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Welcome to another issue of rAVe ProAV Edition! We've been suffering through terrible heat and humidity this August in North Carolina, but we hope that, like us, you've had a great summer! Today, we've got two editorials for you. The first is from our rAVe Rental [and Staging] columnist Joel Rollins, who tells you not to worry about the CEDIA guys "invading" the ProAV market. The second is a column I wrote about selling services (yes, again), in which I talk about the different ways you can charge for your intellectual property, and what I think you can, and should, be charging. Finally, if you're near St. Louis, I'll be keynoting a free two-day expo put on by Almo Professional AV. Check out the agenda and register for free at http://www.almo.com/stlouisexpo Enjoy the issue! –Gary Kayye, CTS Back to Top
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Are You Selling All Your Services?
By Gary Kayye, CTS  I’ve written columns in the past decreeing (more like begging) the virtues of selling services over selling gear.
There’s been one on selling design services – sort of like design consultants do for big clients and big systems out there. There’s been one on selling integration services – basically installing other people’s systems regardless of whether or not they bought the AV stuff from you. And, there’s been more than one on selling what I’ve coined as proactive service contracts – this is the preventative maintenance contract where you not only perform reactive service when something goes wrong but also you continuously perform on-site maintenance to keep things from going wrong!
And, over the years, I’ve received all sorts of calls and emails asking me a plethora of questions about selling services. But, there’s one question that is most constant:
What do I charge?
It’s amusing that, of all the questions that salespeople ask, this is the one that’s asked most often. Good salespeople are artists when it comes to selling, and can sell almost anything they want to clients that see them both as valuable resources of information as well as partners in their project. In fact, just recently, I was teaching a class for CEDIA (the high-end Home AV association) where one of the attendees – one who also owns a well-known commercial AV firm – said that when it comes to selling gear, he aims to sell it for 20 percent over list.
Yes, you read that right. He said 20 percent over list price.
Bravo! He gets it!
What the heck am I talking about? Well, it’s clear to me that he’s selling his expertise as part of his art of selling AV gear. He’s not simply a vendor/supplier to his clients; he’s selling the expertise of knowing what to and how to design systems by putting together the perfect AV solution.
He’s selling intellectual property – the most valuable thing he has!
What’s he charging? In his case, it’s a 20 percent service fee – or in some cases, you could actually see it as a 30 percent or even 40 percent service fee (or tip) as I’m sure there are a lot of you out there that are selling AV gear for as much as 10-20 percent below list. Figure it out.
No, I’m not oversimplifying this at all. It’s as simple as you just read. He’s charging an intellectual property fee – or a systems design fee – with each and every product he sells. But, you can package it any way you wish. If you want to start it all out by selling systems designs as a separate fee, that’s fine too. What should you charge? Well, start with 10 percent (of the total system price) and go up from there. You can (and should) get more.
What about for integration services? 400 percent – that’s the number you should AT LEAST shoot for. If your cost is $2500, charge $10,000 – a 400 percent margin.
Your expertise is valuable – a heck of a lot more valuable than your competitors – don’t you believe that?
If you don’t, send your competition your resume – as they’re better than the company for which you work. You just said so…
And, what about proactive service contracts? Well, in the ProAV market, I’d start with at least 8 percent of the serviceable products in the system – but that’s as low as I would go. We have many, many clients we’ve worked with in the past that are charging way more than that and regularly start their first year’s service contract at 15 percent.
Look, I can’t get more specific than that. I’ve given you percentages. You do the math. But, no matter what you do, STOP GIVING AWAY intellectual property – it’s all you’ve got left.
But, the good news is that each and every day, you get more.
Didn’t you just read this column?
Reprinted with permission from Sound & Communications. Founded in 1955, Sound & Communications is the premiere magazine for AV systems integrators, contractors and consultants. To subscribe or read sample articles, go to http://www.soundandcommunications.com
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A Midsummer Night's Dream, or Why Home AV Suppliers Won't Beat You
By Joel Rollins, CTS-R  Infinity. That’s what the time period between Infocomm and CEDIA brings to mind. As in, an enormous number of pundits writing an endless number of columns. Also, as in the old “infinite number of monkeys with an infinite number of typewriters” proposition. You can look it up on Wikipedia, or you can take my word for it: given an infinite number of monkeys pounding away, one of them is mathematically certain to accidentally type the complete works of William Shakespeare.
However, it seems none of our AV gurus are destined to accidentally produce anything remotely close to Hamlet (the one about an AV guy from Denmark). After all – look at the nonsense they spew at this time of year. It’s totally formulaic – and wrong.
Let me remind you of some of the gems that issue from this typing pool each year as the prognosticators type away with their feet:
“[Insert name of big corporation here] plans to enter the commercial AV business, and will put all existing dealers out of business because of their superior volume and business acumen.”
“Microsoft, with the next release of Windows, is going to dominate the conferencing market by creating their own unbeatable, reliable standard based on Outlook.”
“Best Buy/Fry’s/Circuit City/etc. are entering the commercial and boardroom market and will displace the current distribution channels.”
Remember, these are the same people who predicted that DLP would completely replace LCD by 2003, and that Microsoft “Bob” would succeed. So it’s no wonder that they’re scurrying to put out the other insane pre-CEDIA prediction that they seem to indulge in every year. Here’s that whopper:
“Because of the popularity and ease-of-use of home systems, home theater installers are going to be led into the boardroom market by their clients and take it over.”
Enough monkeying around. There are a lot of exciting developments in the home theater world. And, indeed, home theater technology often does lead, or at least inspire, technical development in professional AV. But long ago, a child’s toy inspired the development of the helicopter, and we still don’t ride in aircraft labeled “Mattel.”
Home theater technologies, and people with home theater orientations, lack some of the essential qualities for professional systems:
Interoperability. Let’s face it. There’s a new, mutually exclusive “standard” introduced in the home theater industry every seven minutes. While I’m perfectly willing to turn over my home theater system frequently to take advantage of the latest whiz-bang gadget, I’d be a lot less willing to do so with my boardroom, where interoperability with my other employees, clients, and peers is the real key.
Stability (see above). Try explaining to your CTO why your boardroom runs on pre-release software, the way home theaters often do.
Scalability. Technologies that work great in home theaters don’t often scale well to professional levels. As an example, I had a client who was looking at a digital signage system for their new HQ. Spotted the Apple TV, loved the size, cost, and network connectivity – and decided to go it alone because his home unit was so easy to set up. This is not the place to tell a horror story, but suffice it to say that all his bosses now have Apple TVs at home (because they didn’t work in the boardroom).
I’m not saying there isn’t some crossover between professional and home systems or installers. But, like the key differences between Installation Techs and Rental Techs, they are there. And the kid in the Pearl Jam T-shirt with the can of Red Bull and the latest issue of “Wired” is no threat.
rAVe Rental [and Staging] contributor Joel R. Rollins, CTS-R, is General Manager of Everett Hall Associates, Inc. and is well known throughout the professional AV industry for his contributions to industry training and his extensive background in AV rental, staging and installation. Joel can be reached at Joel can be reached at [email protected] Back to Top
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ClearOne Granted New Temporary Restraining Order Against DialHD, Inc., Donald Bowers, and Others, in Federal Trade Secret Misappropriation Case  A temporary restraining order was issued by the federal court earlier this month, in favor of ClearOne Communications, Inc. (Nasdaq: CLRO), expanding the scope of an earlier entered permanent injunction to apply to, among others, DialHD, Inc., a Georgia corporation ("DialHD"), Donald Bowers, a resident of Georgia, and David Sullivan, a resident of Connecticut.
The temporary restraining order was issued by the Utah federal court which presided over the trial in this case (the "Intellectual Property Case") before a jury in October and November 2008. The case was originally initiated by ClearOne against Biamp Systems Corporation ("Biamp") and a group of defendants collectively termed as the "WideBand Defendants," consisting of WideBand Solutions, Inc. ("WideBand"), Versatile DSP, Inc. and three of WideBand's principals – Dr. Jun Yang, who was a former ClearOne employee, Andrew Chiang, who was previously affiliated with an entity that sold certain assets to ClearOne, and Lonny Bowers. On November 5, 2008, the jury returned a verdict in the Intellectual Property Case in favor of ClearOne. Subsequently, in April 2009, the Court entered a final judgment against the defendants for approximately $9.7 million. The court has also previously issued injunction orders prohibiting WideBand Solutions, Inc., its principals, and others acting in concert with WideBand, from (among other things) the use, marketing or sale of ClearOne's trade secrets and WideBand's infringing products found to use these trade secrets.
To read the entire release, go to: http://www.b2i.us/profiles/investor/NeedLoginProfileMenu.asp?BzID=509&sm_quote_field=&hook=ea&to=ea
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Kayye to Keynote Almo Professional AV Expo: Five Things You Need to Do to Thrive in 2009 St. Louis Area Pro A/V Expo September 14 & 15 | | | Register today at www.almo.com/stlouisexpo or call 888.420.2566 | Keynote Presentation: 5 Things You Need to Do to Thrive in 2009
Presented by Gary Kayye, CTS, Chief Visionary, Kayye Consulting, Inc
InfoComm CTS Renewal Units = 1.5 The average American lost 32% of their personal wealth in 2008, the sales for new technology finally
slowed and even R&D is questionably low in many technologies. But, there is light and opportunity in a downturn, too. The weak get weaker (your bad competition will
disappear) and the strong and smart get better and better. And, there are 5 specific things that you can do to grow (yes grow) your business in 2009 & 2010! Join Gary Kayye as he shares his insights having worked through two recessions since entering
the market in 1987 – and he even helped his companies experience exponential growth. But, most
importantly, he will tell you the 5 things you need to do NOW! |
| Dates:
Monday, September 14th 4 – 9 PM
Tuesday, September 15th 8 – 3 PM Expo Location:
St. Charles Convention Center
One Convention Center Plaza
St. Charles, MO 63303
www.stcharlesconventioncenter.com View the Full Agenda Training Sessions & Faculty | Gain an insider's perspective on the hottest products and even hotter ways to make more money and leave your competition behind:- Learn new technology with manufacturing training sessions on LED, digital signage software and more
- Build your skills and earn up to 3.5 InfoComm CTS Renewal Units
- Have one-on-one time with top manufacturers
- Get hands-on with professional and consumer grade products in two dedicated exhibit halls–all in one FREE show with breakfast, lunch and dinner included!
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| | Register today at www.almo.com/stlouisexpo or call 888.420.2566 | Who is Almo Professional A/V?We're a value-added distributor specializing in serving professional audio/visual integrators, dealers, and consultants. Our sales team is InfoComm trained and many are CTS certified so they speak your language. With 12 distribution centers across the U.S., product lines especially for the Pro A/V channel, and a highly skilled sales team, you'll experience distribution on a personal level. Visit us online at www.almo.com or e-mail [email protected]. |
|  See our Sales Map to Contact your Regional Sales Team
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Almo Corporation :: 2709 Commerce Way :: Philadelphia, PA 19154
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DSE Show Announces 2010 Educational Track  Digital Signage Expo (DSE), the world’s largest International Tradeshow and Conference dedicated to digital signage, interactive technology and out-of-home networks, has unveiled a reformatted and expanded Conference Seminar Program for February 23-25, 2010, in Las Vegas.
In addition to two advanced tracks tailored to more experienced attendees, DSE is introducing a Content University track, two basic tracks tailored to those new to the industry, or those who want a refresher, and will reprise its popular “Lunch & Learn” program, offering special small group education focused on digital out-of-home venues.
The new format will also feature flexible curriculum options for professionals from industries that include advertisers, brand managers, advertising agencies, education, restaurants, hospitality, banking, transportation, healthcare, retail, and technology information, among others, giving them the ability to tailor their seminar activity to their needs and experience level.
Digital Signage Expo, co-located with Interactive Technology Expo, The Out-of-Home Network Show, Digital Content Show, and Mobile Marketing Show, to run February 23-25, 2010, will take place at the Las Vegas Convention Center in Las Vegas. To exhibit or attend, contact Chris Gibbs, (770) 649-0300 Ext 17. Or, for more information, visit http://www.digitalsignageexpo.net
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InFocus Launches New Wireless Projection Format  Last week, InFocus Corporation unveiled its new wireless technology to be embedded into some future projectors. Partnering with a company called Wisair, a company known for single-chip based wireless USB solutions, the InFocus DisplayLink Wireless system allows for wireless projection (from laptop to projector) with all DisplayLink-enabled projectors and includes both data and video – wirelessly.
With what InFocus calls “little initial set-up required” the DisplayLink Wireless system uses the computer’s USB port – you connect a DisplayLink USB adapter (from InFocus) and instantly connect with an InFocus projector from distances of up to 30 feet.
To see a list of DisplayLink InFocus projectors, go to: http://www.infocus.com/Brilliant/DisplayLink.aspx?
To read more about Wisair, go to: http://www.wisair.com/
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BoxLight Announces 5000 Lumen Projector  BoxLight’s first 5000-lumen projector, the Pro5000SL, is aimed at the ProAV install and staging markets. Featuring three lens options (ranging from 1.8 to 4.1 throw ratios), the Pro5000SL includes LAN control with email monitoring and web access, network management, and quick startup and cool down, auto ceiling mount detection, auto keystone correction, and auto brightness detection. Optional features include a Hepa filtration system for harsh environments, which includes an auto filter alert working with BOXLIGHT, Inc's Network Management Software.
To read more about the $4000 Pro5000SL, go to: http://www.boxlight.com/
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Christie Digital's New Matrix Series of Projectors are Purpose-Built  Christie Digital recently expanded the number of Matrix Series of 3-chip DLP projectors with the introduction of the new Christie Matrix WU Series. Designed for the requirements of high-performance simulation, the Christie Matrix WU2, Christie Matrix WU5 and Christie Matrix WU12 models feature native WUXGA 1920×1200 resolution and are aimed at applications such as maritime, flight and air traffic control simulation. Purpose-built for simulation display requirements, the Christie Matrix WU Series features the latest 3-Chip DLP technology and a low maintenance of 650,000-hours Mean-Time-Between-Failure (MTBF) for the Digital Micromirror Device (DMD). The Christie Matrix WU Series is available in 2400, 5100 and 12,000 ANSI lumens and includes AccuFrame, which nullifies image artifacts and smearing in high-speed simulation. Excellent color, brightness uniformity and display control allow for cost effective solutions for the same simulation display requirements.
The Christie Matrix WU2 and WU5 models utilize a Color Purity Filter (CPF) to enable excellent color saturation and color matching. In addition, Christie’s SuperCR™ technology, which provides a contrast ratio of up to 2000:1, delivers superior black levels for unsurpassed day and night scene blending.
Check out the Matrix WU5 here: http://www.christiedigital.com/AMEN/Products/ChristieMatrixWU5.htm
Check out the Matrix WU12 here: http://www.christiedigital.com/AMEN/Products/ChristieMatrixWU12.htm
Check out the Matrix WU2 here: http://www.christiedigital.com/AMEN/Products/ChristieMatrixWU2.htm
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Crestron Ships DMCI  Crestron announced that its new DMCI (DigitalMedia Card Interface) solution is now shipping. The DMCI is a compact, rack-mountable enclosure designed to house a single DM Input Card to accept any AV source, including all analog audio and video, computer, HDMI, DVI and DisplayPort signals, and output those signals as HDMI. DMCI even handles USB-HID over Ethernet for remote wireless keyboard/mouse control and USB-HID signals and output those signals as HDMI.
To learn more about Crestron’s DigitalMedia product, go to: http://www.crestron.com/solutions/digitalmedia_hdmi_distribution/
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Extron Launches New Cable Retraction System for Cable Cubby Enclosures  At InfoComm, Extron showed the Retractor, a unique, patent-pending cable retraction and management system designed to work in conjunction with new or previously installed Cable Cubby access enclosures. The Retractor provides a discreet, convenient solution for accessing AV cable connections and then storing them effectively. Users pull the end of the cable from the system, which extends up to three feet. When pulled to the desired length, the cable is held securely in place. After use, the cable retracts smoothly and effortlessly with the push of a button. The Retractor is available in versions to support most AV and data signal types including VGA, Network, PC Audio, USB, DVI, or HDMI.
Each Retractor works in tandem with the Cable Cubby 300, 600, and 800 models, as well as the TouchLink 3.5" Cable Cubby touch panel. Cable Cubby access enclosures are furniture-mountable architectural solutions that store cable out of sight while remaining connected to the AV system, offering a discreet way to access cables and connection points as they are needed. Up to three Retractor modules can be installed side by side within the Cable Cubby.
To learn more about the Retractor, go to; http://www.extron.com/product/product.aspx?id=ccretractor
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News from FOR-A, United Visual, Tightrope Media Systems… Visix has been ranked on Inc. Magazine’s List of America’s Fastest-Growing Private Companies for the third year in a row, at #2221… Almo Professional A/V, Almo Corporation’s newest division, has completed hiring its east coast sales team, to be led by Electrograph veteran John Riley… Almo Professional A/V also announced a new agreement with Samsung to distribute professional displays… FOR-A Corporation of America has hired Thomas Yuhas as national sales director. Yuhas previously spent 28 years at Sony Electronics… Magenta Research has hired Sally Halpin as northeast regional sales manager. Halpin previously worked for NEC… United Visual, Inc., has hired Daniel L. Newman as vice president of sales and business development… Tightrope Media Systems has promoted Steve Israelsky to vice president of sales and chief marketing officer, Kelli Smith as southeast regional sales manager, and Peter Tufigno to western regional sales manager. Back to Top 
For all you REGULAR readers of rAVe ProAV Edition out there, hopefully you enjoyed another opinion-packed issue! For those of you NEW to rAVe, you just read how we are — we are 100% opinionated. We not only report the news and new product stories of the ProAV industry, but we stuff the articles full of our opinions. That may include (but is not limited to) whether or not the product is even worth looking at, challenging the manufacturers on their specifications, calling a marketing-spec bluff and suggesting ways integrators market their products better. But, one thing is for sure, we are NOT a trade publication that gets paid for running editorial or product stories. Traditional trade publications get paid to run product stories — that's why you see what you see in most of the pubs out there. We are different: we run what we want to run and NO ONE is going to pay us to write anything good (or bad). Don't like us, then go away — unsubscribe! Just use the link below. To send me feedback, don't reply to this newsletter – instead, write directly to me at [email protected] or for editorial ideas: Editor-in-Chief Sara Abrons at [email protected] A little about me: I graduated from Journalism School at the University of North Carolina at Chapel Hill (where I am adjunct faculty). I've been in the AV-industry since 1987 where I started with Extron and eventually moved to AMX. So, I guess I am an industry veteran (although I don't think I am that old). I have been an opinionated columnist for a number of industry publications and in the late 1990s I started the widely read KNews eNewsletter (the first in the AV market) and also created the model for and was co-founder of AV Avenue – which is now known as InfoComm IQ. rAVe Publications has been around since 2003, when we launched our original newsletter, rAVe ProAV Edition. Everything we publish is Opt-in — we spam NO ONE! rAVe ProAV Edition is our flagship publication with what we believe is a reach of virtually everyone in the ProAV market.rAVe HomeAV Edition, co-published with CEDIA, launched in February, 2004 and is, by far, the largest ePub in the HomeAV market.rAVe Rental [and Staging] launched in November 2007.rAVe ED [Education] launched in May 2008. To read more about my background, our team, and what we do, go to https://www.ravepubs.com Back to Top
Copyright 2009 – rAVe [Publications] – All rights reserved – All rights reserved. For reprint policies, contact rAVe [Publications], 510 Meadowmont Village Circle, Suite 376 – Chapel Hill, NC 27517 – (919) 969-7501. Email:[email protected]
rAVe contains the opinions of the author only and does not necessarily reflect the opinions of other persons or companies or its sponsors.
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