Category Archives: John Brady

Simple Revenue-Building Services that You Can Offer

Testing and Inspection Contracts, Video Alarm Verification, Maintenance Contracts are all powerful sources of recurring monthly revenue (RMR) that I’ve delved into here on Fire-Lite Alarms’ Social-Lite blog. But wait, there’s more – how about simply branching out?

Branch Out

To build even greater RMR opportunities, consider helping your customers with all of their fire and life safety needs, including extinguishers, emergency lighting, fire sprinklers and more. Hospitals, child care facilities and nursing homes are especially open to this new trend, as they face changing legislation and regulations around testing, maintenance and inspections. These are areas where you can (relatively) easily and quickly expand your service offering, provide much-needed expertise to critical facilities and strengthen your RMR. You may even be able to partner with a company that offers extinguisher and sprinkler technology that doesn’t want to get into fire alarms and testing.

The bottom line is this: The fire alarm market is a great place to be right now. It’s strong and growing, and evolving legislation means you’ll have plenty of work for years to come. Take this opportunity to grow your RMR, and your business will flourish right before your eyes.

For more information on building alternative sources of RMR, view our recent Webinar The Other Side of Fire RMR. Then, let us know in the comments if there are other topics concerning fire contracts that you would like covered in future Fire-Lite Webinars.

 

About the Author:
John Brady, President of TRG Associates, is a 20+ year veteran of the fire and security alarm industry. Regarded as an expert in his field, John has participated as an expert witness in cases representing fire/security alarm providers, as well as building owners, on issues related to holdback disputes, pricing, valuation, communication failure liabilities and security operating standards.​

“Maintaining” Strong Fire Biz RMR

So I’ve covered better ways for fire alarm dealers to gain Recurring Monthly Revenue (RMR) through Test and Inspection Contracts and how to use Video to Grow Your Fire Biz. Now let’s get into maintenance contracts that offer better service to your customers and a stronger, more consistent revenue flow into your business.

Create Maintenance Contracts

Offer a mix of pricing that helps you build value and helps your customer. For example, you could charge a set amount per hour for the first 20 hours of maintenance labor. Any materials or additional labor required would incur an additional charge, at a rate that you and your customer have agreed upon. If a customer doesn’t need 20 hours of labor in a given month, the unused hours can carry ahead to a month when they are needed.

For more information on building alternative sources of RMR, view our recent Webinar The Other Side of Fire RMR. Then, let us know in the comments if there are other topics concerning fire contracts that you would like covered in future Fire-Lite Webinars.

 

About the Author:
John Brady, President of TRG Associates, is a 20+ year veteran of the fire and security alarm industry. Regarded as an expert in his field, John has participated as an expert witness in cases representing fire/security alarm providers, as well as building owners, on issues related to holdback disputes, pricing, valuation, communication failure liabilities and security operating standards.​

Yes, Video Can Grow Your Fire Biz RMR!

Beyond fire alarm dealers’ typical monitoring and service contracts, there are so many more creative sources for building your fire business’s recurring monthly revenue (RMR), as I mentioned in my previous blog: This Ain’t Your Mama’s Fire Alarm Biz – New Sources of Recurring Revenue. And here’s another:

Offer Video

Consider offering more than typical digital monitoring and look at the products that offer greater situation awareness, such as surveillance video. Right now, video is a strong value proposition because many jurisdictions are requiring video verification before they will roll a truck. The good news is this: You’re able to charge more for the higher level of detection and improved response offered by video. While your current RMR range for traditional digital monitoring might range from $35 to $65, adding video detection can allow you to increase that rate to between $75 and $125.

For more information on building alternative sources of RMR, view John Brady’s recent Webinar The Other Side of Fire RMR. Then, let us know in the comments if there are other topics concerning fire contracts that you would like covered in future Fire-Lite Webinars.

 

About the Author:
John Brady, President of TRG Associates, is a 20+ year veteran of the fire and security alarm industry. Regarded as an expert in his field, John has participated as an expert witness in cases representing fire/security alarm providers, as well as building owners, on issues related to holdback disputes, pricing, valuation, communication failure liabilities and security operating standards.​

This Ain’t Your Mama’s Fire Alarm Biz – New Sources of Recurring Revenue

The fire alarm industry is changing, and the opportunity for dealers to position themselves for strong recurring monthly revenue (RMR) is greater than ever. However, setting the stage for real RMR means thinking outside of the box and, at times, getting a little creative. Those fire alarm dealers who are willing to go beyond the typical, one-off fire testing, inspection and maintenance by creating true recurring revenue stand to create strong, ongoing business relationships and quickly grow their bottom line while increasing the value of their business.

Take this opportunity to look at all aspects of your business and see how you can create value out of each. For now, let’s focus on creating fire alarm RMR beyond your typical monitoring revenue. Your customers, especially those on the commercial side of the business, need you to be an expert on regulations and a leader in your field who will deal with the authority having jurisdiction (AHJ) so they don’t have to. Today, you have the opportunity to take that expertise and leadership and turn it into recurring revenue.

Here’s one way fire alarm dealers can leverage their existing skills to generate some exciting RMR opportunities:

Offer Test and Inspection Contracts

For your existing customers, you probably already do monitoring, provide a UL certificate and, because it’s required, do regular testing, inspection and maintenance. But a growing number of dealers are building RMR by working these services into an ongoing contract with each customer. You can do the same by agreeing to test and inspect each aspect of the system – including the control panel, smoke detectors, batteries, waterflow devices, horns, etc. – annually, bi-annually or even quarterly, according to the AHJ requirements. Your rate can be based on the frequency of testing and inspection, the number of devices, your labor costs and an estimated number of minutes your technician would spend on each device.

These ongoing system health checks are a win-win for you and your customers. You’ll benefit from strong and predictable recurring revenue, and your customers will enjoy peace of mind in knowing that their investment is still working as expected and is meeting AHJ requirements. Establish an easily understandable contract for each client – with each charge and added fee clearly explained – so they know what to expect with each visit. If possible, use the same technician for each visit to save time (and expenses) in the future.

For more information on building alternative sources of RMR, view our recent Webinar The Other Side of Fire RMR. Then, let us know in the comments if there are other topics concerning fire contracts that you would like covered in future Fire-Lite Webinars.

 

 

About the Author:
John Brady, President of TRG Associates, is a 20+ year veteran of the fire and security alarm industry. Regarded as an expert in his field, John has participated as an expert witness in cases representing fire/security alarm providers, as well as building owners, on issues related to holdback disputes, pricing, valuation, communication failure liabilities and security operating standards.​

Rev-Up Your Fire RMR

On March 25 I’ll be exploring how dealers can go beyond the traditional fire monitoring RMR (recurring monthly revenue) relationship with your customers in a Webinar titled “The Other Side of Fire RMR” that you’re all welcome to join. As a fire expert in your community, your customers rely on you to design, install and maintain their fire systems to national and local code standards. They also look to you to maintain and complete the required testing that is associated with a fire system.

We will explore how to price and include your other fire services in the same RMR contract that you establish for every fire system you install or take over. Beyond building real RMR value in your business, did you know by extending your contracted services to include the full compliment of services that you provide, it will help to cement your relationship with your customer and offer a competitive advantage for your company? And how do you price your service and maintenance, test and inspections and fire emergency planning with each of your customers?

We’re going to provide real, tangible answers to these questions and more in our “The Other Side of Fire RMR” Webcast​. Do you have other questions concerning contracts, pricing and services? Post them as a comment here and we’ll be sure to cover them!

 

About the Author:
John Brady, President of TRG Associates, is a 20+ year veteran of the fire and security alarm industry. Regarded as an expert in his field, John has participated as an expert witness in cases representing fire/security alarm providers, as well as building owners, on issues related to holdback disputes, pricing, valuation, communication failure liabilities and security operating standards.​