Q&A: Azione's Glikes on Recurring Revenue, Azione's Growth, Obamacare and More
NEW ORLEANS- Azione Unlimited, the buying group established in 2011 by former HTSA executive director Richard Glikes, wrapped up its three-day Fall Fete conference Thursday in New Orleans. The event drew 126 attendees from across Azione's membership of dealers and vendors, and the participants engaged in a series of discussions about recurring revenue, disruptive technologies, and how to put innovation to good use- while also enjoying the fun and food of the Crescent City.
We spoke to Glikes on the last day of the event to talk about the state of Azione, the conference, and the state of the industry.
Q: What are your impressions of the event and how it went?
A: We were here to share ideas, build relationships, and work on teamwork. And I think we did pretty good.
Q: We talked a little bit about recurring revenue the first day. What are some models of recurring revenue that were discussed at the event that you think our readers should know about? Was there any particular innovation structures for those that you've seen?
A: Security, IT, and maintenance contracts were the three recurring revenue streams. I like Don Dixon at Definitive's presentation, because he basically said that he was trying to make his service department top notch in his area. He's actually getting business from people who bought from other dealers. And that enlarges his base. He took a service department from $200,000 to almost a million dollars in three years. That's huge.
We also talked about not discounting service, or any of the products that service sells. It again gets back to making more profit.
Q: In terms of products, what do you as some growth product categories in 2014?
A: I think lighting is very big. I think we're at the cusp of a lighting revolution. Between LED and simpler, less expensive control systems. I think lighting control will have much larger penetration over the next five years. And control in general is becoming a kind of necessity, when it really was for only the most affluent in the past.