The Ponds Are Stocked In AV Land

When I was younger, I participated in a few fishing derbies. I remember one particular derby where I caught nine trout in one day, see photos. The derby was sponsored by the local K-Mart, thus the hat. My dad and I were overwhelmed by the luck I was having! The pond at YMCA Camp Sloper had been stocked with fish the week prior. We asked around and quickly figured out that the best bait to use was corn, because the hatchery-bred fish had not yet learned to eat pond food; they liked corn.

I was not the only one who had luck that day. The kid who took the trophy for the most fish caught like 23. I also did not take the trophy for the largest fish; but I was still a happy camper, and went back the next day and caught a few more on my own. I tried my luck again that summer, in the same spot, but I did not catch anything. The corn stopped working, so I went an bought some expensive fishing tackle, which looked great in my tackle box, but nothing was effective as the cheap corn was during that one spring day of the fishing derby.

“The difference is time” as they say. The climate changed as the pond got warmer, the fish retreated to the cooler bottom. The young hatch-lings that survived the fishing derby weekend had two options moving forward: they could adapt to their surroundings, and eat worms, bugs, and smaller fish in Sloper’s pond, or they could be eaten by bigger fish. I don’t think it was a conscious decision. Eventually, the pond life goes back to “normal”, there are less fish, and the ones who survived are larger and more healthy.

Now, let’ reel this back into AV land. I believe the ponds in AV Land are getting stocked this spring, largely due to the tax law changes. I think #AVtweeps are conscious of it; some are not making any decisions, while some are putting plans in place, to deal with the upcoming volume. Notice I said volume, not revenue, or profits, or tax shelters.

Assuming your customers are C-corps, you should see, and hear, a gradual crescendo in spending in 2018, ending with the busiest holiday season anyone has ever experienced in all of AV Land. Older, problematic digital signal processing, microphones, and touch panels will be updated. Corporate customers will start spending more money on large ticket items like immersive rooms and video walls. Ping pong tables will compete for space with VR and AR gaming setups. The more start-up type smaller businesses will finally start to outfit their huddle rooms with new video collaboration systems.

K-12 schools and community colleges will see more donations to support classroom technology as well as gaming lounges and black-box theaters. Sounds great, right? But take warning, according to the AV Land Farmer’s Almanac (you see what I did there?)…

Your service center calls could become unmanageable as the new gear mingles with old.  Bandwidth needs will spike as AV and IT converge, and go forth, and multiply, and higher resolution video traffic will bog down older switches. Fan noise will increase.   Credenza rack switches will begin to overheat. Meanwhile, sales and design teams will design more and more networked AV. Programmers will ask for more IP addresses. Lead technicians are going to make extra money working overtime, making it all work.

So, how do you, the AV integration expert, plan to catch the MOST fish, AND the largest, without wasting a bunch of time, and money on equipment you don’t really need?

  1. Start with corn: Standardize on no more than a dozen pre-designed systems that you can sell quickly with confidence.  Keep the prices down by keeping things very simple, but be sure to include an adequate materials budget and labor to cover the inevitable trips to Home Depot, Grainger, or Lowe’s. Give your AV installation crews credit cards or similar means to get small items ordered immediately. Get ‘er done.
  2. Bring plenty of worms: The big fish in the pond will want something more than corn.  They will want large format displays that make viewers say “Wow”. They will also want to upgrade projection systems with newer laser light source models. Worms are a little more tricky to put on the hook, but in the end, not complicated.
  3. Tackle your complicated designs using your most excellent people and engineering. Don’t let your best resources get bogged down with the “corn” projects.  Figure out a way to free up their time so they can focus on the larger custom spaces and bring your client’s dreams to life.  They are like the professional anglers on the television.
  4. Give everyone the tools they need to complete the projects, but be careful not to fill your tackle box with a bunch of expensive lures like I did when I was little.  Only buy the tools you need right now. Update your own conference rooms, but don’t over do it.  The same goes for hiring new people, look for the skills that you are going to need for your pipeline, and then hire the people who have those skill sets.
  5. Don’t mistake volume for market share. I thought I was going to win that derby.

The key to the next few years will be to anticipate the sales volume bump, and then scaling appropriately, by putting the right people and tools in place. By following the above suggestions, (and never, ever asking me for fishing advice,) AV integration firms should be able to realize the upcoming spike in revenue, without being caught off-guard.

Fish on!

fish

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AVaaS = Audio/Video as a Service

By now, most readers have heard the term SaaS, or Software as a Service, a new trend in the business of software.  Instead of investing large sums every time you upgrade, you pay as you go, by the month. Some common examples include Dropbox or Amazon Web Services (AWS). Some readers may have heard of XaaS, which stands for everything as a service.  So what about AVaaS? Audio/Video or Audiovisual as a Service, delivering software (DSP, videoconferencing, collaboration, and control code), professional services, monitoring, for a monthly fee. That’s right, I said a monthly fee for AV.

I am not the first blogger to write about AV as a Service.  My online colleague Nermina Miller attacked the subject way back in July 2015 when she worked for Infocomm, in her article Redefining AV as a Service.  More recently, rAVepubs blog squad writer Mark Coxon defined three areas to start selling AV as a Service: video conferencing, engineering, and digital signage.  Gary Kayye suggested audiovisual integrators start selling digital signage content years ago.  Some followed his advice, and the money, while others stuck with the traditional model, sell the equipment and installation, and then watched their flat panel margins shrink as the displays got thinner and thinner.

rAVepubs also recently interviewed the CEO of ZOOM, who has quietly snuck into the AV industry under the guise of videoconferencing Software as a Service.  But ZOOM is more than just SaaS, ZOOM has a professional services department, providing engineering and installation services.  If you are worried about ZOOM taking your business clients, Gary Kayye of rAVepubs asked the CEO directly about their policy:

If an AV integrator has an existing client relationship, all they need to do is register that client and ZOOM will not go or talk directly to the client without the integrator’s assistance. But, if ZOOM establishes the relationship directly, they will potentially sell the ZOOM system directly….But customers will purchase hardware by themselves […]

But customers will purchase hardware by themselves?  You heard right, the leading collaboration software company will sell them the AV system, but minus the hardware. The clients purchase the hardware directly from CDW,  or Amazon, and ZOOM does the installation, commissioning, training, and then charges a monthly fee for the ZOOM software.  Boom, ZOOM! That is how AVaaS is done, people.  Readers, take notes.

AVaaS is the OPPOSITE of what most AV companies call “Service”.  Say the word “service” to most integrators, and they will think “some old client called, they must have broke something, or they are otherwise unhappy, now someone has to drive over there and see what needs to be repaired, replaced, or just rebooted”

I try to explain AV as a Service using the cell phone model.  The average American cell phone user often spends a few hundred dollars on their phone, plus a monthly fee for service. Ok, I know, they mean cell service, aka coverage, but it’s the same model.

You need cell service or wifi to use your mobile devices, right?  You need the calling or chatting software, plus the other apps, to run on your phone, or it is worthless, right?  Some of those apps are free, some are a one time fee, others you might pay monthly.  Some SaaS sales models will offer the first month free, then a monthly fee, or a discount if you pay annually.  This is how you need to structure you AVaaS business.

OLD WAY: Integrator sells client conference room hardware, installation, and one time programming fee for the DSP and Control System.  Annual service plan is optional.

NEW WAY: Integrator sells the client the hardware once, or leases it to them. For the hardware to work, the client pays the integrator a monthly fee, which includes all service calls and software upgrades.  The client pay a monthly fee per room, just like you pay a monthly fee for your cell phone.  In return, they get free reports because you are now monitoring their AV systems for bulb life, energy usage, and downtime.

Savvy programmers will figure out a way to lock the AV systems if the client misses payment, just imagine the touchscreen and wall-mounted flat panel display saying…

PLEASE ENTER YOUR CREDIT CARD INFORMATION TO ENABLE AV SYSTEM

But most importantly, please remember that AV as a Service, is just that, a service! We are now in a service industry, not a sales industry. Customers can buy AV gear with a click of a mouse; what we offer our clients is our professional services. Keep that in mind the next time you get a “service call”. Instead of being annoyed, be glad your services are still needed. -pk

Like this post?  You also may enjoy “We Used To Be Heroes” by Paul Konikowski, CTS-D

I Miss Music On Hold

We’re sorry.  Your call is very important to us.  Please remain on the line, and the next available customer service representative will be with you shortly.

Sound familiar?  Well, it should, as many telephone systems have similar recordings that usually repeat every 30 seconds while you wait on hold for 3 minutes… or 30 minutes… it really depends on who you are, and reason you are “on hold”.

If I am ordering a pizza, for instance, and I get put on hold for more than 5 minutes, I know they are busy, and I will often just hang up and dial another establishment.  But if I am trying to reach my credit card company or cable provider, I usually have a reason that I need to call them in particular, not someone else.  Oftentimes, it does not matter when I call, I will be put on hold.

In the old days, you would be put on hold and hear nothing. Silence. Sounds lovely, doesn’t it? But I guess some people did not know if they were still on hold after hearing silence for a few minutes, so someone invented “music on hold”.  The music source could be a service like Muzak but usually, it was just a short loop recording of classical music that would repeat.

Then one day, someone (let’s call him or her The Devil) got the bright idea to add the “We’re sorry.  Your call is very important to us…” and made it REPEAT OVER AND OVER.  Does this really help anyone?  Seriously, I swear, it was The Devil, Bobby Boucher, The Devil!

The last time I was put on hold, it was even worse: in between the verbal lashings of digitally remastered sarcasm mentioned above, they had inter-weaved advertisements for their services!  It was at that moment that I realized we need a revolution.  If We, The People, have to be put on hold, we demand respect; I personally think we should be educated and/or entertained while on hold.  Here is what I think should happen:

You have been put on hold and you are listening to an automated telephone system. I will try to make it as painless as possible by speaking to you in a polite, personal tone.

First, push 1 to mute me at anytime; push 1 to un-mute me.

You will be on hold for approximately 10 minutes. That is a estimate, and I will try to keep you updated if that amount of time changes significantly.  You can press 2 at any time to find out the estimated time you will still be on hold. 

Now for some entertainment, if you are in the mood for it…

Press 3 for local news, sports, traffic, and weather forecasts

Press 4 to listen to light classical music

Press 5 for jazz, funk, and r&b music

Press 6 for rock or indie music

Press 7 for rap and hip hop music

Press 8 for country music

Press 9 to hear these options again

Otherwise, I will leave you to wait in silence, ok?  Just speak up if you need something.  Sorry about putting you on hold. I know its really rude, but we do it to keep our internal expenses to a minimum, which in the end, should mean cheaper prices for you. Thanks for waiting. 

-pk