Accessory Selling Basics


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  • We are NOT tricking people. We are simply DOING A BETTER JOB AT ADDING VALUE. The ECONOMIC VALUE ADDED is driven by giving the customer MORE FOR THEIR MONEY. MOST IMPORTANTLY we make sure that we are delivering a solution rather than JUST a product.
  • Giving REASONABLE savings on the desirable and necessary accessories items while preserving the margin on the big ticket unit opens the door for more sales and increased profit
  • Accessory Selling Basics

    1. 1. Accessorize Me!!!<br />The KEY to making more money in A/V<br />
    2. 2. Why Sell Accessories?<br />Increase you contribution margin<br />Increase revenue<br />If you DON’T your competition WILL<br />It’s easy<br />It’s necessary<br />
    3. 3. Contribution Margin and ASP<br />ASP for PROJECTORS will continue to DECLINE in 2011<br />Estimated $10 CM loss per unit @ the same CM%<br />ASP for FLAT PANEL DISPLAYS will also DECLINE<br />$5 CM loss per unit @ the same CM%<br />ASP for most accessories has remained FLAT<br />
    4. 4. Contribution Margin and ASP<br />
    5. 5. Key Categories<br />Mounts<br />Screens<br />Lamps<br />Audio<br />Cables and Connectivity<br />Carts/Racks/Lecterns<br />Presentation Remotes<br />Signal Management<br />Power and Surge Protection<br />Service Contracts<br />
    6. 6. Products vs. Solutions<br />Product = Classroom Projector<br />Solution = Getting children to retain more in the classroom and improve test scores<br />Computer, Projector, interactive white board, document camera, ceiling mount, cables, ceiling speakers, power amplifier, audio receiver, computer, presentation remote, BluRay disc player, CONTENT, TEACHER<br />
    7. 7. Products vs. Solutions<br />Product = HDTV for the Living Room<br />Solution = Enjoy life size entertainment with theater sound WITHOUT taking up a lot of floor space.<br />60 INCH 3D LED TV, flush wall mount, recessed wall kit for cable management, QTY 3 HDMI cables, BluRay player, cable/satellite receiver, 7.1 digital surround sound system, power surge protector, 5 year extended service contract on equipment<br />
    8. 8. Discount Merchant vs. Value Merchant<br />Most resellers simply CANNOT and SHOULD NOT try to compete with BIG BOX discount merchants on PRICE ALONE<br />Discounting product DIMINISHES VALUE<br />Providing a complete solution ADDS VALUE<br />
    9. 9. DISCOUNT Merchant Pricing Strategy<br />Discount<br />EXAMPLE – Receive $20 OFF your purchase of Brand X LCD<br />Decreased Revenue<br />Decreased Margin<br />Decreased Service (that $20 needs to be taken from somewhere!)<br />No SOLUTION was provided<br />
    10. 10. VALUE Merchant Pricing Strategies<br />Buying Incentive (non-linear pricing)<br />EXAMPLE – Buy Brand X TV and receive $20 OFF your purchase of any accessory item over $100<br />Increased Revenue<br />Increased Margin<br />Increased Service<br />We have ADDED VALUE to the sale <br />$20 and an accessory to help build the SOLUTION<br />
    11. 11. VALUE Merchant Pricing Strategies<br />Bundling<br />EXAMPLE – Receive over $500 in savings with the XYZ Home Theater Package<br />Package Includes<br />Brand X LED HDTV <br />Brand Y 5.1 Surround Sound System<br />3 HDMI Cables<br />Wall Mount<br />Recessed wall cable management kit<br />5 year service contract<br />Power surge protector<br />Increased revenue<br />Increased margin<br />We have ADDED VALUE ($500) and provided a COMPLETE SOLUTION<br />
    12. 12. I’m a PRO AV Integrator/Contractor…<br />Why do I NEED to keep accessories stocked on my trucks and/or in my warehouse?<br />REDUCE truck rolls<br />REDUCE INSTALLATION TIME by gaining learning curve benefits from go-to products<br />NEVER lose a sale to your competition (ie. BEST BUY) because you didn’t OFFER and/or HAVE the NECESSARY accessory item required to complete the solution<br />If you DON’T stock it – you WON’T “sell” it<br />
    13. 13. Stampede Can Help<br />The BEST Sales Team in A/V Distribution<br />Accessory Product Mix Consultation<br />Represents Over 100 ACCESSORY Vendors<br />Marketing and advertising support - BBOAV<br />Special programs and incentives (vary by vendor)<br />MUSTANG Inventory Management Program<br />