05.21.2008 — The recurring revenue business isn’t easy. Take it from Wayne Alarm Systems, a 38-year veteran of the security and monitoring industry.

“Recurring revenue is our heart,” says Ralph Sevinor, owner and president of the Lynn, Mass.-based company. The “recurring” part, though, isn’t something that Sevinor thinks he can take for granted. He says it’s important to show value to clients who are paying for a 24/7 service.

Meanwhile, many traditional CE pros that primarily offer audio, video and control systems are intrigued by the concept of selling service contracts. Integrators that offer IT installations, in particular, are apt to offer computer network maintenance contracts.

Some dealers offer system maintenance contracts that include periodic calibrations and other updates. All are motivated by the recurring monthly income that can complement sales or even provide a backbone to the business.

Those integrators won’t get an argument from Sevinor. He agrees that companies should seek recurring revenue opportunities. He just thinks that many are at risk of underestimating the manpower and infrastructure it takes to provide a service that’s worthy of those payments.

One way that Wayne Alarm Systems maintains quality control is by having its own central station in its 22,000-square-foot headquarters. Most security companies don’t have an internal central station. Most outsource. Sevinor, however, is keen on the importance of keeping customer service completely in-house.

To illustrate the importance of maintaining quality control, Sevinor likes to show this comedy sketch video from the Canadian sketch comedy show “Royal Canadian Air Farce.” It’s a joke, but it makes his point.