What If: The Future Has A New Order?
In a CI world of doubters and chain gang thinking, we probably all doubt if there can be a truly disruptive positive force for CI owners. But that doesn’t stop the Chicken Littles from forecasting our doom.
Just read again about the end of CI’s; that pathetic band of AV enthusiasts whose businesses get in the way of really enjoying their hobby. Your extinction is just around the corner; courtesy some credit card subscription plan. Now GAFA (Google, Apple, Facebook & Amazon) is taking our valued jewels and storming the (mass) market with talking pods, wireless nodes, IOT and Mrs. Jetson’s robot.
Hold on, soothsayers. We see investment money lined up behind groups like CSC (Control 4, SAVANT and CORE – ok, not quite as glamorous). We see manufacturers, trying to grow their future, finding niches and new categories to expand their kingdoms. And what if there’s magic in a consumer distribution model? Luxury manufacturers developing real consumer awareness with luxury studios – places high net worth people can actually find and customize their dream systems.
It’s true ToTo; wealthy people will still need Waldo to design and install their massive home tech systems. From lighting, shades, to in-wall/ceiling speakers, video, theater, “hello I’m home” and whatever the heart or mind desires.
So why not capture the value from the plant to the street? Meaning: why not have 25 or 50 or multiples of 100 locations where people can experience and get the systems designed, installed and serviced for them?
Our vision is a network of Bravas Studios that make much more money, per revenue dollar, than the manufacturers’ make. Our 24 locations will do $90M in 2017 and make some $13M – about the same that Control 4 reported on $202M in Revenue.
Please stay with us, don’t digress and start talking about second, third and fourth order things including RMR. At 25 to 30 times earnings and capital, a 100-location network of companies creates a $400M revenue distribution arm that purchases some $160M in goods. At $50M in earnings with a 30X multiple, you have a $1.5B bolt-on to any of the aforementioned CSC.
The CI boo-birds might say, who (dealers) would stick around when a manufacturer is competing with them? Well, you might want to join them. Take advantage of formal sales training resources, tech training resources, business coaching resources, marketing that generates more customers and all the things most CI’s can’t afford do today. All this could be available to non-company-owned shops, as well.
I frequent many franchise restaurants and other businesses and some are company-owned. I rarely know the difference.
Owners, you get to realize maximum value in your business, and hang around if you wish. The winner here dominates the marketplace: bigger and better than any second or third place finisher. And look…
Not a spec of RMR required.
What is required is a standardized management system proven to produce results. If there is a 10-digit future for any CI (or group of CI’s), this appears the most likely path.
Message to CI owners: find that standardized, money-making system. It will bring you significant profits today. It will be even bigger in the future.
Stay Vital My Friends,