Financial Architecture of a BluBOX RMR Solution
Recurring Revenue |
% of Installation |
Required/Optional |
Comments |
BluSKY License |
35% of Hardware |
Required |
this ranges from 20%-60% depending upon what is being quoted – used to WIN every deal |
Support/Maintenance |
9% of Hardware + Licenses |
Required |
should be required |
Equipment Replacement Program (ERP) |
15% of Hardware |
Optional |
option to retain customers (and RR) for a min of 7 years |
Hardware-as-a-Service (HaaS) |
24% of Hardware |
Optional |
includes ERP - should also include 9% Support bringing total to 33% – option to WIN customer that doesn’t have enough capital budget or prefers to work with operational dollars |
Annual Increase |
4% of total ARR |
Required |
should be required - covers increasing operating costs and product enhancements |
Digital Credentials |
2% of Hardware |
Optional |
should provide as an option |
Supplies |
2% of Hardware |
Optional |
should provide supplies-as-a-service as an option |
Manpower Based Managed Services |
2% of Hardware |
Optional |
least attractive RR but sometimes helps WIN deals – it should be used for that purpose |