Recurring Revenue

[hometownsecurity 0]

I think this should be in the dealers section but I don't have access to that part of the forum (yet!!). I am wondering what type of plans you offer to you customers and about what you are charging them to generate recurring revenue for your companies. What services are the most profitable and requested?

 

Thanks for all your help.

[griffonsystems 0]

this is a good thread and i hope people respond with a lot of good ideas - i do a 2nd year maintenance/replacement/software upgrade plan for my clients as a recurring rev for my business - its been fairly successful - the cost is a percentage of their initial system cost and based on an analysis of how many times i went to their location for troubleshooting/training/help

 

i'd like to come up with other plans tho for 2007

[hometownsecurity 0]

About what percentage do you usually base it on? I don't want to overcharge, but I want it to be worthwhile also.

 

Does your fee cover so many hours or service calls?

[griffonsystems 0]

i try to go about 10% on hardware cost but that is dependant on client and other factors.... i try not to limit it by number of calls or make it too detailed so that they dont read through this huge paragraph of the plan and then decide that its not for them.. i have a good handle on what clients would abuse that service but most wouldnt

[jisaac 0]

I do serivce maintanence agreements

also a service that alerts us when any video is lossed and we automatically service it withing 24 hours

also event based monitoring generates a substantial monthly recurring revenue for the accounts that use it.

[hometownsecurity 0]

Do you have any copies of the maint. agreements you use that you could PM with? I am new to the business and am trying to see what has worked for other people. I am also trying to develop this for the burglar alarm side of my business also, but it is mostly residential now so I am not sure if it will be as successful as a maint. agreement for commercial accounts.