Attitudes | From the Editor: Charge What You're Worth
Dealers who are beginning to develop home networking solutions and other related services could learn a good lesson from Matt Feroli, owner of Boomer Boston, a 12-volt dealer and installer in Dorchester, Mass.
Feroli's product sales last year were decent but his profits were the highest he's had in a while. With ASPs down across the board, pushed further south by Internet pricing pressure, Feroli did what all smart dealers—whether they're 12-volt, specialty or general CE retailers—should do: he raised installation services, by 25 percent in his case. Services now account for about half of his revenue and even more of his profit. The reason for the increase was simple.
"Today, somebody called me to price out a Parrott Bluetooth kit," he said a few weeks back. "They quoted an Internet price of $120. I sell it for $179. I see that every day, so I've adjusted my labor up." (For more on what Feroli and other 12-volt dealers are doing to improve their businesses, please see our cover story on page 36.)