Profit Recovery · Fire & Security Systems
Attrition on monitoring and inspection agreements is the silent killer of MRR in fire and security. A business with 400 contracts loses 15 to 25% per year passively, but with an active tracking system and a 90-day outreach protocol, most of those losses are preventable.
Most businesses: not tracked until failure
With offer made at every renewal: 50%+
Decline invisible in mixed P&L
Same revenue, very different business value
A fire and security business that starts tracking MRR separately and implements a 90-day at-risk outreach protocol sees its recurring base grow. One that doesn't sees quiet erosion, even when total revenue looks stable because project work fills the gap.
The business that lets MRR erode is also losing its valuation multiple. Every dollar of MRR lost comes off the exit value of the business.
"A business doing $2M with in documented MRR is worth 2 to 4x more than one doing $2M in pure project work. Most owners don't know their MRR number."
MRR trend over 12 months, tracked + proactive outreach vs. passive management ($K):
Most businesses have never calculated this. Adjust your numbers below.
Annual MRR Lost to Attrition
80 contracts × $50/mo × 12 months
Retention rate and compounding value by agreement length:
Multi-year agreement offers convert 30 to 40% of annual renewals when made consistently at every renewal conversation.
Recurring Revenue
Compliance & Code
Inspections & Documentation
We build an active monitoring contract tracking system that shows every contract by status, renewal date, and at-risk flag. Contracts approaching 90 days before renewal generate an outreach trigger. Lapsed contracts generate a win-back sequence. Most fire and security businesses reduce first-year attrition by 15 to 25%.
We build a multi-year offer script, a pricing model for 2-year and 3-year inspection agreements, and a renewal conversation playbook that leads with the multi-year option. The offer is made at every renewal, not selectively. Most businesses convert 30 to 40% of annual renewals to multi-year agreements within 18 months.
We build a monthly MRR report that separates monitoring and inspection recurring revenue from installation project revenue. The report shows beginning MRR, new contracts added, contracts lapsed, and ending MRR. This number becomes a monthly KPI, and most owners who see their MRR trend for the first time discover it has been declining while total revenue looked stable.
We'll identify your MRR attrition, multi-year conversion opportunity, and valuation gap in 30 minutes.
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