Integrators on the “New Normal” and What DMs are Hearing on the Street

INTEGRATORS ON THE NEW NORMAL

Editor Maureen Jenson talked to two ProSource members, Patrick Mulligan of Pacific Audio & Communications and Phil Murray of ListenUp about vendors, customers and working in the time of the “new normal”.

MAUREEN JENSON: How have your vendor communications changed and how supportive are the vendors during this difficult time?

PATRICK MULLIGAN, PACIFIC AUDIO &

COMMUNICATIONS: As we are located in Hawaii, our 30th anniversary is January 2021, we are used to vendor communications via online or by phone for almost 30 years. So, if anyone was prepared for COVID in terms of physical separation from vendors, it’s the dealers located in Hawaii. Most vendors are offering some type of online tech or sales training by Zoom, Microsoft teams or other platforms. A few have taken it a step farther and created Slack channels which is nice as we then get nearly daily updates on those threads and it’s always available to look at, comment or just review.

ProSource even took it a step farther and they created a Slack channel with all their

Phil Murray, ListenUp

vendors on it so we have one place to go and view our vendors who are a part of ProSource which for us is about ¾ of their portfolio. A combination of webinars, conferences and Slack channels have been working well for us but another issue with being In Hawaii is the time schedules for events that some of the vendors put on. Since we are three hours behind west coast

and six from east, sometimes these webinars are at 3–4 AM for us and that is just not feasible so we do miss about half of the trainings but luckily most are recorded so we can review them on our time but we miss out on the networking and live Q&A. ProSource has been a remarkable resource during this trying time, and Josh.ai and Crestron have really stepped up if we have a tech issue and needed support.

PHIL MURRAY, LISTENUP: Yes, lots of Zoom calls, Microsoft Team Meetings, and Google Hangout calls. It really has been amazing how well the calls have worked. We’re probably doing two to three calls a day with vendors. But we had our first vendor actually fly in to see us last week and it was so nice to actually have that in-person experience and go to dinner — outside of course. I would say most of the vendors have done a good job with maintaining communications via video calls. We also do all of our meetings internally on Google Hangouts. Everyone uses the phrase, “the new normal” but video calls have really become the new normal.

MAUREEN JENSON: Reports all summer have been about supply chain disruptions, what are your findings?

PATRICK MULLIGAN: Yes, we have seen a few vendors with supply chain issues, we had to switch it up some and, in our case, moved to Marantz. We are seeing delays in shipping as well. Things that used to take two weeks by boat are now taking three weeks, some other items we used to get in three/four days are taking a few days longer. We have had to order items earlier then we used to, just to make sure we will have them in time. continued on page 16

PHIL MURRAY: Yes, some of our suppliers are having major supply chain issues. We’ve seen a huge increase in our e-commerce business, but it has been constrained by supply issues.

MAUREEN JENSON: How has your business changed?

PATRICK MULLIGAN: We are busier now than pre-COVID with demands for network upgrades, security (cameras and monitored accounts), and whole-house audio since more people are at home now. As COVID was starting up we could see issues with this, so we got proactive and created SOPs to have company-wide policies. I believe we were one of the first integration companies out of the gate with COVID SOPs. In the SOP we have CDC and WHO guidelines along with some of our internal recommendations. We then shared these on our social media platforms, website, and blogs. We also have a letter for customers and what we need to see before going on a service call or construction site. When we get a call for service or a new job startup, we ask a line of questions. For example, has anyone in the household or on the construction site been sick in the last month? How long have they been in the house? Has anyone recently flown in from the mainland? We also mention our teams will have proper PPE and cleaning supplies on them as they enter the home or construction site. Things are being delayed on the job sites as well.

PHIL MURRAY: We are doing a lot more emails and social campaigns. We were very promotional in these campaigns when our stores were first closed down. Fortunately, we were able to do installs when our stores were closed. We had some customers cancel installs but we had a lot of customers who wanted us to update their home systems and Wi-Fi networks for working from home.

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PROSOURCE DISTRICT MANAGERS

WHAT THEY’RE HEARING ON THE STREET

Samantha Summerville

SOUTHCENTRAL REGION

Our dealers are busier than they have ever been and hiring is a big push right now. The shortage of technicians and installers in the past three to four months has put a new twist on who is doing what within the company. This shortage or need will always be a struggle for our members. Some integrators are shifting the sales team into learning install and technical aspects of the job spec through ProSourceU because of the workload.

“The members are in high demand by the clients: network, audio, video, shades, lighting, outdoor. This leads to the demand by the integrators for product which for some vendors was a struggle for three to four months through the pandemic. This is leveling itself out as inventory levels are getting to a plus or even level to the demand. Finally, the demand for installers and techs to get the jobs completed per the demand of the clients. We as an industry will be in demand for many years, as technology grows in the home and end users want and need the latest and greatest.”

Rick Huggins

WEST REGION

Members up and down the West are all extremely busy right now, many with four, six, even eight weeks of installs in their pipeline. I’m seeing larger, well thought-out proposals getting signed as well, which will keep many members busy well into 2021. I’m also hearing that clients are asking for more than just traditional AV installs, with more custom requests, lighting, air-purification, and other categories outside the norm. Overall, business is strong.

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MAUREEN JENSON: What do your customers want now?

PATRICK MULLIGAN: Networks are the most asked for, then security, then whole house audio and in that order. Also a few media rooms, but since we are in Hawaii, media or theater rooms are not as common as the mainland, the client can walk outside and get REAL 3D MEDIA! Oh, and voice control is being asked for more than it was just eight-nine months ago. Touchless control.

The ListenUp Colorado Springs Store.

PHIL MURRAY: Home theater has made a real comeback and as mentioned in my last answer, Wi-Fi networks. Custom systems continue to do well. People are really into cocooning. With movie theaters shut down, people are into improving their home theaters. 4K and 8K TVs continue to do well.

MAUREEN JENSON: How are your customers’ daily habits changing and how do you meet that tech need?

PATRICK MULLIGAN: NETWORK, NETWORK, NETWORKS are the hot button. Since most of our clients are in that 1 to 10 percent category and they are working from home they need their networks stronger than ever. They also need to find a work life balance as well as being home so that is where whole house audio and media rooms come into the conversations. Especially outdoor audio and video. They are in Hawaii after all so the outdoor settings are the focus.

A recent Pacific Audio & Communications project in Hawaii.

STREET continued from page XX

“Product inventory continues to be the biggest struggle right now, and my recommendation to members is that if a product is in stock and they think they will use it in the next 6-8 weeks then to pick it up now because going into the holiday season and with model transitions we might see even tighter constraints in certain categories over the next few months. The next biggest struggle is finding good labor, which is one of the reasons ProSource University was created – to help members train techs from the ground up.”

Nicole Riddle

NORTHCENTRAL REGION

Business is up year-over-year, and members are saying they are very busy. The dealers are finding ways to adapt with the “new normal” of keeping techprotected and safe while doing installs within their customers’ homes.

“Shades and lighting are hot topics and I’ve had members reaching out to start with linear and landscape lighting. The feedback on our new lighting partners has been tremendous – vendors are even helping dealers spec jobs. Fall will soon turn to winter in the Midwest, but it doesn’t seem to be a slow down or concern for my dealers. They are focused on increasing marketing and finding new ways to stay connected with their customers.

“They are looking for ways to connect with an industry based third party to help with marketing, SEO and social media. There also seems to be concerns about the

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STREET continued from page 18

real estate industry and with a shortage in raw materials – there is worry on new construction delays. Members are also asking me to connect them with other members related to specific vendors or issues they are experiencing.”

Robert Dodge NORTHEAST REGION

Our members are closing projects and delivering racks at their peak right now. The Northeast successfully navigated the COVID-19 storm and many of the products and services they provide remain in demand. The hottest categories over the last few months were outdoor audio/video, indoor and landscape lighting, network upgrades, motorized shades, premium OLED TVs and home theaters. Members are optimistic that they will finish 2020 strong. Recent reports of a second wave of COVID-19 starting and peaking this winter is concerning. The threat of a second wave could hamper dealers’ ability to enter homes this winter. Members are encouraging clients to complete projects before winter through email outreach and phone calls.”