Article

Breaking the parity among digital signage hardware

AV/IT manufacturers must find a way to differentiate themselves to the dealers and integrators that sell their products, and in turn must also differentiate themselves to their customers.  

June 9, 2009 by Alan Brawn — principal, Brawn Consulting

Today most AV/IT products are actually quite good and there is increasing parity in each category. In the "old days" there were good, better, and best products but today the majority fall into the better and best categories often with blurred lines in between the two.

With this in mind, both commercial and consumer products are tending to look more and more like commodities to the casual observer. We have seen this with computers and most recently with cell phones to the point where we think of all manufacturers products lumped into a category with little to tell them apart. It looks to the outside world as if an LCD display is an LCD display and a display mount is a mount, and a switcher is a switcher and so on. The market does not often hear the cry that "our products are superior" and even less frequently do they hear why.

The issue at hand is that among products that "appear equal," price often becomes the differentiator. The critical issue is the need to back up a few steps and separate one manufacturer's products from another's beyond the name on the label and a list of features that needs to be translated to all but the most astute experts. AV/IT manufacturers must find a way to "differentiate" themselves to the dealers and integrators that sell their products as they in turn must "differentiate" themselves and those products to their customers.

To avoid the price war scenario AV/IT manufacturers must "add value" in the minds of their buyers going beyond the product alone, hence selling benefits beyond features and convincing their dealers and integrators to do likewise. The only sure way to accomplish this is to gain AV/IT dealer and integrator's mindshare by providing "added value" which they truly require for the betterment of their businesses and ultimately they need to convince them they can only get that "added value" from a given supplier. In the minds of the end users AV/IT dealers and integrators must solve problems or add resources and capabilities in order to secure that buying decision and they need a relationship and support from their suppliers to make this a reality. The question at hand is will the manufacturers provide the "added value" and support and alternatively will the dealer or integrator give the manufacturer the time it takes to listen, learn, and employ the elements of their specific differentiation.

In the realm of commercial AV/IT, manufacturers and suppliers as well as their dealers and integrators only have four hours per day on average to meet and communicate directly with their customers. I hear doubt in your minds so consider this. Most customers do not want to see an outside sales person before 9 A.M. and their slate of appointments needs to be clear before lunch time. Customers do not want to see outside sales people before 2 P.M. and after 4 P.M. in most cases.

Do the simple math and this leaves a couple of hours in the morning and a couple more in the afternoon where the outside sales person is truly welcome and not seen as an impediment to getting ones job done. Are their exceptions? Sure but the point is that time is very limited when we call on customers and we must make the most of it. Being realistic we must also take into consideration that we are not the only person calling on our customers.

In the case of AV/IT dealers and integrators, at a minimum they carry hundreds of items and sometimes they may carry over one thousand product lines to meet their customer's needs. In practical terms, they cannot afford the time to spend, to meet with, be sold on, or be educated by each manufacturer or supplier who requests an audience. For all sides, time is money and it must be earned and spent wisely.

The AV/IT manufacturer or supplier must first gain the dealer or integrator's attention and judiciously spend or more correctly invest that precious commodity we call time. The ultimate goal is to become important to them in order to positively impact sales for both companies. This means that the manufacturer must present a compelling argument for a dealer or integrator spending their valuable time to listen and learn about a product lineup and to be blunt, communicate "what's in it for them." Under the heading of "what's in it for them" we find things like increased market share, more sales, better service, more repeat business, less hassle, recurring revenue and of course the time honored favorite known as more profit.

Once the attention has been gotten, the presentations and demos made, and the opening order written, maintaining the dealer and integrator mindshare is the key to continuing success. Simply be aware that if this is not handled efficiently and effectively with the dealer or integrator as the judge, a second chance is difficult to come by.

We have now come full circle in how to increase sales by differentiation and gaining and maintaining mindshare. The first realization is that products need not be lumped together in a pile of non-descript items labeled commodities. From the manufacturers perspective it must be understood that differentiation is the key and that going beyond features to embrace benefits coupled with providing solutions to problems is the new price of entry in today's economy.

Next we need to find a way to effectively communicate differentiation to dealers and integrators and teach them how to communicate the combined message of "added value" to their customers. The glue that holds all of this together is the relationship between the manufacturer and the dealers and integrators. The recipe is one part product, one part program, one part process, and a double dose of people who understand the end game for all involved. If dealers and integrators are led to expect solid support and a compelling value proposition from manufacturers and in return provide loyalty and support for the time spent, then the game is win/win for all involved including the end user who ultimately benefits from all the efforts spent on their behalf.

About Alan Brawn

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Alan Brawn is the principal of Brawn Consulting, an audio visual and digital signage consulting, and outsourced service provider. Alan’s industry experience spans over 4 decades. He is the past Chairman of the Digital Signage Federation and the Educator of the Year award is named after him. Alan was inducted into The AV Hall of Fame in 2004 and received the Fred Dixon Lifetime Achievement in AV Education from AVIXA in 2015. He was recognized as an AV Living Legend in 2023. 

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