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Hundreds of Dealers to Open ‘Connected Source’ Stores
HES announces Connected Source during ProSource Summit. Pictured: Chad Evans, District Manager; Jim Ristow, VP; Andy Orozco, communications director
The store, called Connected Source, is an initiative of ProSource, a dealer group formed by the merger this year of the PRO Group and Home Entertainment Source. ProSource, a division of AVB/BrandSource, is a consortium of 550 specialty A/V retailers and custom integrators with more than 950 storefronts and $3.6 billion in retail sales.
While the group of independent resellers provides a united front to vendors, it does not do the same for consumers. There is no single brand to market nationwide.
Announced during the ProSource Summit in Orlando this week, Connected Source is a store-within-a-store concept “like Magnolia is to Best Buy,” says Jim Ristow, Executive VP of HES.
Connected Source: 'Sort of Like True Value'
ProSource members buy into the program as they might for a franchise, but Connected Source is not a franchise. Members, for example, pay no royalties.
But they must build a space within their business – roughly 300 square feet – to the exact specifications of Connected Source. Everything will look the same from store to store, from the signage to the products to the demos and even the paint colors and flooring.
“We have the perfect space for it,” says Chris Caston of Innovative Concepts in Decatur, Ind.
Caston was one of many ProSource members eager to sign up for Connected Source. During the Summit announcement, roughly two-thirds of the attendees raised their hands when asked if they were interested in the program.
At a loss for how to use their spare space, Caston and his wife Tina said they appreciated the “canned solution for merchandising all of these technologies."
They also looked forward to a national marketing campaign for the brand.
“I think that’s the boost we independents need,” Chris Caston says. “When they Google it [Connected Source], it looks all the same.”
Dealers keep their own company names, but enjoy the additional Connected Source branding "sort of like True Value," says Ristow. "Like you might have Tom's True Value."
Retailers aren’t the only ones to benefit from a national brand, says Ristow: “Vendors get a consistent presentation nationally.”
In addition, Ristow explains, “Vendors all want a national referral network,” which can be achieved through Connected Source.
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Article Topics
News · Events · Big-Box Retailers · Buying Group · Home Entertainment Source · Pro Group · Prosource · Connected Source ·About the Author
17 Comments (displayed in order by date/time)
Is this a fake Jeremy Burkhardt? I don’t see any typos.
You should see my iPhone screen, it is so cracked and I just guess where the letters should be. Haha, I am at a real keyboard.
Sounds like a great premise. But the execution and pricing will be critical.
Starting with brands like Monster and Sonos that are widely available in brick and mortar and as well as online seems a bit counter intuitive. Superior service is great, but how much service does one need to buy Diddy Beats?
Control4 is an interesting choice as well. Will sowroom owners be forced to choose which automation system they want to support?
I absolutely love this concept and I think it is powerful to be able to have a united front, especially for some of the smaller dealers and integrators. I can’t help but wonder, in this day and age, where is the home health technology section? This year (2011), according to the Federal Interagency Forum, is the year that the Baby Boomers (78 million of them) start turning 65. Seniors and their families are desperately seeking solutions to stay at home - and there are many companies (GrandCare is one of many) that allow this through sensor-based remote monitoring technologies, tele-presence, home modifications, telehealth, smart home automation, socialization <think social networking for seniors>). To me, it would seem this would be a natural component of this new model…
Good comment Laura. Having been an executive at Monster Cable for over 8 years and now as CEO of Presto and board chairman of AgeTek, I am really surprised to see Connected SOURCE having such a predictable product lineup. I wrote about this more on the AgeTek blog: http://wp.me/p1kA0T-18
Laura and Peter—I’m sure you can appreciate that the group needs to go after the low-hanging fruit, which home health technology currently is not. Furthermore, the participating vendors are investing quite substantially in the program and I wonder if any of the current aging-in-place players could/would make such an investment.
I Know this is a lot to ask but, can someone buy something from Speakercraft so Mr. Burkhardt can buy a new phone?
and a grandcare system too…unless you don’t care if my kids don’t have shoes…
I’m sure Linear, who has been a partner for 4 years, would be interested in stepping up with their PERS product line if Ristow and team are interested.
Have to admit I’m a little confused by the approach here. Magnolia works as a store within a store because it gives the client the feeling of a more elegant solution than their original grab and go box approach of best buy. The stores that would buy into this program should already have an elegant name. Personally, if I were a customer I would be confused. Buying power I understand but they certainly arent the first to try to align dealers for better buying power.
The organized approach to a showroom may be a value add for some dealers without the in house capabilities to do so.
The added lines is niced but balanced out by requiring dealers to sell and install these brands over what may be better solutions for the client.
I don’t really get this either. From a customer’s perspective, what is the relationship of the offering within the Connected Source portion of the retail space to what’s offered in the rest of the space? This relationship is clear with Magnolia (as it is with True Value which applies to the entirity of the space), but I don’t get it in this case.
With all due respect to Julie’s “low-hanging fruit” comment, that’s just another way to say “nothing really new here.” My point was that Connected SOURCE could benefit greatly from one additional aspirational product category that would act as a unique, new draw, and I’m suggesting that could be “home health technology.” With one additional category, representing possibly 4 or 5 different value propositions, it makes the whole concept aspirational in a way that it isn’t in its current configuration. Not just aspirational from a conceptual viewpoint, but from a potential for new business viewpoint, as well. It turns “Connected SOURCE” into “Connected LIFE” because of that one additional connection to PEOPLE instead of just entertainment.
By the way, it’s easy to snipe on someone else’s concept. I present the above thoughts with the best of intentions and highest humility, and hopes that they offer some value. Best of luck to all the companies involved with Connected SOURCE. If the Aging Technology Alliance can assist you in any way, please contact me through http://www.agetek.org.
Peter Radsliff
AgeTek chairman & Presto CEO
Great questions raised. The way I see it is that it’s not so much a benefit for consumers as it is for specialty AV retailers and integrators who get a turnkey merchandising program and national branding. I guess from a consumer’s point of view, they get some great demos on home automation and connected entertainment—something that’s difficult to find at many custom shops. They will also have the ability to get consistent offerings from store to store. I see great value for resellers.
Julie, in my opinion it seems like you become more disconnected with custom retailers with every article of yours I read. The first thing we have to remember is that HES is in business for themselves. The Flat Panel TV boom is over, and HES needs a new revenue source. While Connected Source will be attractive to the local appliance dealer to occupy a space previously filled with TVs, it won’t help me as a custom dealer with a showroom at alI. I don’t want to sell the very same thing as 2 or 3 other dealers in my market. Also, I don’t want my showroom to look like anybody elses - anywhere. The very term “custom” means “Made or done to order for a particular customer”. I feel that this will get alot of high-end equipment into the hands of people that can’t fully commit to high level of customer service that this equipment needs, and will turn the few remaining “elite” products into a commodity. HES will definitely destroy these products, just as many big box stores and the internet has already done for their own benefit. All while hiding behind “the unified front” guise. I agree that more awareness of these products needs to be made, but going about it in this way is a big mistake. Jeremy,(if that’s really you) I’m suprised at your reaction. Manufacturers need to actively seek out talented integrators with showrooms and help them with local and internet advertising. DirecTV provides a small amount of co-op with every sale. What ever happened to that? It seems to be working for them.
Awesome work guys. This idea will help consumers have a better buying experience. It will also be a huge benefit for dealer marketing, manufacturer relationships and merchandising and if for some reason someone wants to sell their business this is a huge plus.