Covering All the Bases
Aug 1, 2004 12:00 PM,
By Timothy Dorwart
With the increasing convergence of low-voltage disciplines in the systems integration business, some contractors could be forgiven for feeling more than a little threatened.
The changes taking place in the systems business right now are opening up once strongly held niches, and the role of the specialist is giving way to that of the generalist. But for those contractors willing to offer products and services beyond traditional AV installation and maintenance, this industry shift represents a significant opportunity for future long-term growth. It’s no secret that the successful evolution of digital technologies has been the primary driver of convergence, and it’s here that contractors and systems integrators should first look for ways to grow their businesses.
Put into context, the customer is looking for a total solution, not parts and components. The customer needs and wants additional products/services — why hand over that supplemental margin to a competitor who will provide services you don’t and then simply go on to bid the whole job when the next opportunity arises?
Successful contractors/systems integrators are looking at each aspect of the job, from the digital audio and video content to the playback system and even the paging, security, and messaging systems to develop ways to satisfactorily fulfill each aspect. In doing so, the contractor gains margin for each aspect of the system, defends against competitive threats, and retains the after-sale service and upgrade revenue opportunities.
Following the digital content from the point it enters the system to the point the consumer is exposed to it, contractors/systems integrators can simply track the opportunity dollars in any given project. To create a sustained long-term business, systems integrators need to be able to deliver standardized programming/playback systems that are customizable to customers’ environmental requirements and budgetary constraints. Commercial music system customers also require license management, which can be a tedious and costly process if not properly executed, and here, too, they’ll look to a single source.
This strategy makes sense for the customers, especially in vertical markets like retail, hospitality, spas, and health clubs. Retailers, restaurants, gyms, and spas that understand the value of environmental audio and visual imaging to their offering increasingly work with systems integrators who can provide integrated programming and playback systems that make sense from a quality and budgetary perspective.
This trend toward collaboration has extended into the manufacturer realm, as well. Retail enterprises of all sizes are working closely with AV manufacturers to develop demographically targeted music programming and delivery systems that allow businesses to leverage popular culture to their competitive advantage. Because of this, it’s up to the manufacturers to provide independent contractors/systems integrators with the products, programming, and marketing tools necessary to help them expand the range of products and services they offer their customers and also to expand the range of customers they work with. Ultimately, the service offerings of the individual manufacturers will separate the great companies from the mediocre ones. Moreover, the companies most likely to succeed will do so only with an expanded definition of the term system and a parallel business vision based on a mutual understanding of the necessity to provide value at each point of the system.
For more than 25 years, Timothy Dorwarthas led the industry in professional audio/video sales to Fortune 500 companies, with the last ten years being in executive management with large multinational sales and marketing organizations. Since 2000 he has served as vice president of audio/video systems at DMX Music, where he is responsible for the company’s audio/video systems integration strategies and business development.
“Line Out” is the forum for Sound & Video Contractor readers to speak out about industry-related topics, from trends to business practices to technology. Contact Mark Johnson at (510) 985-3203 or at [email protected] to voice your opinion.
