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Another View: Combatting “Christmas Mode”

PowerHouse Alliance weighs in on the New Year

After combating the negativity of the global pandemic, the PowerHouse Alliance distributors are ready for whatever challenges may come as we start 2022. The industry as a whole experienced supply chain issues and chip shortages – 80% of PowerHouse Alliance members said they were impacted by both the supply chain issues as well as the chip shortages. Nevertheless, the industry as a whole saw increased demand for products as a result of home upgrade requests over the last 12 unpredictable months.

PowerHouse Alliance also saw growth through this challenging season – in addition to adding new vendors: Aruba, Enclave Audio, Focal, and Cync by Savant to name a few, many PowerHouse Alliance Members have moved into larger spaces or added additional locations to accommodate increased dealer demand.

As we look to 2022 the adoption of smart home products shows no indication of slowing down. Analysts at Gartner have predicted that the average home could contain more than 500 smart devices during 2022. When we take into consideration this number of devices it is no surprise that PowerHouse Alliance members anticipate networking equipment to continue as one of their top selling categories throughout 2022.

We were fortunate enough to have our most popular products available in stock over the last year, however the industry needs to be prepared to be flexible in 2022. Our entire channel has been in a “Christmas mode” with the constant influx of projects and other customer requests, we’ve seen sales spike much like they do aroudn the holidays. But this “Chrismas Mode” can’t last forever and it will slow. Distributors should prepare for projects to slow down, and should help advise dealers on how to best proceed and navigate. The biggest piece of advice we can offer is to not commit products without securing them in advance to confirm stock ability. With this in mind everyone should be prepared to adjust, consider new product lines and communicate to your customers often on what is available.

Distributors will be looking to diversify their value proposition to meet the needs of their customers. One way PowerHouse Alliance members are adding value for their dealers is by expanding training offerings. Take for example PowerHouse Alliance Member 21st Century Distributing, their online roadshow event platform was converted to a training center so dealers can attend regularly updated, live training sessions throughout the year.

Additionaly, the PowerHouse Alliance 11 distributor members committed to hosting in-person CEDIA Training courses at over 55 locations across the United States beginning early in 2022. 80% of PowerHouse Alliance Members indicated that continuing to expand their dealer relationships was a top goal for 2022, and offering educational trainings is a great way to build on existing relationships and create new ones.

We look forward to serving our dealers in new ways in 2022 with expanded locations, new vendor lines, and more training opportunities than ever before.

See also: PowerHouse Adds New Vendors