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RMR opportunity
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Ken,
Here is another RMR opportunity for our industry. Our office recently started billing for DDNS. This allows access to a DVR or NVR from a smart phone, ipad, or remote computer without the expense of a static IP address from an internet service provider. The sales representative that recommended this said the industry refers to this as "conditioning" the customer.
Our reason for billing for this free service from the DVR manufacturers is because people don't keep their electronic devices very long and they may not be able to set up the apps on their own.
There is an incredible power of "free" with the internet. Many useful and even essential applications are offered for free. This usually involves using an application with a limitation of features or a subscription to get those features.
There are so many links in the chain to get all this to work? The remote viewing device, a cell phone or wifi signal, a properly set up router & DVR, the manufacturer's DDNS site, etc.
Do we need a contract for this? Will our existing all in one contract cover it? We often have surveillance customers that do not have a security alarm system.
Best Regards,
Ron Best
Communications Electronics, Inc.
765-825-6893 ext. 21
800-676-4544
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Response
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The All in One has remote access provisions. If you are just looking to view video then the Remote Video Monitoring Contract works, as does the Subscriber Enabled Monitoring Service Contract.
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Attrition
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Ken;
Thanks to the Newsletter for coordinating thoughts about "attrition", and its impact on net worth. And related comments about "take-overs", a/k/a stealing accounts.
It can be useful to know what some buyers/investors, from outside the industry, look at when establishing a market value for RMR contracts. As we know, erosion of the RMR multiple can quickly subtract much net worth. One of the fresh questions from a different perspective is.... "....What can erode the RMR multiplier that is used for measuring market value, short term and long term?..." As expected, attrition is at or near the top of the list. The surprises come when they looked deeper... What outside influences can erode the customer and revenue base?
Important on that new list is: "Legacy Liability related to expectations from local police".
This issue is highly controversial and can be aggressively debated. Said differently, every contract rests within one of thousands of fragmented AHJ that determine the public police relationship to private alarm contracts. The many AHJ relationships can range from emergency response, to courtesy site inspections, to no response, with lots of variables between. The liability issue arises when comparing customer expectations to actual services rendered. Is there deceptive business practices that would allow the term of the contract to be reset to zero? This could expose both, a growth bonanza via take-over and the related net worth disasters.
All of this is mentioned here so interested parties can begin their own research and debate that can protect and grow their own RMR multiplier.
Lee Jones
Support Services Group
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communication software
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Hi Ken,
What do you consider "communication software?"
Thanks so much.
Sharon
MONITORING
2. COMMUNICATION SOFTWARE REMAINS PERSONAL PROPERTY OF PREWIRE: PREWIRE shall instruct Subscriber in the proper use of the security system, install, program and service in the premises of the Subscriber, communication software which shall remain the sole personal property of PREWIRE and shall not be considered a fixture or a part of the realty, and Subscriber shall not permit the attachment thereto of any apparatus not furnished by PREWIRE. Communication software is part of the instrument panel programmed to transmit a signal. Passcode to CPU software remains property of PREWIRE. Provided Subscriber performs this agreement for the full term thereof, upon termination PREWIRE shall at its option provide to Subscriber the passcode to the CPU software or change the passcode to the manufacturer's default code.
3. DESCRIPTION OF SERVICE AND EQUIPMENT: Value of software is: $__________________
Sharon Drury
Prewire of El Paso, Inc.
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Response
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The above is from the All in One or the Monitoring Contract. Communication software is the part of the panel programming that directs the communication. This language in the Standard Contracts has been updated. The updated contracts now read "Communication System". The Communication System is defined in the contract to include "communication software and radio, cellular and/or internet connection devices connected to Subscriber’s security system". When your relationship with the subscriber ends you want to be in a position to terminate all communication from the panel. Retaining ownership permits you to remove the components as well as reprogram. This was a change requested by an alarm company that I thought should be retained in the standard form and it's an example of why the contracts get updated from time to time. Make sure your contracts are updated by checking with our Contract Administrator, Eileen Wagda at 516 747 6700 ext 312
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