Cost is more than just the initial price.
As I reported in my last column,
development of the “high end” staging
projection systems didn’t slow down
as the recession hit, although we
heard less about them because of the
manufacturer’s shift in advertising
dollars to lower-cost models.
As we head to InfoComm 2010,
we’ve come off a year-long period
since InfoComm 2009 where a good
deal of innovation has been taking
place in the mid-lumen range, let’s say
from 8-12K lumens. In this column,
we’ll take a look some gear-buying
criteria from a different angle. And
we’ll ask if increasing client requests
for “green” equipment affect the midrange
more than the high end.
Purchase price
Obviously, in a tight economy the cost of
acquisition will be more important than
ever. With more and more manufacturers
with credible entries in each category
of product, all of the manufacturers
and distributors will be
sharpening their pencils
to keep or increase market
share. Because of the
increased competition,
list prices have been moving
steadily downward
this year. However, notice
that I used the phrase
“cost of acquisition,”
because in a cash-tight
economy, I believe that
manufacturer’s financing
and lease programs will
become more important
than in the past, allowing stagers to
acquire equipment as they need it and
pay for it as it pays for itself.
Overall cost of
operations
I think that this year has caused me,
and most of my colleagues, to assess
cash flow and actual cost of operations
more closely than we ever have before.
So, while the number on the check we
write to buy the machine will be important,
so will the overall cost of operation
of each piece of technology we buy this
year. The cost and frequency of replacement
of consumables such as lamps
and filters will be more important than
in the past, as will the comparative cost
of items such as lamps and mounts
that it takes to produce a complete
rental system. Many manufacturers
have assembled such comparisons in
the past, although nobody has ever
made it a primary sales feature. Those
manufacturers and distributors who
have such figures assembled (favorable
ones) should give them a more prominent
place in their collateral -- and,
stagers, you should be asking about
them. Lately, I’ve seen a lot of signs of
the projector manufacturers adopting
some of the proven sales techniques of
the printer manufacturers, where the
printer is cheap, but the ink cartridges
are expensive. Let’s make it a point to
look at REAL costs this year.
Service and
assistance programs
Another type of program that stagers
have not taken enough advantage of in
the past are the various manufacturer’s
“Rental Associate” programs. When
buying into a new type of technology,
an important safety blanket is the kind
of program that lets a buyer borrow (or
rent at reduced cost) similar equipment,
or those programs that allow for loaner
equipment if yours is in for service.
“Uptime” is everything in rental, where
“tomorrow” is often not an option.
Since most of us will not be buying the
number of machines this year that we
have in the past, this type of program
can be the final decision maker in
many new purchases, especially in the
upper end of the cost range.
Green
I mention “green” once again, because
it really is a factor for both the stager
and the end client. We’re already
observing clients asking for environmental
impact information not just
for the equipment they buy, but for
equipment they rent, especially if it
is used on company property. So far,
I hear about it mostly in longer-term
mid-range rentals, such as training
programs, but you can bet we’ll be
seeing it soon in larger shows as well,
especially if venues start emphasizing
it (as many are doing) with electrical
surcharges. And for stagers, “green”
operation goes hand-in-hand with
reduced overall cost of ownership.
So, long story short, I believe that
the shopping we do this year (and we
will shop) will be more careful, with an
eye toward its long-term consequences
to our companies rather than just the
wow factor. If you’re a stager, keep these
things in mind as the din of the show
distracts you. And, if you’re a manufacturer
or distributor, have this kind of
data ready and in the forefront.