Weekly Tip
By Sam Cavitt, Paradise Theater
Use Your Client’s Budget Concerns To Raise The Bar
Never before has it been so vital for integrators to retain perceived value in the eyes of existing and prospective clientele. Budget consciousness, ruinous competition and commoditization are causing pricing and profits to plummet. On the other hand, top quality integrators have invested significant time and money developing knowledge, skill and expertise in order to provide the very best services. How can we go about correcting this unbalanced state of affairs?
Often one of the first questions from clients is “How much?” Generally the answer is either – (1) a number or (2) some derivative of “it depends”. Throwing out a price is almost certain to be inaccurate and there may be no opportunity to correct it. The second answer is better but not by much. Essentially that is asking the client to understand and evaluate our services and tell us what is best for them. Or worse, it puts the client off and we may never have a real opportunity to win their business. Either way we have failed to educate the client on how our company is uniquely capable of satisfying them.
So, how can the smart integrator move the client’s focus away from the price and onto the subject of performance? We are going to use the example of a home theater client however these principals can be applied to any area of value added services in the integration industry.
Ironically the best strategy may be in offering a qualified price in order to open the door to further discussion. For instance you could say home theater systems in Family Rooms can be had for as low as $2000. However you find that most of your clientele are looking for a better experience than that. What type of home theater experience would you (the client) like? This type of response satisfies the client’s desire to hear a price but leads to further conversation.
Once we have the opportunity to engage our client in a conversation about “their” home theater experience, we need to employ the most effective strategy. It is more effective to “discover and illuminate” than to “tell and sell”! Start by finding out what they know. Ask the client to relive any past home theater experiences and imagine new ones. Amazing what a little dreaming can do to a budget!
We need to understand what they want to do. The automatic answer is watch movies but today’s home theater can be so much more including listening, gaming and more. Find out how many family members will use the room and how often, doing what and when. What type of entertaining do they envision? What type of media do they enjoy? These and similar inquiries, if asked skillfully will open many new opportunities. A recent project which was only going to have about 8 seats has opened up to seating for 15 and a much bigger screen due to the idea of entertaining larger groups which was discovered in such a conversation.
Raise the importance of performance. It is meaningless to ask a client if they want great sound and picture without setting some standards. For instance, many clients will say they want great acoustics but that sound isolation is not important. That is contradictory but we don’t want to tell a client they are wrong. A better process is to understand what a client will be listening to and use that information to paint a picture. For instance if they envision watching movies with friends, talk about the experience of a suspense scene when everyone in the room is holding their breath in anticipation, you could hear the proverbial pin drop. That’s only possible in a well engineered, quiet room. Establish the value. This type of Imagine selling can be applied to many aspects of our value added services.
What are the project parameters? A theater budget in a remodel project will be very different from a new construction project. A new construction project brought to you in planning will differ from one in production. The ability to deliver some elements may be affected by the status and certainly the cost will be impacted. What is the building construction? A steel construction with poured concrete floors will require a different material list and labor estimate than a wood frame structure on grade. The potential for variables is quite large. And don’t forget electrical, mechanical and other infrastructure modifications. Imagine the disappointment when your client learns the price you quoted to deliver a private theater does not include the cost of preparing the space for it!
What is your scope? Know what you do and what you do not want to do. Our company, Paradise Theater, specializes in our core competency of theater design, engineering and project management support. We leave the provision, installation & programming of equipment as well as the construction on site to our project team members. We are often asked to step out of that and provide materials and even construction services. But, as these are not our core competencies, we partner with companies who have those capabilities. In the end the client and all other parties to the project benefit.
Once you have collected the information and helped guide your client to discover their dream theater, you are prepared to research and deliver a number. This is not a trivial task. Establish a service fee and scope for delivering that information. Do not be afraid to ask for compensation.
Remember, establishing an accurate budget for the real goals of our clients is an important and valuable service. Winning projects by underestimating the scope and making it up in change orders is a dangerous and deceitful scheme. A twist on an old saying might go like this - the sweetness of’ low prices will be overshadowed by the bitterness of low quality. Be confident and educate your client on how they can enjoy the theater experience that you are uniquely qualified to deliver.
Sam Cavitt is President, founder and primary designer for Paradise Theater. Paradise Theater is a trade service provider, offering services exclusively through Electronic Systems Contractors as a value added partner. Paradise Theater is dedicated to providing the most accurate, complete and detailed design services in the home theater industry assuring the successful completion of private theaters at all sizes and budgetary levels.
Sam can be contacted at samcavitt@paradisetheater.tv. Please visit our website at www.paradisetheater.t
