TAMCO, the technology-as-a-service provider, has unveiled a new study that focuses on the importance of recurring monthly revenue (RMR) for integrators based on data collected from sales strategy conversations with leadership teams from over 194 commercial technology integrators across the U.S.
Occurring over a 30-month span ending on July 1, 2022, the findings of the study showed how untapped RMR and profitability is within reach for integrators. However, the lucrative financial benefits are not resonating to a meaningful degree.
The RMR study by TAMCO revealed the following data:
- On average, integrators earned 20% gross margin across one-time revenue or project sales
- An average of 52% gross margin on recurring revenue is attributable to multiyear-service agreement sales.
- 85% of the 194 integrators felt they in selling contracts that could generate RMR
- However, only 10% of project-based sales led to multiyear-service agreements
- No other product offerings exceeded the 50% gross margin
According to TAMCO, integrators should thus rethink their strategies in order to capture both, project-based sales and multiyear-service agreements.
To learn more about leveraging RMR, download the study.
TAMCO provides a technology-as-a-service payment program to easily satisfy both customer and integrator needs. According to the company, its partner channel is made up of value-added resellers, managed service providers, distributors, integrators, manufacturers, rep firms, etc. from a variety of technology sectors.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our digital newsletters!