Custom-install buying group ProSource celebrated what president/CEO Dave Workman told members was “a very strong, healthy year” with a Klipsch-sponsored reception on the eve of CEDIA 2016.
Before the event, Workman took some time to answer CEDIA Daily questions.
4K
CEDIA Daily: Have 4K prices fallen too quickly?
4K pricing has fallen too quickly as evidenced by the fact that once again we are seeing an overall decline in dollars within the TV category simply because we cannot monetize the new technology in the face of price erosion. Where we are watching this most closely is in screen sizes 65 inches and above. OLED has served as an offset to this to some extent, however, and we are hopeful for the new Z series from Sony to mitigate some of this ASP pressure.
CEDIA Daily: Do you see a bigger role now for Sony?
Sony’s reemergence in the TV category as a premium brand has been one of the most important changes for our dealers in recent memory. Their business should continue to grow if they maintain their commitment to the specialty channel dealer.
CEDIA Daily: Have manufacturers been sticking to MAP?
For the most part the UMP programs have stuck. This has placed more pressure on the vendor to be aggressive with their promotional roadmaps to drive the business. Even with this, however, margin pressures continue as manufacturers squeeze the dealer margins to deliver more to the consumer for less.
Smart Home
CEDIA Daily: Has ProSource had any luck in figuring out a subscription model for connected-home services?
We have a dedicated IoT committee working on the recurring revenue model, and our goal is to have something to present to our membership after the first of the year.
CEDIA Daily: Do custom integrators need to get into the smart appliance category?
It is too early to tell if our CI dealers need to get into this category, but most likely that they won’t, given the unique requirements of selling appliances. At the very minimum, they will likely need to partner with a local dealer to provide the complete solution to the consumer.
