Integrators Plan More Service Offerings
, breaks down services into six main categories, including training and maintenance.
According to research by infocomm, services now account for more than half the pro AV market. So what exactly are these services and who’s pulling in the revenue? The National Systems Contractors Association’s Q1 Market Intelligence Briefing, “Recurring Revenue: Selling Service,” lends a fair amount of insight.
NSCA found that the markets in which integrators have been most successful in selling services are corporate, education, and government. Also not surprisingly, the larger the integration firm, the larger the share of revenue it derives from services. After all, it takes people to support a robust services business.
The group’s analysis breaks down services into six primary categories: service agreements, preventative maintenance contracts, managed services/remote monitoring, training, security/alarm monitoring, and content supply/creation. Service agreements, under which the integrator pledges to repair systems for a fixed period of time, are the most popular offering, with 74 percent of respondents saying they sold such contracts. The very largest firms surveyed said almost universally (93 percent) that they sold service contracts, while most of the smallest firms that didn’t currently sell service contracts either planned to or were considering it. The message: If you’re not in the services game, you’re missing out.
Source: NSCA market intelligence briefing, first quarter 2010. Percentages do not add up to 100 because some respondents did not answer.
Credit: NSCA Market Intelligence Briefing
Credit: NSCA Market Intelligence Briefing
