Don’t Sell with Your Own Wallet
As we witness some turnover in the industry periodically, we have been reexamining our customer base, identifying the young up and coming dealers and doing what we can to encourage them to grow their dollars per sale. I have a young dealer that I will use as an example.
Patrick’s Home Theater is owned by a recent graduate of the University of Denver. Patrick McLellan is a smart young fellow who started installing along with his uncle to help pay his way through college. He ultimately started his own business, graduated, and has become a great customer for us.
I entered into an inquiry with Patrick to discover both what sets price for him, and whether or not he was leaving money on the table by underselling. Although Patrick is not a guy who sells with his own wallet, we discussed whether or not his customers would push back if he went to the next model up in in-ceiling speakers, thereby getting another $100 to $150 per room in a job. We also looked the next model up in home theater receivers. What we discovered together was that Patrick’s customers were generally willing to spend a fairly significant amount of additional money.
We believe that there is a lot of this in the industry, especially as we see IT professionals crossing over. There is a lot of “spending with one’s own wallet,” and we have made it our mission to educate our dealer base as to the additional revenue available simply by selling up one level. TI