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How VARs Are Leveraging AV Systems to Boost Their Bottom Line

September 11, 2017

How VARs Are Leveraging AV Systems to Boost Their Bottom Line

Pro AV is helping value-added resellers (VARs) across the country boost their bottom line, especially as the technology experiences a bit of a global boom. As InfoComm International executive director David Labuskes pointed out in late 2014, pro AV is growing faster than the U.S. economy—at around 10 percent annually, which is prompting more VARs to explore the technology as a strong business addition.

If you’re considering moving into the pro AV space, consider the best ways in which to incorporate these devices and systems into your product offering. To get started, let’s take a look at some of the ways in which VARs are leveraging AV systems to boost their bottom line:

1. As a supplement to other product offerings.

Pro AV is a natural complement to several other integrator markets, including IT, sound reinforcement, and even physical security. These technologies apply to all the same verticals as pro AV, so you already have a foot in the door. When looking to add pro AV to your product offering, being established in similar areas can save you significantly, since your additional investment in training and back-end equipment will be minimal.  

2. As a primary business focus.

While many VARs incorporate pro AV into their other business segments, others dive in completely and make pro AV their primary focus. In areas where there are plenty of customers to support an AV-only business, this can be highly beneficial to both the clients and the VAR. Focusing on one type of technology enables the VAR to become a true expert in its field, which can lead to strong business growth over time.

If you’re a new VAR, focusing on pro AV can also be a good way to establish your business. Then, over the years, you can add complementary technologies as you’re able.

3. As a future-proof technology.

The VAR landscape is evolving rapidly as technologies become increasingly advanced and more are designed to be Internet-enabled. Pro AV is one market segment that is allowing VARs to secure their business for the long haul, since technologies such as video conferencing, meeting rooms, and digital signage are advancing rapidly—and should continue to do so for some time.

As an integrator, your business may ebb and flow as the years pass. That’s why it’s always a good idea to incorporate technologies that are as “future-proof” as possible and will remain relevant even as your customers’ needs change and the market evolves.

4. As a source of recurring revenue.

One of the best features of pro AV technology, from the VAR point of view, is the opportunity to generate recurring monthly revenue (RMR) to benefit your bottom line. Like other technology markets, much of your RMR might come from service and support agreements. But with pro AV, you can also provide your customers with monthly software licensing (for video conferencing and digital signage, for example) or content creation services (for video walls and other signage). The monthly revenue created by these services can be a nice source of ongoing funds as you navigate between new projects.

How do you plan on incorporating pro AV technologies into your own business? What are your other product offerings?