Walmart, NEW Talk Installation Program

When specialty audio/video installers learned that Walmart and Sam’s Club began rolling out an “HDTV and home office installation” program to 3,600 stores, it spurred some questions.

The biggest ones:

• Can a big-box retailer handle installation?
• How will the company’s massive reach affect relatively small CE companies?

First of all, Walmart doesn’t intend to handle installation, explains spokesperson Melissa O’Brien. “We aren’t in the business of installation; we’re in the business of retail,” she says.

Dave Tovissi, meanwhile, has been in the installation business for years. As senior director of delivery and installation for Walmart partner NEW Customer Service Companies, he’s the guy in charge of making sure Walmart installations work.

Tovissi was vice president of custom design and engineering for Sound Advice, a Florida-based 33-store specialty chain. When Sound Advice was acquired by Tweeter, he was retained to run the entire company’s installation department.

After Tweeter, Tovissi was president of Criteria, a Dania Beach, Fla.-based custom installation company.

So, if he’s a custom installation guy, why is he working with Walmart?

NEW Approach

NEW has actually been working with Walmart for years providing extended service plans for the retailer. It partners with other retailers as well as manufacturers.

Tovissi says NEW saw an opportunity to build a network of professional installation providers across the country that it could manage on behalf of its retail clients, but he acknowledges that custom installers don’t necessarily warm up to the idea.

“When you’re a small, independent and you feel you have a premium service, you kind of pooh-pooh the networks that are out there because [you feel] nobody can do it as well as you,” he says. “But the industry has evolved. Whether people are buying products online or from Walmart, the level of installation that’s required to do it shouldn’t change.”

Brian Hertia, director of delivery and installation service management, maintains that NEW has high standards for its network of 11,000 installers. He says they are certified, but he can’t make a blanket statement about types of certification because installers are enlisted to do different things.

“There’s no rubber stamping,” says Hertia, adding that everybody is licensed and/or certified for what they are assigned to do.

The vetting process for NEW installers involves checking of references and submissions of W9s and copies of their licenses, says Hertia, who was national training manager for Lutron and director of product development for AMX.

“You have to go [the extra mile] because there is so much at stake when we’re representing large corporations,” Hertia says. “One little mistake gets amplified, so everybody that comes on the network has to have a strong background.”

A little more than 50 percent of the installers in NEW’s network are audio/video installers, Tovissi says, “meaning they have some kind of certification from CEDIA or InfoComm.

Hertia says computer system installers have either Microsoft or CompTIA certification. NEW also has licensed high-voltage electricians in its network for projects that require, for instance, the installation of an outlet near a flat panel.

“[NEW] actually [has] higher standards than I ever had as a small business entrepreneur or even when I was head of installation at Tweeter and Sound Advice because the microscope is on us,” Tovissi says.

Every installer owns or works for a business that does installations — no independent installers, Tovissi says.

Walmart’s Way

It’s been hard to miss Walmart in the news lately, battling Best Buy for position in a post-Circuit City electronics retail market. O’Brien, however, says that perception is wrong and that Walmart began enhancing its electronics offerings about three years ago.

“We added some high-quality brands — Sony, Sharp — and began making investments in HDTV," she says.

O’Brien says Walmart recognized that there is “a select group of customers” interested in higher-performance electronics who “also wanted the service component with it.”

Walmart saw an opportunity to grow its market share and it sought a “cost-effective, competitive way that we can provide this service and do it in an easy way that the customer can understand,” O’Brien says.

It tested installation in select Texas stores in 2008, and O’Brien says Walmart learned a lot from that venture. It ultimately led it to turn to NEW, its warranty company, to roll out a program.

What’s Different?

NEW’s rollout of installation services for Walmart and Sam’s Club comes with the benefit of seeing what others have done. Tovissi says NEW's infrastructure sets it apart from installation networks like Installs.net, Zip Express Installation, OnForce and Install It Today.

“NEW has 11 call centers across the U.S. taking over 22 million calls per year on behalf of their clients," Tovissi says. "It has systems and procedures that have been in place for over 25 years in the event that a service event needs to be escalated up the chain of command.”

That being said, installation is “one of the hardest product offerings that most retailers struggle with,” says Joe Romano, NEW’s VP of sales and client development. He says they tend to struggle whether they do it themselves or hire contractors to do it.

The quality of the installer network is the difference for NEW, according to Tovissi. He says NEW uses proprietary software that allows its management team to see how well each installer is performing.

A particular benefit to NEW’s procedure, Tovissi adds, is a system that requires a customer service call to the in-home client before the installer leaves. He says that conversation goes a long way toward ensuring a happy customer.

It’s in the interest of NEW’s installer network to make sure the customers are happy. “These guys are pros,” Tovissi says.

Benefit for Installers?

When a custom installer in NEW’s network enters an installation customer’s home, he represents NEW’s client — Walmart or Sam’s Club, for instance — and not his own business.

“Their work order says they’re there on behalf of the retail partner,” Tovissi says, adding that they don’t go so far as to have installers wear the retailer partner’s shirt.

Once inside the client’s home, NEW installers can’t initiate any up-sell conversations representing their own companies or the retailer. “They’re bound by a contract that says they can’t solicit,” Tovissi explains. If an up-sell is initiated by the customer, the installer can close it for the retailer. He then calls back into the call center and the additional work is added onto the work order.

“There is a revenue share with upgrades,” Tovissi says. “The installer gets the largest part.”

NEW is looking to expand its installer network and invites CE pros to visit its Web site. “We’re looking for qualified installers," Tovissi says.

NEW’s network and its relationship with big-box retailers like Walmart can actually benefit CE pros, according to Tovissi. He envisions CE pros joining the network as a way to stimulate cash flow and keep installers busy or expand their installation team.

“Imagine a small dealer that only has two installers. They can actually sell additional work," he says. "That [aspect] isn’t formulated yet, but it’s going to happen down the line. They should reach out on the Web site and apply to be a dealer. It spells out the requirements.”

Big-Box Marketing

It stands to reason that Walmart will support the installation rollout — even if it’s aimed at a “select group of customers” — with advertising. However, O’Brien won’t comment on “future strategies.” She adds, “Right now, it’s [the installation program] just rolling out in stores.”

Walmart could be the tip of the iceberg in terms of retailers using NEW to roll out installation services. “We keep our client list private,” Tovissi says. Tovissi also says NEW does warranty work with several high-profile retailers.

NEW’s Web site lists awards including:

• Walmart Supplier of the Year
• Office Depot North American Retail Vendor of the Year
• BJ’s Projection Plus-Partnership Award
• Sears Holdings Partners in Progress Award
• Best Buy BRAVO Partner of the Year Award

With more manufacturers selling direct to consumers, Tovissi says that NEW recognizes an installation opportunity. “We already work with several manufacturers,” he says, listing Lorex, Level Mount and Sanyo. “We are Sanyo’s HD pit crew.”

So if the Walmart and Sam’s Club installation venture is successful, who knows where NEW will be installing next? With the Walmart Installation rollout now complete, we’ll soon find out.