If you’re an integration firm and adding significant service revenue to your bottom line and cash flow in 2019 isn’t already your New Year’s Resolution, well, it should be.
AV integration firms have long been plagued by dwindling margins on projects and product sales.
Meanwhile, there is significant business risk for companies that don’t prioritize adding more service revenue which will not only offset dwindling margins but create a stabilizing stream of recurring revenue.
Early returns from Commercial Integrator’s 2019 State of the Industry survey show that the AV industry’s service revenue problem is reaching a boiling point.
Consider these AV integration industry service revenue trends:
- More than ¼ of respondents earn $0 (zip) via service revenue
- 59% say less-than-5% of their revenue stems from service (so very little impact)
- Only 4% say more than 1/3 of their revenue stems from service
- 45% have not sold a single managed services contract in the past year
- Only a quarter of those surveyed even have a goal to have more than 1/3 of their revenue stemming from service by 2025
By far, the scariest piece of data is that last bullet. It shows that most AV integrators don’t even have a goal to address profitability and margins challenges by shifting to more service-based revenue.
New Year’s Resolution Challenge: Add Significant Service Revenue
Don’t let your AV integration firm settle into these business-stifling trends. Make it a priority to add more service revenue in 2019.
Register for this free webinar presented by Commercial Integrator and Almo Professional A/V. You’ll learn at least four steps that your integration firm can reasonably and easily take during 2019 that will almost certainly help you add significant service revenue.
Join CI editorial director Tom LeBlanc as he moderates a discussion with Almo Pro A/V business development managers Jay Saret, Eric Olson and Robert Voorhees as they lay out strategies for you to execute to improve your service revenue and cash flow in 2019.