Commercial Integrator August 2023 - 7

attention, the following lessons apply to
most of the technologies in our toolboxes.
Permit me to explain how to navigate the
often uncharted waters of differentiation.
This information should help to empower
you as a commercial integration business
owner or operator.
A Bit of History
We'll start with a bit of history, which will
lead us to where we are today relative to
products and whom we select as vendor
partners. Prior to the turn of the century,
our products were traditionally categorized
as good, better and best. With automobiles,
for instance, Chevrolet, Buick
and Cadillac existed as good, better and
best, respectively, for years. Suffice it to
say there were clear differentiators. Fast
forward to 2023 and this distinction, for
the most part, has gone away. We have
evolved - or devolved, some might
say - to a world of parity and commoditization.
A commodity is a good that is
supplied without qualitative differentiation.
The technical term is fungibility. This
refers to a product being interchangeable
with other products of the same type.
Products possessing the property
of interchangeability " simplify " the
exchange/trade process, as they work on
the underlying assumption that everyone
values all goods of that class as the same.
Many goods that formerly carried premium
margins for market participants have
become commodities. Goods that fit that
description include silicon chips, laptop
computers and, for the AV industry,
displays. Keeping things honest, if you
look at the top four or five competitors
in almost any technical category - and if
you set aside marketing jargon - they appear
quite similar. For example, a 55-inch
4K flat panel has become a commodity.
Especially among the " biggies, " they all
look great. There is differentiation to separate
consumer or commercial versions,
but, even there, the lines are blurred. In
your heart (and, hopefully, your head),
you know I'm right.
This is not to say that products are not
important. In fact, the product is at the
top of the list of what might be called
" the business order of things. " By this
light, the " proper order " is Product,
commercialintegrator.com
Marketing, Sales, Support and Operations.
A great product is the proverbial
price of entry, but, when the products in
the marketplace are at parity, it does not
and cannot end there. The 5P Analysis
for Vendor Selection is a set of evaluation
tools to help you make buying/selling
decisions that are correct for you.
Exploring Each of the 5Ps
The 5Ps are as follows:
› Product: A product with robust features
and benefits is a given. But, as mentioned,
due to commoditization, the
product itself is seldom a true differentiator
or a key reason to buy from a
particular vendor partner. There are many
solid and comparable products from
which to select.
› Price: Prices fluctuate and seek their own
levels. There is parity here as well. Price
can be a temporary deciding factor, but it
will not outweigh other factors.
Not 'If' But 'When'
In the world of commercial AV, it's not a
matter of if a problem will occur; rather,
it's a matter of when one will occur.
And how that problem is handled will
determine the quality of the relationship.
If Product, Price and Program have
a semblance of parity, then Process
and People will make the difference.
Another of the largest integrators in the
country told me this: " We do business
with those who make doing business
the easiest, and [we choose] those we
and our people like the most. "
Here are some parting words to the
wise: Product, Price and Program are the
price of entry. The vendor partner you
select, however, should come down to a
combination of Process and People. Ask
yourself if a prospective vendor partner
has done their homework. Do they really
know you - or do they just know of you?
Keep in mind that many contact you via
A great product is the proverbial price of entry,
but, when the products in the marketplace are
at parity, it does not and cannot end there.
› Program: Much as with pricing, programs
quickly resort to a position of parity. What
one company does, another one will
mimic. Examples are freight, return policy,
warranty length, etc.
› Process: All good feelings stemming
from product, price and programs can
easily be negated by poor processes and
difficulty of doing business. One of the
largest AV integrators in the U.S. told me:
" I would rather pay more for a product
and have a good process and representation,
since we will spend more overall
just trying to manage lack of attention
and poor processes. "
› People: AV is still a relationship business
and, quite often, the vendor personnel
calling on an integrator make all the
difference. Do prospective vendor
partners call on you in the way that you
want them to? Do prospective vendors'
personnel know and serve your needs, or
do they just try to sell their widgets? Do
prospective vendors know and respect
your staff?
email simply because they've seen your
integration business on a list of companies.
Have they been to your offices and
met with your people? What do they
understand about your project-based
business structure and your clients? What
is their order process and support structure?
How does it work?
In a very real sense, prospective
vendor partners are applying to you for
a job. The job is to become your vendor
partner. As you would look at a potential
employee, look at the prospective vendor.
No more and no less is required. Do
they practice " give me sales, give
me sales, " as so many do? Or do they
want to earn your business and become
your partner?
As the iconic newsman Paul Harvey
would say, " Now, you know the rest of
the story. "
Alan C. Brawn, CTS, ISF, ISF-C,
DSCE, DSDE, DCME, is the
principal of Brawn Consulting.
AUGUST 2023 Commercial Integrator
7
http://www.commercialintegrator.com
Commercial Integrator August 2023

Table of Contents for the Digital Edition of Commercial Integrator August 2023
