{"id":57718,"date":"2023-11-02T12:38:44","date_gmt":"2023-11-02T19:38:44","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=57718"},"modified":"2023-11-02T12:38:48","modified_gmt":"2023-11-02T19:38:48","slug":"monthly-recurring-revenue-taking-a-bite-out-of-the-competition","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/feature-articles\/2023\/11\/monthly-recurring-revenue-taking-a-bite-out-of-the-competition\/","title":{"rendered":"Monthly Recurring Revenue: Taking a Bite Out of the Competition"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

Word play of the day: let\u2019s take a look at reoccur and recur. They sound alike and are frequently used interchangeably. As your handy dictionary points out, the general meaning is \u201cto happen or appear again.\u201d The lone difference is in the frequency of each.<\/p>\n\n\n\n

Let\u2019s use an example. The neighbor\u2019s dog bites you on a Monday, nips you again on Wednesday, then take a chunk out of your leg three months later. This is a reoccurring event\u2014repeated without rhyme or reason, and most importantly, unscheduled and unpredictable. Now, let\u2019s say the dog bites your ankle the second Tuesday of every month at 9 a.m. That\u2019s recurring. It happens in a predictive manner, just like car payments, electric bills and alimony payments. Hopefully, you haven\u2019t incurred all three expenses.<\/p>\n\n\n\n

So what in the hell am I driving at? Other than the fact that you and your neighbor need to have a little conversation that may or may not include animal control, it\u2019s a rather obvious analogy. As a dealer, your business thrives best with predictable revenue\u2014more specifically, monthly recurring revenue (MRR)\u2014maintaining frequency like a merry-go-round.<\/p>\n\n\n\n

As we open this month\u2019s look at hardware revenue opportunities that think outside the MFP box, we\u2019ll see that while some offerings are largely one-and-done propositions, others have the propensity to provide at least reoccurring revenue if not a payment that you can set your watch by (Gen Z folks, don\u2019t ask).<\/p>\n\n\n\n

Finding Opportunities<\/strong><\/p>\n\n\n\n

\"\"
Thomas Fimian, DocuGraphics<\/figcaption><\/figure><\/div>\n\n\n\n

There are always gateway sales that can lead to expanded business within an account. Take DocuGraphics in Charleston, South Carolina, which sells Verkada security cameras and access systems. While they don\u2019t offer MRR, software licenses associated with cameras, access control devices and environmental sensors are sold with the system, notes CEO Thomas Fimian. These licenses can be sold\/renewed in one-, three-, five- and 10-year increments.<\/p>\n\n\n\n

Fimian noted how one installation brought about more work. \u201cIncorporating the Verkada platform in your product offering does allow opportunities to learn more about the structure of the client\u2019s network design and identify potential managed IT opportunities,\u201d he said. \u201cFor example, adding over 80 cameras to the internal network required design, implementation and management of multiple new Ethernet switches to the network.\u201d<\/p>\n\n\n\n

\"\"
Lauren Hanna, Blue Technologies<\/figcaption><\/figure><\/div>\n\n\n\n

Another dealer that has found prosperity with security cameras is Blue Technologies of Cleveland, which offers the MOBOTIX system through Konica Minolta. According to Lauren Hanna, vice president of sales, clients are charged a monthly support fee per camera, while also factoring in the complexity of the workflow.<\/p>\n\n\n\n

\u201cWe\u2019re always looking at how we can add an additional recurring revenue stream, especially since the world of clicks is mostly changing,\u201d she said. \u201cSo with the camera, it\u2019s nice that we have that base fee on this model per month.\u201d<\/p>\n\n\n\n

New Ground<\/strong><\/p>\n\n\n\n

\"\"
Christine Liphardt, UTEC<\/figcaption><\/figure><\/div>\n\n\n\n

Mailing equipment has proven to be a solid revenue generator for UTEC of Ann Arbor, Michigan. Folder\/inserters from FP Mailing Solutions. That line came with the 2018 acquisition of Innovative Mailing Solutions, which had a client list with 1% crossover of business, meaning 99% did not engage UTEC for their MFP solutions. Cross-selling into those accounts, suffice to say, was the true MRR opportunity.<\/p>\n\n\n\n

Still, Christine Liphardt, UTEC\u2019s director of digital marketing, notes the folder\/inserters pull their own weight in terms of bankable revenue. \u201cThe annuity revenue stream is consists of software, maintenance contracts, hardware maintenance and supplies for the mailing devices,\u201d she said.<\/p>\n\n\n\n

\"\"
Sam Stone, Stone’s Office Equipment<\/figcaption><\/figure><\/div>\n\n\n\n

Not all hardware can directly spark ancillary inroads. Sam Stone, president of Stone\u2019s Office Equipment, has had much success selling into accounts with Sharp\u2019s AQUOS BOARD displays; however, they don\u2019t have a great MRR. Still, the conversation with clients shouldn\u2019t end there.<\/p>\n\n\n\n

\u201cProviding businesses with content management solutions will help them and make you more valuable,\u201d Stone noted.<\/p>\n","protected":false},"excerpt":{"rendered":"

Word play of the day: let\u2019s take a look at reoccur and recur. They sound alike and are frequently used interchangeably. As your handy dictionary points out, the general meaning is \u201cto happen or appear again.\u201d The lone difference is in the frequency of each. Let\u2019s use an example. The neighbor\u2019s dog bites you on a Monday, nips you again on Wednesday, then take a chunk out of your leg three months later. This is a reoccurring event\u2014repeated without rhyme or reason, and most importantly, unscheduled and unpredictable. Now, let\u2019s say the dog bites your ankle the second Tuesday of every month at 9 a.m. That\u2019s recurring. It happens in a predictive manner, just like car payments, electric bills and alimony payments. Hopefully, you haven\u2019t incurred all three expenses. So what in the hell am I driving at? Other than the fact that you and your neighbor need to have a little conversation that may or may not include animal control, it\u2019s a rather obvious analogy. As a dealer, your business thrives best with predictable revenue\u2014more specifically, monthly recurring revenue (MRR)\u2014maintaining frequency like a merry-go-round. As we open this month\u2019s look at hardware revenue opportunities that think outside the MFP box, we\u2019ll see that while some offerings are largely one-and-done propositions, others have the propensity to provide at least reoccurring revenue if not a payment that you can set your watch by (Gen Z folks, don\u2019t ask). Finding Opportunities There are always gateway sales that can lead to expanded business within an account. Take DocuGraphics in Charleston, South Carolina, which sells Verkada security cameras and access systems. While they don\u2019t offer MRR, software licenses associated with cameras, access control devices and environmental sensors are sold with the system, notes CEO Thomas Fimian. These licenses can be sold\/renewed in one-, three-, five- and 10-year increments. Fimian noted how one installation brought about more work. \u201cIncorporating the Verkada platform in your product offering does allow opportunities to learn more about the structure of the client\u2019s network design and identify potential managed IT opportunities,\u201d he said. \u201cFor example, adding over 80 cameras to the internal network required design, implementation and management of multiple new Ethernet switches to the network.\u201d Another dealer that has found prosperity with security cameras is Blue Technologies of Cleveland, which offers the MOBOTIX system through Konica Minolta. According to Lauren Hanna, vice president of sales, clients are charged a monthly support fee per camera, while also factoring in the complexity of the workflow. \u201cWe\u2019re always looking at how we can add an additional recurring revenue stream, especially since the world of clicks is mostly changing,\u201d she said. \u201cSo with the camera, it\u2019s nice that we have that base fee on this model per month.\u201d New Ground Mailing equipment has proven to be a solid revenue generator for UTEC of Ann Arbor, Michigan. Folder\/inserters from FP Mailing Solutions. That line came with the 2018 acquisition of Innovative Mailing Solutions, which had a client list with 1% crossover of business, meaning 99% did not engage UTEC for their MFP solutions. Cross-selling into those accounts, suffice to say, was the true MRR opportunity. Still, Christine Liphardt, UTEC\u2019s director of digital marketing, notes the folder\/inserters pull their own weight in terms of bankable revenue. \u201cThe annuity revenue stream is consists of software, maintenance contracts, hardware maintenance and supplies for the mailing devices,\u201d she said. Not all hardware can directly spark ancillary inroads. Sam Stone, president of Stone\u2019s Office Equipment, has had much success selling into accounts with Sharp\u2019s AQUOS BOARD displays; however, they don\u2019t have a great MRR. Still, the conversation with clients shouldn\u2019t end there. \u201cProviding businesses with content management solutions will help them and make you more valuable,\u201d Stone noted.<\/p>\n","protected":false},"author":166,"featured_media":57719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1650,82,87,1638],"tags":[798],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/57718"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=57718"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/57718\/revisions"}],"predecessor-version":[{"id":57721,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/57718\/revisions\/57721"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/57719"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=57718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=57718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=57718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}