Custom and retail really do have problems coexisting. I work with a company that was retail with an old guy (I mean that, and I'm 54) who mosied through basic two-channel installs.

The business has refocussed on custom, but still is open for retail as it comes in. With the shop being small and local mammoth chain competition high, we had the same problems as sndtowne in his second paragraph.

As Thon suggests, there is different management for the two halves; our luck is that we structure payment of the lead installers such that they are the management and are rewarded or eat air based on their quotes and their follow-through.

BUT -- installation requires its own people, and the retail end becomes subordinate, just ordering and supplying that end; then the time necessary to do retail can slow down the progress of the installation side.

Another issue we run into (we are in an affluent area with some people who do not want to part with the money they have committed to spending) has to do with pricing of components versus installation. I say "versus" because we run into bids from the competition with components at full boat but very low installation prices, or very inexpensive components and huge installation prices; we insulate ourselves from this when we can by quoting component prices, then pointing out the discounts, and quoting installation separately at a reasonable rate.

We get the best results that way, because the customer can see that we are not trying to lie and say we will give them something for nothing, they can actually compare what similar components will cost them elsewhere, and we establish trust by being up front about how everything is priced.