Business Management

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Several years ago, I was with a dealer in a “man-cave home theater” after the original contractor that had made some marginal decisions. The space overlooked the Pacific high above Avila Beach just south of San Lois Obispo.

The dealer had ceded to the buyer’s desire to use his legacy Bose 901’s as the L/R speakers in the multi-channel media space. He had purchased them in the mid 70’s at the PX during his tour in Southeast Asia.

The homeowner had a personal emotional attachment to these that was not sonically justified. The problem with the 901’s is that these have bazar dispersion patterns with drivers firing in all directions and spectral deficiencies not to mention matching issues that made for an unpredictable soundstage.

At the time this had to be a $60 or $70K room.

The subsequent dealer had “stolen” the gig due to unfulfilled expectations from the buyer. The first integrator made the fateful decision to let the buyer's choice determine the outcome, and it cost him dearly. When people asked him who did the system, you can bet he neglected to mention his insistence on using his legacy speakers, but he sure made the point that the system sucked.

Under which bias do you make your product, design and management decisions?

We have all been there, at the intersection that could determine the direction, culture and even the viability of our company. Each day we decide on what we deem most important, where we decide to invest our time, the crew and project.

By what standards are you divining your direction – how are you exorcising discernment in the navigation of your firm or department?

The Welder dealer math looks something like this: Let’s say that you are a tick or two below our industry’s mean average of revenue last year for tech contractors, around $800 thousand. And you are looking to do $650,000.00 in 2018.

That goal means that if you work 50 hours a week each hour will require $260 of new revenue. So understand that those 2 hours you spent shooting the bull with your rep yesterday was more important to you than the over $500 in the opportunity you lost to develop new business, or even the moments you're investing watching this (comes in at about $14 bucks).

Sobering;

Here are 4 simple suggestions to put a few more moments in your pocket each day.

  1. Shed some lines and technologies; some just don’t earn the same return they used to. Some just are not worth the effort. By what measure should you invest in new or parallel services? Like offering monitored security? DirecTV or Dish Network? Or: Automated car washes? Exotic aquarium design and maintenance? Indoor water features? When could you start offering VR devices and the accompanying content? These are at the very infancy; the learning, quality and price curve will make the current devices look lame in just a few months. We suggest you invest in a system that allows clients to test drive them; take the edge off their curiosity. Just don’t actively push too hard…How tired is our market on our persistent pressure to upgrade from 720p to1080i to 1080p to 3D to 4K and beyond to HDR?Each of these decisions could be defensible, just really think it all the way through and do some investigating first.
  2. Take a weekend to rigidly engineer an onboarding process for inventory and gear. This means that you have a test station with some source components, and infrastructure that will enable quick, efficient vetting of the gear. It may seem counter-intuitive, but in the long run, it saves you time (most all 7 figure firms do this now).
  3. Outsource your accounting some of the HR and paycheck burdens. Think about outsourcing some of your marketing too – for more on that visit our site at weld2.com, a complete marketing package at about 70 bucks per month.
  4. Have your project manager or sales guy meet with Reps & factory guys instead of you. They can give you their perspectives and input on all the important aspects of the pitch, and gear being schlepped without offense and freeing you up to other more important things.

They can also recommend moving forward and which line that could be displaced internally as well as what benefits might be harvested by engaging the new idea. This also has residual benefits of helping the crew feel more empowered and ownership in your contracting practice.

Read, and take your team through the book “Decide and Conquer” by Stephen Robbins (Amazon around 10 bucks). There are several exercises to help you understand your basic frame of references, biases and your risk aversion tendencies.
A great resource for you to understand your personal bias in your decision-making process. Found this to be a really easy but piercing exorcise, and should only take a weekend afternoon to complete.

We are Weld2, an outsource dealer marketing firm, the only one we know that guarantees that you will cover your investment (in profit) or all your money back.

You can check us out or see more of these mildly irritating perspectives at www.weld2.com

Also - find a creative way to re-purpose those 901’s (or whatever your dear client is emotionally attached too)…like the garage or patio. And make some decisions in your own best interests.

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