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Study: Monitoring Fees Drive 75% of Resi Alarm Revenue
Recession is increasing account attrition by 4% to 8%, and increasing monthly fees don't lead to cancellations.
According to Parks Associates, 75 percent of the revenue in the residential security industry comes from monitoring fees, not installation fees.
That's a little more evidence for those integrators who still don't see the value of recurring monthly revenue.
"Parks Home Systems: Home Security Update" says account attrition has only been nominally affected by the recession with a 4 percent to 8 percent increase in residential account cancellations.
CE Pro has been documenting the value of RMR to integrators in terms of cash flow and company valuation and the recession-proof nature of security.
The study also says:
Total U.S. Home Security Market Revenues
That's a little more evidence for those integrators who still don't see the value of recurring monthly revenue.
"Parks Home Systems: Home Security Update" says account attrition has only been nominally affected by the recession with a 4 percent to 8 percent increase in residential account cancellations.
CE Pro has been documenting the value of RMR to integrators in terms of cash flow and company valuation and the recession-proof nature of security.
The study also says:
- New residential security accounts will slow down dramatically due to the slowdown in housing starts
- A slight rise in monthly monitoring fees does not seem to affect subscribers
Total U.S. Home Security Market Revenues
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About the Author
Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
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