This time last year I was a few months into my role as Business Development Manager (“BDM”) here at Almo ProAV. I had spent the previous 6 years with an AV manufacturer, and we thought it would be an interesting opportunity for me to share some of my insights from seeing the Infocomm show through the lens of a distributor. This year would have been my 2nd show as an Almo BDM, and the plan was for me to do another post-show recap. Well, obviously a lot of plans have changed in 2020. The Infocomm show went virtual as a response to COVID-19, and for the first time we got to see how an event of Infocomm’s size and scope would translate into a virtual space. Here are some of my thoughts.
The Amount of options felt overwhelming – In a good way
If there’s one thing that felt like it wasn’t missing from Infocomm this year, it was the quantity and quality of things to do and places to see. I’ve been to 6 of the live shows now, and at each one I always had a bit of FOMO throughout the entire event. With trainings happening upstairs, events happening in booths throughout the day, and with so much space to explore – it’s easy to miss something good. One feels like they have to pick and choose where to spend their time because one cannot possibly see and do everything. With Infocomm Connected, that feeling was still very much present. There were trainings happening pretty much all day, and with overlapping schedules in some cases. I found myself having to build my daily itinerary each morning to make sure that I could get to as much of the content that I was interested in, and that wasn’t even including trying to carve out time to visit presenter’s microsites and more.
It’s very Impressive How Quickly So Many Companies Have Been Able to Adjust
When you think about the wheels that were in motion for AVIXA (and really any company) in Feb 2020 and how those wheels had to be so suddenly turned in a different direction – it’s mind-blowing that there was even a virtual show to begin with. For many, Infocomm planning starts in the fall of the previous year. So to be able to re-direct a show of that scale with that energy and put something together in a few months is truly awe-inspiring. Almo went through a similar experience in coming up with the virtual E4 Evolution show this spring, and I can’t say enough for how hard everyone had to work to put that together. I can’t think of any presentation I saw that didn’t have the “current challenges of our COVID-19 world” front and center. New products have been developed, new marketing strategies rolled and new ideas for solving new challenges are ready to go. No one thought we would be here 5 months ago, but none-the-less we’re back to doing what people in AV have always done, which is figure out a way to make it work and make it better.
Nothing Beats the Real Thing
For all of the things that Infocomm did well, it still felt like something was missing. This is by no means a knock on the Infocomm Connected, so much as it is a credit to the standard that the Infocomm live events created. There were some fun features, like playing music between presentations and some fun transitions we moved through the day. But for me, nothing beats the lights and the pounding music and the 50 foot LED displays that you get from a traditional Infocomm event. Audio Visual, more than most other industries, exists to provide people with experiences. It’s these experiences that drive the manufacturers in the industry to build the best products. We can all talk about the great things that various products do, but the real magic is in seeing the finished product of a fully built out AV system. This is my way of saying that Infocomm Connected was a tremendous success and it’ll certainly be interesting to see how virtual tradeshows evolve from here….BUT, I’m really looking forward to walking the show floor in 2021, if possible. There’s nothing better.
These days, video conferencing is a daily activity. What was once the prevue of only “C suite” executives is now available to everyone in the organization. Conference rooms are becoming ubiquitous, and come in all shapes and sizes. Small, medium, or large – each size conference room has its own set of challenges that require different types of AV integration products and solutions.
Let’s break this down a little:
Let’s start small—AKA the huddle room. It’s estimated that worldwide, the number of huddle room installs will be in the six-figure range over the next few years. Huddle rooms are smaller spaces where AV/IT infrastructure is minimal and BYOD is the norm. It’s a collaboration environment. Folks need the ability to easily connect their computer and share content locally as well as remotely. Biamp has the solution for the huddle space environment, the Devio. A one cable connection from your computer to the Devio is all that’s required. The heart of the system is its’ beam –tracking microphone, which follows the conversation around the room.Crystal clear audio anywhere in the room is possible, thanks to the auto-setup feature which calibrates the mic and audio with the acoustics of the room. Connect a USB camera to the device and HDMI output from the Devio to a monitor and you’re all set. Two models provide interface capability with existing phone systems via the rooms’ phone headset output. The Devio even has a Bluetooth enabled version. AMX also has a player in this space, the Acendo Vibe. Included are JBL speakers and mics and a wide-angle camera to see everyone in the room.
Did you know that Almo Pro A/V offers a SOUND OPTIONS audio sourcing and engineering group? SOUND OPTIONS gives accessibility to favorite audio brands and technical expertise all through a single resource. Learn more here.
Medium sized rooms, AKA the “GRANDE,” are the perfect candidate for the Phoenix Stingray. This distributed array auto-mixer features mic-line inputs and can be configured as a stand-alone SIP client. The unit can be daisy-chained to add additional mics. The device can bridge two audio calls from different interfaces, has direction-finding and beamforming software which provides the ability to steer the directionality of the devices’ microphones. Speaking of mics, Phoenix has a number of mics certified to work with the device, such as the AKG CHM 99 hanging mic and the Beyer Dynamic Revoluto RM 30.
Large rooms — AKA the “big boy/executive conference room,” requires products like the BSS Soundweb London family of DSP processors is the way to go. The unit can come in a fixed I/O configuration or as a chassis, with a number of signal processors and I/Os in a variety of networked-audio configurations and slots for a variety of input/output cards. Available protocols include Cobra-Net, Digital Audio Bus, Dante, and AVB. The units are configurable through HiQnet London Architect.
Conferencing Taiden, AKG, and Beyer Dynamic are designed specifically for the conference room space that requires chairman/delegate assignments, remote mic control, voting, and can incorporate simultaneous interpretation as well. These systems are found in the conference rooms of Fortune 500 companies worldwide.
“Oh, so you’re the middle man.” With implications of inflated costs and unnecessary complexity, this was the disparaging response from an old acquaintance while catching up after a time apart. Putting aside Almo’s “value add” let’s look at the real financial implications of sourcing equipment; considering both the hard- and soft-dollar costs of a purchase order. Hard-dollars are the unit cost of the equipment and freight. Soft-dollar expenses associated with purchase orders include:
The time spent getting quotes.
Receiving shipments (and associated work interruptions).
Reconciling packing lists.
Cutting checks.
Balancing the checking account.
The process of managing cash-flow.
Coordinating returns with vendors.
Warehousing and staging equipment until all items have arrived for a project.
Each of these soft dollar items has a direct cost in wages along with an opportunity cost from lost employee productivity. There are numerous studies available on the Internet discussing the costs of issuing a purchase order. Some studies show a range of $35.88 for automated purchase orders to $741 for some manual POs. To find your cost per PO, add up the time spent each week on all of the above activities and divide by the total number of purchase orders.
The following tables compare streamlined purchasing of equipment for a modest project through buying direct from manufacturers versus the same purchase from a distributor. These scenarios reflect actual prices of commonly used equipment. The soft-dollar average of $75 reflects the low-end of actual cost per PO as communicated by our commercial integrator clients. The manufacturer names and model numbers are masked to protect integrators and resellers from this information reaching the end user.
In order to provide a conservative estimate of savings: shipping is calculated to Lebanon, KS – the geographic center of the Continental US. Assumed origination point is a warehouse in Pennsylvania, even though closer options are available. This maximizes the distributor shipping cost in this example.
Scenario 2) Multi-source from Individual Manufacturers
Qty
Manufacturer
Description
Unit $
Ext $
1
Manufacture A
Controller / switcher / amp
$3,710.00
$3,710.00
1
Manufacture A
7” touch panel
$2,340.00
$2,340.00
Manufacturer A Freight:
$75.00
1
Manufacturer C
Ceiling Mounting Plate for Projector
$31.33
$31.33
Manufacturer C Freight:
$12.00
1
Manufacturer D
Projection screen
$1,286.76
$1,286.76
Manufacturer D Freight:
$200.00
4
Manufacturer F
Remote Sequenced Power Conditioner
$124.97
$499.88
1
Manufacturer F
Rackmount Power Conditioner / Sequencer
$343.72
$343.72
Manufacturer F Freight:
$28.00
1
Manufacturer P
Projector
$2,474.73
$2,474.73
2
Manufacturer P
Wall Mount for Displays
$200.00
$400.00
1
Manufacturer P
Ceiling mount bracket for high ceilings
$823.08
$823.08
1
Manufacturer P
Bracket assembly
$274.73
$274.73
2
Manufacturer P
50” Display
$839.78
$1,679.56
Manufacturer P Freight:
$280.00
3
Manufacturer Q
Ceiling Speakers (Pair)
$214.76
$644.28
Manufacturer Q Freight:
$85.00
Equipment Total
$14,508.07
Freight:
$680.00
“Hard Dollar” Total:
$15,188.07
7
Purchase Orders
(Soft Dollar Average)
$75.00
$525.00
Total:
$15,713.07
Improving the Margins of Error on Your AV:
What would an additional margin of 1 to 4% do for your business? The above comparison favors using a distributor due to a 4.1% lower cost. This assumes per-unit costs are the same for purchasing direct and from a distributor. In some situations, not all, the per-unit cost for an item may be as much as 3% lower by purchasing direct. Running the above comparison with a 3% discount across all products for direct purchases brings the equipment total down $14,072.83 with a new total of $15,277.83. This is still a 1.3% savings by using a distributor. For the sake of brevity, these scenarios do not include every item necessary for a complete system. If we add in racks, cables, and all the other necessary elements for a complete system, the comparable savings would only increase. Additionally, in order to provide an “apples-to-apples”, the mount manufacturer specified above is constrained to the same manufacturer as the display and projector. However, over 80% of display and projector mounts are not supplied by display or projector manufacturers. As such, real world savings will be greater as more manufacturers are added to the mix.
But Wait, There’s More:
The reduced opportunity cost of streamlined purchasing can also result in productivity gains. This has the greatest implications for smaller firms where most people juggle multiple responsibilities. How long does it take a design engineer or sales person to regain full focus on a project after multiple interruptions by UPS, FedEx, and other freight deliveries for a single project? How much time is spent gathering quotes from multiple vendors only to find any potential savings diluted through increased shipping costs? How many “to-do” items are aging on your list and how would your business grow if more of them were completed? Regaining otherwise lost productivity through streamlined purchasing may allow for faster project completion, additional bid responses, selling more jobs, and greater efficiencies in general.
There may be circumstances where purchasing directly from a manufacturer may save a few dollars – perhaps with a single-item box sale. When considering some distributors also provide equipment staging, simplified communication with manufacturers, more flexible credit terms, technical expertise, and education; the benefits extend beyond streamlined purchasing. If you have not looked into utilizing the services of a distributor lately, you may be leaving money on the table.
While lampless projectors are not brand new, the technology has evolved and continues to improve as time goes on. Imagine an installation grade projector that can run 24/7 with virtually no maintenance and no lamp changes and carry a three year warranty. Imagine not waiting for your projector to warm up or cool down, where the projector will reach maximum brightness and turn off almost immediately. Combine this with advanced features like projection mapping, edge blending, and an HDBaseT input packaged in a bright enough projector for large venues and you have quite a value proposition for your clients.
Laser projectors offer several benefits over traditional lamp based technologies. Let me clarify that laser simply refers to the light source, so the projection technologies like 3LCD are still a major part of these new projectors. Traditional lamp based projectors require the lamp to be replaced roughly every 1500 to 6000 hours depending upon the projector and the mode you run it in, while the average lifespan of a laser based projector is 20,000 hours.
Additionally, with most traditional lamp based projectors it takes a few minutes for the projector to warm up after powering on, and can take up to thirty minutes to provide a stable brightness level and often need to remain plugged in after powering off in order to properly cool the lamp. With laser based projectors they are ready to go almost immediately after being powered on and do not require a connected power source upon powering off with no worry of damaging the projector’s light source.
As far as the light source, projector lamps lose most of their brightness in the first half of their lifecycle whereas with a laser based light source the brightness loss is linear over the 20,000 hour lifecycle. What does this mean? This means that if you compare a laser based projector with a lamp based projector, both with the same light output rating (lumens) that within a very short period of time the laser projector will have the brighter image. Furthermore, even lamp based projectors with higher light output ratings than a laser based projector will quickly provide a lower light output than the laser projector due to the steep curve in degradation of the lamps brightness.
Epson’s popular Pro G and Pro Z installation grade projectors will soon be joined by the new Pro L series of laser based projectors with multiple choices ranging in brightness from 6,000 lumens to 12,000 lumens and multiple lens options with all of the features that users of the Pro G and Pro Z models have grown to love. Expect to start seeing these shipping in June of 2016. I know I can’t wait to get my hands on one.
***
For more information on Epson Projectors contact Brian Rhatigan at [email protected] or 888.420.2566 x6546
It’s especially nice when the manufacturers plan their distributor summits in a nice warm location during the dead of February. Such was the case this month with Samsung in beautiful San Antonio, Texas. Distributors, resellers and DMR’s gathered to hear the vision to 2016 and beyond, while seeing some of the latest product developments.
One of the greatest things about these functions is the networking aspect. You’re surrounded by customers, the manufacturer’s folks and even your friendly competitors (and if you are lucky a celebrity or two). The opening reception kicked off this portion of the conference. Here I am rubbing elbows with George Gervin from the San Antonio Spurs (left) and Director, US B2B Distribution for Samsung, Tom Perrier (right):
A lot of the conversations revolved around the ever-present dilemma of shrinking and sometimes even razor thin margins on displays in both the Pro and especially consumer markets. I think Samsung has got some new things up their sleeve that may be impactful for their partners as to help with the margin issue. More on that later. Now speaking of razor….
I’ve been on the road a lot lately, and even though I consider myself a season traveler, inevitable I forget something. This time it was a razor so I went down to the JW Marriott gift shop. Filled with cowboy hats, sombreros, ponchos, hot sauces and other Texas sized treats, it was your typical gift shop. I grabbed my usual brand from the stand, went up to the register and the cashier said, “That will be $20.12”. WHAT???!! $20.12 for one disposable razor?
I said no thanks and started to wonder…in this age of fighting declining margins in our industry, how is it that a commodity product like the razor can command 3000% mark up? Location, location, location. Resourcefulness took me to the spa and they ponied up a razor at no charge.
On to the Samsung Product Showcase – in usually Samsung fashion they never disappoint when it comes to new product development. It was good to see some of the concept things coming to fruition such as:
The transparent display which holds a multitude of applications such as retail and anywhere the end user just basically wants to be uber swank.
The mirror display which they showed in a retail setting with RF technology in clothing and shoes that dynamically changed when the user took them to the mirror. Here is our Business Development Manager extraordinaire, Apryl Lamberti taking it for a spin.
Outdoor displays – not just ruggedized, coated and cased back- lit LED panels but..
Finally the indoor LED was quite a hit. Here is Apryl examining the type of panel used to make the video wall in the background.
I think the future looks bright with the new LED products (no pun intended). What Samsung was showing are solutions that require an ecosystem of services, which is where the margin lies and value to our partners. The opportunity for services such as content creation, can create that long-term relationship with a customer, long past the sale of the display.
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