A Tale of 2 Companies: Success vs. Failure

They are two companies with two very different results.

MyerEmco is shutting its doors after 55 years; American Alarm is thriving in a down economy.

So what's the difference?

Tale of the Tape

When Jon Myer, CEO of MyerEmco, spoke about the closing of the specialty retailer, he offered up several words of advice for those in the custom electronics industry.

Among them was an urging to "reset into a new type of business."

MyerEmco once counted flat-panel displays as 45 percent of its business. But when vendors did not pay for months, it essentially had to finance its own sales. Items that were once a staple of Myer's revenue were being competitively sold by big-box retailers. The company also took a hit when the pre-wiring business dried up.

Despite the decline in traditional recurring revenue sources, there are still opportunities out there. The CE industry is no longer just about flat-display panels and home theaters.

American Alarm, in Arlington, Mass, is thriving, generating about $800,000 in recurring monthly revenue. It's a solid base that keeps this security company strong even during recessions when installation revenue drops.

Focusing on Recurring Revenue

It's why recurring revenue is a focus at EHX Spring 2010 (March 25-27 in Orlando, Florida). There, attendees will learn about recurring revenue opportunities in a dedicated track featuring in-depth training from proven integrators and expert analysts. At EHX, CE pros will:

• Get an itemized list of 28 different recurring revenue opportunities from a CE Pro Super Session
• See how one dealer sells extended service contracts for 5% of the systems costs
• Learn to create 2-tiered service agreements that people will buy
• Get formulas to get recurring revenue program off their to-do list and into action

Despite the closing of his business, Myer has not ruled out a return to the industry. However he knows that he could not survive in the future relying on the products of his past. Let's hope he chooses to include recurring revenue elements to his new venture.

Learn more about the Recurring Revenue Track at EHX Spring 2010.


Electronic House Expo Spring 2010: The New Opportunities Show, March 25-27, 2010, Orlando, Fla.
Smart Energy | Commercial | Home Health Tech | Recurring Revenue | Digital Content | Retrofit

---