Weighing Risk

Steven Kippel, ESC-D

How much risk are you willing to accept with an integrator?

A few years ago, I put a deposit down on a car from a new start-up company. This was such a cool car! I thought it was built with me in mind. It was an EV designed for the Californian lifestyle, made of recycled materials, and big enough for me and my large teenage son to jet around Southern California to all of his soccer games.

Things don’t always work out for the best

The launch of the car came and the initial group received their cars. The excitement was building! I picked all my options and finishes – wheels, trim, etc. And then the reviews started coming in that decimated the reputation of the brand.

Edmunds put out an article a few months after receiving their test vehicle with the straight-forward headline “Do not buy this vehicle.”

Where do we go from here?

I was put in the position of deciding how much risk I want to take. I really liked this car. I went to their showroom and sat in it and pushed all the buttons. It was one of the finest cars I’ve ever seen. But did I love it enough to risk not having the ability to service it if the company went under?

After the stock for this company was delisted from the NYSE, that decision became easier to make.

Your AV integrator is not publicly traded, so you have a lot less to go on.

The cutting edge

With over twenty years in the integrator business, I have seen many companies come and go. I recall one very cool company appear with a stellar technology that allowed you to record your Netflix shows to a harddrive go under. I’ve had to pull product out of houses that were no longer supported.

With technology there’s always a new shiny box that’s exciting and desireable. That’s one of the coolest things about working in technology!

But an AV integrator (probably) doesn’t have venture capital behind it, and is selling, installing and maintaining a complex system through the years in your private space – your castle.

What those on the outside of this industry may not realize is there’s a remarkably low barrier of entry. Many AV integrators have no licensing and do work under the general contractor’s license. Many distributors and manufacturers do not vett integration firms for longevity or competancy. (Luckily the premier companies in this space do!)

Fly-by-night

Many small businesses do not last long – most of them by the numbers. A lot of wishful entrepreneurs get into this exciting industry without a long-term vision for how they will service their clients after the installation is completed. This is why so many of them don’t answer the phone when you need them, and why many more do not last more than a handful of years. At which point those homeowners are left without anyone to care for their needs.

A homeowner may accept that risk for a few reasons:

  • They underestimate how much service technology takes
  • The lower cost of a smaller company or start-up is a worthwhile trade off
  • Employing a personal staff to manage most maintenance needs

Lean on experience

What we provide is the experience and knowledge to design a scope of work that you can use to get competitive bids. We can also evaluate them for completeness, reliability, serviceability, and compare bids themĀ 

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