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Napco Security Video Q&A: RMR Brings Value, Elevates Customer Service

Napco Security’s Duane Wareheim outlines recurring monthly revenue (RMR) opportunities for integrators; touts Starlink Connect dual-path communicator.


Napco Security Systems (Nasdaq: NSSC) is one of the most venerable manufacturers in the security business, but the company really wants to talk less about its own heritage and more about what it can do to help integrators succeed.

According to Duane Wareheim, regional vice president, Southern region, Napco Security Systems, many custom integrators, electricians and other trades touch on the security business, but don’t pursue it, thus giving away the recurring monthly revenue (RMR) opportunity.

“The opportunity is really immense,” comments Wareheim. He says installing security systems is much more than just doing high volumes of installation, but it also improves customer service.

“You are touching that customer every month,” he notes. “It also adds value to your business, and alleviates the fluctuations in the business cycle like we had in 2008 when things slowed down significantly. Also, it builds value… significant value. It kind of surprises people.”

Wareheim relates the story of a custom integrator who installs 20 to 25 systems per year with security. In 10 years, that adds up to several hundred accounts, which then can be sold for hundreds of thousands of dollars.

“Security is definitely a niche, but it is not something that is out of the reach of custom integrators,” says Wareheim, who advises CE pros to get educated on security. Napco has been in business since 1969 and Wareheim points out that it is a high-end security system designed to integrate seamlessly with high-end smart home controls.

Meanwhile, Napco is touting its new Starlink Connect that aims to help dealers get more monitoring more easily. The Starlink Connect is a dual-path communicator, providing both cellular and IP signal transmission, that is revolutionary for Napco, according to Wareheim. The unit permits the company’s Starlink Communicator to transmit alarm signals to any central station or any control panel. It also integrates into an entire automation platform which includes virtual keypads, notifications/messaging and Z-Wave control.

Meanwhile, the company also has new third-party control interfaces available for Crestron, Control4, Savant and Elan.

“We have interfaces for all of them. So you can work with our platform for security and integrate it with major automation systems,” he says. In some cases, the integration is quietly simply just a drag and drop in the programming set up.