6 Ways to Profit in 2009

Things are tough all over. Fortunately, tough times don't last, but tough people do.

While the economic forecast is gloomy, you're not guaranteed to be a victim of the recession. While many factors are beyond your control, there's plenty within your influence.

Nothing lasts forever. The current economic trouble will pass, too.

These six keys to profitability will have your company seeing the light at the end of the economic tunnel.

Have Standards for Repeatable Solutions

For an installation company, efficiency and standardized install procedures are your best friends. Everyone on your team needs to do things the same way, whether it's your designer's vision or how your installers run lines through a house.

Time is money, and you need to make the best use of the time you've got. I like to joke that the reason I'm so big on efficiency is because I'm lazy — doing things right the first time means less work overall, no re-doing things and time saved.

The time you don't spend either re-inventing the wheel or troubleshooting "unique" installations is time you can spend taking on more paying jobs.

Take Care of Your Customers

Great customer service is a drum that really can't be beaten loudly enough. It's the core of what this business is about, far more so than any gadget or technology.

I've had multiple conversations with different people in the industry in the past week, and a recurring theme has been how lucrative being brilliant at customer service can be.

Anyone who's been around the industry a while will tell you the same thing: repeat and referral business will grow your company. If your clients adore you, not only will they keep coming back for more, they'll gladly send everyone they know your way.

Educate the Customer

There's more to informing our customers than simply explaining the technology to them.

Take the story earlier this week of the integrators who challenged their client's assertion that products were "way cheaper online." Overcoming that objection and showing the client exactly why your services deliver value is a perfect case of building an informed customer.

And an informed customer is a happy customer.

Go Long on Retrofits and Renovations

If housing starts were down 2.9 percent in November, clearly there's less business to be had in new homes. But what about the people who've been in their house for a while?

In talking to dealers throughout Canada and the United States, many have told me their renovation business has grown, even if their new home business is declining. Contrary to what you see on TV, not everyone is broke. And there are going to be people who want to fix up their existing home.

I was just on a job site last week where the client opted to add a second story to his bungalow rather than build a new house and needed to add an A/V system to the new floor.

Now is a really good time to market yourself as an expert at retrofit work.

Focus on the Higher End

Lower price entry-level jobs are declining due to the mortgage crisis and the decline in housing starts. One dealer in Toronto reported they're doing fewer small jobs but their six-figure projects have grown.

Fortunately for all of us, there will be some clients who aren't too terribly put out even when the market tanks. It makes sense to cater to the people who have money rather than to those who don't.

Projects that are larger in size and dollar value have challenges of their own, but tackling them with efficiency and professionalism means that big-dollar projects can deliver big-dollar profits, if you're up for the job.

Tackle New Environments

When the market asks for something out of the ordinary, it's a sign that maybe you should be in that business. If the new home prewire market has dried up for you, is there something else that you could be doing?

Two residential systems dealers I know have really got into doing boardroom projects in the last year. The demand was there, often from existing clients, and they already had the expertise they needed, so it was an easy decision.

An Edmonton, Alberta-based integrator client of mine has applied his company's expertise in automation control and room design to tackle a business that otherwise seems tangential to the AV business: custom-designed wine cellars. He saw a demand, realized he could do it and went for it. It may not completely take over for the A/V business, but it's become a lucrative discipline for him.

In the past year, we've seen a lot of bad news in this industry and a lot of stories about dealers and retailers closing their doors. The coming year promises to be just as unhappy, but with some hard work, and attention to profitable basics, it doesn't have to be unhappy for you.

Lee Distad is a freelance CEDIA Certified Professional Designer who offers design and process consultation to firms in the Custom Installation industry, as well as copy writing and other professional writing services. Lee’s business and industry blog can be read at http://www.leedistad.com