Why Big-Box Retailers are Good for Your Business

It's a common assumption that CE pros love to hate big-box retailers.

Their business models have put pressure on everybody's bottom line: the race to zero in categories like flat-panel TVs, commoditization of CE goods and services and comical efforts towards the custom channel.

But you need to focus on the positives. Best Buy announcing it will open 13 stores with "interactive displays" doesn't have to be a bad thing. Big-box stores aren't villains trying to ruin you. They merely fill their niche in the market, as do you.

Here are three ways you benefit from big-box retailers.

Opportunity to Differentiate

I'm a foaming-at-the-mouth advocate of free enterprise. Competition is good for both businesses and consumers. Regardless of your level of expertise, not everyone can be your client. There will always be:

• Price shoppers
• DIYers
• People who just shop for one thing and nothing else

If someone's shopping for a leader on a 42-inch LCD and is being a jerk, you should be more than happy to send that person to the nearest big-box store to leave you alone.

The presence of the big-box store also gives you an opportunity to show people why they should do business with you. If you've done your part, your professionalism and expertise will shine through, showing that your company clearly beats big-box stores any day.

Gain New Business by Fixing Mistakes

Some customers turn to big-box stores just because they're a recognizable brand. Sadly, we've all seen inept "custom installs" from the big-box stores.

While some dealers won't fix someone else's mistakes, many jump at the chance to fix a screwed up installation, seeing it as a chance to make a client for life. Consumers will spend with a custom shop once they realize what can be done in their home.

Training Ground for Future Employees

You need to keep an open mind about people working at big-box stores. CE retail remains one of the most valuable sources for custom dealers to find new salespeople, designers, installers and programmers.

Not everyone working at a big-box store is an incompetent slacker. In fact, many are hard working, eager to learn and are probably looking for a place where their aptitude and passion for CE will be better compensated. Nevertheless, you still need to be prepared to train employees to the standards you desire.

Every scenario has an upside and a downside. Clever business owners look past first impressions for things that will benefit them. Welcome big-box stores moving into your marketplace. I assure you that you'll profit from it.

Lee Distad is a freelance CEDIA Certified Professional Designer who offers design and process consultation to firms in the Custom Installation industry, as well as copy writing and other professional writing services. Lee’s business and industry blog can be read at http://www.leedistad.com