Walmart to Emphasize 1080p, Blu-ray in Technology Shift

“Having a prominent channel through which high-performance audio/video manufacturers can sell products is important, says Jim Ristow, executive director of Home Entertainment Source. Otherwise, “vendors will stop making those sorts of products.””

Do You really expect that Walmart will keep vendors making high performance products?  I guess if you consider entry level TV lines and brands, HTIB audio\video systems high performance then your right.  Walmart has never been and never will be a place for the “high performance” products that I think you are referring to.  They have never and will never have a pay scale that anyone with the experience and talent to sell the leading edge products would accept.  It’s not in their business model. So for the most part the customer is on their own.  Interactive displays do not do much for high dollar items. Even Tweeter tried that route and we can see how that worked out.  You need a live intelligent person to move product like this.  The real reason Walmart and companies like them have some success with CE products is they buy in huge volumes and beat down their vendors on price.  So if you folks in the industry like low margin sales then Walmart is your ticket to help you get there fast.  I don’t know about you, but I like to make a reasonable amount of money for my time and effort. Don’t you?

To Dave S.: Tell us how really feel!

Kilroy,

Good points, but just to be clear ... Ristow wasn’t talking specifically about Walmart. He was speaking generally about the benefit of having a large specialty electronics operation.

@Dave Stevens and 39 Cent Stamp:

Please refrain from derogatory speech while at CE Pro. While we hesitate to close comments, your comments have been closed.

Jason,
I hesitate to list my credentials on this site as a professional comedy writer for years with major networks. Just ask Julie and she’ll fill you in.

With that being said, I deal with “Standards and Practices” everyday regarding content and language and know the rules. I also understand you have every right to censor posts that you might personally find offensive or derogatory.

However, “personally” is the key word here. If you find the words, “Mexican,” or, “religious right,” offensive, you are way off the mark my friend…

Thus, and with all do respect, please re-post my past comments regarding Wallmart, and feel free to replace the word “Mexican” with, “Those of the indigo skin and tightly woven hair,” and “religious right,” with, “Bible thumping A**holes,” if it makes you feel better.

Even though I very much enjoy reading 39 stamp’s
posts, I do agree that his comment was over the line. Yet, I still found it quite humorous.

I’d re-post it myself, but Kilroy stated the point I was trying to drive home more eloquently, so I’m more than pleased with his position and comment.

Anyway, I’ve got a joke for you: A Christian Mexican walks into a Wallmart and…

Thanks for the response Dave. What I personally find offensive is not the question here; it’s what CE Pro has decided to allow and not allow.

Have a great weekend.

Dave, stay on topic dude! That’s all we’re saying. Feel free to email me and H personally with your OT witticisms…

OK mommy & daddy… I’ll be good.

Now back on topic:

The only interactive displays that have ever worked at Wallmart are the “door greeters.” This is also the closest they’ll ever come to properly displaying HDTV because Willard Scott announces their birthdays Monday-Friday during Smucker’s Jelly commercials on the Today Show.

I am used to getting my nose smacked with a newspaper. Sometimes its worth it, sometimes it aint’

Wow how pathetic and sad this has become. Not the censorship. CEPro has the right to take down anything they feel offensive to their readers.

What it pathetic is that Dave Stevens doesn’t understand that he is simply a jackass!!

“I deal with “Standards and Practices” everyday regarding content and language and know the rules.” You know what rules. The rules of an ignorant ass!?!?! Well then sir congratulations. What does your lofty and pathetic comment about “Standards and Practices” AND “Just ask Julie she’ll fill you in” have to do with your posting a comment that is just plain stupid.

Whoever and whatever employee is selling or taking a product to a car has no bearing on the real issue of this article. And to me once again shows that if your truly an owner, or even somebody who is trying to make a living in the CE market then you part of the ignorance that will ultimately have you going the way of the dinasour.

To all the dealers who are upset at this move then WAKE UP. I’m so tired of seeing and hearing complaints about distribution and how the manufacturers are watering down the industry. What have you done about it! Put your money where your mouth is or just SHUT UP. So many bitch and moan to the sales rep or manufacturer about these moves. This serves NO Purpose.

Follow me here folks….If a manufacturer see’s that they can get a commitment of $X from opening distribution the first thing they run is a risk analysis to see what percentage of real sales will they lose from $Y when this is done from current dealers. So when you bitch, blog, moan and cry like a baby to point out stupid comments like you did then you MISS THE POINT. If the $X revenue from distribution is greater than $Y lost from dealers then all they do is laugh at you to the bank.

If the CEPro dealer is worried about losing the client to Wal-Mart then you don’t know your clients and/or aren’t creative enough to separate yourself from this type of sale and service.

So keep yourself serving “funny” comments that only you find amusing to yourself and keep telling yourself how important you know the “Standards and Practices” and that “Julie Jacobson knows me”. All your comments prove is that there are still a percentage of industry people who just don’t understand how and where this industry is heading. Or even understand how to adjust to the light of the train coming down the tracks that you can’t stop. Instead sit on the tracks and call the conductor an idiot.

To JoeAV: The rules I know about “Standards and Practices” are and have been within my contracts with NBC, CBS, and Comedy Central for years. CE Pro owns this site, and I have already admitted that they have every right to censor whatever they may deem inappropriate or offensive to their readers.

It is also the right of any distributor or manufacture to sell to whomever they choose. However, and unfortunately, it now goes to the highest bidder.

It is this attitude that you share with some manufacturer’s that killed Pioneer Elite TV’s, (as only one example), which are and were without question the finest flat panel TV’s in the industry.

If you think for one second that distribution belongs or deserves to go to the highest bidder, you don’t belong in this business. Distribution is what separates true knowledgeable high end professionals and clerks that work at Wallmart.

There’s a reason why you can’t purchase Wilson Watt Puppies at Home Depot even though they have the capital behind them to purchase more speakers in a single store location than every authorized high end dealer Wilson now sells to in the entire country. If you don’t understand that analogy/concept, again, you don’t belong in this business.

I take you calling me a “jack-ass” as a compliment and I’m pleased that I don’t meet your “Standards and Practices.”

The electronics department at walmart caters to a specific breed of gadget buyers. The guy buying a ‘flatscreen’ at walmart has never bought a ‘flatscreen’ before and probably never would have if they were not available at walmart. Walmart will most likely do ZERO damage to anyone involved in the CI industry. If anything.. IMO it will open doors that were not their in the form of control system and installation sales.

But.. Bestbuy should be very scared. They are the homedepot of CE products. They are big.. they have a large selection of products but thats all they have. Your not going to get a real answer to any question you ask them. You will be lucky if the clerk can tell you what aisle to look in.

Bestbuys business model is being destroyed by the internet. Any talent that existed at bestbuy will leave now that they are cutting salary. While bestbuy may have lowered overhead a little.. they cant compete with zero overhead. They defeated and dominated by being bigger and cheaper. Now they are being defeated by smaller and cheaper.

Walmarts electronics department will be the death of bestbuy. Circuit City was first to go. Half of bestbuys customers will choose amazon instead and the other half, the ones who like to shop in a store.. will pick up the camera/laptop/plasma from walmart because its $50 cheaper.

In the past, when i wanted a new gadget.. i would run out to BB or CC and pick it up. Now.. i go to those places to look at it then i order it online.. usually from amazon. Speakercraft and Universal Remote Control are 2 CI friendly companies i know that have figured this out.

“In the past, when i wanted a new gadget.. i would run out to BB or CC and pick it up. Now.. i go to those places to look at it then i order it online.. usually from amazon. Speakercraft and Universal Remote Control are 2 CI friendly companies i know that have figured this out.”

This is part of the problem with the CE market and other business markets today.  A lot of people do not value people anymore.  All that matters to a lot of folks is “where can I get this dirt cheap”.
Forget about the guy with the brick and mortar store that employs local people and sup[ports the local community.  XYZ.com has it for less!

While the issues discussed here are part of the problem there is also another subject that I feel is killing the high performance product lines, it’s the Ipod and media players like it.  In my opinion the buying public is getting more used to sub standard audio and video product because that is what the manufacturers and companies like Walmart are pushing.

P.S. - JoeAV, posting your thoughts and concerns about the state of the CE market is doing something about it.  It can get others to think about it and take action as well.

The iPod has opened up a huge market for distributed audio. While you may not make a dollar on the sale of an iPod.. you can make make 10X what you would have been able to mark up a mega CD changer via keypads & 2way remotes that provide feedback.

While i agree that walmart is pushing sub standard audio and video products.. i dont think those sales & customers have any affect on the custom installation industry. Those people were never going to be the local crestron dealers clients. But.. those people might be the local RTI dealers new clients when they need the gear installed and a control system to make it play well together.

So the CI doesnt make a dime on the TV & amp & speakers but they make money on the install and control system. If the client would not have been able to obtain the gear at walmart they would never have been in the market for a control system.

The major issue with the CE market and custom installation and the high performance lines in particular (and every other industry) is that everyones credit has dried up. The lower & mid end clients are not spending any money. Those who can still afford to spend the money are being more careful with it.

“This is part of the problem with the CE market and other business markets today.  A lot of people do not value people anymore.  All that matters to a lot of folks is “where can I get this dirt cheap”.
Forget about the guy with the brick and mortar store that employs local people and sup[ports the local community.  XYZ.com has it for less!”

I care about people. I care about me and my family the most. If i can get a laptop @ dell.com for $100.00 than i can at franks PC shop im going to. If i can use RTI in my master bedroom instead of Crestron i am going to.

The idea that i am playing a part in ruining the CE industry by purchasing gadgets online is rediculous. What is company A doing differently that makes it possible for them to sell something for less than company B? Maybe company B should try and catch up.

If your business model relies on profit from product sales.. your in big trouble.. it doesnt exist anymore. A plasma sale will end up costing you money if you have to make a single service call. Let walmart deal with the no profit products and charge for your labor. Charge for system design. Charge for project management. Charge for installation & programming.

A bit lengthy but I hope you find as important and I feel this topic is. Not 100% related to this story but a strong connection…...
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Thanks Kilroy, you do GET IT. Once again Dave Stevens wants to list his references before talking substance AND didn’t get it. I FULLY Support the limited distribution model. That was my point exactly. So many dealers bitch and complain but don’t act. My example of what is done on the manufacturer side of the sales decision is real and needs to be understood by the dealers. I’ve worked on both ends of this industry so its not just blowing smoke.

So many dealers complain about some product lines going to AVAD and others. But for some of these manufacturers they have gone that route as a good middle ground. Does it open up distribution, sure it does. But it’s a whole lot better than seeing the products on Amazon, Best Buy etc.

Stop complaining and do something about it! Oh yeah Dave good reference, Wilson Watt Puppies. You really seem like an arrogant dope. Using that reference in this larger CE product discussion is like me saying I am afraid of a client being able to contract a CAT-MBX Home theater through Home Depot. I can really see Brian and Mike Barr training a Home Depot or Wal-Mart staff?!?! COME ON….Oh sorry almost forgot to address your Pioneer Elite example. There is one direction to lay blame for that, Pioneer Elite. They had the options on how to expand, still be exclusive, dealerships but they did that all to themselves. Almost every dealer I know who carried Pioneer Elite supported the hell out of that line. But Pioneer made moves and doing business with them the factor in their decision. Once again all based on ROI. Times change Dave…. 39 Cent excellent comments about labor and how to adjust.

My point is best described with a few examples.

SpeakerCraft
Reps Direct, Distribution and now Amazon web etc, and lets not forget Proficient the other label.

Universal Remote
Reps Direct, Distribution and now amazon web etc.

Compared to 2 Product lines Designed for Custom CE

Audio Design Associates
Reps Direct, NO Distribution, No Web and much better craftsmanship. I’ve had many MZC’s and MODES go bad…

RTI
AVAD. Some might not like AVAD but at least not spread so far.

NetStreams
AVAD exclusively.

Now I’m not a huge fan of AVAD but these firms have made choices and commitments to the custom channel FOR YEARS.

Have you as a dealer really made a choice? Let’s let Wal-Mart and Best Buy beat the crap out of each other and once again continue to show how people get what they pay for and service that is non-existent. If we as an industry can’t promote why and how we’re above this then we deserve what might happen. I would love to Challenge CEDIA with all the funds we all contribute to explain to us what their doing to support our channel? After all these years shouldn’t we see some advertising funds on a national level explaining why people should be looking for the custom dealers? And sorry CEDIA folks don’t think the web site links is doing the job.

I would love to know from the dealer side which option best describes their actions when they saw SpeakerCraft and Universal Remote Control make the moves they have.

1) The Yawn. Complained to rep and factory but are still selling. And still complaining. Your poor rep.

2) The Eye Opener. Shifted that scope of business in excess of 80% to a competing product that support the CE distribution?

3) Dream Come True for Factory. Complained to staff, spouses and sat on blogs but FEEL much better.

It’s time for a wake up call. The economy is rough and no matter what level of project you’re working on clients are more budget conscience than ever. Are you working on systems and proposals that support you and Custom CE long term? If you look at almost every product category there is an alternate solution from a manufacturer who fits this industry model better. Are you looking?

Life moves on and things change but if you don’t change with them your dead. Yeah Jeremy and many others who boot-strapped with the bulk of us old timers are GREAT people and deserve all the success they have earned. But times change, company’s change hands and the business demands change. Jeremy and crew are still awesome people BUT…

Stop trying to sell commodity products and on price. There are reasons why better products from AMX, Crestron, Runco, Stewart, Audio Design Associates, CAT and others might cost a little bit more. (Even though Sam sold out, and he also earned it, the Runco products are still exclusive) But provide tighter distribution, higher margins and in most cases a better built product. So maybe you need to cut 3-4 PO’s instead of one for multi-room, speakers, keypads and remotes. Your ROI will far out weigh what your commitment and sales to the others who have already moved on from the Custom CE market.

Sorry so long but this issue really needs to become a rally cry for the true Custom CE dealers.

Kilroy, 39 cent stamp, and JoeAV have all made great points, and it goes to prove that we all have a passion for our industry, and for our own survival need to protect ourselves.

To JoeAV: I don’t mind the personal attacks, but there is something that you should understand… My business is based in NJ. Believe it or not, Home Depots in my area have already created “Home Theater Rooms” within their stores. On display, they have Crestron touch screen remotes, (which are URC MX-3000 touch panel remotes with Crestron’s name on them), Panasonic & Samsung flat panel TV’s, and Speakercraft/Sonance generic in-walls, Denon and Harmon Kardon A/V receivers, and Lutron lighting product solutions.

When I made the extreme analogy of Watt Puppies being sold in a Home Depot, it was to point out that anything is possible in this rotten economy because I see it coming. Thus, I do get it.

Now, there’s 2 ways to view this situation:
A. It does benefit brand recognition and introduces products/solutions to consumers who never knew this type of technology or quality even existed.
B. By having these brands in a Home Depot, it does take away the “prestige” factor, (which is human nature), that clients will pay a premium for in a high end specialty dealer’s store/business.

As we all agree, businesses such as Wallmart and Home Depot do not have qualified people to properly educate the consumer. We also all agree that any dealer that is afraid of losing one of their clients to a big box store or a Wallmart is pathetic and not in our league.

However, we should all agree that these “uninformed/uneducated” sales people/clerks, make our jobs more difficult. Our clientele depends on us for the correct answers the 1st time around.

Can we also agree that the majority of our clients don’t really care, have the time, or don’t want a CE education about the actual specifications of a product of how it works? They just want the best quality that they can afford, and they want it to work as easily as possible. What they’re looking for in the end result is to hand them the remote, and show them which buttons to push to deliver outstanding A/V.

However, there is another human condition that exists… “Curiosity.” Once a client pays the final invoice upon completion, the curiosity factor goes through the roof. Now that the client owns a state of the art system and paid good money for it, he/she will be judging every system they see and mentally compare it to what they have purchased.

Whether it be in a friends home, or on display in a Wallmart or Home Depot, the human condition forces them to mentally reinforce that what they purchased was the correct decision and at the right price. The point is that most people will ask more questions “after the sale” to other people to justify their spent hard earned dollars.

EXAMPLE: Recently, I had a client ask me why I didn’t sell him THX certified speaker wire in his $75K system. Now… Where the hell did this guy hear of something that doesn’t exist? ANSWER: At a Best Buy when he went into the store to purchase a new computer printer. While he was in the store, his own curiosity lead him over to the A/V department to see what they were selling.

Hence, uneducated sales people make our lives more difficult and it is due to manufacturers selling top end equipment to anyone who has a check book. Are we going to lose sales to these stores?... No. Are they actually “giving anything away” price-wise?... No.

Summing up, I think we all agree that anyone spending $30K + on an A/V system is not going to go to a Wallmart, Home Depot, or just look up a company in the Yellow Pages to do the job… Thus, they are not a threat to any dealer who is a true pro. These jobs typically come from referrals.

In my opinion, manufacturers should really keep themselves in check and not be so short sighted when they open up unqualified corporations to sell their products in order to maintain their bottom line. This economy will turn around again, and high end dealers will remember the brands that were loyal to them when things were tough, and drop the others to the wayside if they haven’t done so already.