Sadly the credit crunch cannot be ignored. Manufacturers are receiving reports from the field which indicate footfall in many stores is currently at the lowest levels they have seen for two decades. This is obviously bad news for everyone and the ongoing economic news from the wider world indicates things aren’t going to get any better in the short term.

This may all sound like doom and gloom, but on the flipside, there is something the positive, proactive retailer is doing to improve their situation; offering added value through custom installation (CI). Sure, it’s not a ‘magic bullet’ that will solve all your problems, however custom installation is a market that is still expanding strongly and remains hugely optimistic.

“Beyond that, and given the current market situation, dealers would appear to have two choices; the passive ‘bunker’ strategy;  batten down the hatches, cut costs and hope to weather the storm, or they can decide to be proactive and look for markets that are still buoyant,” explains Adrian Ickeringill, modular sales manager, Armour Home Electronics. “Custom installation is clearly such a market and is so remarkably close to their existing business, I’m astonished more dealers haven’t made the move already.”

Mr Ickeringill continues by highlighting the current focus in the sector.

“The two big trends in the established market are further integration of different types of products and the demand for ever higher quality video distribution,” he says. “CI is all about simple, convenient control of more and more things around the home. Initially it was about enjoying music from a central source in every room. Then we added video etc. Now we are adding more things to be controlled and monitored. There is a European wide protocol called KNX, which means that products which conform to this standard can easily communicate with each other. This means the central control system can operate lighting, heating/cooling, security, curtains, gates etc. In addition, the system links with iPods, Xbox’s, and PS3’s into traditional AV systems. I know if you are not already in this business, that may sound terrifying, but it really isn’t.”

“There is a definite growth in the number of people requiring custom installs. In my opinion there is a growing trend as the install prices are becoming more affordable thus leading to more customers requesting it,” continues Darren Hornsey of retailer Leonards Electricals. “Customers tend to think that because it’s a custom install e.g. TV on wall with cables traced into the wall or hidden in trunking, that they won’t be able to afford it but our standard charge for install is around £250 plus fixtures and fittings. The majority of customers are more than happy to pay to have a professional installation carried out, not DIY.”

Indeed, the huge popularity in large flatscreens currently offers a great opening for the independent to move into this area, making them stand out more than ever against the competition.

“We are looking to assist TV retailers to move slightly into CE,” says BBG’s ceo Gordon Dutch. “I believe being a dedicated CI installer is a serious commitment and there are a lot of skills involved, but adding in some basic ‘in walls’ and motorised brackets is for sure a way of setting yourselves apart.”

This can be the only small move they make into the CI arena or the first step in creating a wide offering of solutions, either way with very few of the big ‘sheds’ offering an installation service (research from Technology UK, DHL Excel Supply Chain shows that companies such as Tescos, Argos and M&S do not offer installation), this will show improved service over the high street chains.

“We have only been carrying out this type of install for three years,” says Mr Hornsey. “The dealers that I have spoken to all seem to offer this service so I would say yes, its all part of the independents’ service; one of the things that makes us different to the supermarkets!”

Whether you’re dipping your toe or preparing to dive, CI in essence only offers positives to both the retailer and the customer, through premium service and added value.

“There is not a single retailer who doesn’t offer custom services of some kind,” says Kevin Kelly, managing director, Loewe UK. “In the good old days we used to call this ‘Service’, but now this service is called ‘Custom Installation’ - it is this that now sets us apart from the mass merchandisers and superstores. CI opens the door for better customers, better margins and a new methodology for working.”

This statement is true, and the benefits for the retailers are clear.

“Well, the greatest benefits are better margins on hardware and installation. If you do the right buying/selling, the profits are there to be had,” says Saray Munde of retailer Hificare.

“In essence the opportunity to sell these ‘added-value’ services affords retailers more margin growth,” agrees David Sergeant, business development director, Technology UK, DHL Excel Supply Chain.

“The demand is fairly constant for these services, and they offer good add-on profit to the sale of electrical consumer goods,” adds Michael Jones of retailer Bennetts Retail.

But when it comes to CI, the positive vibe doesn’t end there. As well as gaining profits through entering this field, independent retailers will also find strong support from manufacturers in the form of training and advice, and as they will let you know, training is everything.

Many companies offer a number of different support options. For example, BBG; renowned for its training, offers CI training that is normally liaised via the local business development manager, but the company does not stand alone in its support of independents.

“CI is a whole new world for most (but certainly not all) dealers. Dealers will need training on everything, not simply product specific training but also on project management, producing project plans, quotations, legal contracts and taking part payments to name just but a few. At this time, I think I should point out the Armour Home Training Academy is recognised as the UK industry’s leading training resource, offering courses covering everything you need to know to become a highly competent installer. We have Cedia certified instructors and many of our courses are Cedia accredited and carry CEU (Continuing Education Units) points,” says Mr Ickeringill, Armour.

“It is very much in Armour’s interest that dealers succeed in this market and so we offer ‘total support’ to dealers, including a lot of ‘hand holding’ to ensure their early installations are a complete success,” he adds.

Those retailers who’ve used these kinds of services have been very happy with the results.

“Speaking for our company, the suppliers that we use provide us excellent service and compatibility and installation information and training,” says Mr Munde, Hificare.

“We have an ongoing training programme for all the major manufacturers products, and we utilse all the services they have to offer including online training methods, and where necessary our service and installation engineers attend these events, that are usually funded by the manufacturer in question, usually outside of normal office hours,” says Mr Jones, Bennetts Retail.

“I must say that whenever we have asked any of our key suppliers for training support, either generic or specific, we have found them very keen to assist, in both time and money,” he concludes.