This document discusses how selling accessories can increase revenue and contribution margin for A/V retailers and integrators. It notes that while prices for products like projectors and displays will continue to decline, accessory prices have remained flat, providing an opportunity to boost profits. Key accessory categories that are recommended to stock include mounts, screens, lamps, audio equipment, cables, and carts/racks. The document contrasts a discount-focused merchant strategy with a value-added solution selling approach, stating that bundling accessories into complete solutions adds more value for customers. It also explains that keeping accessories in stock on installation trucks can help integrators reduce costs by eliminating extra trips.

1. Accessorize Me!!! The KEY to making more money in A/V

2. Why Sell Accessories? Increase you contribution margin Increase revenue If you DON’T your competition WILL It’s easy It’s necessary

3. Contribution Margin and ASP ASP for PROJECTORS will continue to DECLINE in 2011 Estimated $10 CM loss per unit @ the same CM% ASP for FLAT PANEL DISPLAYS will also DECLINE $5 CM loss per unit @ the same CM% ASP for most accessories has remained FLAT

4. Contribution Margin and ASP

5. Key Categories Mounts Screens Lamps Audio Cables and Connectivity Carts/Racks/Lecterns Presentation Remotes Signal Management Power and Surge Protection Service Contracts

6. Products vs. Solutions Product = Classroom Projector Solution = Getting children to retain more in the classroom and improve test scores Computer, Projector, interactive white board, document camera, ceiling mount, cables, ceiling speakers, power amplifier, audio receiver, computer, presentation remote, BluRay disc player, CONTENT, TEACHER

7. Products vs. Solutions Product = HDTV for the Living Room Solution = Enjoy life size entertainment with theater sound WITHOUT taking up a lot of floor space. 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

8. Discount Merchant vs. Value Merchant Most resellers simply CANNOT and SHOULD NOT try to compete with BIG BOX discount merchants on PRICE ALONE Discounting product DIMINISHES VALUE Providing a complete solution ADDS VALUE

9. DISCOUNT Merchant Pricing Strategy Discount EXAMPLE – Receive $20 OFF your purchase of Brand X LCD Decreased Revenue Decreased Margin Decreased Service (that $20 needs to be taken from somewhere!) No SOLUTION was provided

10. VALUE Merchant Pricing Strategies Buying Incentive (non-linear pricing) EXAMPLE – Buy Brand X TV and receive $20 OFF your purchase of any accessory item over $100 Increased Revenue Increased Margin Increased Service We have ADDED VALUE to the sale $20 and an accessory to help build the SOLUTION

11. VALUE Merchant Pricing Strategies Bundling EXAMPLE – Receive over $500 in savings with the XYZ Home Theater Package Package Includes Brand X LED HDTV Brand Y 5.1 Surround Sound System 3 HDMI Cables Wall Mount Recessed wall cable management kit 5 year service contract Power surge protector Increased revenue Increased margin We have ADDED VALUE ($500) and provided a COMPLETE SOLUTION

12. I’m a PRO AV Integrator/Contractor… Why do I NEED to keep accessories stocked on my trucks and/or in my warehouse? REDUCE truck rolls REDUCE INSTALLATION TIME by gaining learning curve benefits from go-to products 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 If you DON’T stock it – you WON’T “sell” it

13. Stampede Can Help The BEST Sales Team in A/V Distribution Accessory Product Mix Consultation Represents Over 100 ACCESSORY Vendors Marketing and advertising support - BBOAV Special programs and incentives (vary by vendor) MUSTANG Inventory Management Program