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Central Stations: The Gateway to Additional Value

Traditionally, the security industry looks to central stations as resource for attracting revenue. For the most part, if not for the central station monitoring centers, companies could not build the recurring monthly revenue (RMR) bases that they do.



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Traditionally, we as an industry look to our central stations as resource for attracting revenue. For the most part, if not for the central station monitoring centers, companies could not build the recurring monthly revenue (RMR) bases that they do. Although this RMR and the subsequent growth of a company and hopefully profitable revenue is what prove to be the basis of the model, the central station can prove to be more than this.

Our world has gone beyond basic monitoring, services and revenue. Consumers and business owners want to stay connected 24/7. We have products and platforms that provide this functionality and how it is presented is essential. Over the decades various providers of services have made it a focus to bundle services and products. This was done to primarily keep clients engaged, while reducing attrition and building additional revenue.

The security and safety industry needs to do the same and has opportunity to accomplish this with synergistic and related products and services. Allowing clients to stay connected and tying these services all together with the remote monitoring services they currently provide is of paramount importance. Enjoying the revenue while providing the services the client’s desire will keep the clients engaged and minimizes the chances of attrition. It is, of course, essential that you provide quality services. As long as you provide that, it will be unlikely that you will be shopped or cancelled for some of the reasons you may lose a traditional account. It’s much better than bundling because it is all related and one doesn’t work without the other. Keep clients connected to their security, safety, thermostats, lighting, etc., while it all ties into the RMR they pay you for monitoring and service and you build a very happy client base. This is real value that will translate to valuable dollars every month as your RMR flows in and extremely valuable when the day comes that you choose to monetize your business and divest.


Article Topics
Blogs · Central Station Corner · Central Stations · Peter Giacalone · RMR · All Topics

About the Author
Peter Giacalone
Peter Giacalone is president of Giacalone Associates LLC, an independent security consulting firm providing strategic marketing, operational and sales support planning and structuring to central stations, manufacturers and dealers. He can be contacted at (201) 394-5536.
Contact Peter Giacalone: peter@petergiacalone.com
View More by Peter Giacalone
Central Station Corner, Central Stations, Peter Giacalone, RMR


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