Security Sales & Integration August 2022 - 38

Original Research
2022 SSI Recurring
Revenue Deep Dive
Estimated Average
Recurring Monthly Revenue
Residential
$257,576
Commercial/Industrial
$393,939
Dividing
the average
residential RMR
of $257,576 from
this study by 511
shows companies
pulling in $504 per
customer.
Dealers and integrators focused on
commercial/industrial business, according
to this sampling, are averaging around
35% more in dollar volume per month
than their residential-centric counterparts.
Those figures annually work out to more
than $3 million for residential firms and
close to $5 million for commercial.
RMR-Based Accounts
Gross Margin
31.4%
Number of Accounts
Subscribing to an RMR Service
Residential
511
Commercial/Industrial
619
▶ Have you
considered
adding emergency
elevator
phone
monitoring to
your service
offerings? Maybe you're
monitoring elevator phones
already but losing the communications
path revenue
to large telecom providers.
Think about this - every elevator
across your customers'
portfolios is untapped RMR.
The recent FCC order giving
permission for telecom
giants to phase out analog
lines will have large ripple
effects throughout the
communications industry,
but especially elevator communications.
The elevator
industry is years behind in
adopting new technologies,
so much so that we estimate
roughly 90% of elevator
phones in the U.S. are still
connected to POTS lines.
Why is this? Simply put,
Estimated RMR Per Account/
Customer
Residential
$41
Commercial/Industrial
$116
Here we see that commercial/industrial
accounts are averaging more than twice
those of residential customers (in fact
closer to three times). Both figures are up
from 2021, about 19% for residential and
approximately 26% for commercial.
Likely as continuing aftermath of the pandemic
and providers renegotiating customers' financial
obligations, along with steep competition, RMR
gross margins dipped for the second straight year.
The decline was less than a percentage point, and
north of 30% still affords solid profitability.
Security dealers and integrators in this sampling
average 17% more commercial/industrial than residential
accounts with a recurring revenue component.
Dividing the average residential RMR of
$257,576 from this study by 511 shows companies
pulling in $504 per customer. Doing the same on
the commercial side calculates to $636 per client.
Kings III: How Much Untapped RMR is Already in Your Book of Business?
elevator companies don't
want to hassle with phones
because they are mechanics,
not telephony experts.
This creates a massive
market opportunity for
companies like yours that
have monitoring experience
and the ambition to drive
RMR through innovative
technologies. Traditionally,
elevator phones have
required dedicated lines,
limiting the revenue potential
to just monitoring, while the
telcos monopolize dial tone
revenue. The advancement
of cellular technology, paired
with the phasing out of
analog, makes bringing dial
tone into elevators easier and
more profitable than ever.
Customers need a phone
line replacement strategy
for their elevators. Become
a Kings III Dealer and be that
strategy. - Thomas Worthington,
Director of Dealer
Sales, Kings III Emergency
Communications
38
Security Sales & Integration AUGUST 2022
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http://www.securitysales.com
Security Sales & Integration August 2022

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