatch, November 5, 2014

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