- On the capital availability side, both consumer and business credit remain tight and will likely continue to be tight for at least 9 more months (I’d guess 15-18).

- On the company liquidity side, most companies (mfrs and CI) set the goal in late ‘08 and early ‘09 to just make it through calendar 2009 ...that they had to do whatever it took to make their cash last through flat-to-negative sales growth. Some assumed NO new sales. But the model was about lasting through 2009. 2010 is about to hit and nothing’s really changed since 1/09 except 12 additional months of cash burn.

- On the consumer spending side, the savings rate has skyrocketed. There’s a fair argument that the recession has spawned a once-in-a-century change in spending habits (like the great depression). It will be a long time before homeowners buy as faithfully into the religion that home prices only go up and home equity loans are easy cash. (That won’t happen until long after that credit loosens again).

- The stock market recovery since March has been essentially a jobless recovery and appears to be somewhat unsustainable. Many are looking at a 10,000 DJIA level as a trigger for widespread profit-taking and a hair-trigger for a big slump on any bad news. Regardless of whether that’s legit, it will keep checkbooks dusty for a while on discretionary purchases.

- On the consumer behavior side, consumers love mobile gadgets—and they’re increasingly sacrificing quality for convenience and features. The gadgets are becoming increasingly sophisticated and extensible without the aid of a professional. They’re ubiquitous, interoperable, intuitive and highly functional. Who needs a whole-home audio system when you can just buy a few ipod docks. I know the response to that question, but it’s a harder and harder case to make—regardless of the economic environment.

So that’s the question: does the pace of pocket/mobile technology and the reticence of homeowners to invest in in-the-wall solutions indicate a non-cyclical contraction of the business?

I’d love to hear thoughtful responses (beyond the typical anecdotes and “Costco will never replace us” rhetoric). And I acknowledge that there are counter-arguments about certain consumers appreciating what we offer and our solutions being robust and time-tested. But that seems a bit defensive and in denial.

This business can always survive as a boutique business…but that can be said of nearly ANY business. The question is whether there is any sustainable scale left for custom over the next five years. If so, what does that scale business look like. If not, is there any role for CI guys in a pocket/mobile CE (or any other growing) ecosystem?

How big of a market is there for this? And how does it affect CE pros?

Don’t you think that some customers would be paired up nicely with this level of installer?  How do you qualify your customers to make sure they are a match for your target market?  I believe there is a great market for trunk slammers.  There are more people out there who would love to pay $150 to mount a TV than are willing to pay $1,000 to have it done right.

Is it the products you specify that weed out unwanted customers?

Do you request a scope of work along with an actual budget to identify if it’s a fit?  How detailed is your proposal?

In our business, we try to identify the scope of work and have a set of drawings if it is a project under construction.  This helps us to identify early in the process if we are anywhere near having a project that we can do and make money doing it.

And although our bread and butter comes from the big projects, we still do service calls for existing customers and business partners to foster and strengthen our existing relationships.

Glad to be sharing in this exciting industry with you,
Morgan

Thanks in advance to all.  I really appreciate this site.  It has helped me tremendously.

What would the structure of the agreements look like? Stock, options, deferred payment, commission

Who should come first, second, third, etc.?

What are the pitfalls of using this approach?

What are the best ways to find these uniquely talented individuals on a startup budget?

Do you belong to a local leads group or b2b networking association?  Do you attend NARI or ASID networking events?  Any other networking or referral venues that have helped you create new business?

We are writing an article on Social In-Person Networking Tips for the October issue of CE Pro Showroom.  If you do any of these activities, we would like to know and perhaps contact you for an interview.

Thanks in advance for sharing your experience.

Does anyone have ideas around this? Has anyone done this and if so how is it working for you?

Other than the names listed above who else could be become an authorized agent for?