Commercial Integrator + Security Sales Jan/Feb 2024 - 17

And although 79% of survey takers report
selling service contracts, the percentages
associated with more robust service offerings
are comparatively weaker: managed
services (44%), AV-as-a-Service/AV-as-aSubscription
(16%) and security monitoring/video
storage (14%). Meanwhile, a
surprising 9% of survey takers report that
they don't sell any services at all.
21% to 30%
7%
11% to 20%
16%
31% to 40%
2%
Percentage of
revenue coming
from service
contracts
The education vertical remains a strong focal point for integrators. Indeed, among
survey respondents, 82% expect to experience growth in this vertical market in the
coming 12 months.
5% to 10%
28%
Less than
5%
47%
A Change in Posture
" For whatever reason, audiovisual systems
are not being sold as something that
needs to have a managed-service agreement
attached to it, " Wilson laments.
" That couldn't be further from the truth. "
Indeed, he points to the ubiquitous need
for patches, fixes, updates and software
enhancements, which are critical to system
viability. To shake up that mistaken
mindset, NSCA recommends a change in
integrators' posture. Instead of offering a
service contract as an add-on sale, Wilson
recommends integrators make it so that
the client must go through steps to opt
out of a service contract. " Show them the
obligation as the end user [of not having
that], " he stresses, emphasizing how costly
the wrong decision could be.
" We've been monitoring this question
[about service-based revenue], really,
since the beginning of the State of the
Industry report, " LeBlanc, who used to be
editor-in-chief of Commercial Integrator,
observes. " We haven't seen the needle
move as much as we would like [it] to. "
Some of this might have to do with the
increasing prevalence of AV departments
(or AV-savvy IT teams) at major clients,
whose presence can make managed
services a tougher sell. Nevertheless, if
you ask LeBlanc, integration businesses
moving to sell services is increasingly
becoming critical to remaining relevant
to customers and their evolving needs.
What once was a conversation meant to
improve integrator cash flow and produce
higher revenues has now, arguably,
become existential. " Customers want and
need a solution that provides ongoing
confidence that the systems are going to
work, " he adds. " Nowadays, [AV systems]
are perceived to be a lot more mission
critical than they used to be. " Speaking
plainly, it's difficult to be an outcome
guarantor without selling the services
that guarantee positive outcomes.
Wilson reflects candidly on prior
decades, when NSCA and its membership
had a somewhat different posture.
" Truthfully, we were installers, " he
recalls. " Good at putting stuff in, and you
just hoped it went in smoothly. Then,
you walked away to the next project. "
With a chuckle, he adds, " Those times
have changed. " Now, Wilson says, an
integrator's proper role is that of a trusted
advisor. " Integrators are now poised to
have a seat at the adult table, " LeBlanc
adds, " because of the relevance of what
they're providing in terms of solutions. "
But AV integrators must constantly earn
that seat at the adult table by playing an
active, more consultative role.
Bread-and-Butter Markets
According to our exclusive research
study, most integrators expect 2024 to
be a year in which they lean into triedand-true,
bread-and-butter markets. For
example, not a single respondent expects
to see a down year in the education
vertical, with 82% expecting to experience
growth in the coming 12 months.
The same is true of corporate work: Zero
respondents expect a drop in the coming
year, whereas more than 80% expect to
enjoy growth. (In fact, on the corporate
side, 18% say they expect to experience
growth exceeding 11%.) Healthcare is
another bright spot, with 76% of survey
takers forecasting a growth year in that
vertical. By contrast, bearish forecasts
prevail in the bars/clubs/restaurants
vertical (85% down or flat) and the retail
vertical (78% down or flat). Casinos/
hotels also show relatively weak sentiment,
with 70% of survey takers forecasting
a down or flat year.
Jan/Feb 2024 | Commercial Integrator+Security Sales & Integration
17
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Commercial Integrator + Security Sales Jan/Feb 2024

Table of Contents for the Digital Edition of Commercial Integrator + Security Sales Jan/Feb 2024

Commercial Integrator + Security Sales Jan/Feb 2024 - Bellyband1
Commercial Integrator + Security Sales Jan/Feb 2024 - Bellyband2
Commercial Integrator + Security Sales Jan/Feb 2024 - Cover1
Commercial Integrator + Security Sales Jan/Feb 2024 - Cover2
Commercial Integrator + Security Sales Jan/Feb 2024 - 1
Commercial Integrator + Security Sales Jan/Feb 2024 - 2
Commercial Integrator + Security Sales Jan/Feb 2024 - 3
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Commercial Integrator + Security Sales Jan/Feb 2024 - Cover3
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