In my last blog, I shared several non-negotiable features you should look for if you are looking to partner with a new central station or considering a move from your current one. Choosing a central station is a major decision, but once you’ve narrowed down the basics, how do you pick a true partner? While my previous article covered the fundamentals, now I want to focus on an important differentiator: the technology your central station provides to help you grow your business.
In today’s market, the "traditional" burglar alarm is just the entry point. To grow your business’s valuation, you need to leverage the advanced technology of a modern central station to create multiple layers of Recurring Monthly Revenue (RMR).
Here is what is now possible for dealers who partner with a tech-forward monitoring center:
1. Proactive Video Monitoring & AI Analytics
Gone are the days of burglar alarms without visuals. Modern central stations now support Video Alarm Verification and Proactive Video Monitoring.
- The Opportunity: Instead of just reacting to a sensor, AI-powered analytics can detect a person or vehicle before they even touch the building.
- RMR Impact: Dealers can charge premium monthly fees for "virtual guard" services, which offer far higher margins than basic monitoring.
2. Mobile PERS & GPS Asset Tracking
The "security" you provide is no longer tethered to a wall. With mPERS (Mobile Personal Emergency Response Systems) and GPS tracking, you can protect people and assets wherever they go.
- The Opportunity: Offer lone-worker protection for commercial clients or GPS tracking for high-value equipment like trailers or construction machinery.
- RMR Impact: These services often have shorter sales cycles and allow you to tap into the healthcare and logistics markets.
3. Managed Services & Cloud Access Control
The "Cloud" is the dealer's best friend for stable revenue. By offering Cloud-based Access Control and Hosted Video, you eliminate the need for on-site servers that fail and require "truck rolls".
- The Opportunity: Manage your customer's door schedules and user permissions remotely from your office.
- RMR Impact: Move from a "one-and-done" installation model to a Security as a Service (SaaS) model, providing predictable, scalable income.
4. Network & Health Monitoring
One of the most overlooked RMR streams is System Health Monitoring. Many central stations now monitor the "heartbeat" of your customer's network.
- The Opportunity: Charge a small monthly fee to guarantee that your customer's cameras and sensors are always online. If a device drops off, you know before they do.
- RMR Impact: This not only adds revenue but dramatically increases customer retention by ensuring the system actually works when it’s needed.
Why This Matters for Your Valuation
When it comes time to sell your "basics" or secure a line of credit, lenders and buyers look at the quality of your RMR. Diverse revenue streams such as video, access, and life safety, make your company far more resilient and valuable than relying solely on residential burg accounts. For instance, a dealer with $10K RMR across video, access, and life safety may command a higher multiple than one with $15K in residential burg alone. Check to see which central stations truly support these technologies and as always, please feel free to contact Ken Gould Consulting for a no obligation, complementary consultation.
