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Original thread:
Post 1 made on Saturday February 28, 2004 at 01:37
Design4U
Long Time Member
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February 2004
14
Just thought you all should be aware. I was shocked to find a new cable product with a extremely low price. WOW I thought I was finally going to make some margin on pre-wire against the electrician. Come to find out that the ProConnect Cable was owned 60% by AVAD. I Charge 35 cents a foot for CAT 6 and 15 cents a foot for CAT5e and now I could charge 15 cents for CAT6 and 7 cents a foot for CAT5e. I called my goto cable company and they said there cost just went up on all copper. How the hell are all the other companies having to pay more. Well then I found out it was a AVAD owned company and I relized that they were trying to by the market. Not a bad plan from a business standpoint.
Here is the problem I see. They will sell to any one with a business licence, so that means that the electrical contractor will find out the new brand and start selling it with 5 points and now not only wont you make money on the cable that seemed like the answer to all your profit issues, but it has now eroded the entire f---ing industry. They dont understand that the builder is looking for the best price on a production plat and does not have too much loalty if he can save a buck.
To sum up my feeling on AVAD. I believe that they are interested in total profit for themselves and dont care what we need to stay in business and provide our clients with top notch service. They want you to sell there cable because you can make so much more profit (UNTIL THE ELECTRICIAN STARTS SELLING IT AT 5 PERCENT), they want you to support 7 lines that are whored out on the internet and anyone can get thru distribution, SO TOU CAN MAKE 5% ON THE PRODUCTS. LAST BUT NOT LEAST, THEY WANT YOU TO PAY 2500.00 DOWN AND ONLY 1000.00 A YEAR TO COMPETE AGAINST YOURSELF. I HAVE BEEN DOING THIS FOR 16 YEARS AND HAVE NEVER FELT THIS STRONGLY ABOUT ANY OTHER ISSUE. UNDERSTAND THIS IS NOT MY MAIN TYPE OF CLIENT. BUT MARK MY WORDS THAT IF YOU START SUPPORTING THIS TYPE OF S--T IT WILL AFFECT EVEN THE CUSTOM BUILDER MARKET. Look at the plasma display that were once profitable.


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