CR Talks To: SnapAV : A New Episode
SnapAV's Jay Faison, president, and Adam Levy, VP of marketing, are on a non-stop quest for profitable categories for integratorsApril 2010 By Nancy Klosek
Adam Levy: It gives dealers at least a full year of time to purchase products toward a reward. They’ll have time to evaluate our products more thoroughly, to change their sales materials and to clear out old inventory, if they need to. There’s a choice of incentives that are fun, like a Rome trip or a Harley Davidson motorcycle, and one that also can help dealers improve their businesses—like Web site redesign or new vinyl wraps for their trucks.
Jay Faison: We’re looking to give dealers a reason to check out a brand-new line of speakers we’re proud of, and to consider it a long-term conversion to their primary speaker line. The biggest profit contribution line item for a dealer is generally speakers. They can actually make good money on them. Given that our strategy is to be the No. 1 reason our dealers succeed, we had to get into speakers. We think there’s room for dealers to make even more money on them by keeping their prices the same and lowering their cost of goods. Our proposition is to deliver equal or acoustically better speakers for less money. There are about 40 SKUs in the lineup and we’re moving toward 60 or 70 by the end of the year. And we’ll be 30 to 50 percent less in dealer cost versus our competitors.
Levy: It’s part of our overall business model, where a combination of our efficiencies and pricing strategy creates a compelling reason for people to want to make changes.
CR: Particularly in this recessionary market environment, how does it benefit SnapAV’s dealer clients that you’re both manufacturer and distributor?
Faison: Trader Joe’s is a good example of what we do. Ninety percent of what they sell is their brand, and they don’t sell 50,000 items like a grocery store; they sell one or two of each category with their name on it and generally, their products outperform the brand names. We’re vertically integrated, top to bottom, and we have the feedback loop. We get customer feedback and can make quick adjustments to our offers, and then continue the cycle. It’s more cost-effective to do business that way. We don’t have any millstones around our neck of thousands of products.