As product margins continue to shrink, installation services provide dealers a smart way to pump up profits. In fact, some businesses are built entirely on a service model, from basic A/V installations to full-tilt custom home theater rooms. But if you think this scope of services is the only option, think again. Recent research from the Consumer Electronics Association (CEA) shows custom gaming rooms (console or PC based) offer a new arena of opportunity for the dealer channel and the revenue potential may surprise you.
The media has well-documented custom installer experiments in custom gaming room installations, but consumer demand has remained indefinite until now. CEA’s 2006 Gaming Technology Study shows 19 percent of console gamers and 15 percent of PC gamers say they would pay a professional to install a dedicated gaming room in their home.
Although absent of a specific dollar amount invested, this interest level equates to nearly 15 million U.S. households. The size of this addressable market alone suggests designing, building and installing dedicated gaming rooms is a strong business opportunity not only for members of CEA’s TechHome Division, but even major CE retailers.