CEDIA View: Should Luxury Really Be Your True Target?
Landing luxury projects and high-end customers are what many people in this industry ultimately aspire to do.
Our photo galleries are filled with stunning work that inspires industry members and consumers alike. Luxury projects are often seen as a ‘holy grail,’ or a, “You know you’ve made it when ... ” story. But are luxury projects the only thing fueling this industry? Certainly not.
Typical clients for most electronic systems professionals are not billionaires or millionaires. Increasingly, our core business is not only retrofit projects, but those under $20,000.
Some may find that hard to believe, but the data speaks for itself.
Per CEDIA’s 2012 Benchmarking Survey:
• The typical CEDIA electronic systems professional’s* average project is $12,383.
• 88% of the projects done by typical CEDIA members are under $20K.
• Even companies with annual revenue in excess of $2 million report that over half of their projects are under $20K.
Maybe this does not come as a surprise to you. The industry has been trending towards this direction in recent years. Consumer awareness has grown rapidly; couple that with tight budgets, mobile device control, and the price drop in displays, and high-tech systems on a budget become totally doable. The actual functionality available to a client at the lower price point can be pretty stunning.
Happy clients, of course, send more clients, so delivering an impressive feature set on a budget can be the key to growing your business, if you do it right.
CEDIA’s director of technical training, Jeff Gardner, offers tips on how to meet the challenges of small projects:
• Make sure each project has well-defined goals. Just because something is possible doesn’t mean it should be implemented. Discuss functionality with your client in very finite terms. Even small projects need a scope statement. Many great companies have gone under as a victim of scope creep.
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