Article

The 25 gotchas of digital signage, part 3

Common mistakes and what you can learn from them. (Part 3 of 5)  

August 5, 2008 by Mike White — pres, mms

Mike White, president, Multi-Media Solutions

Throughout the years, Multi-Media Solutions has seen its fair share of easy and troublesome digital signage deployments. But through it all we persevered and learned from all the experiences, which ultimately proved to be more important than any profit from any specific job. 

Below is a list of our most memorable (and painful) mistakes, numbers 11 through 15 of the 25 gotchas of digital signage.

11) Realistic completion timeline As I mentioned earlier, the A/V Integrator is very seldom considered a vital part of a project until the last minute and then it is their fault if open deadlines are not met. So be very proactive with negotiating your legitimate time needs in the project and do not assume it will work immediately.

12) Who says it is finished? "Finished" is a broad term that will plague you strategically and financially. I highly recommend a very well written definition of "finished" into your contract and get the customer to agree up front. I suggest the use of the term "substantial completion" and have 90 percent of your billing completed under that term. Then define "finished" and establish a completion checklist so you can get paid.

13) Working with a consultant? Many consultants are really great and very qualified, however, I have had my share of working with ones that aren't educated enough and develop impossible concept ideas. Making the impossible happen is part of the job, but don't underestimate the cost of doing so.

14) Working as a sub-contractorA strong suggestion: don't work as a sub-contractor. It is far better for everyone, strategically and financially, if the A/V team has direct contact. But if you do have to work as a sub, make sure you read the fine print and make sure you know what you are agreeing to.

15) When do you get paid?You should set up your contract so that your payments come in as progress is made. I use a 30-30-30-10 plan for invoicing: 30 percent is due upon signing of contract, 30 percent upon delivery of hardware and software, 30 percent upon substantial completion and the final 10 percent due upon the final list sign-off. I make sure that the customer understands that invoices must be paid in the terms on the invoice. But don't assume that just because you invoice, they will pay. You should have a contractual agreement that states if payments are not made, work ceases. I know that sounds harsh, but the A/V company too often has to serve as the bank and the company gets caught in the middle. That can put you in a cash flow crunch and possibly out of business.