On 09/03/04 12:04 ET, QQQ said...
CresNut, the issue isn’t that I don’t see what’s
happening, it’s that I do see it and prefer to
deal with it rather than stick my head in the
sand and long for the “good old days”.
Years ago, the video rental business was full
of small independents/Mom & Pop stores. Now Blockbuster
Video and the like dominate the business and the
independents can only survive in a market where
Blockbuster doesn't exist.
Agreed, however Blockbusters days are over as well. Kind of interesting how they want to start selling hardware now as well. :)
The writing is on the wall and it's there for
everyone to see. The A/V and home automation
markets are growing exponentially, prices are
dropping and we can stick our head in the sand
and continue to think we are going to be able
to operate our Ma & Pa video rental store like
we always have or we can adapt and not only continue
to make money but experience tremendous growth.
Just as Home Depot now has armies of certified
contractors installing everything from kitchens
to carpet it is inevitable that that Best Buy
and Tweeter are going to make huge pushes into
the home A/V and automation markets. You will
be able to go into a Best Buy and they will have
a pre-selected 6 zone package with volume controls
or Russound keypads or whatever. You will also
find many of these companies marketing directly
to builders. And security companies. And electricians.
It's going to happen and you can protest and
scream but it isn't going to make an iota of difference.
There are market forces at work here that dwarf
the SMALL market that CEDIA serves. We love to
flatter ourselves but we are barely a blip on
the radar. Why do you think Oxmoor is going to
Crutchfields? Because they/we haven’t sold any
of their crap product. So how would complaining
to them matter? Did you sell 250K worth of Zon
last year? I’ll bet you didn’t sell 25K. And
you expect them to shake in their pants because
you are going to drop their product?
I am not a Zon dealer, nor would I want to be, the point was not to support companies that distribute product this way. In other words you can't have it both ways (no double dipping) Don't sell direct to end users AND then expect a warm reception from the Custom AV crowd.
And yes, there are going to be lots of people
that go out of business. There ALWAYS are when
an industry goes through big changes. Especially
small RETAILERS focusing on low or mid-end. Just
as independent video retailers have been put out
of business by Blockbuster and just as hardware
retailers have been put out of business by Home
Depot. So if your focus is on making money from
small equipment sales, and not labor and/or higher
end products, YES, YOU SHOULD BE AFRAID. BE VERY
AFRAID :).
Very strongly agree, so I do hope that dealers far and wide hear this message loud and clear.
But there will also be tons of potential here.
You don't see many independent computer retailers
out there any more but that hasn't stopped tons
of people from making millions in and because
of the PC industry. You can still be a small
independent IT firm or a billion dollar one like
Accenture or tons of others. And has Home Depot
put high-end custom builders out of business?
Or electricians? No, just the hardware retailers.
Do people building 3 mil homes go to Home Depot
to choose their kitchen? Of course not.
So the question is, do you have a business plan
in place to deal with these changes or are you
going to waste your energy in pursuit of the good
old days. Are you targeting profitable (higher
end) projects where you won’t be hit as hard?
Are you making money on labor or considering
it a loss leader in order to make money on it
with the equipment sale? Because if you are going
to adapt to this changing market you BETTER learn
how to make money on labor. Are you selling “products”
OR a “solution/experience”. I can tell you in
all honesty that half of my customers couldn’t
tell you the brands they are buying from me because
I’m selling them on my company and the installations
we do, NOT on a “product”. They don’t know Crestron
or AMX from Adam. All they know is that they
are getting this “cool touchscreen that makes
things really easy to use” and this home theater
that is “better than a movie theater”. I never
focus discussions on manufacturers because what
does that remotely have to do with the end result?
NOTHING. We are like builders, you can put the
same lumber in two builders hands and one builds
a house that leaks and cracks and the other builds
a house that brings the owners years of satisfaction.
And just as two different builders or electrical
firms can experience massively different levels
of success even though they are using the same
materials, we need to learn to sell people on
our skill sets rather than the “lumber”. Those
who live by exclusives die by exclusives. Exclusives
are going to become more and more a thing of the
past. But the ONLY reason that is happening is
because the market is growing and there’s more
money to be made. And those of who adapt well
will make a good profit and those of us who adapt
poorly will not.
So are you ready for the future? Or longing for
the good old days when the only place to buy a
multi-room audio system was the three hi-fi shops
in town?
Very well said QQQ, I think we agree more than disagree, I would add do not support companies who sell direct. It is very simple, specify OTHER equipment. As QQQ said people dont know AMX or Crestron or Oxmoor. My point is don't spec in companies that change the distribution model.
AMX once changed the entire distribution strategy from a dealer direct to a direct end user sell model. You don't remember MYPANJA.com?
What happened? The dealers went ballistic, people got mad, many of the loyal AMX dealers (some of them reluctantly) went over to Crestron. For god sakes what would make a loyal AMX dealer convert to Crestron?
It is true I love the CEDIA market, and it is small this I admit, but will also say if we stick together and we stand up and for what is right we can change things.
AMX almost imploded, I am very glad they did not, imagine if the AMX dealers would have just said oh ok, the home owners will just go online and buy all the equipment and Panja will provide all the programming and a very nice connection sheet that then they can call me up and I will roll a truck over to hook up the relays to the doorbell. (Don't laugh, this was a real scenario I had with them) So they buy all the source equipment from BB, then buy the wireless touch panel and control rack and all emitters and sensors and all the programming from mypanja.com and then if I am in the same zip code *Maybe* I would be *Lucky* enough for Panja to give the end user my number so I can hook up some relays.
So what I said, and what many (if not all) AMX dealers said was F U. If we would not have done this in droves then they very well may have ruined one of the best CEDIA companies.
So today you may or may not be a Oxmoor dealer (Just so there is no confusion I am not an Oxmoor dealer, but I do feel their pain) But please support them in the same way the AMX dealers had to do, TELL THEM!
If they don't change, then YOU change! Sell another brand distributed audio system period end of story.
