The ubiquitous phrase “jump the shark” has become as trite as the Happy Days episode in which Fonzie actually did that.
But you have to admit: it makes sense.
It still applies to TV shows and pop culture. Doesn’t Jersey Shore seem less “culturally relevant” since Snookie got arrested? Doesn’t Lady Gaga jump the shark every time she dresses for an awards ceremony?
The phrase can also be a barometer for your commercial integration business - as in “Have your company’s business practices jumped the shark?”
This industry has changed dramatically over the past few years. The recession forced many integrators to reprioritize while industry trends such as migration to IT-based networks and proliferation of telepresence reset standards. As such, many CIs’ approach to hiring technicians has jumped the shark. Our analysis of the CI job market shows that while companies are hiring again, they’re not hiring the same old employees. The new crop of commercial integrators has more specialized skill sets that are often IT-focused.
Now is the time for commercial integrators to make sure they’re keeping pace with the industry. With help from Mark Coxon of Orange, Calif.-based Orange ProAV, here are some commercial integrator business practices that have “jumped the shark”:
Selling Based on a Line Card: “People are looking for new and innovative ways to control their systems, manage their buildings and associated resources and to capture the attention of their customer base,” Coxon says. “An integrator who sells in a line card-based business limits their offerings to this type of customer, and ultimately limits the solutions they can provide.”
Outdated Business Practices
Has your company dropped these or any other outdated business practices in order to keep pace with the industry? Share your thoughts in our Forums
Banking on Product Margins: Hardware sales are no longer sufficient. CIs must charge for design and service and look at long-term service contracts with recurring revenues rather than live and die by product margins.
Telling Clients What They Need: “Selling from a position of authority is outdated,” Coxon says. “People are more tech-savvy than ever. Online pricing exposes our costs in many cases. Don’t get me wrong, everyone needs some help from a CI to get where they need to go and may need a lot of it - but the story is not about you. Sell from a position of collaboration.”
Relying on Referrals: With more companies bidding on projects than ever, according to CI research, a referral isn’t what it used to be. CIs risk losing tried-and-true clients to trunkslammers or electricians that basically compete on price. It means stepping up sales and marketing efforts, as well as looking at expanding into additional vertical markets to create new revenue streams.
Audio-Only Teleconferencing - Videoconferencing has actually gotten a boost from a tough economy. Companies with tight travel budgets have catalyzed demand for videoconferencing. Meanwhile, demand for audio-only teleconferencing seems to have hit a ceiling. A recent NSCA report shows only 10 percent of commercial dealers’ gross revenue in 2010 stemmed from audio-only teleconferencing.
I’ll stop before his column has jumped the shark, but please share your thoughts on outdated business practices in our forums.
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