INDUSTRY VIEWPOINT - AV spread puts focus on service
As corporate boardrooms go hi-tech, Geoff Denness is convinced that resellers should tap the market in AV products.
Issues of PC Dealer in the past year have carried a recurring theme when referring to the state of the audio visual (AV) market. Many industry figures predicted a boom period, particularly in the personal projector market and, to a large extent, many of those projections are now a reality.
In the past 12 months, dealers have exploited this expanding market with many of the early entrants enjoying a year-on-year increase in demand of between 30 and 40 per cent. That is an impressive rate of growth, making up for losses in other areas of the channel.
Portable projectors and other related AV equipment have moved well and truly into the mainstream and are now viewed and sold simply as computer peripherals, albeit ones that need demonstrating and explaining. They are fast becoming an essential product with strong brands competing against each other and the purchasing process is now similar to that of buying a high quality printer or scanner.
But now is not a time for dealers to rest on their laurels. They must look ahead to the next 12 months to maintain momentum. And surprisingly, it is the corporate meeting room that is the next target for the channel - a relatively untapped market for many dealers - and one which offers plenty of money-making potential.
There are more than a million meeting rooms in use between corporates and SMEs in the UK. Increased functionality and competitive pricing of AV products, together with advances in networking software are resulting in more video conferencing facilities.
A corporate presentation system is no longer a standalone AV product sought by a facilities manager from an AV contractor. It is fast becoming a key video requirement and IT managers responsible are more likely to turn to their network or communications suppliers for a total system.
A trusted partner is usually the first port of call and those that are unable to answer it lose out.
And as prices for video network systems drop towards the £1,000 mark, demand will open up the market for large screen displays. It's another opportunity for dealers to fulfil demand and where considerable margin can be won.
For distributors, it is important to provide demonstrations, showrooms, evaluations, assist with installation and even provide the installation services on a reseller's behalf as part of their everyday support services to the IT channel.
So how should resellers make the most of the fact that AV is fast becoming a standard part of the video networked meeting room? My advice to the resellers is to get in quick and provide a complete system by taking advantage of the free support services offered at the distributor and vendor level.
Then lie back and see the profit margins shoot up.