On July 30, 2008 at 02:50, Joe-CI said...
It severely hurts your credibility. No one is in "panic"
mode over a single occurence. It is a consistent pattern
over the last couple of years compounded by lots of software
issues across the line. There are plenty of Online Sellers
and Ebay consistently making any margin seem ridiculous
and greedy. No matter how it is spun, it is hurting those
who sell their product at or near MSRP. Those people are
propping up the price while URC clips them by selling
direct to Amazon. This is business, but those installers
need to understand that URC is not behind you and this
is consistent with their behavior over a long period of
time.
What does? The fact that I disagree with you on distribution theories? The theater business is not unique in the problems happening with internet sales. There's a countless number of small businesses that are impacted by the changing market. And it's not like URC is unique in this behavior. Selling to large volume outlets at a lower cost happens with virtually every piece of electronics involved in the install business, excepting the highest-end equipment. I'm guessing Amazon has a lower price on the receivers you carry than you do. I will agree the marketing strategy is particularly painful for small business owners, but it is ubiquitous. Claiming that URC is your "Judas" somewhat overstates the issue.
So URC sells to everyone and installers are supposed to
prey on the clueless. That is a morally repugnant thought
and mirrors the view of a hateful customer. Contrary to
popular opinion there are lots of competent and ethical
dealers out there. They just want a business relationship
they can trust. Just to rub some salt in the wound, Harmony
can keep track of every single remote sold and can deactivate
them. Their distribution methods appear to be something
URC is following.
No, installers are supposed to create a solution that utilizes the remote. It's a tool for you to create a custom experience. An electrician does not make money off switches and outlets. He makes money because he has specialized knowledge. If I could do it myself, why would I hire a pro? The fact is that 99.9% of consumers could not program these remotes if their life depended on it. That automatically gives you a captive audience. And no one is arguing that you're incompetent because you won't sell at cost. You just may not be able to service a certain segment of the market as well as others. You are right, though, URC is not moving in the direction of exclusivity.
In the end, the margin has to come from somewhere. You
cannot sell everything at cost and frankly cost is not
good enough for many. Take a wild guess why the elitists
and the warehouse stores are the ones succeeding.
Because they offer the products people want at the price they are willing to pay. Yeah, maybe you'd make a little more money if companies like URC didn't sell to large volume outlets, but then they'd make less money. And Amazon will never steal the CI market. Societies ever-increasing ease with technology might encroach on your business, but the complexity of integrated systems largely precludes the possibility it will completely go away.
