No flame here and you are correct in many ways. We stopped selling TVs several years ago but we specialize in projectors so it has never been our main focus as it is for other CIs. We have specified specific models for customers but invariably they talk to the salesman at the store or read some online reviews by non-professionals and buy a different model.
The other danger of letting a customer get their own equipment is someone will undercut them on the install and you will lose the job. Like you said they don't know how good you are and an install is an install. Many CIs have lost money price matching low matching items like TVs to get the job. If you know this your other costs are going to be higher to compensate for the price matching. In general most consumers are fixated on price of the component and not the value of the overall system.
I hear very frequently what is the lowest price 60" TV or whatever size. They also choke on smaller TVs that the cost to install it is more than the TV cost. The shift from looking at quality has been replaced by price as the main object of the consumer. You have to try an educate them but that is getting tougher with so many consumers focused on price.
I do think CIs need a better business model but the labor only model will be tough for many consumers to swallow. Especially, if it turns into charging for phone consults like lawyers do. Call and ask me what you should buy for equipment and that 15 minute phone call is billable.
The internet is not going away and something we have to live with. Our company just dropped what used to be a CI speaker company for having to price match AVS on a couple 5 figure speaker system. The problem is to price match we had to subtract out the state tax and made only a few hundred dollars on these systems. One had a bad subwoofer and we ate the shipping cost to return it to get it repaired. We should have just let AVS sell it to them and let the customer deal with it. But, that is never good relations nor good service.
It is easy to say just charge the labor for install but until consumers are ready for higher priced labor rates I'm not sure how well it will be accepted. I'm definitely open to suggestions for business models.
