Audio Visual reseller opinion: Convergence a blurry subject

Consumers are being attracted to gimmicks like a fish to a lure, ending up with something that is often be too good to be true.

Only six years ago an 87cm CRT TV cost $5,000 or more, now we are selling 107cm plasmas for $1,500 or less while competing in a world where petrol has almost doubled, the cost of groceries are now outrageous, and the real estate market is out of control.

More features and less price but increased business running costs means that something has to suffer and that is generally quality and / or poor level of service.

Products bursting into flames, repair agents backlogged with repairs and disgruntled consumers with the lack of service are a good indication of how the industry has been cheapened.

Our organisation functions as an integrator and focuses on the high end markets servicing both residential and corporate sectors but we have had to adapt to changing marketplaces.

We focus on providing a good quality product, a high level of service and return on investment however our organisation is only as good as the staff we employ, the products we sell and the backup support provided by our distributors.

With this in mind it will be hard work for any IT distributor to crack the integrated CE market.

Every time an integrator has an issue with a product a large amount of time and money is wasted which is not picked up by the customer nor the distributor or manufacturer. The integrator more often than not has to wear it.

By using manufacturers that are well established, distributors that know the product line extensively and brand names well known for quality product we reduce potential problems and can maximise profits.

An integrator looks for limited distribution, strong margins and a reliable product. Labour costs have to be subsidised by product margins and it is typically expected that you support the solution for 12 months without any further remuneration so these costs have to be absorbed somewhere.

Uptake on maintenance contracts can be difficult to procure and again with service rates being low, labour recovery must be very high to match or exceed outgoings.

It is exciting to work in an evolving industry and we welcome change and new people however it is important that people understand the complexity of it instead of focusing on the potential financial benefits.