CE Pro Video Weekly News: Changing Business Models; ISE Reports

CE Pro has a provocative blog on why and how integrators can create new business models to adapt to the diminishing margin on products, plus our reports from the Integrated Systems Europe (ISE) show in Amsterdam.

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This week on www.cepro.com Boston-based custom integrator Joey Kolchinsky of OneVision Resources shares his thoughts on how integrators need to keep evolving.  Kolchinsky is part of the new breed of custom installers that brings a strong IT influence to his company. His commentary this week addresses how integrators can change their business model away from being reliant on product margin markup, which we all know is diminishing in many equipment categories.

Kolchinsky challenges dealers to focus their operation on what they do best and what they make the most most money from. For most of you that is the physical installation of the system. Think about it, most dealers earn nothing during the process of finding a new client, selling to them and then designing the system. Then after the installation, many integrators earn nothing from service.  The business model would require lots of outsourcing.

It is a thought-provoking conversation for everyone in the industry to have. Please tell us what you think in the comments section.

By the way, also make sure to look for what’s happening at the Integrated Systems Europe (ISE) Show in Amsterdam this week. We have two editors there including Julie Jacobson filing reports.