Although I don't believe the economic downturn is as bad as many newspapers make out, it's clear that we're in for a bumpy ride.  So it's important you do everything you can to bolster sales. 

In the September issue of IER I talked about sales training and the need to keep your staff motivated.  If less customers walk through your doors you have to work harder to make sure each sales opportunity counts. In this month's issue and the next, I will look at two specific ways that could help build your business in a downturn. First I'd like to focus on the world of custom install. 

Opportunities in custom install

The recent exhibition held in London by the Custom Electronic Design and Installation Association (CEDIA) offered some exciting opportunities that independent retailers may wish to consider.

According to Jane Scotland, a CEDIA board member, the higher end of the market is not being affected by our turbulent economy.  "There are a lot of wealthy clients in the UK," she said, "who are prepared to pay a premium to have products that look great, work fantastically well and do exactly what they want them to do."

Of course, the ‘higher end' is out of reach for many high street electrical retailers - for now.  It would be foolish to rush in and agree to a £60,000 full home installation if you don't have the expertise to back it up. But you needn't jump in at the deep end.  Start small and work your way up.  How many of you already set up home cinema systems in customers' living rooms or fix plasma TVs to the wall?  That's basic custom install.  If you're not offering these extra services, I'd like to know why not.  It's a relatively easy way to differentiate your business from the supermarkets and some multiples.

Consumers in the UK have an insatiable appetite for new technology.  GfK figures indicate that our consumer electronics market is one of the best performing in Europe.  This demand for innovative products means that customers are always on the lookout for ways to improve their audio-visual experience. For example, I know of one lady who is often frustrated that the music played in her living room cannot be heard in the kitchen.  I suspect a wireless sound system would resolve this problem.  But the trouble is she doesn't know where to go for advice. 

I believe that many customers simply do not appreciate what options are open to them.  So all retailers need do is highlight these options during the sales process and carry out the installation as part of their service.  This no-nonsense, one-stop solution is very appealing to people in this hectic day and age.

And what's more, cable tidies, wall mounts and other accessories offer very healthy margins - often over 40 percent.

Learning options

So, how can you start to climb up the custom install ladder?  CEDIA offers training courses for members and non-members, which can introduce you and your staff to custom install techniques or help you brush up on existing skills.  For those looking at entry level opportunities, Armour Home runs boot camps, which give retailers their first taste of the custom install industry.   

Today's marketplace is undoubtedly becoming more challenging.  Everywhere you look there is another sale sign hailing the next round of eye-watering price cuts!  Independent retailers beware - this is a very dangerous path for you to tread.  Do not think you can compete solely on price.  At the end of the day, the multiples and supermarkets have greater buying power and the Internet retailer has lower overheads.

As the industry specialists, you must play to your strengths.  Look at incorporating custom installations into your business plan.  It's another string to your bow, which will help set you apart from the likes of Tesco and Currys.

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