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5 Tips for Going Commercial
Five things to consider when going commercial.
One business category that's proven to be somewhat insulated from the recession is the commercial sector.
Installers contemplating the move into the commercial realm, however, need to consider that the transition involves more than the choice of electronics, according to Hingham, Mass.-based Advanced Communication Technologies (ACT).
The CE pro derives anywhere from 15 percent to 25 percent of its revenues from the commercial sector. In fact, ACT's majority owners, Paul Diggin and Keith Bartholomew, formed the company through their previous experience in the commercial sector. They call upon that background on a regular basis as a means to augment the company's revenues.
"Our experience was quite extensive actually," says Diggin. "Keith was a project manager for a consulting firm that designed and did construction oversight for large communication and audio/video infrastructure projects. I was a manager for an engineering firm with a focus on large-scale commercial development projects."
Diggin explains that in addition to the differences in electronics, there are distinctions such as the testing and specifications of the installed systems, the scale of the jobs and the application of products when considering commercial projects.
Beyond those factors, Diggin recommends that installers think about the following points before entering the commercial space.
Commercial projects have lower margins. That means jobs need to be estimated more accurately to ensure proper profit margins.
Stay away from large-scale commercial projects. "A residential-focused firm does not [typically] have the product mix, credit lines and low overhead needed to perform these jobs to make a profit," he warns.
Mine your existing customer base. "I'm sure many of those clients are managers/owners of companies and they could help refer them for projects."
Make sure you create marketing literature. "You should have collateral, whether that is a commercial brochure and/or project descriptions," says Diggin. "This, combined with a letter, has been successful for us."
Stay active in business groups such as the local chambers of commerce. "Try to forge some relationships with firms that perform a great deal of work in the small- to mid-size business arena," notes Diggin. "For example, at ACT we have built relationships with a couple of firms that now refer us to their clients for any audio/video work."
Commercial is one of six pillars of EHX Spring 2010, Orlando, Fla.
Installers contemplating the move into the commercial realm, however, need to consider that the transition involves more than the choice of electronics, according to Hingham, Mass.-based Advanced Communication Technologies (ACT).
The CE pro derives anywhere from 15 percent to 25 percent of its revenues from the commercial sector. In fact, ACT's majority owners, Paul Diggin and Keith Bartholomew, formed the company through their previous experience in the commercial sector. They call upon that background on a regular basis as a means to augment the company's revenues.
"Our experience was quite extensive actually," says Diggin. "Keith was a project manager for a consulting firm that designed and did construction oversight for large communication and audio/video infrastructure projects. I was a manager for an engineering firm with a focus on large-scale commercial development projects."
Diggin explains that in addition to the differences in electronics, there are distinctions such as the testing and specifications of the installed systems, the scale of the jobs and the application of products when considering commercial projects.
Beyond those factors, Diggin recommends that installers think about the following points before entering the commercial space.
Commercial projects have lower margins. That means jobs need to be estimated more accurately to ensure proper profit margins.
Stay away from large-scale commercial projects. "A residential-focused firm does not [typically] have the product mix, credit lines and low overhead needed to perform these jobs to make a profit," he warns.
Mine your existing customer base. "I'm sure many of those clients are managers/owners of companies and they could help refer them for projects."
Make sure you create marketing literature. "You should have collateral, whether that is a commercial brochure and/or project descriptions," says Diggin. "This, combined with a letter, has been successful for us."
Stay active in business groups such as the local chambers of commerce. "Try to forge some relationships with firms that perform a great deal of work in the small- to mid-size business arena," notes Diggin. "For example, at ACT we have built relationships with a couple of firms that now refer us to their clients for any audio/video work."
Commercial is one of six pillars of EHX Spring 2010, Orlando, Fla.
Guide to Going Commercial
 | Your Guide to Going Commercial Sixty-nine percent of you complement your residential projects with commercial work. We're here to help with all things commercial. 5 Tips for Going Commercial As residential CE pros migrate into B2B projects, here are some key differences to consider. 5 Vertical Commercial Markets Small office, restaurants, retail, churches and hotels are common transition markets." Blog: Are You Ready for Commercial Installations? The commercial market opens up a whole new arena for residential companies to ply their customer service and installation skills. 7 Problem Solvers for Commercial Installs A high-tech donut, a motion-sensing speaker and whacky acoustical panels provide CE pros with A/V flexibility. 13 Install-Friendly Commercial Video Products Here are 13 interesting commercial video products for your consideration. | |
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About the Author
Robert Archer, Senior Editor, CE Pro
Bob is an audio enthusiast who has written about consumer electronics for various publications within Massachusetts before joining the staff of CE Pro in 2000. Bob is THX Level I certified, and he's also taken classes from the Imaging Science Foundation (ISF) and Home Acoustics Alliance (HAA). In addition, he's studied guitar and music theory at Sarrin Music Studios in Wakefield, Mass.
1 Comments (displayed in order by date/time)
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Mining your current clients is a good one.
One of our customers installed a home theater for a client. He was so happy with it, they started discussing the class rooms of the school he worked at.
The result: a nice 150 installs extra over the period of about 1 year.
Sure, that’s not going to happen often, but it shows the potential…
Otto
beamax.com