Building Value Into RMR

Grow your profits while creating happy customers

Over the last several years, the security industry has seen the range of recurring monthly revenue (RMR) grow by a great deal. As the simple security model expands into more home automation and camera setups, and the demand for high quality sales reps increases, the RMRs have predictably grown to help cover those costs. Conversely, many companies are advertising some of the lowest rates we have ever seen to attract new customers.

To set proper RMR ranges, you must know the dynamics of those rates and build value into every dollar you charge the customer.


It’s often easier to charge a higher RMR when selling door-to-door than it is when attracting prospects through advertising online or in other media. A door-to-door sales rep can build value into the system before dropping the price. An online shopper will often see the price first and then make their comparisons before speaking with anyone.

Some companies choose not to advertise prices at all, so they can retain the ability to build value first. If you do advertise a price, it’s important to be clear on what the rate includes and not give someone a false impression of a low rate, then increase it drastically during your presentation.


If your approach is to charge a higher RMR in order to minimize upfront payment and cover additional equipment you are offering, you must be consistent and clear in your approach. For example, if one customer has a maxed out RMR because they are on a full home automation and video plan, it is important that you not allow that same RMR to be used for a customer with a more limited offering of equipment and services.

A customer with a high RMR with less value tied to it is much more likely to cancel at the end of their term or be convinced to do so by a competitor who can beat the rate and provide more equipment and services.


Make sure your sales staff has some simple packages or guidelines on what RMR ranges they can offer and make sure every one of those packages is profitable for you. If you have packages that are not profitable and others that are designed to make up for them, more often than not, you will find that sales reps will gravitate toward the nonprofitable plan and you will end up having to change the packages.


Remember, regardless of products or services, the customer’s experience and the emotions they have related to the purchase are going to have the largest impact on whether they are satisfied and willing to pay the RMR in the long term. MONI Smart Security recently introduced its Customer Bill of Rights as a creative way to engage customers, ensure transparency, and commit to treating each individual customer like they are the most important one. Handling each customer like a VIP and giving them an extremely positive experience will not only build value in the RMR, but will earn referrals for your company.

It’s never too late to rethink your strategy and refine your approach. A small change can make a large impact, so start implementing these ideas today for a better, more profitable 2017.

This article originally appeared in the April 2017 issue of Security Today.

About the Author

Chris Soda is the manager of dealer development at MONI Smart Security.


  • President Biden Issues Executive Order to Bolster U.S Port Cybersecurity

    On Wednesday, President Biden issued an Executive Order to bolster the security of the nation’s ports, alongside a series of additional actions that will strengthen maritime cybersecurity and more Read Now

  • Report: 15 Percent of All Emails Sent in 2023 Were Malicious

    VIPRE Security Group recently released its report titled “Email Security in 2024: An Expert Look at Email-Based Threats”. The 2024 predictions for email security in this report are based on an analysis of over 7 billion emails processed by VIPRE worldwide during 2023. This equates to almost one email for everyone on the planet. Of those, roughly 1 billion (or 15%) were malicious. Read Now

  • ASIS Announces ANSI-Approved Cannabis Security Standard

    ASIS International, a leading authority in security standards and guidelines, proudly announces the release of a pioneering American National Standards Institute (ANSI)-approved standard dedicated to cannabis security. This best-in-class standard, meticulously developed by industry experts, sets a new benchmark by providing comprehensive requirements and guidance for the design, implementation, monitoring, evaluation, and maintenance of a cannabis security program. Read Now

  • ISC West Announces Keynote Lineup

    ISC West, in collaboration with premier sponsor the Security Industry Association (SIA), announced this year’s dynamic trio of speakers that will headline the Keynote Series at ISC West 2024. Read Now

    • Industry Events

Featured Cybersecurity


New Products

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions. 3

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area. 3

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises. 3