3 Tips on How to Lead With Control

"Lead with control" is the latest specialty electronics industry buzz phrase. Unlike some now defunct buzz phrases, like "bigger is better when it comes to speakers," this one may have some legs.

Control is so important right now. Let's be honest: consumers don't need specialty retailers or custom installers as much as they used to for audio or video.

They don't seem to care all that much about high-performance audio, and they can fill their homes with HDTVs bought for just-above-dealer-cost.

What consumers can't necessarily do when they get that equipment home is control it, especially all through one device. The ability to program universal remotes that allow consumers to easily control their systems "is the one big competitive advantage [specialty dealers] have over big-box retailers," says Frank Sterns, president of Niles Audio.

It's also the specialty dealer's best defense against low margins.

Put another way: "Consumers are confident that most A/V equipment will produce acceptable sound and picture quality," says Scott Harrington, product manager for the Logitech Harmony remote line. "This drives commoditization, online or otherwise. However, with consumer needs remaining relatively unmet on ease of setup and use, this creates an attractive opportunity for retailers able to offer these services."

Sure, they can buy universal remotes for rock-bottom prices online, but it takes an expert to program it. Even enthusiastic DIYers who may be capable of programming a remote and configuring a home theater are often willing to pay for expert programming, says Harrington. He lists three reasons:

• Convenience of having setup handled
• Guarantee that it will work
• Security that they can get assistance if they want to upgrade or change their system

So even though specialty retailers may have lost some audio/video selling leverage, they still hold the cards when it comes to control. The key, says Universal Remote Control director of marketing Jon Sienkiewicz, is leveraging it.

"We like the example of the Jarvik 7 artificial heart. Even if you can buy one online, you need a trained professional to install it," Sienkiewicz says.

The great thing about adding that value is that it allows specialty dealers to charge more. "Unlike big-box stores and online retailers," says Pete Baker, VP of sales and marketing for Remote Technologies, Inc., specialty retailers "aren't simply providing off-the-shelf products, but a professionally designed and installed system."

The beauty of earning higher margins on universal remote sales and programming is that it's not smoke and mirrors. It's not even subjective. It's real, tangible value, points out Philips Pronto product manager Dick Mol. "Due to the enormous amount of different home control products on the market with different infrared codes and behaviors, configuring a universal remote is not easy for an end user. In many cases, only basic functionality is achieved," he says.

Also, each manufacturer "pushes its own user interface," Mol adds, "so there is no consistency." By offering a customized user interface adapted to the exact needs of the customer, he says an installer truly adds value.

The trick, though, is conveying that value to customers — and selling it. To that end, several universal remote manufacturers offer dealers the following tips.