ProSource Insider Fall 2016 by ProSource

Fall 2016

Crown Audio Talks Email Strategy Amazon Alexa

The Future of Voice Control

CEDIA Recap

Annual Industry Reception in Dallas

Installers Only

Milestone AVâ&#x20AC;&#x2122;s SANUS Black Line

President/CRO - Consumer Technology BENJAMIN FELIX (215) 238-5310 bfelix@napco.com

From the ProSource By David J Workman CEO/President ProSource

President/Publisher eric schwartz (215) 238-5420 • FAX (215) 238-5457 eschwartz@napco.com EDITORIAL

Content Editor KATIE NALE (215) 238-5417 • knale@napco.com Editorial Offices 1500 Spring Garden Street, Suite 1200 Philadelphia, PA 19130 CREATIVE

Art Director albert j. Gaspari Production Manager JUNE HOLLOWAY (215) 238-5281 • jholloway@napco.com SALES & MARKETING

VAssociate Publisher/Brand Director TONY MONTELEONE (215) 238-5364 • tmonteleone@napco.com Senior Director, Sales & Marketing MARYELLEN OSWALD (951) 514-0420 • moswald@napco.com Manager of Sales JENNIFER BYTOF Administration (215) 238-5218 • jbytof@napco.com Circulation Subscriptions CARRIANNE RAMSEY (215) 238-5369 • cramsey@napco.com PROSOURCE™

109 River Oaks Drive, Suite 150 Southlake, TX 76092 CEO/President DAVE WORKMAN (817) 428-5212 Dave.Workman@Prosourceinfo.com Director of Finance & Operations, JESSICA PASKON (817) 431-2240 Jessica.Paskon@Prosourceinfo.com Director of Membership Sherry Dantonio (714) 422-0747 • Sherry.Dantonio@Prosourceinfo.com Director of Business Development ANdy Orozco (714) 422-0749 • Andy.Orozco@Prosourceinfo.com Director of Field Management Tim Bashford (513) 319-8228 • Tim.Bashford@Prosourceinfo.com Director of Marketing Communications KATHLEEN MARINI (708) 548-4273 • Kathleen.Marini@Prosourceinfo.com Published by: The Consumer Technology Publishing Group

Publisher of Technology Integrator and Dealerscope Custom Publisher of the 2015 International CES Show Directory, Guide and Preshow Planner, CEDIA Electronic Lifestyles®, ProSource™ Insider and HTSA Quarterly. © ProSource Insider 2015, All Rights Reserved

Fall 2016

The Whole Is Bigger than the Sum of Its Parts “The whole is greater than the sum of its parts,” is an expression that Aristotle once said, which is also the very definition of synergy. I’ve been thinking a lot about this quote recently as we head into the end of the year and look ahead to 2017. Think of building a house, for example. You’ve got the architect, the builder, the plumber, the electrician, and also the bricks, wood, paint, carpets, roof, and so on. All of these things have their own intrinsic value. But putting all these parts together in one place into a final product escalates the value of each and creates something bigger than each individual item. It’s now a home where someone will live, way more than just a pile of assorted materials. This concept, this synergy, is how I think about ProSource. We are all part of a larger picture, and each of us on our own has great value. But as a whole, we are more valuable, more competitive, and more powerful as a whole, a team. I invite you all to adopt this mindset as we move into the new year and really adopt it at the core level of your business. I can’t say it enough: We are stronger as a group. As a unified whole, geography can be a bit of an obstacle. We need networks to connect the various parts of ProSource— our members and vendor partners—that are spread all over the US. That’s why this fall and every fall, for that matter, we hit the road with more Town Hall meetings than ever. From September through November we visited Boston, New York/ New Jersey, Philadelphia, Orlando, Chicago, Indianapolis, Atlanta, Cincinnati, and Dallas/Plano and have provided valuable insight to our members on key ProSource brands. These regional meetings are crucial to help connect members with ProSource vendor partners and help them understand how to sell and use these products to greater benefit for both customers and their bottom lines. I hope you enjoy the great content inside this issue of Insider and look forward to seeing you again in the Spring at the Summit. Here’s to an incredible 2016, and an even more amazing, unified 2017!

Fall 2016

Departments 00 From the ProSource by Dave Workman 00 News Welcome New Members, Amazon showcases its Alexa speaker at CEDIA 2016, ProSource Industry Reception at CEDIA, Welcome New Vendors 00 ProSource on the Road A closer look at where ProSource has been over the last few months

00 Product Round-Up Our picks for the top streaming music platforms on the market 00 Installers Only A look at Milestone AV Technologies’ SANUS Black Series 00 UP NEXT ProSource events coming your way 00 15 Minutes With… Lani Godfrey, District Manager, South East

Features 0 0

00 Member Spotlight Crowne Audio Talks Email Strategy 00 Maxicon Maxicon’s Latest Showroom Opening 00 Better Processes A look at creating better processes and more profitable projects 00 Starpower Pioneering a Truly Connected Home

0 0

Fall 2016

00 Meet the Committees A closer look at ProSource’s four member committees

News

“No other group can offer the full breadth of residential and commercial programs that ProSource offers,” said Sherry Dantonio, Director of Membership. “Our new members are engaged and working with our District Manager team to ensure they meet their business goals and objectives in joining our group. The quality of the new members is second to none!”

Welcome New Members! 6

We’re proud to announce ProSource’s newest custom integrator members: Audio Video Specialties, Charlotte, NC

Sound Effects, Mesa, AZ

Creative Audio Video and Automation, Sunset Hills, MO

Titan Technologies, Ft Lauderdale, FL

Deep Water Electronics, Chelan, WA

Avidia, Inc., Northbrook, IL

diamond design, Proctorville, OH

Beacon Audio Video Systems, Inc., Centerville, OH

eStream Digital, Carrollton, TX

Bob’s Smart Home, Woodinville, WA

JS Audio Video, Morristown, NJ

Cinegration, LLC, Arvada, CO

Legacy Custom Entertainment & Security, Cincinnati, OH

Command South, Inc., Boca Raton, FL

Ovation Audio Video, Indianapolis, IN Prestige Audio Visual, North Bay Village, FL SmartTouch USA, Columbia, MD Sound Decisions, Inc., Wilmington, NC

Connected Home, Inc., Belville, NC County TV, Stamford, CT

Lanza AV Home Theater & Security, Phoenix, AZ Louisa’s Electronics, Durango, CO Memphis Home Theater, Memphis, TN Palm Beach Electronics, Wellington, FL Paradise Home Entertainment, Inc., Scottsdale, AZ Switch Audio Video, Birmingham, AL The Soundwave, Lubbock, TX Twisted Pair Media, Nashville, TN

Desert Valley Audio Video, Scottsdale, AZ

Unlimited Electronic Environments, Pompano Beach, FL

Home Technology, St Charles, MO

Wicked Smart Homes, LLC, Sarasota, FL

KP Audio & Video, Inc., Woodland Hills, CA

Your Security Connection, Lake Park, FL

Fall 2016

News

CEDIA Gets on Board with Amazon Alexa If CEDIA 2016 had a theme it was this: get on board with Amazon or get left behind. By: Katie Nale CEDIA, the annual tradeshow centered around the custom installation and integration market, might seem like an unusual place for Amazon to set up camp. While the show has a relatively large attendance - 18,750 attendees and over 500 exhibitors in 2016 – it is also a niche show for a very specific industry. Amazon, meanwhile, is trying to take over the world.

But the home installation industry is at the forefront of something big and Amazon knows it. Voice user interface,

as Charlie Kindel of Alexa Smart Home at Amazon stated during his keynote address, is “the next major disruption in home computing” - a disruption on the cusp of taking off as more homes embrace the emerging Internet of Things. But the future isn’t here quite yet. Not everyone is captivated by the idea of having a smart home and most can’t afford a fully automated house complete with roller shades, custom lighting and app-controlled home theater seating. Most, however, can afford an Amazon Echo… and people are buying.

CEDIA members await for keynote speech by Charlie Kindel of Alexa Smart Home at Amazon Fall 2016

News

Amazon Alexa continued

The Smarthome Gateway Drug

In April GeekWire sited a report from Consumer Intelligence Research Partners (CIRP) estimating that Amazon had sold 3 million smart speakers and that the number was continuing to grow in direct correlation to increasing brand awareness. Amazon Alexa, the cloud-based voice service that powers speakers including the Amazon Echo, is reaching into more and more homes and introducing people to the idea of using voice to talk to computers. It is also introducing people to the idea of talking to a computer to initiate certain tasks around the house. “Alexa, turn on the lights.”

This is where smart home automation companies come into play. Companies including Control4, Crestron and Lutron have all synced up with Alexa to afford customers the ability to control aspects of their home via voice control. “You really find that people use this as the gateway to start to add additional smart home products to their home,” Morley Ivers, Co-Founder, President and Board Director of

Nucleus, an Alexa-enabled intercom, stated during Amazon’s CEDIA keynote address. Getting on Board

Arguably, one of the major reasons Amazon Alexa has a leg up in the category of home voice control is the amount of marketing behind it. CIRP co-founder Josh Lowitz stated of 2015 that “Amazon very carefully but aggressively promoted Amazon Echo during the year” and that “It dedicated Amazon.com homepage real estate to Echo, promoted it on Amazon Prime Day in July, and also advertised it heavily during the holiday shopping season.” CEO of iDevices Chris Allen confirmed that a major reason his company chose to integrate was because Amazon has done more marketing than other home control competitors including Apple’s HomeKit*. Allen also stated that the product validity that comes with the Alexa certification process contributed to iDevice’s decision to integrate with Alexa. How to Integrate

According to Kindel, developers can create new voice experiences on top of Alexa without being an expert in natural language or voice recognition. Technology companies can use Alexa Voice Service (AVS), a free licensing program with an application program interface (API) that allows for an Alexa-enabled device to be built. Companies can also use the Alexa Skills Kit (ASK), another API kit, which allows for extensions of what Alexa is capable of. ASK allows for new skills to be built and added to the current Alexa skills marketplace, which currently houses over 3,000 skills that customers can pick and choose from. Amazon showed up at CEDIA with the intent of expanding this marketplace even farther. To prove it, Charlie Kindel took the stage and told his keynote crowd, “We want to partner with all of you.” PS * iDevices is also HomeKit-enabled Amazon showcases its Alexa speaker at CEDIA 2016 Fall 2016

Better Processes

Better Processes, Better (More Profitable) Projects By Bradley A. Malone, PMP Project management is an exercise in maximizing effectiveness — doing the correct things correctly. Process management, on the other hand, through standardization, repeatability and continuous incremental improvement (sometimes monumental improvement), strives for efficiency — doing the correct things without waste. There are a lot of programs out there that address process standardization and improvement in more words than I’ll use — programs such as Lean, Six 10

Sigma, Business Process Engineering, SIPOC (Supplier, Input, Process, Output, Customer), and so on. More study on any of these topics will certainly yield positive benefits, especially at an AV integration firm characterized by many similar activities and deliverables over multiple projects (including service and warranty calls). But for now, let’s keep it simple. I view process as simply how we do things. If you watch people and how they do something, you can measure their effectiveness (quality) and efficiency (speed and waste). You can look for areas to improve, steps that don’t add value, delays or wait times that could be removed, and steps that create errors, which may have to be checked and/or

fixed by someone else. But all processes start simply; we perform hundreds every day, often without conscious thought. When I teach classes in project management for AV companies, I use simple everyday examples to help explain concepts, rather than diving right into the work environment. When you consider everyday processes, it can make concepts easier to understand without appearing judgmental (jump right into work processes and people sometimes feel judged or threatened, like someone wants to know exactly how the worker does what he/she does). So with that in mind, I’d like to use a simple example of a process and I’m confident you’ll be able to extrapolate to your job functions (pulling and terminating cabling, hanging a screen or display, mounting a projector, programming a control system, stocking the warehouse or van, etc.). Cup of Joe

This morning I made a pot of coffee. I have a drip-coffee maker, so I added water to the reservoir, put the pot back underneath, put the paper filter in the basket, measured coffee into the filter (three full scoops), and turned the coffee maker on. Some people I

Fall 2016

functions do things. A lot of organizations spend an incredible amount of time and money documenting perfect-world processes, yet they don’t really look at how their people do things now — on a daily basis — and determine how they can make small, incremental improvements. In order for a company to improve its processes, it must do a couple key things: First, it must understand why a process is in place, its purpose — achieving value in alignment with the organization’s goals and strategies. If an AV firm is doing something on a daily basis, or it’s doing it for a project, it needs to know why, what’s the intent, and what’s the value to either the next-in-line customer or the ultimate Customer?

such organizations, the attitude is, “I’ll write down what I do, then we’ll get together and improve on it.” Improvement is based on the value the company needs to achieve, viewed from the Customer’s perspective, not based on employee’s ego or a need to be right. Mature companies document and improve their processes incrementally — in a nonjudgmental fashion — attempting to remove waste, variation, or steps that don’t add value. Ham for Dinner

Here’s another example of a typical process of which the participants have little understanding but are caught continuously relearning old habits. It’s a typical family holiday and two children watch their mother prepare a ham. Their mother gets the ham out

As a ProSource district manager I am blessed in that I get to work with service companies of Second, the company must measure what it’s actually doing, not what it thinks or wishes it were doing. What I find in a lot of organizations — and I’ve trained and consulted around the world — is that people typically don’t like to be measured. If you ask someone, “How do you do that?” they’ll say, “How do you want me to do it?” or “I’m doing it the way I was taught.” They’re afraid that by measuring them, the company is judging them. Still, organizations need to watch how employees perform processes and assure them they’re not measuring the employee, just the process, of which the employee is only one component. Organizations with mature leadership usually don’t have the judgment factor permeating their culture. In

of the refrigerator, puts it on a cutting board, cuts off both ends, and then puts the ham in a pan and into the oven. “Why do you cut off both ends of the ham?” the children ask. “That’s just the way we cook our holiday ham,” the mother replies. “Why?” “Let’s ask Grandma,” the mother says. “She’ll know why.” When their grandmother arrives, the children ask, “Grandma, how do you cook a holiday ham?” Their grandmother answers, “You cut off both ends, put it in a pan, and then put it in the oven.” “Why?” “That’s the way we cook holiday ham,” their grandmother replies.

know put the filter and coffee in first, then add the water and put the pot underneath. Both involve a slightly different process but achieve the same result. How do you make coffee at home? Some of you may have different coffee makers — a French press, a Keurig, maybe even a Bunn — and the type of machine makes a difference in the process. If it’s a Bunn, for example, you have to put in the water last — and from a different container — because a Bunn coffee maker operates differently than a typical drip coffee maker. Now, if you never had a Bunn coffee maker before and received one as a gift, did you know to put the water in last, with a separate container, so that you didn’t make a mess all over the kitchen counter? And if you didn’t already know, did you find out in a good way (read instructions) or a hard way? Surely, there are people who figured it out the hard way; they put the water in first and it went all over the place. Here’s then an opportunity for understanding a simple process and making improvements to it. In a lot of companies, people learn things the hard way and organizations that truly want to improve have to determine how costly it is to learn those hard lessons (in the case of the Bunn coffee maker, how wet is too wet for the counter and floor?). Companies need to look at processes from an organizational perspective, not just an individual perspective. If 10 people are going to make coffee and achieve a predictable result, they need to understand the machine and its supplies and determine the best way to make good coffee. They need to be proactive about understanding the process and its intended results — think about it, talk about it, measure it, document it, standardize it and ultimately improve it. I’m not talking about turning people into unthinking robots; I’m talking about the need to consciously look at how we and others in the same job

Better Processes

“Why?” “Let’s ask Great Grandma,” their grandmother replies, “She’ll know why.” When their great grandmother arrives for the holiday dinner, everyone sits around the table to enjoy the ham. The children wait until she’s taking a bite to ask, “Great Grandma, why do you cut both ends off the ham before you cook it?” Great Grandma smiles and answers, “Well, children, because the pan is too small.” And so it is with many organizations: A process is put in place by one employee (often a founding member of the organization), followed by other employees and more employees after that, until the reasoning behind the process is lost and, often, any understanding of the value is also lost. It’s really incumbent upon a mature organization to periodically and objectively (which doesn’t mean judgmentally or robotically) look at how people are doing what they are doing and align it with why they’re doing what they’re doing. Taking simple steps, I’ve seen organizations dramatically increase their

continued

efficiency, boost profits and reduce overhead. Process standardization takes time and effort – it is a Cost of Conformance, which includes: Prevention Costs (Build in quality) • Training • Documented processes • Equipment • Time to do it right Appraisal Costs (Assess the quality) • Testing/Review • Inspections • Destructive testing loss Creating efficiencies through process standardization and improvement also helps cut down occurrences of reactive drama or crisis modes – the cost of nonconformance, which includes: Internal Failure Costs (Failures found by the company) • Rework • Scrap External Failure Costs (Failures found by the Customer) • Liabilities

• Warranty work • Lost business Allowing and inviting employees to be involved in the creation of processes which meet the quality standards fosters greater commitment among all the organization’s employees because they feel responsible for improving how things work – a win-win for the employee, the company, and the Customer. Remember – every dollar saved is dollar which increases profit. Bradley A. Malone, MA, PMP, is a partner at Navigate Management Consulting, an organizational excellence consulting company serving the AV integration business worldwide. Brad is the architect and presenter of standard-setting management training programs, including InfoComm, NSCA, and the Project Management Institute. He holds the Project Management Professional (PMP) designation from the Project Management Institute (PMI) and is one of PMI’s and InfoComm’s highest-rated instructors. Please share your thoughts with him at Brad.Malone@navigatemc.com. PS

Fall 2016

15 Minutes With…

Lani Godfrey District Manager, South East

Tell us about your career background. At 19 years old, I was compelled to leave Fuddruckers for Circuit City with the hope of no longer smelling like a French fry. Mission accomplished. I have been in the consumer electronics industry almost exclusively since then. One exception to this was when I sold campers for a about a year while completing my degree at the University of South Carolina in Management Retail.

As a ProSource district manager I am blessed in that I get to work with service companies throughout the southeast of all different types and sizes.

What does your average day look like? As a ProSource District Manager I am blessed in that I get to work with service companies throughout the southeast of all different types and sizes. I also get to work with vendor partners in my assigned region through industry events and dedicated trainings. What projects are you working on? I’m currently completing my last few travel items and member visits before the holiday season sets in. I’m also working on a few brand market projects with the regional rep firms and manufacturing reps that overlap my territory. Helping our members grow the service side of their businesses and develop processes and added values to their individual brands is key to our business interactions. What do you like most about your work? Something I like most about my work is that I get to work with folks that have known me for a long time, and often times I get to share those past experiences with business folks that have not known me nearly as long. Once partnerships are built the progress that comes from these partnerships is what I like the most. What is the one thing ProSource members should be excited about? I would say its time to get excited about our 2017 ProSource conferences and Summit. Our team, especially our member committees, have worked very hard and have used feedback from our vendors and members to continue upping the quality of our events. Given the successes of 2016, I believe 2017 will raise the bar even further. What hobbies do you enjoy outside of work? I am very loyal and dedicated to my alma mater (University of South Carolina). I also spend time on the coast whenever possible and I’m addicted to golfing and fishing. While the golf has improved over the years, the good fish stories are still few and far between, but the process itself is more than worth it. PS

Fall 2016

Round-Up

Streaming Music Platforms Four premium picks for streaming music platforms available on the market. Patrick McCarthy

In the past few years, it feels like the home audio market has exploded. What used to be a niche market for high-end users has turned into an ecosystem of options that complement nearly any room size without sparing any premium features. Here is look at some of the premium options for fully immersing a home in music. Yamaha’s MusicCast comes in many different packages but delivers the same frictionless multi-room audio experience. MusicCast offers a multi-room music experience that takes advantage of a premium app to play any media source including Bluetooth, vinyl, and CDs. Users can control their music through the various high-end monitors, AV receivers, Hi-Fi systems, sound bars, dedicated homebrewed speakers and nearly 20 additional products that MusicCast is compatible with. Yamaha’s dedicated WX-030 speaker’s sports a 3.5” woofer flanked with a premium 1-1/8” tweeter in two different and elegant

colors. The SoundTouch by Bose presents remarkable sounds by three distinct speakers that prove quality and quantity are not mutually exclusive. Built to fill small, medium and large rooms, the SoundTouch 10, 20 and 30 can connect to any combination of speakers or play nearly any music source independently. The SoundTouch speakers are controlled by a proprietary app that can save playlists that are accessed by hotkeys located on the top of each speaker. Effortlessly streaming Pandora, Spotify, Deezer and iHeartRadio, the SoundTouch music ecosystem makes streaming music as seamless as possible. Denon’s HEOS system offers the full functionality of a typical Wi-Fi home stereo system but offers a few options to venture outside thanks to a handful of rugged outdoor options. Specifically, the HEOS 1 is compatible with a GoPack that straps a battery to the waterproof housing, offering

one of the most versatile wireless speakers on the market. Comfortable with roughly a dozen streaming services, Denon’s line of HEOS speakers is designed with form and function unlike any other speaker on the market. Denon’s line of four speakers offers options for any sized room, including an option for those who keep a speaker near a shower or pool. With a different definition of what a whole-home audio ecosystem should be, DTS has assembled a dependable series of devices for the revolutionary Play-Fi. Leveraging the biggest tech companies in the world DTS connects everything from portable, battery-powered speakers to powerful amplifiers and floor speakers by using open-platform software to mix and match a growing list of more than 13 speaker brands. DTS continues to grow as it offers Alexa integration alongside an exclusive mobile app to control what source of media plays out of any home speakers. PS

Bose’s SoundTouch System

Yamaha’s MusicCast System

Denon’s HEOS System

Fall 2016

Meet the Committees Get to know ProSource’s four member committees and how they push the buying group forward.

At ProSource committees work to bring together member viewpoints, objectives and plans into focus. Each committee is comprised of ProSource members who volunteer their time to evaluate the opportunities and challenges of each initiative. That’s not to say the committees don’t have their own obstacles to overcome. Stephanie Keough, Chief Merchant of World Wide Stereo, stated of the Audio Committee, “The Audio Committee is a very challenging proposition. It’s a group of professionals who are all competitors who aren’t going to share their secret sauce.” Luckily, that doesn’t stop members from working together for the good of the buying group. “They all appreciate, however, that the market can be volatile and that there is a common advantage to supporting the success of our channel. Strategies are shared and opinions about trends, technology and the viability of the vendors are shared in pursuit of that common goal,” said Keough. Whether it is working with ProSource vendor partners on the strategic direction or bench-testing products, committee members are critical to the success of ProSource and its dealer and vendor members. As Keough stated, “Gems do emerge…” Here are the four committees constantly striving to keep ProSource ahead of the game: The Audio Committee: The Audio Committee provides manufacturers strategic feedback that ultimately represents the thoughts of the group as a whole. The IoT Committee: The IoT Committee is responsible for implementing a strategy for ProSource group members to address the emerging mid-market for home automation and connected devices. The Custom Integration: The Custom Integration Committee is responsible for assessing opportunities and solving issues that uniquely confront custom integrators. The Expert Warehouse Committee: The Expert Warehouse Committee is responsible for assessing opportunities and ways to improve service to ProSource members. PS

Fall 2016

News Welcome New Vendors ProSource has announced its newest vendors Future Automation and Slateplan. Future Automation offers a range of lift solutions for AV integrators to make audio video as unobtrusive, effective and as easy to operate as possible. “Future Automation has great engineering behind their product and a focus and passion for the custom integration channel, so it made natural sense that they were evaluated as a potential vendor by our CI committee. We are all very excited to have Future Automation join our vendor family,” Andy Orozco, Director of Business Development for ProSource, stated. Slateplan, selected by ProSource for project estimation

and selling, offers modern sales software for the home technology industry. According to Orozco, Stateplan was selected for its ease of use and ability to have significant impacts on ProSource member’s bottom lines. “Slateplan has always been, and continues to be, intended to make the home technology sales experience better for everyone involved,” Slateplan co-founder Jason Wright stated. “This includes customers and integrators, as well as manufacturers, service providers, and the other important players in the home technology ecosystem.” PS

Fall 2016

Member Spotlight Secrets to Success:

Crowne Audio Capitalizes on the Power of Email One-stop shop retailer Crowne Audio has spent the last year focusing on reaching consumers through their inboxes and realizing the benefits that maintaining an email relationship with customers can offer. Katie Nale

Print: Secrets to Success: Crowne Audio Capitalizes on the Power of Email Online: Crowne Audio: Email Isn’t Dead One-stop shop retailer Crowne Audio has spent the last year focusing on reaching consumers through their inboxes and realizing the benefits that maintaining an email relationship with customers can offer.

What’s New?

Crowne Audio has two locations: one in Lake Mary and the Fall 2016

In 2012 two young women living in New York started a daily email newsletter aimed at the millennial generation called The Skimm. The newsletter, which now has a reach of 3.5 million subscribers, proved one very important thing to businesses: email isn’t dead. In fact email may be one of the best ways to connect and reconnect with a customer

base. One-stop shop retailer Crowne Audio has been a prime example of the positive impact email can have on independent retail stores. The Florida-based dual-location store has spent the last year eschewing popular wisdom to rely solely on social media in favor of a multi-channel online approach that focuses on reaching consumers’ inboxes. By continually checking in with its customer base, Crowne Audio has increased sales while retaining an online relationship with its customers that can’t be summarized in a 140-character tweet.

Member Spotlight other in Winter Park, Florida. Both locations are one-stop shops that include security, home automation and audio distribution. The store sells chairs, televisions, projectors and other common items in addition to shades and landscape lighting, which can be incorporated into automation systems. It also builds and designs larger endeavors like home theaters. The store also has a few unique undertakings including its own cabinet shop, which began about 5 years ago in response to customers wanting cabinets on the bottom of their TVs as old projection TVs got replaced with newer ones. According to Vice President Wael Yacoub, the shop has just recently reached full force in terms of popularity. The store also just received its electrical license and is working closely with Lutron to get more involved in designing and lighting. Right now, the store is working with Lutron via control pads and is excited for the opportunity to provide clients with more detailed specifications about what they’re looking to light up in their home. 28

A Growing Business

Working in conjunction with Lutron seems like the right move for Crowne Audio as both landscape lighting and Lutron shades have hit home with consumers over the past year. Shading has become one of the store’s most popular categories. “People aren’t really concerned with old drapes anymore, and low-rise shades have gotten more efficient, easier to use and they work well with home automation systems,” Yacoub stated.

The store has capitalized on this interest in lighting and shading by reaching out to existing customers to make them aware of the store’s new offerings. The store has also been reaching out to clients in regard to new offerings in its equipment line. One of the most impactful ways it has been doing this is through email blasts. “It’s just really allowed us to get back into the customers’ homes, to bring more excitement to what’s going on with the industry,” Yacoub said. Why Email?

When asked why Crowne Audio has made such a commitment to email this year, Yacoub said that right now it is the easiest way to reach a customer. He once had a friend tell him, “Every time you send me an email I feel like I want to buy something.” Email takes into account what most clients do during the day… spend time on the Internet. Email has also allowed Crowne Audio to get back into customers’ homes and tell them a little bit about newer technology and automation, things like newer TVs and 4K. “We noticed that the clients who have used us in the past found other areas of interest -- lighting, automation, landscape lighting, shades and so forth. So this new technology [email] seems like it’s a lot more exciting then what it used to be,” Yacoub said. So, no social?

A quick glance at Crowne Audio’s Twitter account will tell you that social media is not off the table for this retailer. “We do some [social] but we don’t focus on it as much as we do the email blasts,” Yacoub said.

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Member Spotlight equipment. We start to build a relationship with the client, we start to build a trust factor… we get to go line item by line item to explain to clients what our game plan is when we get into their home and what our game plan is when we exit their home to make sure the customer gets exactly what they’re looking for,” Yacoub stated. Like its practice of emailing clients, knowing when to stop has also contributed to the store’s increase in actual faceto-face time with its customers. ProSource Membership

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The store was looking for a way to reach out to clients that it had not heard from in the last 3 to 4 years. Social media was not going to provide the same reach that email was for these customers.

Of course, emailing customers wouldn’t have any value if there wasn’t anything to email them about. Yacoub stated that being a ProSource member gives Crowne Audio the ability to diversify its product line-ups, not only from the standpoint of new products but also from the standpoint of discounts that allow the store to apply money to other areas. “The ProSource family has been good to us the last 8 to 9 years that we’ve been with them. It’s nice that we have the ability to just reach out and get the support that we need from the ProSource meeting,” Yacoub said. PS

Email Strategy

While Crowne Audio has been working to keep its customers in the loop via email, it has also taken the tactful approach of knowing when to stop. The store stopped emailing proposals to clients in favor of one-on-one sitdowns, allowing workers to explain their designs and the reasoning behind them. In turn, these sit-downs let workers know whether they are over or under budget with a client. “We’ve noticed that most of the time when we bring our clients back into our design studios and sit down with them that the conversations go beyond just our

Fall 2016

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News

ProSource Industry Reception at CEDIA 1

By Line

ProSource held its annual industry reception this September during CEDIA at the Sheraton Dallas Hotel. The event, sponsored by Klipsch, included an evening of networking, live music and good food. Andy Orozco, Director of Business Development for ProSource stated, “This year’s CEDIA reception was one of our highest attended social events. As is the case with everything we do here, our vendor and dealer members were the key to our success. The positive vibe they created that evening carried on throughout the entire week. I’d like to send a special thank you to Klipsch who sponsored the event and provided great entertainment for everyone.” PS

1. Weskeal West, Gale Nordyke, Joshua Trujillo and Brian Thompson of Logic Integration 2. David Workman, CEO of ProSource 3. Andy Orozco, Director of Business Development for ProSource 4. Buzz Jensen of Paradise Home Entertainment, Steve Working of Audio Concepts and Jeff Woolbright of Paradise Home Entertainment 5. Paul Jacobs, Matt Sommers and Kayla Wininger of Klipsch 6. Michael Gleason of Riva Audio, David Berman of eStream Digital, Deena Ghazarian of Target Path and Bryan Koutsky of Control4 7. Jason Barth of The Premier Group, Marc Fisher of Origin Acoustics, Tim Bashford of ProSource and Ken Irvine of The Premier Group 8. Brandt Varner of Samsung and Jim Ristow of AVB/BrandSource

9. Vanessa Stewart, Miguel Cruz, Debora Rubi, John Baskerville, Melissa Hunsberger, Kendall Clark and Ron Callis of One Firefly 10. Jeff Staud of DM Home Entertainment, Kathleen Marini of ProSource and David Abell and DM Home Entertainment

Fall 2016

Starpower Pioneering a Truly Connected Home David Pidgeon, President and CEO of Starpower

In 2007, the launch of the iPhone ignited one of the largest technological revolutions of our time. Consumers adopted the technology at an incredible rate, and soon, they were soon craving the same features and benefits of their iPhone in other areas of their lives especially their homes. In an effort to meet demand, members of the consumer electronics industry were called upon to forge new pathways, and to bring solutions to life. Needless to say, we answered the call. Our company Starpower, headquartered in Dallas, Texas, was one of many integrators in the consumer electronics industry to pioneer a truly connected home. During the early years of home automation, considerable thought, time and effort were spent molding our philosophies on this emerging technology. Even more effort was put towards the

development of the tools and systems required to achieve success in the space. We exercised quite a bit of trial and error. Ultimately, we learned that in order to be successful as an integrator, we had to be consistent. We knew we had to deliver reliable systems that could stand the test of time. So, that’s what we did. In order to deliver consistency and reliability to our clients, we knew we had to control as many aspects of the integration as possible. For us, that meant managing our client’s expectations upfront, and exercising caution when selecting the products and platforms for which we integrate. Making Sense of all the Options

As the popularity of home integration grew over the last decade, and words

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like “smart home” became mainstream, we were faced with a new set of challenges. “Smart Home” products like thermostats, light switches, and door locks were introduced to the market at an astonishing rate, and we had to adapt. We found success throughout this time, by staying loyal to the brands and products that had proven themselves overtime. By taking a more a conservative approach to integration, we were able to offer our clients performance over feature sets. We educate ourselves and our consumers on the products we are integrating, and shy away from “shiny new objects” without first vetting their claims. In the end, it is always about the “value” you have created for the client. We are in the business of protecting our

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a system design specialist at any Starpower showroom. Looking to the Future

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customers from situations where they are underwhelmed by the results of their investment. It’s not good enough to make a product do something anymore. People want their life to become considerably easier as a result of their investment in home integration; it’s necessary to deliver a solution that will control their products in a way in which their life is impacted for the better. For Starpower, this means sometimes saying “no” when asked to integrate unvetted products into our client’s system. Setting Customer Expectations

In a world where integrators are eager to sell customers on the idea of an integrated system with a user-experience that will mirror that of a smart phone, Starpower stands apart. Early on, we recognized the limitations of the products and platforms available to our programmers and clients. In home automation, the products are diverse, and they lack a unified platform. The promise of interoperability has yet to materialize. The reality is that different products are not designed to work with each other and every integrator should be wary of such claims by the manufacturers. Overpromising the performance and abilities of an integrated system is a recipe for sure failure. We believe educating the client is one Fall 2016

of most critical components of a successful engagement. So what’s the most effective method we’ve found to educate our clients? It’s simple, a test drive. We’ve worked hard to bring home automation to life right from the showroom floor. Whether our clients are looking for single source control of video and audio equipment, to wholehome integration including lighting, home security, door locks, and window treatments and appliances, Starpower can provide a live demonstration of the technology and allow our clients to engage with a touch panel or iPad controlling the experience. It’s an exhilarating and eyeopening experience from start to finish, and it’s one of the best tools we own. Nothing compares to having the client experience the interPhoto caption face first hand, prior to the exchange of any money. Having the expectations set up front is key to success. Our clients can engage and interact with a working home automation system via a live demonstration with

In 2011, we acquired luxury appliance retailer, Ed Kellum & Son, which earned us a front row seat in the appliance industry. As we look to the future, we find the world of home electronics and home appliances colliding in a way like never before. As a result of the merger, Starpower gained a unique insight and understanding of how people want to live with their appliances alongside of the technology contained throughout the home. We are continually looking for the right jump-off points to meet the consumer’s fast-changing expectations of a “smart home”. As of right now, our integration of appliances is more about delivering a luxury lifestyle rather than integrating into appliances into a touch panel. However, it is only a matter of time, until every appliance is part of the “internet of things.” Regardless where technology and

the times take us, we can rest assured knowing Starpower will be on the front lines developing new systems and solutions to integrate our lives and our things together in perfect harmony. PS

Installers Only

Milestone AV Technologies’ SANUS Black Series Milestone AV Technologies’ SANUS Black Series was created through feedback from Custom Installers to be easier to install, easier to use and easier to sell. The SANUS Black series of mounts offered by Milestone AV Technologies was created with fully-assembled TV interfaces and patented post-install features like ProSet Plus that allow for level and height adjustments. The reasoning behind this user-friendly set-up is to minimize time spent on the job and maximize installer profit.

The Installer Channel In order to make this a series specifically targeted at the installer channel, the mounts were created to be all-in-one solutions. “We really beefed up our hardware bag so that when the installer goes out they will have everything - a universal solution to mount a TV. He can be confident he’ll have everything he needs for that install,” said Cathy

Schaufenbil of Milestone AV Technologies. The series is aimed at making sure integrators have everything they need, from both a technical and customer care standpoint. Limited Distribution To keep this series exclusive to the installer channel, distribution is limited. “We limited distribution to those without an online presence who wouldn’t sell to resellers so the features and benefits of this line would be exclusive to the custom installer,” Schaufenbil said. The line has no retail presence, no Internet sales and no reseller sales. Anybody involved with the line must sign an agreement stating they will not sell to online sellers or anyone involved with online resale. PS

Fall 2016

Maxicon Maxicon Expands Presence in Miami with Latest Showroom Opening By Rob Stott

The story of how Maxicon came into being is so cliché of the tech community, but nothing about the company itself is cliché at all. About 12 years ago, Andres Klein and his good friend and business partner Samuel Naierman decided to take a childhood hobby and turn it into a business when they launched their custom integration company. Klein and Naierman, who grew up in the same neighborhood, also went to the same school together and were responsible for managing all of the electronics in the school. “We started very small, and we decided about eight years ago that we wanted to build a showroom that had something different to offer, to educate the consumer, different from the regular big box retailers,” said Klein. To help get their dream off the ground, the pair teamed up with world-renowned architectural company WaltersStoryk Design Group. John Storyk, the founder of the company, is a much-respected architect, but—perhaps more importantly—he’s also a registered acoustician. Some of his most notorious projects include designing Jimmy Hendrix’ Electric Lady Studios in Manhattan, Jay Z’s Roc the Mic Studios in New York, the Food Network’s studios, MTV’s Argentinian studio, NYU, and the Maracanã Stadium in Rio de Janeiro (which was home to the Rio Olympics this summer and the 2014 World Cup Final). That first showroom was actually located in Mexico, but Maxicon has since expanded into South Florida with studios in North Miami (where they’re now headquartered), Panama, and—their newest location—in Pinecrest, Florida, a short drive south of Miami. Having now opened and managed a variety of experience centers now, Klein said the company has taken parts of what has worked in each of their other stores and applied it to their Pinecrest store. But they also designed the store in a way that makes it unique from its other locations. “This particular showroom is a flagship showroom because it has a space for every member of the family,” he said. “We have a very important part of our showroom dedicated to window treatments and lighting fixtures; we have a space for interfaces where you can actually play with Savant, Control4, and Crestron; we have a space even for our commercial customers.” The space also includes a dedicated area for home

theater setups where the customer can learn about and experience different projector and screen setups, as well as the difference between architectural and acoustic speakers. “Besides showing a better and best experience, we’re also showing the aesthetics of how those systems will actually look depending on the installation that we’re actually suggesting to a customer,” explained Klein. “We display, for example, a fixed, acoustically transparent screen from Seymour, and we also show a video with a motorized dropdown screen from SI.” What takes the experience a step further, though, is Maxicon’s attention to the culture and style of the neighborhood they call home. “We really made sure that our furniture and the design of the place is connected with the Miami vibe. It’s a very modern, very minimalistic technology gallery,” Klein said.

“Things are very, very well-installed and well-integrated with modern furniture. What we are trying to convey to customers is that you don’t need to have a dedicated room to have an amazing experience. You can have the experience of a dedicated theater with good acoustics and it can still be your family room.” Klein was quick to credit his company’s successful expansion, in part, to their membership with ProSource. The location features product from about 80 percent of the brands tied to the group, he said, and that’s something they’ve been dedicated to and focused on. “Then with the team itself at ProSource, everything has been absolutely great,” he said. “The amount of information and the growth that we have seen within the past year and a half from the different events to the camaraderie, it’s just really, really, really important for us. We take those events seriously as a way to connect with the other dealers and exchange ideas, problems, solutions. You get so much more out of it than just the advantages of the buying power.” PS Fall 2016

ProSource On The Road ProSource has spent the last few months traveling the globe. Here’s a look at a few of the stops they made along the way.

ProSource DM Team with URC

Total Tech Summit – Atlanta, GA

ProSource Audio Committee in China

ProSource Audio Committee with Yamaha - Japan Fall 2016

Up Next ProSource Industry Reception at CES 2017 January 4, 2017 6:30 p.m. to 8:00 p.m. Bally’s Jubilee Ballroom Las Vegas, NV CES is the world’s gathering place for all who thrive on the business of consumer technologies. The ProSource Industry Reception brings together ProSource members, vendor partners, and the press for an evening of networking at one of the largest annual industry events, CES.

ProSource Summit 2017 March 5th – 8th, 2017 The World Marriott Center Orlando, Florida

The ProSource Summit provides valuable opportunities for group members to share ideas, learn from their peers, and spend productive time with suppliers away from the bustle of other industry trade shows. It is a four-day event attended by hundreds of AV specialists and suppliers, features an outstanding agenda of educational workshops, networking, entertainment, and the opportunity for members to meet one-on-one with vendor partners for one-on-one business planning.

ProSource Spring Meeting 2017 May 8-12, 2017 La Cantera Resort and Spa San Antonio, TX The ProSource Spring Meeting is for the largest retail and custom integration members of the group, PRO and Power CI Members. A three-day event, members enjoy hearing from Industry leading speakers, learning best practices, participating in demo suites, in addition to networking, entertainment, and the opportunity for members to meet with vendor partners for indepth, one-on-one business planning.

Fall 2016