Problem is there is only so much room in the life raft. I see the advice to "upmarket" given frequently, but it is not a realistic option for all CI's for various reasons. Not saying it's bad advice, just the unfortunate reality.

Also Ken Crane's out here in CA. They are closing their remaining showrooms by the end of August.

This is an obvious problem. Circuit City couldn't escape the reality of the economy and im pretty sure they had a few guys who were trained and paid to know how to navigate it. Many CI shops are closed already and many more will be joining them. They range from the small 1 man shop who cant pay his bills waiting for jobs to come his way to the huge companies like Baumiester in Chicago who were not ready to deal with the almost immediate slamming on the brakes that took place a couple of years ago.

The companies capable of heading towards the high end market should get started and the others should start rethinking their business model. Commercial may save some, electrical work may save others, the green hustle might work for others. The economy being slow sucks but what it affords us is the time to reevaluate our strategy. One thing i can say is that i am a lot happier now doing fewer but larger projects than i was a few years ago doing 5 times as many smaller projects. I have been able to produce better work and learn more and in the mean time ive learned to curb my own spending and start looking further into the future when i make decisions concerning money. This is the time to learn our lessons, lick our wounds and come up with a plan.

Circuit had systemic problems (like very bad real estate deals and worse investments) that would have crippled the company even if they had been more successful.

IBM Typewriters never really tried to evolved, so they died. No surprise there.

Sears/K-Mart is not the powerhouse it once was, but both are still strong brands. The financials have been better, but neither seem to be on the verge of closing the doors.


This may be. But falling a few spaces on the list of top retailers and closing are two different things.


Do you realize that Amazon's total annual sales for 2009 was $24.5 billion (that's everything they sell), and Newegg's annual revenue for the same period was $2.1 billion? Both great companies, but Newegg is barely on the radar for established retailers. And Amazon is growing very fast, but its still a drop in the bucket compared to Wal-Mart ($405 billion annually) and is still about a decade away from Target at current growth rates ($65 billion annually).

Revenue is certainly not the only measure of a company. But Best Buy, Target, and Wal-Mart all have strong brands and growing revenues. They may downsize, or change positions in the rankings, but I don't think any off them will be closing down any time soon. Wal-Mart may never fail as a company. Its just that big.


I'm no analyst, but I don't think the numbers support this statement. At least not any time soon.

Amazon, newegg......then add in monoprice and systemax and the dozens of others slowly nipping away. Systemax went from 2bil to 3bil from 2005 to 2008. Amazon from 14.8bil in 2007 to 24.5bil in 2009.

More and more shoppers are A.getting a computer and learning how to price shop. B.disregarding the superstitions of selling your soul & social security number if you buy something online. And dont forget about the manufacturer websites and places like crutchfield.

It's pretty obvious if you read my posts that i dont pay attention to financial records of large corporations or how the stockmarket is doing. Im basing my opinion on what ive seen in terms of how clients, family and friends react to the changing market. As an example.. I have showed family members touch screens from amx crestron rti urc for10 years and i never got the sort of response i got with the iPad. I knew it would be an awesome device based on how i was using my iPhone, i had my doubts about its role in our industry because of connection problems but now IMO anyone can see that it already owns the wi-fi touchpanel market. It will change the way systems are spec'd and eventually find its way in-wall and so on and so forth.

Anyone betting on cheap laptops being the go to device for grandma and the kids who want to use facebook email and do research for class are betting on a loser. I know the iPad will replace laptop sales over the coming months and knock offs will join them in changing up the way we compute when we are mobile. I see it happening already at home at my clients homes etc. I dont need to watch the news because its happening right in front of my eyes.

Just like i can see how everyones shopping patterns are changing. Everyone has taken to the internet looking for the deals. Walmart and costco are grabbing their attention with flat screen TV and cheap computers while they are buying food and household items.

Just like CI business.. hardware sales belong to the guy with the lowest overhead. When compared to Amazon and the other up and comers.. no B&M based business can compete.

Exactly.

And lets not forget now that almost every cellphone on the market has an app that lets you scan a barcode with the camera and immediately search prices for the cheapest place to find it. Find it in Best Buy, scan the code, find it on Amazon for less. Heck, you could order it with free shipping before youve eve left BB.

And my point about other market dominators that came and went is that they didnt change what they were doing. Eventually it got old. And I havent seen BB making any dramatic changes recently. First BB store I saw I was in awe. Now, its the same store, but with maybe less knowledgeable help, and they keep changing up the layout to make it harder to find stuff. Now I only am in awe at how easy it is to screw with their sales people.