A Tale of 2 Companies: Success vs. Failure

While we don’t know all the details of Myer Emco what we can see from the comments made by Myer is that they lost touch with the market, the category, who they were and paid the ultimate price.

This should serve as a HUGE warning to dealers in the market. Sure they will point their nose in the air “That won’t happen to us” attitude. But as long as the dealers in the CEDIA channel remain LAZY, yes I said LAZY, the clock is simply ticking on them all.

There is no excuse why the dealers are still supporting product lines that can be shopped online, distributed to any trunk slammer and basically eroding the market. If a manufacturer needs to use the “broad” distribution model excuse to grow then find another provider. It’s BS that dealers are accepting this. In every category there are products that are from other suppliers that will perform just as well and still allow you to offer clients performance, value, enjoyment and allow you to support your business. We, the collective, CEDIA channel have allowed this to happen.

When products you sell can be seen, shopped and priced on Amazon, Best Buy, etc then you de-value your company. If you don’t mind that then shut up, go to a labor only model and good luck.

In regards to this comparison how about some real meat to a story. You can never compare a company that does alarm work to a custom retailer, or integration firm, unless they do alarms. Alarm business has RMR which is WHY they are still in business. Come on cover the whole story not the surface that makes it seem like these two firms were similar in scope, product, market and approach.

My two cents…focus needs to remain on the value added service and knowledge.  Many clients recognize and/or request the more familar broad market brands.  Often they’re suspicious of a lesser known brand.  The CEDIA channel can bring those devices into a project (within reason), but make them part of a better overall solution that no big box or online retailer could ever provide.  Raise the value of your business by the expertise you demonstrate and your ability to teach the client about the technology you’re installing.

My number one recommendations for dealers right now is to read “Linchpin” by Seth Godin.  In his new book he says that if you want to compete in this new world you must once again become an artist.  I couldn’t agree more.  1) Develop your artistic edge in this industry and focus on relationships, not transactions.  2) Become the “linchpin” and THE source of knowledge in your area when someone thinks of work in your discipline. 3) Give information away freely and people follow you (think of popular chef’s teaching how to cook and building their own brand) and buy from you (chef’s then sell millions of cookbooks).