Ask an integrator how their business compares to similar companies in the custom installation market, and chances are they don't know. They might know which direct competitor just nabbed a big job, went out of business or hired some of your employees, but they can't really see the bigger picture.
CEDIA, the trade organization for the home-technology channel, is providing a new service, called the Profit Action Plan, that helps dealers put their own performance into perspective, outlining how their company compares to others of similar size, the industry median, and the most profitable firms out there.
CEDIA says it takes about 30 minutes for participants to complete an online survey and then submit their balance sheets and income statements to the third-party provider Profit Planning Group.
The information is confidential, according to CEDIA: “CEDIA staff and leadership will never have access to individual company information at any time.”
Dealers receive a 25-page report (sample pages here) that analyzes key indicators such as operating profit, employee productivity and recurring revenue.
Beyond that, the report provides insight into what firms are doing to improve profit, for example, by reducing overhead, changing product lines, increasing prices or selling more upgrades.
The report is available as an Excel spreadsheet that dealers can then use to chart their future.
CEDIA senior marketing director Cris Pyle suggests a service like the Profit Action Plan might otherwise cost dealers about $2,500, but it is free to members. With CEDIA membership costing only $500 for integrators, this service alone seems to be worth the price of admission.
“Home Technology Professionals really have no excuse not to take advantage of an expert's analysis of their company to understand how they can improve,” says Cris Pyle, CEDIA Senior Director of Marketing.
For more information, visit cedia.net/profit-plan.
Photo
