I am also a new entry into this business, a little over a year into it. I have gotten bids that I didn't think that I would, and gotten piced on the net (including losing a sale on a brand new Pioneer plasma panel that an internet guy, buying from the same distributor as me, sold for $500 over cost) on quotes that I thought I would never be questioned on. The professionialism of the presentation and the customer service is what will get the good (profitable) jobs. I have never advertised, and I have grown from doing friend's jobs, to billing almost $100K in my first year. I have almost $50K in billing lined up in the first five weeks of next year. Word of mouth is what drives this industry. I have learned to price solutions (somewhat by the advice garnered on this forum and others) not components. I still make good margins on components, and get industry norms (10-20% of component price) for my installation labor. The individual attention to the customer, including the 8:00 PM consultations and the last minute changes to components and placements, is what creates your value. That is what gives us the advantage over the commissioned pimple-faced salesperson at Best Buy/Circuit City/Ultimate Electronics. We have the experience with the whole install, including customer orientation, custom cabinetry, planning, pulling wire, and set-up. You have to sell the experience/knowledge.
I know there are a lot of guys in here with loads more experience than I, and I appreciate the fact that they share with us how they operate. This is a growing industry with room for all of us to make a living. I think that the internet will be more and more disruptive to the retail pricing model. We will have to adapt to the changing times and prove that a professional install, not cheap, boxed components, is what will give the customers the positive experience that they desire.
