Midland Alarm Services builds recurring revenue stream with HKC Security

With thousands of installations to date, Midland Alarm Services has built a strong reputation for reliability, customer service and technical expertise. In recent years, the company has taken its business model to the next level, using HKC Security’s SecureComm cloud platform and the introduction of a recurring revenue stream through customer subscriptions. 

Moving beyond bell-only systems

For decades, Midland Alarm Services focused on fitting traditional bell-only systems, often unmonitored and lacking smart features. While these types of systems were the norm, the installations offered no recurring income and minimal long-term customer engagement.

Steve Wyer, the founder of Midland Alarm Services, said: “We would install a bell-only system and might not hear from that customer again for 20 years. There was no ongoing relationship and, what’s more, no additional value being built into the business.”

As modern security technology evolved, Wyer witnessed an opportunity to pivot, moving away from single-payment jobs and towards a more sustainable and service-based model. 

SecureComm and SmartLink

In 2014, Midland Alarm Services discovered HKC’s SecureComm platform, which was a game-changing moment for the business. The system’s SmartLink app allowed customers to monitor and control their alarms remotely, while enabling Midland Alarm Services to offer remote diagnostics and support.

Midland Alarm Services launched a tiered subscription model, using GoCardless to streamline monthly direct debits. The business offered a range of subscription options for Wi-Fi only monitoring, monitoring with GSM back-up and also a ‘Full Service’ plan that includes monitoring, extended warranty and battery replacement after three years.

These services were bundled with value-added support, including remote diagnostics, app access and customer education, thereby making it an attractive proposition.

“Most people don’t want to worry about changing batteries or figuring out alarm settings,” observed Wyer. “With our ‘Full Service’ plan, they know we’ll take care of everything and that includes remote support via SmartLink.”

Scalable and sustainable 

The impact of adopting a recurring revenue model has been transformational for Midland Alarm Services. Customers tend to remain subscribed, not only because app-based control becomes part of their everyday routine, but also due to the added value built into the service, such as the promise of battery replacements after three years. This long-term commitment helps to keep customers engaged well beyond the initial installation.

Financially, the move to monthly payments has brought a new level of stability to the business. Instead of relying on one-off projects, Midland Alarm Services now benefits from a steady and predictable income stream. This has smoothed out the peaks and troughs that often characterise traditional installation work.

Operationally, the introduction of cloud-connected systems has made the business far more efficient. With remote access through SmartLink, engineers can resolve many issues without needing to visit site, in turn saving both time and resources.

Perhaps most significantly, the shift to a service-based model has increased the overall value of the business itself. With hundreds of customers now on subscription plans, Midland Alarm Services has created an asset that can function independently of its founder. Wyer explained: “If I ever wanted to sell the company, a buyer can see the systems work without me and that the revenue will keep coming in.”

Educating the customer

A key to success has been demystifying the technology. Wyer and his team train customers in simple and relatable terms, often positioning SecureComm as a smart and cost-effective alternative to traditional monitored systems.

“We ask customers: would you rather your alarm goes off before or after the burglar gains entry? HKC’s shock detectors and app connectivity mean it goes off before and that’s the difference.”

In addition, as customers are already accustomed to app subscriptions like Netflix and Sky, they find the monthly fees completely acceptable and the benefits clear. “The app is so user-friendly. We spend minimal time at handover showing them how it works, and that’s usually enough. It’s just a couple of taps to set or unset the alarm. People are so used to apps these days. They love having that degree of control.”

Making the change

When asked what advice he would give to installers who are hesitant about adopting cloud-connected systems or recurring revenue, Wyer stated: “I would encourage any installer to seriously consider making the shift. Too many are still relying on outdated business models that require long hours and offer little long-term security.” 

Wyer continued: “Introducing a service-based approach can improve work-life balance, add measurable value to the business and create a more sustainable income stream.”

In conclusion, Wyer explained: “The market potential is significant. Many homes still don’t have connected alarm systems, so there’s plenty of opportunity for those willing to adapt. It’s about staying ahead of the curve and building a business that’s ready for the future.”

*For more information on HKC Security visit www.hkcsecurity.com