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As an installer, you can buy antennas and related
materials at a sizable discount. You can reasonably
add 30-40% to antenna prices and sell them to the
retailer. He in turn, sells antennas to his customers
with whatever additional markup he desires. In this
manner, the retailer makes a profit without having
to stock merchandise, keep an inventory, or use up
valuable floor and warehouse space. This is "gravy"
for him and more profits for you.
Department stores offer an even larger market than
the average independent retailer. Don't be afraid to
approach even the biggest discount and department
stores. The person to see is the brown goods buyer or
the parts and accessories buyer. It is the responsibility
of these individuals to find good deals that will
increase profits.
You may have to alter your offer a bit when dealing
with a large store. Generally, a department store
buyer will want to add a 30-40% markup on anything
the store handles. With antennas however, the buyer
may be persuaded to work with a smaller profit
simply because he doesn't have to inventory and
warehouse a large volume of merchandise. The fact
that good TV antenna installations help sell TVs (and
help keep them sold), may also influence the buyer to
keep his markup fairly low. Because this kind of deal
can also be very rewarding for you, offering the buyer
a generous profit should not be ruled out. You can
compensate for a decrease in your own markup by
sheer volume of sales.
When you get to know your installation area you will
be able to arrive at a figure that will be the "average
cost" of an installation. You can then offer a retailer a
complete installation package that he can sell to his
customers at a profit for both of you.
Let's say for example, that you offer installations to a
retailer or store buyer for a flat fee of $45.00. He will
offer the installation to his customers at $59.95. This
will give him a profit of $14.95 (or 25%). If the antenna
costs you $12.00, the hardware (cable, connectors,
etc.) $8.00, and the labor $10.00, you have invested
$30.00 in the $45.00 installation. Your profit is $15.00
(or 33-1/3%). This is a good profit. You should always
try to price installations at least 30% above your cost.
One of the keys to making any relationship with a
retailer work is to provide salesmen with the right
"tools" to sell antennas. Ideally, the retailer should
display, advertise, and sell the antennas (with or
without the installation fee figured in). The retailer
should also collect money and pay you your share.
You provide the antenna, the hardware, and all other
materials. You install the antenna, handle any
callbacks, and provide a warranty for the installation.
A three-month warranty is customary. However, many
installers who use Channel Master products find
that they can safely warrant their installations for a
full year.
The retailer and his salesmen should be provided
with enough information to sell your antenna installa-
tions with confidence. Provide them with a map of the
area, and indicate the types of antenna installations
that are necessary for the best reception in various
zones. Once you know your area this will be easy. You
may even want to make a survey with a test antenna,
a field-strength meter, and a portable TV. Buy a map
and indicate the types of antennas and installations
you believe are needed in various areas or zones.
However, do not divide the map into too many zones.
Five zones should be sufficient for a "medium-sized"
city. Using too many reception zones will confuse
salesmen and customers. When deciding on an antenna
for a zone that has a number of possibilities, choose
the larger antenna. It is better to make an error on the
side of assured quality reception and a slightly higher
cost. Most retailers would rather charge a little more
than hear even one customer complaint.
In some exceptionally difficult reception zones, the
type of antenna and other equipment required may
differ from block to block. In other areas, it may be
impossible to guarantee the elimination of ghosts or
other types of interference. Label these zones on the
map as "Survey Needed" and instruct the installer
and salespeople not to close a sale to customers who
live in these sectors. Customers can be advised that
an installation is available, but the installer first must
survey the site to determine the requirements for
good reception. Charge only a nominal fee for such a
survey. After completing the survey, give the
customer an estimate of the total cost. The survey fee
might then be credited toward the price of the instal-
lation as an incentive for the customer to purchase
the system you propose.
If you must offer a choice of antenna don't offer more
than three or four. Too many options will confuse
both the salesman and the customer and might cause
the customer to postpone the purchase. Make it easy
for customers to buy and for salespeople to sell. Offer
options such as MATV, FM stereo hookups, etc.
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ELLING &
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YSTEMS
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