For every industry, companies will most likely always be looking for the secret ingredient on how they can make a profit. Although this is often easier said than done, there are a few simple solutions that can increase the flow of revenue for businesses.
Whether it is a proven business model or an easy way to create recurring revenue, the secret to profitability can look different depending on the field. Those in the tech industry, especially AV dealers, can utilize a few key tactics that increase revenue and improve business processes.
In order for AV dealers to bolster their revenue, they should look for ways to minimize costs to their company. But, before we delve into the ways that AV dealers can make a better profit, let’s analyze how profit margins work in the AV industry.
How to Make a Profit in the AV Industry
While revenue in the AV industry appears to be strong despite the drop in 2020, experts in the business note that this positive trend may not be sustainable. Profit margins in the AV business may seem a little tricky, so it can be helpful to refer back to a simple equation that highlights profitability.
Profit = Revenue – Costs
Although this is simplifying a more complex process, it helps put profitability in perspective. So, as an AV dealer, there are two main ways to increase your company’s profits. First, you can increase your revenue. Whether this is selling more inventory or gaining more customers, organizations tend to focus their efforts on improving their revenue streams.
The other way to increase profit is to reduce your company’s costs. The key to effectively decreasing costs is to improve efficiency by streamlining your business processes. Now, companies are sometimes apprehensive to implement a new system into their operations because they may fear the migration process will interfere with business operations or take many months to fully integrate.
The reality is that migrating to a streamlined system will benefit your company by making your daily operations more efficient, which will lower your business costs.
How to Create More Revenue
To create a steady stream of revenue for your company, there are a few solutions that you could try to implement if you haven’t already.
Software as a Service
For pro AV businesses, incorporating SaaS into your company can be extremely beneficial. Not only does it help you gain recurring revenue, but it also lowers upfront costs, simplifies management, and does not require licensing fees.
As you probably know, the world is moving to the cloud. So, implementing SaaS into your business processes will help set up your company for the future. Becoming cloud-based is also more appealing for your AV customers because you can hold video conferences and offer cloud-based digital signage solutions.
Since pro AV dealers are well-versed in the tech industry, a great way to appeal to consumers is by creating engaging content. Companies are always looking for new and exciting ways to connect with their customers, and sharing interesting and useful content has proven to be very effective.
Many AV dealers use subscription services as a way to provide their clients with the audio visual assets they ask for. Nowadays, it is not enough for an AV integrator to simply provide exactly what the customer needs. They must go above and beyond.
Once you understand what your customer is looking for, you can demonstrate how they can use your hardware to achieve their vision. If your company can provide everything from installation, troubleshooting, and content creation, you will be their one-stop shop for all AV needs.
So, offering content services can increase both initial and long-term revenue by making your company the catch-all solution for their AV needs. You can accomplish this by hiring a design agency, freelancers, or an in-house production staff to create the content your customers are looking for.
Since the world of technology is continuously advancing, more and more people desire the latest state-of-the-art devices. You can use this desire to your advantage.
New AV innovations are created all of the time, and they can give you the opportunity for a recurring revenue stream. Instead of making all purchases one and done, consider offering product refreshes in the contract for your customers’ purchases. So, they can opt-in to upgrade their equipment after a preset amount of time.
By allowing them to pay for the upgrade month by month, quarterly, or yearly, you are establishing a predictable source of income for your business. Plus, your customers will be happy with your AV installation and upgrade packages, so it is a win-win.
Customer and Support Services
One of the best ways to create more revenue for your business is to offer high-quality support and customer service. By offering a support service that customers can pay for monthly, you can provide technical assistance whenever they encounter a problem with your AV system.
Also, it’s no secret that quality customer service can lead to more sales. So, if you can go out of your way to make sure your customers are satisfied, then you will see an increase in your revenue stream.
How A Cloud ERP Saves Your Business Money
Now that we have discussed the ways you can increase your cash flow, let’s discuss the ways you can lower your company’s costs. A cloud-based ERP system is the most effective solution for saving your business money, and these are the reasons why.
Supply Chain Management
With major supply chain delays occurring all over the country, you need a reliable management system that will help you keep track of your service level agreements, supplier relationships, and everything in between.
An ERP solution will save you money with its supply chain management functions by automating tasks that can take up a significant amount of your employees’ time. This allows for more effective planning, enhanced forecasting, less risk, and more.
Lower Labor Costs
As mentioned above, the day-to-day tasks that eat up a majority of your employees’ time can be avoided by automating tasks. A cloud ERP can lower labor costs because work schedules can run more efficiently without interruption, which reduces the need for overtime and reworking.
By making all of your processes work more efficiently, a cloud ERP means that you don’t have to sit around and wait for someone who’s authorized to give you the information you need. As a part of the cloud, you have access to all your important data in real time, so you can save money by reducing your organization’s overall downtime.
Intangible costs, such as process design and accounting procedures, are just as important for improving your business and saving you money. A cloud-based ERP solution ensures that there are no inconsistencies in the design and procedures of your production.
With all of your information on a single platform, you have greater visibility and oversight into the accuracy of all your business processes.
Make A Profit With An ERP Built Specifically For AV System Providers
So as you can see, there are a few different ways that AV dealers can make a profit. But, perhaps the most effective way to save your business money is by prioritizing your efficiency.
With cloud-based ERP made specifically for AV system providers, you will not only save your business money, but you will also pave the way for an influx of revenue. Khameleon’s easy-to-use ERP software will make migrating to a new system a breeze, and you can enjoy the benefits of all your scattered data together into one cloud-based tool.
Ready to get started? Get a FREE personalized demo today and see how Khameleon can transform your business for the better.