Integrator Uninstalls, Resells A/V Gear from Foreclosed Homes

It's sad when customers foreclose on their homes, but Tony Tangalos of Scottsdale, Ariz.-based Simply Home Cinemas (SHC) is making the most of the situation.

At the request of a beleaguered homeowner, SHC will pull out a customer's rightful A/V property, including home theater seating, screens, projectors, equipment racks and other gear that legally belongs to the original homeowner.

SHC stores the gear until a new homeowner moves in, at which point SHC attempts to sell the equipment at bargain prices (about 40 percent off retail) and install it at standard labor rates.

All proceeds for the equipment — less SHC's fee for uninstallation and storage — goes to the original homeowner. If the new resident declines the product, SHC can sell it to another client.

"Some of these homeowners are too proud to admit they are in foreclosure," Tangalos says. "We offer a dignified service where they can recover some of their expenses."

He tells of one formerly wealthy individual who was so ashamed of his foreclosure that he simply left his expensive A/V gear at the property.

The Phoenix area's economic misfortunes are proving to be decent business for SHC, a traditional high-end home theater installation firm. Tangalos says that in the last 24 months approximately 16 percent of SHC's clients have foreclosed or are going through the process. "And that is only the ones we know of," he explains. "A few more probably were too embarrassed to reply to our offer."

According to Tangalos, the “close rate” has been high.

"I can tell you that the Simply Home Cinemas clients who are able to get 40 percent out of their cinema gear and furnishings are really grateful to receive this money after experiencing foreclosure," Tangalos explains. "Many did not know they could do this until we spelled it out for them, and they in turn are very grateful to Simply Home Cinemas for creating a way to put money in their pocket at a most difficult time."

Below is the message that SHC sends to potential clients:

Greetings valued SHC clients,

In the last 12 months, Simply Home Cinemas, LLC. has experienced an increasing number of requests from clients asking us to retrieve and store their cinema equipment and furnishings, usually as a result of foreclosure.

In these very difficult times, if you also find yourself facing the prospect of foreclosure, and you want to retain the value of the cinema equipment and furnishings, Simply Home Cinemas, LLC. can retrieve the cinema equipment and furnishing for you and store them at our office / warehouse condo.

Benefits include:

• Preserving the value of your cinema gear and furnishings from the foreclosure process.
• Storage in a very clean, air conditioned warehouse with easy access during business hours.
• Storage rates below the cost of your renting your own storage space.
• Simply Home Cinemas, LLC. inventories and fully insures your equipment and furnishings. Something storage facilities do not offer.
• CCTV surveillance of our warehouse inside and outside with a 7 day event recorder.
• If you want to liquidate your gear, Simply Home Cinemas, LLC. will buy it back from you.
• We also offer the option to sell it on consignment for you to one of our upcoming cinema clients.
• Your best option is to re-sell the gear to the eventual buyer of your home, this will maximize your revenue.
• One call takes care of it, no hassles, worries, etc.

I regret that our economy is so tough and was reluctant to send out an e-mail about such a sensitive subject, but recently, the demand for this service is clearly increasing. As a residential luxury goods provider, our business revenue is down considerably, but fortunately, we have enough cinema business to keep our doors open for business and keep our bills eventually paid.

May the economy pick up in the last half of 2009 and bring prosperity back to the valley of the sun.

Thank you again, for your business. Without you, our valued clients, we would not be here.

SHC's strategy is similar to that of Las Vegas-based Eagle Sentry, which is finding opportunity among buyers and Realtors of foreclosed homes.


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