I quit making New Year’s resolutions a long time
ago. If there is one area where I would definitely
like to improve, however, I would focus on being
less judgmental of others. But before the year
really gets under way, please allow me one last
binge as I offer some suggestions for how custom
integrators can improve in 2013.
I’ve contacted a lot of CIs over the past two
months, and I’m buoyed by the optimism of
industry veterans who still envision opportunities
in the channel despite the many threats they
face from mass-market products and eroding
profit margins from once-exclusive technology
categories. But there are also whispers from
industry friends who are truly worried about
how they will continue to make a living in this
business. They’re as confused as the next guy
about what products they should be selling and
how they can restructure their businesses to
make enough money to survive.
The ever-evolving consumer electronics
business will always present challenges to those
who make their living putting integrated systems
together. But, where this industry continues to
provide value is by taking the guesswork away
from confused clients. Folks with disposable
income and a lack of patience would like the
intuitive design of the iPad but aren’t quite
clear about how to use it to control the various
elements of their home, such as lighting, window
shades, and HVAC, house-wide music systems,
and their TVs.
How many people do you know that still have
multiple sources feeding their big fancy LEDbacklit
LCD TV, a collection of remotes sitting
on their coffee table, and an iPad? I know it’s
the biggest cliché in the business, but the easiest
CI job (programming a remote) is still a major
challenge for most consumers. And how many
times have you seen that same 60-inch TV
displaying a classic, like The Godfather, with the
hyper-real video resolution of a telenovella from
the Spanish channel? It’s called “the soap opera
effect,” and you’re probably the only person
within a 50-mile radius of your office who knows
how to fix it.
The biggest challenge for our industry is
either selling products that can’t be bought at
retail or charging the right design or consulting
fee to properly reflect the value of its services. It’s
easy for me to say that selling service contracts is
the key to survival, but the reality is that product
margin will always make the world go around for
successful integrators.
Last month, we focused on what integrators
are doing to improve their businesses in 2013.
This month we’ve asked CIs what products
they’re selling to compete with mass-market
threats. Let us know what works for your
business, and I promise not to judge you.