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More on RMR / Comment on increasing RMR / webinar today
June 19, 2019
WEBINAR NOTICE: today: June 19 2019.  See below for details.  Register now:  
More on RMR
    I just read an article from you on monthly recurring revenue for alarm companies. For an alarm company, should the monitoring costs be backed out of the monthly recurring revenue? Should the recurring revenue be based on a “net” number?
    Any advice you can give would be appreciated.
    RMR will always be the “net” RMR. But the real question is, how do we define net RMR? Since the importance of RMR is never more focal then when we are valuing the alarm business for sale or financing, how net RMR is defined is a matter of negotiation between seller and buyer, or company and finance company. Let’s stick with seller and buyer. Buyer offers 38 times the RMR. Buyer means 38 times the net RMR. And not just net RMR, but “qualified net RMR”. 
So let’s put aside what’s qualified. We will discuss what is net RMR? 
    Years ago net RMR meant monthly charge to customer less sales tax, central station charges and third party charges, which included guard response and radio.
Most deals today seem to define net RMR as charge to customer less sales tax and third party charges. So today’s deals generally will not deduct central station charges but will deduct third party vendor charges like, guard response and radio charges if independent from the central station.
    Of course it’s a matter of negotiation. Keep in mind that the buyer will know how net is defined and manage the multiple to consider the additional charges.
Comment on increasing RMR from article on May 22, 2019
    I do agree with the increased RMR up to a point. Where the danger lies is when the RMR becomes so high that your customer is scared off to another alarm company at the end of their term. If a customer senses you have been overcharging them for monitoring then they will look for other options at the end of their agreement. You may be willing to lower the rate at that time, but you risk the chance the customer never comes to you with their problem. They simply switch. BEWARE THE OVER-INFLATED RMR!
Hank Groff, Senior Vice President
Sales & Business Development
Dynamark Security Centers
    The Standard Form Agreements provide for 9% increase per year, and that the subscriber agrees to pay that amount. But the actual increase is optional and the alarm company doesn’t have to increase the charges. Another feature of the All in One agreements is that they itemize the services and provide for separate line charges for each service. You can opt to have only one charge for all the services if you prefer, though I think the separate line charges offer the opportunity to end up with more than a single line charge. 
Topic: New Dealer Program - Intruder Spray System - Providing Revenue Generating Security System For Alarm Dealers. Check out at 
When: June 19, 2019   12 PM to 1 PM New York time 
Hosted By: Ken Kirschenbaum, Esq.
Presented by: Joe Maltese, VP Marketing and Sales (; Nigel Hart, Engineer and System Designer (; Henrik Olsen, CEO (
Who should attend: Alarm company owners and general managers
Register here: 

Additional information:

The Intruder Spray System integrates with all security technologies and harnesses the power of forensic science to considerably reduce robbery, burglary and theft. The system provides dealers with welcome new revenue sources, including installation, maintenance, monitoring and upgrades.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301