Audio Visual reseller opinion: Convergence a blurry subject

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Audio Visual reseller opinion: Convergence a blurry subject
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Now these organisations are careful about the selection of a vendor and are not focused solely on price. In fact the justification of price is coupled closely with reliability and return on investment.

Qualifications and certifications have greatly improved due to a plethora of IT training organisations and vendor certifications. This has created a skilled and resourceful workforce with good consumer education

Service rates are high ranging from $120 to several hundreds of dollars per hour. Labour recovery is generally high and service contracts are profitable.

Plenty of people are being burnt in the CE sector every day but the lesson hasn’t quite sunk in yet. Some of the largest companies delivering solutions are responsible for substandard product and service.

Consumers focus on price, features and quality generally in that order although enthusiasts tend to have more brand loyalty and focus more on quality and features rather than price.

Certification or qualifications are somewhat poor and on the mend however good formal qualifications and degrees could be some time away.

A new and growing industry has placed a demand on limited resources. This has attracted personnel from different sectors such as Telecommunications, IT and electrical to fill the gap however limited knowledge and experience is common.

This has been compounded by the advancements in technology especially in the connectivity area and is the very reason why IT believes they can deliver AV, purely because it plugs into a network.

Service rates are poor ranging from $60 to $90 per hour with poor labour recovery and wages are high yet consumers do not recognise that CE can also be specialised and needs to be charged accordingly.

CE has become important to business but not necessity and it is still somewhat a luxury in the residential market.

Distributors and manufacturers new to CE will have to be very careful with their focus.

Over the past five years I have watched a number of distributors, vendors and even manufacturers hit the wall yet in an industry that has had tremendous growth.

Manufacturers such as Sony and Pioneer have had to change their business models to survive and have suffered massive financial losses during the transition yet these organisations have been producing CE for more than half a century.

So how does a company with so much experience, expertise and vast resources get it wrong?

CE companies have been faced with dwindling margins, consumers have had too many brands to choose from and everyone is fighting for market share, or for a better word corporate greed.

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