With the security system industry rapidly transitioning to incorporate advanced technology and home automation elements, productive new ways to generate recurring monthly revenue have arisen for alarm companies. By offering service upgrades and add-ons related to the Internet of Things, security system providers can increase their profits and business value, all while providing in-demand services to their customers.
What is the Internet of Things?
Essentially, the Internet of Things (IoT) represents the idea that many devices, systems and services we use in our every day lives are now connected to the Internet. Everything from thermostats to exercise routines can be adjusted or tracked through the use of smart technology. Most of the products that surround us – from phones to cars to washers and dryers – incorporate some type of smart technological element to make our lives easier and more convenient.
How Is the Internet of Things Impacting the Security Alarm Industry?
Technology is advancing rapidly and consumers are no longer simply accepting the high level of connectivity associated with the Internet of Things – they are expecting it.
As a result, consumers are shifting more and more away from traditional alarm systems and towards home automation, defined by the Consumer Electronics Association (CEA) as “technology that allows users to remotely monitor and control one or more systems in their home including security, lighting, heating and air conditioning, audio/video, intercom, energy and irrigation (sprinkler system).” Safety and security features are key elements that consumers choose to incorporate into their home automation systems, and alarm companies are developing and integrating the necessary technology to enable consumers to do so.
Increasing RMR with the IoT
While accommodating the Internet of Things poses a challenge for alarm and security system companies, it also presents an opportunity for increasing revenue. Businesses that sell traditional alarm systems have the opportunity to incorporate additional services related to IoT that can help them to drive up their recurring monthly revenue.
As more and more elements of the average consumer’s home becomes automated, security system providers can help homeowners manage it all. Additionally, as these technologies become increasingly popular, many consumers will expect remote control and monitoring capabilities to be included with any security system they purchase.
Outside the realm of residential security, there are other opportunities for generating RMR with the Internet of Things. Expanding into commercial security can be a great way to increase your company’s incoming recurring monthly revenue. If you’re a security business that has not yet explored the commercial realm, now may be the time to start exploring the chance for growth and new sources of RMR in that area. You can learn more about pursuing commercial security RMR here.
By providing these additional monthly services to clients, alarm companies can increase recurring monthly revenue (RMR), augmenting profits and bolstering the overall value of the business.
Security Systems Moving in a New Direction
If you own a security alarm business, take a moment to consider your current position in the industry. Do you have the resources, knowledge and desire to take your business in this new, technologically advanced direction? Can you incorporate service upgrades related to the Internet of Things into your current offerings to drive RMR, add value to your company and keep up with your competitors?
If incorporating service upgrades and home automation technologies seems overwhelming or unappealing, now might be a good time to consider selling your business – before your current services and methodologies become outdated. Give Rory Russell at AFS a call at (800) 354-3863 to learn more about your options. An experienced alarm company broker, he can share insight about the industry and help guide your sell or upgrade decision. Whether you decide to sell your company outright, sell just some of your accounts, or diversify your offerings to incorporate more home automation and cloud based services, AFS can help.
To see Rory in action, watch this informative interview from SSN TV News.
For additional information about whether or not to sell your security alarm business – and, if you choose to sell, how to do so at the right price and the right time – contact Rory Russell of AFS at (800) 354-3863 for a free, confidential business evaluation.
Looking for more insight and advice about upgrading or selling your alarm business? Download our informative ebook. It’s FREE and filled with real-world advice you can use today. Then, continue reading below for 5 actionable tips for your improving your sales team’s closure ratio.
© Rory Russell and Acquisition and Funding Services, 2014. Unauthorized use and/or duplication of this material without express and written permission from the author and owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Rory Russell at AFSSmartFunding.com with appropriate and specific direction to the original content.