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Cash Flow Advantages of a Dealer Program

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Cash Flow Advantages of a Dealer Program

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Are you interested in maximizing cash by selling RMR? If so, you will likely want to consider a traditional Dealer Program. There are a number of different types of dealer programs, each with its own diverse offerings. From manufacturer-sponsored programs that focus on products and channel support, to programs offered by national installation contractors, and third-party monitoring programs that offer support, financial services, acquisition of accounts, branding and marketing efforts, sales and technical training, and other advantages – a dealer program could be a great way to increase your alarm company’s cash flow.

Instead of choosing the highest multiple and quickest turnaround, the successful alarm company owner will do their due diligence in choosing the right partner. A partnership works best when an owner fully understands how each program works and individual requirements.

When it comes to dealer programs, many owners believe they have to lose their brand identity by entering into such a partnership. They don’t realize there are programs (like ACA’s) that allow you to keep your brand while enjoying the benefits of the support offered through the program. Additionally, members of a dealer program are empowered to leverage the relationships and resources of the program in order to build the client base they might not otherwise have been able to acquire.

Another area to explore is business education. Some dealer programs offer business education opportunities, such as webinars, while others do not. There are many added resources dealer programs offer to support their members in the field, and reviewing these resources is necessary in choosing the best program for your business.

Creating a successful dealer program partnership can definitely be a win-win situation, but you need to know the options. The first step is getting a handle on your business needs and expectations, then look for a dealer program that aligns with your goals.

Just as alarm business owners and integrators will need to do their homework, you can expect vendors and service providers — especially those operating purchase programs — will also do their homework when evaluating potential members. Managerial expertise is a critical element they will check. In fact, poor management is one of the most frequently cited reasons alarm businesses fail. Companies that offer dealer programs are going to be looking at the longevity, health, and creditworthiness of your business, so make sure you have taken the steps to prepare your company before you consider any type of sale.

A dealer program may be exactly what your alarm business needs to create cash flow. For a more in-depth look at Dealer Programs, read our whitepaper, Alternative Funding Sources.