Love Your ChoiCes - Inside CIinstallation business quite like Jeremy Burkhardt. He’s outspoken, outlandish, and maybe just a little rough around the edges. But he’s also the president

The Best of Jeremy BurkhardT from 2008-2012

Love Your ChoiCes

A Supplement to ReSidentiAl SyStemS

2 R e S i d e n t i A l S y S t e m S | J A n u A R y 2 0 1 2 | Love Your ChoiCes

There’s really no one else in the custom installation business quite like Jeremy Burkhardt. He’s outspoken, outlandish, and maybe just a little rough around the edges. But he’s also the president of one of the most admired brands in the custom installation channel and a really thoughtful person.

Beyond the tattoos, rocker T-shirts, and biker beard, anyone who’s gotten close to SpeakerCraft’s president also knows him as a person of integrity, with a warm heart, an astute mind for business, and an unquenchable thirst for knowledge.

It’s that insatiable curiosity that inspires Burkhardt to hit the road to share his observations and motivational messages with dealers around the country, and through the written word in his columns for Residential Systems.

During his three years as a contributing writer, Burkhardt has served as a guide to managing a custom installation business through the most difficult economic periods since the Great Depression. His initial columns now serve

as a time capsule for those early months of the economic downturn before most of us realized that things would get worse before they started getting better.

And remember the SpeakerCraft booth at CEDIA EXPO 2008 when Burkhardt ruffled feathers by featuring exotic dancers and business advice pods, rather than new products? It was there that he also debuted his Tarot card-style business conversation icebreakers that he writes about on p. 5 of this publication. Few companies think outside the box for a trade show, but SpeakerCraft did, and it worked.

At times, Burkhardt has played the role of Residential Systems reporter at events like CEDIA Management Conference, relaying advice from Cranium board game inventor Richard Tait and Nike executive Kevin Carroll on enjoying your career. Other

times he has been a self-help guru, passing along suggestions for creating paths for change and success and establishing healthy lifestyle habits. Once, he even turned over the keyboard to his son, Cody, who wrote about the importance of acknowledging his generation as our industry’s future customer base. Then there were the columns where he applied the wisdom of NBA coach Phil Jackson, and U.S. statesman Ben Franklin to help guide us through difficult business decisions.

Sure there was the controversial “save the whales” column prior to CEDIA EXPO 2010 that angered about as many people as it inspired, but there also was the excellent “call to action” column featuring the young owner of a California surf and skate shop that featured some of best management tips that a CI business owner could want.

It’s all featured here in “Love Your Choices,” which is the title of one Burkhardt’s columns and his personal mantra. Enjoy this special supplement to Residential Systems, where we offer the best of Jeremy Burkhardt, a one-of-a-kind type of guy.

The Zen of JeremyintroLetter

“He’s outspoken, outlandish, and maybe just a little rough around the edges.”

Jeremy J. Glowacki Editorial DirectorLindsey Adler Assistant Editor

Derek Dellinger Web EditorJeremy Burkhardt Contributing Editor

Phil Holtberg Group PublisherGene Kinsella Midwest Sales

Deborah Rosenthal National Sales ManagerZahra Majma Specialty Sales

Steve Palm PresidentAdam Goldstein VP, Group Publishing Director

Fred Vega Production ManagerAnnmarie LaScala Art Director

Published by NewBay Media L.L.C.28 East 28th Street, 12th Floor, New York, NY 10016 www.nbmedia.com

All names, trademarks, or brand names used herein are the property of their respective owners.

ResidentialSystems

1 Color - 0 Cyan / 100 Magenta / 99 Yellow / 4 Black

Table of ConTenTsHello SpeAkeRCRAft pARtneR . . . . . . . . . 3mASteRing tHe ARt of Word-of-Mouth SaleS . . . . . . . . . . . . . . . . 3moRe tHAn met tHe eye . . . . . . . . . . . . . . . . 5SeARCHing foR SolutionS . . . . . . . . . . . . . 7tHe puRSuit of HAppineSS . . . . . . . . . . . . . . 9tApping into tHe next geneRAtion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10uSing youR HeAd . . . . . . . . . . . . . . . . . . . . . . 12obSolete youRSelf dAily . . . . . . . . . . . . 13my CApitAliSt Zen RuleS

of buSineSS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15WHy plAy pAyS . . . . . . . . . . . . . . . . . . . . . . . . . 16tRying to be like pHil . . . . . . . . . . . . . . . . 17tHe CollApSe you SuRvived . . . . . . . . . 18love youR CHoiCeS . . . . . . . . . . . . . . . . . . . 19buRkHARdt’S iCe bReAkeRS . . . . . . . . . . 20AdApting to CHAnge . . . . . . . . . . . . . . . . . 21leSSonS fRom tHe RoAd . . . . . . . . . . . . . 22in defenSe of good RepS . . . . . . . . . . . . 23

b y J e R e m y J . g l o W A C k i

Love Your ChoiCes | J A n u A R y 2 0 1 2 | R e S i d e n t i A l S y S t e m S 3

Mastering the Art ofWord-of-Mouth SalesHoW to foRmAliZe A RefeRRAl pRoCeSS to geneRAte neW buSineSS

by Jeremy BurkhardtThis year I have asked thousands of custom integrators on four continents how they market their businesses. The response is almost always the same: “The majority of our business comes from referrals.” Word of mouth is the best testament that you’re doing a good job. This being the case, most would assume that the majority of dealers are super aggressive, that they are great at referral generating,

processing, and following up on past customers by directly asking them to recommend their company. But they are not. I don’t mean this as an accusation; it’s a fact that almost every dealer I’ve met readily admits they know this is true. But they are too busy to formalize their referral process.

Sure, you are happy to talk to a potential client who was referred by a happy customer, but that is only a small part of a true referral program. It’s like depending on the sign on your building to be the extent of your advertising

and marketing effort. If you really want to grow bottomline business from referrals, then you need to be as serious and organized in this effort as you are about your sales, design, and installs.

What types of decisions do you make based upon referrals? Think about it. Where you live, the car you drive, movies, books, restaurants, accountants, doctors, even the person who cuts your hair were probably all referrals. It’s

a natural inclination for people to ask someone whose opinion they trust, for a recommendation on any number of topics. Why? Because we like to benefit from the experience of others. It makes us more confident and reduces stress over the decision.

THE CLOSERYour best business lead should be more than just the result of a happy coincidence. Waiting for your client to be hanging out at the country club on the precise day that his best friend is

“ If you really want to grow bottom line business from referrals, then you need to be as SERIOUS and ORGANIZED in this effort as you are about your sales, design, and installs.”This year I have asked thousands of custom in-

tegrators on four continents how they markettheir businesses. The response is almost alwaysthe same: “The majority of our business comesfrom referrals.” Word of mouth is the best testa-ment that you’re doing a good job. This beingthe case, most would assume that the majority ofdealers are super aggressive, that they are greatat referral generating, processing, and follow-ing-up on past customers by directly asking themto recommend their company. But they are not.I don’t mean this as an accusation; it’s a fact thatalmost every dealer I’ve meet readily admits theyknow this is true. But they are too busy to formal-ize their referral process.

Sure, you are happy to talk to a potential clientwho was referred by a happy customer, but that isonly a small part of a true referral program. It’s likedepending on the sign on your building to be theextent of your advertising and marketing effort. Ifyou really want to grow bottomline business fromreferrals, then you need to be as serious and organ-ized in this effort as you are about your sales, de-sign, and installs.

What types of deci-sions do you make basedupon referrals? Thinkabout it. Where youlive, the car you drive,movies, books, restau-rants, accountants, doc-tors, even the personwho cuts your hairwere probably all re-ferrals. It’s a natural incli-nation for people to asksomeone, whose opin-ion they trust, for arecommendation onany number oftopics. Why? Be-

cause we like to benefit from the experience ofothers. It makes us more confident and reducesstress over the decision.

THE CLOSERYour best business lead should be more than justthe result of a happy coincidence. Waiting for yourclient to be hanging out at the country club on theprecise day that his best friend is contemplatinga new home theater is leaving way too much tochance. The first and possibly most powerful re-ferral opportunity is as you are about to hand overthe keys to the system after a powerful demonstra-tion of the system’s capabilities.

Your company should have a system closerwho discusses the final walk through with theclient. For example: “Dr. Martell, I am confidentthat your new home entertainment system is goingto provide you with hours of enjoyment. As youknow we are a small business (be humble) that de-pends on word-of-mouth to create new client op-portunities. I am sure that you have friends, asso-ciates, and colleagues who could benefit from

our services. Would

you be willing to give me a few names of people towhom you would be comfortable recommendingus? I am going to phone you in a month to find outwhat your friends and family think about thisamazing system.”

Even better, have him invite a few people tothe house to see and hear what you have doneand let him introduce you there. Bring gifts, wine,

cheese, crackers, and chocolates.This example

R E S I D E N T I A L S Y S T E M S • A U G U S T 2 0 0 852

�FEATURE BY JEREMY BURKHARDT

Mastering the Art ofWord-of-Mouth SalesHOW TO FORMALIZE A REFERRAL PROCESS TO GENERATE NEW BUSINESS

‘If you really want to growbottom line business fromreferrals, then you need to beas SERIOUS and ORGANIZED inthis effort as you are aboutyour sales, design, and installs

hello speakerCraft PartnerThe following pages could be all ads selling you on our innovative products and company hype...that’s lame. We exist to help you grow, evolve, and succeed in business and life. These are the rules we live by daily that guide us and our lives.

• We practice abandonment–we invent, reinvent, and if we are not doing something right, we stop and change. No rigid thinking or addiction to ideas based on ego.

• Our culture is our life–you, our dealers, rule us, and your needs come first.

• Tactical domination–We have to be in the trenches with you inventing the best products and programs in the business. We are the best sounding and most profitable speaker line in the business.

• Financial and emotional profit–we all work to make money but, we love what we do and as team mates we live for this business and must create emotional happiness daily.

• The right dealers–Yes, we only sell who we believe are the most dominant and best dealers, from install to customer relations.

• Absolute dealer satisfaction–if you are not happy with us, we will fix any issue and help in any way we can.

• Constant improvement–we have to out service everyone and innovate the best products daily.

• Fix the problems–you will never have a problem we won’t fix.

• Play the game and win- our business is our life and winning is making you happy.

• It’s fun or it’s wrong–we love what we do, period!• You are better than mediocre.• Triangulation is not welcome here–we don’t talk

bad about anyone, if we have an issue we work directly with one another to solve it.

• We have a philosophy that dealers help make our products–You are our best inventors and we listen.

We will continue to dominate with your help. Thank you for all you do to help us be the company we are. Enjoy, learn, and share the following information. Your friends, clients, suppliers, and staff make you, so strive for excellence daily.

Love Life, Jeremy Burkhardt

CEO


contemplating a new home theater is leaving way too much to chance. The first and possibly most powerful referral opportunity is as you are about to hand over the keys to the system after a powerful demonstration of the system’s capabilities.

Your company should have a system closer who discusses the final walk through with the client. For example: “Dr. Martell, I am confident that your new home entertainment system is going to provide you with hours of enjoyment. As you know we are a small business (be humble) that depends on word-of-mouth to create new client opportunities. I am sure that you have friends, associates, and colleagues who could benefit from our services.Would you be willing to give me a few names of people to whom you would be comfortable recommending us? I am going to phone you in a month to find out what your friends and family think about this amazing system.”

Even better, have him invite a few people to the house to see and hear what you have done and let him introduce you there. Bring gifts, wine, cheese,

crackers, and chocolates. This example may seem aggressive or awkward to some people. However,

when you truly become a friend and confidant of your client, then they will want to recommend you. This is just the beginning. Referrals do not need to come solely from current customers. A referral can come from anyone who knows you or your business.

GOOD PITCHINGCreate a canned pitch that explains what you do in a language anyone can understand. Focus on benefits, not technology. Most people don’t care how it works; they only care about what it does for them. Make it a short paragraph. The goal is to tease people, not give them all the information they need to make a decision. Once you have written it, edited it, and tightened it up, have every employee memorize it.

You may ask, “Why do I need my people to be able to present my company and services?” The answer is simple: they know people. That’s all you want. People who know people can multiply your sales efforts without costing you anything. It doesn’t matter if it’s a junior tech because even that guy goes to the bank, the supermarket, and the movie theater. All it takes is for them to strike up a conversation with someone in line at any location and mention who they work for. When I was between 15 and 22 years old, I would turn around in line at every grocery store opportunity, show an AV magazine, and talk about in-wall speakers with the person standing next to me. I sold hundreds of thousands of dollars of gear by getting excited and asking, “Have you ever seen these in-wall speakers?” Music, home theater, and distributed audio are hot topics and are easy to talk about.

IT PAYS TO REFER Establish a reward system for anyone (staff or past client) who gives you a name that turns into a sale. It doesn’t have to be a huge percentage, just enough to get their attention. Make it simple and easy for them to understand. Pay them in cash, gear, or with a company check.

You will be blown away at the excitement that a few hundred dollars will create among the installers, the warehouse team, or the office staff. When you call a past client and say, “I have a thousand-dollar check for you from the referral you gave us,” they will almost always freak out.

Now that the system is in place, it’s time to share it with people outside of your company. Remember that you just want people who know people. There is a dealer I know in Florida who, although being in a very depressed economy, doubled his business in 2007 and is on track to do so again this year. He attributes this success to just such a referral system, and his number-one referral generator is his mailman! Who do you know that could benefit from some additional income just for giving you names of potential customers? Your gardener, pool man, mechanic, or even the barista at your local Starbucks is a possibility.

Anyone that you deal with on a regular basis who interfaces with people can generate business for you. Establish a defined, documented, and executable referral process and create a flyer or brochure that outlines the pitch and the incentive. Give it to anyone who shows the slightest interest. It makes no difference how many people take you up on your offer. It costs you nothing until the referrals turn into clients. Soon you will have more business than you can handle. It’s the sort of problem that every company looks forward to having.

Get your pitch down, follow up on referrals immediately, and watch your business grow beyond what you ever imagined. n


by Jeremy BurkhardtEditor’s Note: It wasn’t too hard to convince SpeakerCraft president Jeremy Burkhardt to write about himself this month, but we didn’t want it to look like he was simply tooting his own horn. The fact is that SpeakerCraft’s decision to feature business training at its CEDIA EXPO booth instead of product pitches was the most innovative and daring idea that most of us have ever observed on a trade show floor. People who aren’t SpeakerCraft dealers probably missed the point of the booth because they were too easily distracted by scantily clad dancers and an exotic booth design. Had you looked past all of that, however, you might have learned a little something about running your business the right way.

As this year’s CEDIA EXPO was approaching, the SpeakerCraft team was looking for ways to make our dealers’ trade show experience more valuable. We began to discuss the successes of years past and an idea evolved. What if we were to turn the show around and focus on the actual business needs of the dealers and give them information that would prompt an internal evaluation of their companies? We could concentrate our efforts on areas that had been brought to our attention by dealers at our seminars and educational events across the globe. The result was a series of mini-seminars held in the booth during the show.

The concept was simple. We outlined six business topics and had talking points printed on 4 x 7 cards that our staff and reps could carry in their back pockets. When a dealer came to the booth, the discussion would begin by asking them to “pick a card.” With the outline as a guide, the dealer would be presented with ideas, suggestions, and information on whichever subject they had chosen. Once the formal discussion was complete we covered whatever other items were applicable to the particular dealer and sent them back into the show.

REWARDING RESULTSThe result of this effort was incredible. What we expected to be five-minute presentations expanded into longer sessions as the dealers asked more questions and invited more input for their specific

situation. Often a dealer would request to select another topic due to the success of the first presentation. We had also intended to give out the specific card on the topic we had presented as a takeaway for the dealer but almost every one of the dealers requested the entire set so they could review every subject. This gave the dealers great material to take back and share with their staffs.

The topics were varied and offered enough leeway to allow for the individual styles of the various presenters. The subjects included “Creating a Formal Referral Process,” “Improving Customer Service” “Sales Strategies,” “Marketing Tactics,” “Generating New Businesses from Existing Customers,” and “Finding and Keeping the Best Employees.” The discussions commonly moved beyond the topics themselves and got dealers thinking about many other elements of their business. The goal was to get dealers talking about how they could grow and improve.

MATCHING OUR AGENDAHelping dealers get better at what they do has been a constant effort at SpeakerCraft. We absolutely

practice what we preach. Through continuous research and study we are constantly looking for ways to grow and improve. Every time we meet with our dealers in the field we make an effort to share something we have recently read or heard that can improve their position in the market or increase their efficiency and profitability.

It is our belief that if you focus on what you do and insist on doing it better every day, then the financial reward will take care of itself. When money becomes a byproduct instead of the focus of your efforts, the job becomes more exciting and the result is greater satisfaction and enjoyment. The effect on a dealer’s attitude is so positive that it affects the entire team, which results in even more success, and the thing starts to snowball. Soon everyone in the company can hardly wait to get to work and begin the process all over again. When your team members are coming to you with ideas about how to improve the company, it is a great indication that you are becoming a better leader.

We realize this will appear unrealistic to some.

More Than Met the EyeSpeAkeRCRAft got doWn to SeRiouS buSineSS At CediA expo 2008

SpeakerCraft outlined six business topics and had talking points printed on 4 x 7 cards that its staff and reps could carry in their back pockets for casual training sessions throughout CEDIA EXPO.

Editor’s Note: It wasn’t too hard to con-vince SpeakerCraft president JeremyBurkhardt to write about himself thismonth,but we didn’t want it to look likehe was simply tooting his own horn.The fact is that SpeakerCraft’s decisionto feature business training at its CEDIAEXPO booth instead of product pitch-es was the most innovative and daringidea that most of us have ever observedon a trade show floor.People who aren’tSpeakerCraft dealers probably missedthe point of the booth because theywere too easily distracted by scantilyclad dancers and an exotic booth de-sign. Had you looked past all of that,however, you might have learned a lit-tle something about running your busi-ness the right way.

As this year’s CEDIA EXPO was ap-proaching, the SpeakerCraft team waslooking for ways to make our dealerstrade show experience more valu-able. We began to discuss the suc-cesses of years past and an ideaevolved. What if we were to turn the show aroundand focus on the actual business needs of thedealers and give them information that wouldprompt an internal evaluation of their compa-nies? We could concentrate our efforts on areas thathad been brought to our attention by dealers at ourseminars and educational events across the globe.The result was a series of mini-seminars held in thebooth during the show.

The concept was simple. We outlined six busi-ness topics and had talking points printed on 4 x7 cards that our staff and reps could carry in theirback pockets. When a dealer came to the booth, thediscussion would begin by asking them to “pick acard.” With the outline as a guide, the dealer wouldbe presented with ideas, suggestions, and informa-tion on whichever subject they had chosen. Once

the formal discus-sion was completewe covered whatev-er other items were applicable to the particulardealer and sent them back into the show.

REWARDING RESULTSThe result of this effort was incredible. What we ex-pected to be five-minute presentations expandedinto longer sessions as the dealers asked morequestions and invited more input for their specif-ic situation. Often a dealer would request to selectanother topic due to the success of the first pres-entation. We had also intended to give out thespecific card on the topic we had presented as atakeaway for the dealer but almost every one of thedealers requested the entire set so they could re-

view every subject. This gave the dealers greatmaterial to take back and share with their staff.

The topics were varied and offered enough lee-way to allow for the individual styles of the variouspresenters. The subjects included “Creating a For-mal Referral Process”, “Improving Customer Ser-vice”, “Sales Strategies”, “Marketing Tactics”, “Gen-erating New Business from Existing Customers”,and “Finding and Keeping the Best Employees.”The discussions commonly moved beyond thetopics themselves and got dealers thinking aboutmany other elements of their business. The goalwas to get dealers talking about how they couldgrow and improve.

R E S I D E N T I A L S Y S T E M S • O C T O B E R 2 0 0 852


More Than Met the EyeSPEAKERCRAFT GOT DOWN TO SERIOUS BUSINESS AT CEDIA EXPO 2008

SpeakerCraft outlined six busi-ness topics and had talkingpoints printed on 4 x 7 cardsthat its staff and reps couldcarry in their back pockets forcasual training sessions through-out CEDIA EXPO.

Editor’s Note: It wasn’t too hard to con-vince SpeakerCraft president JeremyBurkhardt to write about himself thismonth,but we didn’t want it to look likehe was simply tooting his own horn.The fact is that SpeakerCraft’s decisionto feature business training at its CEDIAEXPO booth instead of product pitch-es was the most innovative and daringidea that most of us have ever observedon a trade show floor.People who aren’tSpeakerCraft dealers probably missedthe point of the booth because theywere too easily distracted by scantilyclad dancers and an exotic booth de-sign. Had you looked past all of that,however, you might have learned a lit-tle something about running your busi-ness the right way.

As this year’s CEDIA EXPO was ap-proaching, the SpeakerCraft team waslooking for ways to make our dealerstrade show experience more valu-able. We began to discuss the suc-cesses of years past and an ideaevolved. What if we were to turn the show aroundand focus on the actual business needs of thedealers and give them information that wouldprompt an internal evaluation of their compa-nies? We could concentrate our efforts on areas thathad been brought to our attention by dealers at ourseminars and educational events across the globe.The result was a series of mini-seminars held in thebooth during the show.

The concept was simple. We outlined six busi-ness topics and had talking points printed on 4 x7 cards that our staff and reps could carry in theirback pockets. When a dealer came to the booth, thediscussion would begin by asking them to “pick acard.” With the outline as a guide, the dealer wouldbe presented with ideas, suggestions, and informa-tion on whichever subject they had chosen. Once

the formal discus-sion was completewe covered whatev-er other items were applicable to the particulardealer and sent them back into the show.

REWARDING RESULTSThe result of this effort was incredible. What we ex-pected to be five-minute presentations expandedinto longer sessions as the dealers asked morequestions and invited more input for their specif-ic situation. Often a dealer would request to selectanother topic due to the success of the first pres-entation. We had also intended to give out thespecific card on the topic we had presented as atakeaway for the dealer but almost every one of thedealers requested the entire set so they could re-

view every subject. This gave the dealers greatmaterial to take back and share with their staff.

The topics were varied and offered enough lee-way to allow for the individual styles of the variouspresenters. The subjects included “Creating a For-mal Referral Process”, “Improving Customer Ser-vice”, “Sales Strategies”, “Marketing Tactics”, “Gen-erating New Business from Existing Customers”,and “Finding and Keeping the Best Employees.”The discussions commonly moved beyond thetopics themselves and got dealers thinking aboutmany other elements of their business. The goalwas to get dealers talking about how they couldgrow and improve.

R E S I D E N T I A L S Y S T E M S • O C T O B E R 2 0 0 852


More Than Met the EyeSPEAKERCRAFT GOT DOWN TO SERIOUS BUSINESS AT CEDIA EXPO 2008

SpeakerCraft outlined six busi-ness topics and had talkingpoints printed on 4 x 7 cardsthat its staff and reps couldcarry in their back pockets forcasual training sessions through-out CEDIA EXPO.

6 J A n u A R y 2 0 1 2 | Love Your ChoiCes

“They call it work for a reason. It’s not supposed to be fun,” people often say. We totally disagree with this notion. We have seen businesses transform because they learned something from one of our events that changed their perspective and sent them in a completely different direction. Don’t get us wrong; we don’t take credit for the change. That is solely a result of the dealer’s willingness to do what is necessary and persist until it happens. We will, however, take a bit of credit for being the inspiration. We see it as our job to do more than just provide great products. We also need to offer ideas that will help our dealers in all aspects of their business

CONTINUING EDUCATIONAs we finish this year and move into 2009, we will continue our educational efforts at shows, regional meetings, and factory events. There is so much to share, and we have only scratched the surface. We are currently creating curriculum for the coming year and are planning an aggressive travel schedule that will allow us to meet with more people and affect more change in the lives of our dealers. All we ask is that dealers keep an open mind and remember our theme from the show: “Imagine What We Can Do Together.”

Education by adults is a varied and well-studied concept, our attention spans are small, and we want sound bites. Help your staff learn daily by using phrases, fast-paced input, and easily read items that help them to grow. You are the leader in your business. Create an atmosphere where everyone wants to learn, and you will obsolete your current company in favor of a new, improved, and vibrant entity that will make your competition pale in comparison. n

“We see it as our job to do MORE THAN JUST PROVIDE GREAT PRODUCTS. We also need to OFFER IDEAS that will help our dealers in all aspects of their business.”THIS

IS THE SPEAKERthat creates the bass that shakes your neighbors place.

“Your local rep isyour friend andadvocate, so usethem all you can. ”


by Jeremy BurkhardtI was taught how to live the American Dream at an early age. Between my grandma, aunts, and uncles I learned to take nothing for granted; everything could go away in a moment, so always work hard and love what you do.

At seven years old I was given my first copy of The Way To Wealth, written by Ben Franklin in 1758, and was encouraged to read it daily. I was told that if I put into practice what I read, I would never need for anything.

I got my first job at 13 years old, found custom audio/video installation at 15, and have worked with SpeakerCraft for the last 20 years, during which I have collaborated with a great team that invents, services, and helps educate our dealers. In 2003 my partners wanted out, and I got to sell the company for $58 million. I reinvested a portion of that into Nortek Inc., our buyer, and am now living my dream, finding joy in my work and excitement in what I do.

REALITY CHECKWe are living in times that will be written about in the history books: crazy stock market jumps and dives; 6.5-percent unemployment; single-family housing starts dropping 44 percent in the last 12 months from an annualized rate of 963,000 units in September 2007 to 544,000 units in September 2008; and the Dow Jones Industrial Average dropping 28 percent year-to-date as of October and 31 percent in the last 12 months. In 2007, the average American household had $121,000 in debt (including mortgage) and hardly any savings. We are in the most unstable global economy since 1929.

FINDING THE UPSIDEDespite all of the gloom and doom, I think that there is reason for optimism. We have a united government that is doing the things necessary to help bring us out of this as fast as they can. We have a new, young, determined, and energized president who wants change and has vowed to make things better for 95 percent of all Americans. I hope we get

the change that we were promised.I will be paying more taxes and am proud to

do so, as our country needs fixing, yesterday. As Franklin wrote, “We are taxed twice as much by our idleness, three times as much by our pride, and four times as much by our folly...” Let’s stay deliberate about our actions and what we do as business people.

In my optimistic life view I have come up with a few ways that you can benefit during this historic downtime. First, tighten up your household budget and spend more time with your family. As budgets are cut, you will be eating out less and cooking at home more. Use this time to slow the pace of life and enjoy your family or time alone, exercising and in concentration or meditation.

STAY MOTIVATED AND WORK HARDIt is easy to say that business is bad and that you are taking the day off. I recently heard a good businessman say, “If I am making half as much, then I am going to work less.” This is the wrong

attitude. The reality is that there is less money being spent, but you as the owner must work harder and smarter to survive. Market yourself in new ways and find the customers that need your services and products.

Circuit City just filed Chapter 11, because, in part, their approach was to wait for customers to walk through the door. That attitude obviously is not going to cut it anymore, so get out in the community, make a name for your company, and sell. If you think that your clients are not looking everywhere for a better deal, you are wrong. Make sure that when they think of “home theater,” they think of you. It all starts and ends with a sell.

You may be the owner of the business, but your value is in understanding the clients that you serve. Let your feet meet the street. Take advantage of every opportunity that you have to promote your business. Talk about home theater and custom installation like it’s the most exciting thing ever. Enthusiasm sells. As people spend more time at home, a theater is something that they will enjoy

even more. Don’t stick with the same business model if

business has slowed. Reinvent your model. Prices have fallen, so figure out how to be aggressive and serve the broader base of the market. With retailers disappearing, you should get some of that profitable business back. “...stick to it steadily, and you will see great effects; for constant dropping wears away stones...and little strokes fall great oaks.” Ol’ Ben got it right again.

TRAVEL TO LARGER MARKETSAs the stock market drops, so are gas prices, which have fallen more than 35 percent from their summer peaks. Take this respite to get out and find business in areas that you have not yet mined. Use your database and make personal visits to past clients. Don’t just send the sales team; you should go too. We have dealers showing up at past clients’ homes in the evening, knocking on the door in smart dress, and offering a free pair of outdoor speakers as a way

Searching for SolutionsHoW to SuRvive tougH timeS And find WeAltH Along tHe WAy

Despite all of the doom and gloom about our economy, there is reason for optimism.

I was taught how to live the American Dream at anearly age. Between my grandma, aunts, and unclesI learned to take nothing for granted; everythingcould go away in a moment, so always work hardand love what you do.

At seven years old I was given my first copy ofThe Way To Wealth, written by Ben Franklin in1758, and was encouraged to read it daily. I was toldthat if I put into practice what I read, I would nev-er need for anything.

I got my first job at 13 years old, found custom au-dio/video installation at 15, and have worked withSpeakerCraft for the last 20 years, during which I havecollaborated with a great team that invents, servic-es, and helps educate our dealers. In 2003 my part-ners wanted out, and I got to sell the company for$58 million. I reinvested a portion of that into NortekInc., our buyer, and am now living my dream, find-ing joy in my work and excitement in what I do.

REALITY CHECKWe are living in times that will be written about inthe history books. Crazy stock market jumps anddives; 6.5-percent unemployment; “single family”housing starts dropping 44 percent in the last 12months from an annualized rate of 963,000 unitsin Sept 2007 to 544,000 units in Sept 2008; andthe Dow Jones Industrial Average dropping 28percent year-to-date as of October and 31 per-cent in the last 12 months. In 2007, the averageAmerican household had $121,000 in debt (in-cluding mortgage) and hardly any savings. We arein the most unstable global economy since 1929.

FINDING THE UPSIDEDespite all of the gloom and doom, I think thatthere is reason for optimism. We have a unitedgovernment that is doing the things necessary tohelp bring us out of this as fast as they can. We havea new, young, determined, and energized presidentwho wants change and has vowed to make thingsbetter for 95 percent of all Americans. I hope weget the change that we were promised.

I will be paying more taxes and am proud to doso, as our country needs fixing, yesterday. As Franklin

wrote, “We are taxed twice as much by our idleness,three times as much by our pride, and four times asmuch by our folly...” Let’s stay deliberate about ouractions and what we do as business people.

In my optimistic life view I have come up witha few ways that you can benefit during this historicdowntime. First, tighten up your household budg-et and spend more time with your family. As budg-ets are cut, you will be eating out less and cookingat home more. Use this time to slow the pace of life

and enjoy your family or time alone, exercisingand in concentration or meditation.

STAY MOTIVATED AND WORK HARD It is easy to say that business is bad and that you aretaking the day off. I recently heard a good busi-nessman say, “If I am making half as much, then Iam going to work less.” This is the wrong attitude.The reality is that there is less money being spent,but you as the owner must work harder and smarter

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Searching for SolutionsHOW TO SURVIVE TOUGH TIMES AND FIND WEALTH ALONG THE WAY

Despite all of the doom and gloom about our economy, there is reason for optimism.

to get back into a qualified client’s presence. You always have new things to sell, and you’re good enough to create the demand. Nothing beats being in front of those who put you where you are. Make a call list of the people whom you want to reach. Like Mr. Franklin said, “Lost time is never found again” and “early to bed, and early to rise makes a man healthy, wealthy and wise.”

OFFER BETTER PRICES AND PROMOTIONSDiscretionary spending has dropped, which means that you have to work harder to get business. I’ve noticed a lot of great deals and lower prices at many stores in the past few months as large mass market stores fight to sell and meet the Street’s numbers. You must become a promoter and get people excited to come see you. How about having a Santa in your store and offering free digital photos or loyalty programs that cross promote with other retailers? How about something like this: “Spend $5,000 in my shop and get a free Honey Baked Ham and holiday dinner delivered,” or “Buy a home theater before the holidays, and we will deliver a free, seven-foot Christmas tree?” Wise Ben, again, said, “Keep thy shop and thy shop will keep thee.”

Get creative and fight to earn the sales that you think you deserve. Experts

are predicting horrific holiday sales, so the bargains that you offer will probably have to continue through the Christmas season. Bring in hot products that you normally wouldn’t provide. This is a new time, so think differently to get clients in the door. “Industry need not wish, and he who lives upon hope will die fasting. There are no gains without pains.” Franklin believed that we should pursue endeavors that are hard, painful, and difficult. We need to stretch our capabilities further than ever before.

TODAY IS THE DAY TO MAKE IT HAPPEN It sucks that it takes a worldwide economic crisis to get people to pay closer attention to this stuff, but I’m interested in seeing how the greatest nation on Earth fixes these problems. How are we going to evolve and change our habits? What new and exciting business models are going to emerge? Who is going to get lean and weather this storm? Who is going to reinvent?

The days of living out of your home’s equity are gone. We have been a nation of borrowing, debt-writing consumers—a people of instant gratification and a sense of entitlement. If it’s worth having, then it’s worth saving for. Be aware of the little expenses that you incur daily and cut them.

As business falls, then it’s your job to make cuts to insure your company’s survival. Take action now, ask manufacturers for the help that you need, ask other dealers what is working for them, and ask everyone in business for input. Don’t live complaining, but live searching for solutions and implementing them to increase your ability to survive and prosper today and tomorrow.

Don’t wait until the bills are past due to make the tough decisions of cutting back expenses. Stay motivated, stay eager to close, and watch where you spend. If someone isn’t carrying their weight, now is the time to have that tough talk. If you are working for a company, then find ways to make yourself and your job more important. Make referrals, cross train in other departments, and offer to help wherever you can. Forget most everything that you have been doing in the way you spend money and go to zero-based budgeting, only spending where you must to survive.

No one knows how long or how deep this crisis will last, but common sense and fiscal discipline must prevail, and it starts with you.

To close with Ben Franklin, “We may give advice, but we cannot give conduct.” n

“Stay MOTIVATED, stay EAGER TO CLOSE, and WATCH WHERE YOU SPEND.”THIS

IS THE SPEAKERthat saves the day when that hidden water pipe is in the way.



The Pursuit of Happinessten StepS foR CReAting A poSitive CHAnge in youR life And CAReeRby Jeremy Burkhardt

Don’t you ever wonder why, nothing everseems to change?

If it does, it’s for the worse, seems it’s just amodern curse

Sometimes when I take a peek outside of mylittle cage,

Everyone looks so asleep, will they die beforethey wake?

—“Change” by Oingo Boingo

Most humans are creatures of habit. We find things to do and get comfortable. Slowly, over time, our brains hardwire themselves and release chemicals to crave and repeat certain behaviors. However, our brains have amazing plasticity, meaning that by focusing and working hard we can continue learning complex new things throughout our lives. We must remain deliberate, active, and engaged to make change happen and stick long term.

Throughout millions of years of evolution we have become less and less prone to take risks as we enjoy more and more of the comforts of modern life. Let’s not forget, we are designed to walk miles a day, run from and fight predators, work hard to seek peaceful shelter, and then sleep in short intervals.

As this New Year starts I ask myself, “What is it that you have wanted to do but, are afraid to try?” Right now just about everyone I know is in a constant state of panic and questioning about the future. Very few people are making big plans and implementing the ideas to make their lifelong dreams reality. Could this be for fear of failure or for a desire to latch on to the comfort and security we currently have? What dream keeps us up at night? How do we take the leap to change? Spontaneity should not be frowned upon. Make a plan, analyze the various outcomes, and move. One of the biggest problems facing the world today is a lack of decisiveness. Find your passion and desire inside and move toward that goal.

KEEPING IT IN PERSPECTIVEThere are some valuable ideas I have developed along my journey that have helped me to remain positive and kept me growing, evolving, and succeeding in spite of most any situation. First, I put it all in perspective. If I take on a new challenge to change, then I ask myself what is the worst that will

happen? I weigh the consequences and then either decide to do or do not do.

In the back of my head everyday I think about the roughly three billion people around the world living on less than two dollars a day and remember that I am fortunate enough not to be one of them. However, if living on two dollars a day is the worst thing that can happen, then let’s take the risk. All we really need is food and shelter.

I have failed more times than I can count, but I would rather take the risk and fail than stand idle and wait for a sure thing every time. People that succeed make a habit of doing things that normal people feel uncomfortable attempting. We are people with ambition, willing to change to meet the challenges that we both set and face.

THE PATH TO CHANGEThrough hard work, education, and dedication we can change most any circumstance. Here are my thoughts on creating a path for change and success in your life:

1) Analyze where you are and what you want to accomplish. Write down what you want to achieve or change, and use positive words. Mentally, visualize your desires, and prepare by talking positively

to yourself and others about what you are going to accomplish.

2) Internalize your commitment to your goal and make an action plan of the steps that can make it a reality. Set a precise goal and lay in specific dates, times, and numbers from which to measure your achievement or failure. Give each one a priority. What resources are required to make this change happen? Make an action plan for acquiring the resources necessary.

3) Write down what your goal will accomplish for you, your team, or family. Prepare your mind and body to make a change.

4) Share the action plan with someone on your team whom you trust. Set the daily steps and benchmarks that you’re going to take to turn your vision into reality. Allow this confidant or team to reward and reprimand you for your efforts, after having set your rules up front.

5) The more you talk about your goal with people the more accountable you become to achieving it. Share your desires with many people.

6) Take action and make it happen. Keep a daily journal and review what you accomplished or didn’t accomplish. Be proud or embarrassed of yourself. Verbally re-state you desired goal and outcome daily.

7) Meet with your support team and discuss progress and steps necessary to continue to change. If you falter, then restate how important the change is to you. But don’t dwell on mishaps. Instead, make a new plan to accomplish the goal and move forward.

8) Maintain a dedicated daily time frame in which you work toward the goal.

9) Reward yourself for hitting benchmarks. 10) Achieve the change you desired and celebrate.

Set a new goal! I was taught that every person that can work,

should work hard, stay engaged, and take care of their body and mind. We are challenged daily to not only get out of bed and go to work, but also to make our dreams reality. Most of us are led by our own accord. We decide who we want to be everyday we get out of bed. We decide whether to change with a new business venture, by being physically fit, quitting a bad habit, or starting a new good habit. I challenge each of us to change for the better, daily. There isn’t a guide book to make your dreams reality. Your 12-pound head and 12-ounce heart are all it takes to start making your dreams come true. I wish you all the best on your journey. n

Don’t you ever wonder why, nothing everseems to change?

If it does, it’s for the worse, seems it’s just amodern curse

Sometimes when I take a peek outside of mylittle cage,

Everyone looks so asleep, will they die beforethey wake?

—“Change” by Oingo Boingo

Most humans are creatures of habit. We find thingsto do and get comfortable. Slowly, over time, ourbrains hardwire themselves and release chemi-cals to crave and repeat certain behaviors. How-ever, our brains have amazing plasticity, meaningthat by focusing and working hard we can contin-ue learning complex new things throughout ourlives. We must remain deliberate, active, and en-gaged to make change happen and stick long term.

Throughout millions of years of evolution wehave become less and less prone to take risk as weenjoy more and more of the comforts of modernlife. Let’s not forget, we are designed to walk miles

a day, run from and fight predators, workhard to seek peaceful shelter, and thensleep in short intervals.

As this New Year starts I ask myself,“What is it that you have wanted to do but,are afraid to try?” Right now just abouteveryone I know is in a constant state ofpanic and questioning about the future.Very few people are making big plans andimplementing the ideas to make their life-long dreams reality. Could this be for fear offailure or for a desire to latch on to thecomfort and security we currently have?What dream keeps us up at night? How dowe take the leap to change? Spontaneityshould not be frowned upon. Make a plan,analyze the various outcomes, and move.One of the biggest problems facing theworld today is a lack of decisiveness. Find your pas-sion and desire inside and move toward that goal.

KEEPING IT IN PERSPECTIVEThere are some valuable ideas I have developedalong my journey that have helped me to remainpositive and kept me growing, evolving, and suc-ceeding in spite of most any situation. First, I putit all in perspective. If I take on a new challenge tochange, then I ask myself what is the worst that willhappen? I weigh the consequences and then eitherdecide to do or do not do.

In the back of my head everyday I think aboutthe roughly three billion people around the worldliving on less than two dollars a day and remem-ber that I am fortunate enough not to be one ofthem. However, if living on two dollars a day is theworst thing that can happen, then let’s take the risk.

All we really need is food and shelter. I have failed more times than I can count, but

I would rather take the risk and fail than standidle and wait for a sure thing every time. Peoplethat succeed make a habit of doing things thatnormal people feel uncomfortable attempting.We are people with ambition, willing to change tomeet the challenges that we both set and face.

THE PATH TO CHANGEThrough hard work, education, and dedicationwe can change most any circumstance. Here aremy thoughts on creating a path for change andsuccess in your life:

1. Analyze where you are and what you want toaccomplish. Write down what you want to achieveor change, and use positive words. Mentally, visu-

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The Pursuit ofHappinessTEN STEPS FOR CREATING A POSITIVECHANGE IN YOUR LIFE AND CAREER

‘Set a PRECISE GOAL and lay in specific dates, times, and numbers from which to measure your achievementor failure


Music is all about living in the moment. Although most of us enjoy and sell music in our daily lives, rarely do we have the opportunity to experience what it truly is: living art. As a father-and-son team at the three-day Coachella Music and Arts Festival in Indio, California, both my Dad (SpeakerCraft president Jeremy Burkhardt) and I were fortunate enough to be able to indulge with 160,000 others in the beautiful Southern California desert, warm sun, amazing art, and great music.

Looking around at all of the smiles on people’s faces last month, no one would have known that we were in the midst of the worst financial crisis since 1929. Music has the ability to take you to imaginary places, soothe the soul, and transcend problems. As a custom installer, the masses trust you guys to provide them with a musical escape in their daily lives.

NOT JUST ANOTHER CONCERTTo me, Coachella isn’t just another concert. I’m currently a high school junior, and I’ve attended every Coachella since the first grade. However, it’s not just the bands that get me excited; it’s the true Coachella experience that pumps me up and keeps me coming back each year. The quality of Coachella surpasses that of other festivals because of its commitment to customer service and lack of mainstream consumerism.

Each year, my friends and I save up our money

in anticipation of Coachella—not because of some cliché down-your-throat marketing that they have implemented, but because we know that they have improved the concert and will provide us with the best customer service possible. For example, a new program this year allowed guests to bring their own water container and refill it for only a dollar. At most other festivals, guests are forced to spend more than five dollars for a bottle of water. Parking is also free at the Coachella, and I’m able to enjoy the beautiful desert landscape free of huge corporate banners. Coachella targets my generation perfectly, for my generation is the most skeptical ever. We don’t like to be marketed to, we have more options than ever before, and we demand instant gratification. So how can you sell us?

WE WANT IT NOW My generation has grown up with a “we want it all and we want it now” attitude. Diversity is key to pleasing us. For example, last year Roger Waters from Pink Floyd headlined Coachella with classic rock, while Jack Johnson played a chill, surf, and island vibe set, and Irish punk band Flogging Molly belted aggressive and energy filled music at the crowd. At this year’s Coachella, Paul McCartney headlined along with more than 100 other bands from many varied genres.

Most of my peers are not single-minded and do not like just one genre of music. Generally, we are

open-minded and the majority of us like all types of music. Most of my friends have iPods and own at least five gigs of music. I have a multi-room home audio system, but I also have an iPod dock speaker system, because it is easy to carry around. From the skate ramp to the pool, I can just dock and play. In reality, all we want is music everywhere and in abundance.

My generation’s music essentially lives on iTunes. The only time we buy CDs is from local bands at live shows. We buy virtually all of our electronics at the Apple store and other mass market retailers. Honestly, if my Dad wasn’t in this industry, I wouldn’t know what a custom installer was.

LESSONS FROM COACHELLAAt Coachella people were spending money while enjoying life. The ticket for this show was $270 for three days, and yet thousands bought tickets. I read in The New York Times online that despite this depressed economy, the concert season this year is forecasted to be one of the best in years. This proves that we want to be entertained, and music and art are a necessity. I suggest you open up and start marketing to us. People want to escape and music is ingrained in us.

As I hear my Dad talk about the custom industry and I visit trade shows with him like CEDIA and HTSA, I realize that you are not marketing to my

Tapping Into the Next Generation CAteRing to A gRoup tHAt loveS muSiC, diveRSity, And teCHnology

The annual Coachella music festival held in Indio, CA features an eclectic blend of musicians and attracts over 150,000 young music lovers.

Music is all about living in the moment.Although most of us enjoy and sell music in ourdaily lives, rarely do we have the opportunity toexperience what it truly is: living art. As a father-and-son team at the three-day Coachella Musicand Arts Festival in Indio, California, both myDad (SpeakerCraft president Jeremy Burkhardt)and I were fortunate enough to be able to in-dulge with 160,000 others in the beautiful South-ern California desert, warm sun, amazing art,and great music.

Looking around at all of the smiles on people’sfaces last month, no one would have known thatwe were in the midst of the worst financial crisissince 1929. Music has the ability to take you toimaginary places, soothe the soul, and transcend

problems. As a custom installer, the masses trustyou guys to provide them with a musical escape intheir daily lives.

NOT JUST ANOTHER CONCERTTo me, Coachella isn’t just another concert. I’m cur-rently a high school junior, and I’ve attended everyCoachella since the first grade. However, it’s not justthe bands that get me excited; it’s the true Coachel-la experience that pumps me up and keeps mecoming back each year. The quality of Coachellasurpasses that of other festivals because of itscommitment to customer service and lack of main-stream consumerism.

Each year, my friends and I save up our mon-ey in anticipation of Coachella—not because of

some cliché down-your-throat marketing thatthey have implemented, but because we knowthat they have improved the concert and will pro-vide us with the best customer service possible. Forexample, a new program this year allowed gueststo bring their own water container and refill it foronly a dollar. At most other festivals, guests areraped of their money and forced to spend morethan five dollars for a bottle of water. Parking is alsofree at the Coachella, and my eyes are able to en-joy the beautiful desert landscape free of hugecorporate banners. Coachella targets my genera-tion perfectly, for my generation is the most skep-tical ever. We don’t like to be marketed to, we havemore options than ever before, and we demand in-stant gratification. So how can you sell us?

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�FEATURE BY CODY BURKHARDT

Tapping Into the Next

GenerationCATERING TO A GROUP THAT LOVES MUSIC, DIVERSITY, AND TECHNOLOGY

The annual Coachella music festival, held April 17-19 in Indio, California, featured an eclectic blend of musicians, such as headliner Paul McCartney, LeonardCohen, M.I.A., Morrissey, and My Bloody Valentine.

Love Your ChoiCes | J A n u A R y 2 0 1 2 11

generation, and I can’t figure out why not. Why is it that when a custom installer sold us a $200,000 audio, video and lighting system, he didn’t talk us into a great-sounding computer audio system, even though my generation spends an average of over 40 hours a week on the internet?

We spend more on electronics than any other generation in history. To us, electronics are disposable. I have owned more than five pairs of headphones, three iPods, eight cell phones, three iPod docks, three video cameras, one digital camera, and eight gaming systems. I bought almost all of it online, and I used Google to research everything before I bought it. My suggestion for the custom industry is to start marketing to us now by proving that you can give a better experience and sell me something exciting. I still work, earn my own money, and plan on buying the next greatest piece of electronics as soon as I know what it is.

When he wrote this, Cody Burkhardt was a 16-year-old, 4.0 high school student. He has worked in tech support at SpeakerCraft, plays drums and sax, and now plays bass guitar in the band Rise To Honor.

“As I hear my Dad talk about the custom industry and visit trade shows with him like CEDIA and HTSA, I realize that YOU ARE NOT MARKETING TO MY GENERATION, and I can’t figure out why not. ”

Cody Burkhardt

THISIS THE SPEAKERthat will win you the bid that will help get the referral that will keep you in business.


by Jeremy Burkhardt

Life is an unpredictable journey. The old adage that “life is what happens when you’re busy making other plans” is still true today. As I sat in the company of many of my friends and colleagues at the recent CEDIA Management Conference, I was struck by the intense desire we have to succeed in spite of the financial and emotional turmoil that has engulfed us in the last year. Here was a group of people willing to step away from their businesses at a time of “crisis,” because they understand the need to sharpen their skills and get even better at what we do.

As the various presenters addressed topics from financial strategies to team-building recommendations, I was struck by the words of Richard Tait (co-founder of the game company, Cranium) with whom I have a lot in common. We both built successful companies and sold them early in our careers. We both look at life from a unique perspective, one that challenges the corporate norm and emphasizes personal growth and progression. His story brought to mind many of the principles that somehow have shaped my own life and made me who I am today.

FINDING PASSIONThe first principle was the matter of passion. Passion is my number-one motivator. At first I was passionate about music. Over the years I have built a soundtrack around my life, from 1970s and ’80s punk that fueled my individuality and drive, to the soft jazz vocals of Ella Fitzgerald and Etta James that transported me to smoky jazz clubs and people huddled around candle-lit tables. Music is such an important part of my existence that I can’t be without it. Between listening at home, in my car and, at live events, I am constantly immersed in what I love.

Not being a musician myself, I never imagined there would be a way to make music my livelihood, until I found SpeakerCraft; my career path was set. Today my passion for music and entertainment is still going strong, but my passions have multiplied. I have a passion for business. I want to join my team in accomplishing great things. I want to see how effective and efficient

we can be. I want to help our dealers grow with unparalleled innovation, service, and support.

CULTIVATING OPPORTUNITIESAs Richard spoke of the process of creating the “Cranium” board game I found the second principle we share: the desire to give everyone an opportunity to succeed, be recognized, and become fulfilled. As I look at my team I find myself directly invested in their well-being. I want them to experience the success and good fortune that I have been able to achieve. We have a culture that is perfect for individuals who want to be in charge of their own destiny. We are not tied to corporate titles or hierarchy. If a person wants to excel, there will be many opportunities to shine.

PROFITING FROM FUNIt was also readily apparent that Richard likes to have fun. He runs a game company for the fun of it. Fun is his main motivator. He promotes fun as a necessity in the workplace, not a simple diversion. People who are having fun are happier at work, they miss fewer days, they don’t constantly watch the clock, and they project an incredibly positive attitude to every customer or client they deal with. Whether we are dressing up as pirates or planning a bowling night or a Halloween party, having fun is not an option, it’s a mandate.

The prerequisite to all of this is the ability for our companies to make a profit. Without the appropriate revenue model and financial planning, this approach comes to a screeching halt. The desire to have a dynamic, exciting, cutting-edge company filled with passion and fun is only possible if the company makes money. However, the two are not mutually exclusive. Balance is the key. Making sure the bottom line is solid allows enthusiasm and creativity to continue to drive your company to new heights. Life isn’t just about what you buy and own or how much money you

make. It needs to have balance in work, play, rest, and all areas you deem important.

BUSINESS EVALUATIONS Look inside your business. Now is the time to dial in your policies and procedures. For those of you who were fortunate enough to be in attendance at the management conference, I am sure you have a number of initiatives that you are preparing to implement. It’s all about moving forward and upward. Hone your skills and examine past results. If they do not match your expectations, then change the process. You alone stand in charge of your career and financial destiny.

Fill your business life with passion, fun, and creativity. Create opportunities for others to shine and let them share in your success. Be the leader, the mentor, and the example for your team. Business is a rewarding game. Play to win, but make sure you continue to play no matter how many times around the board you go. n

Using Your Head CRAnium CReAtoR RiCHARd tAit mAkeS tHe CASe foR pASSion, fun, CReAtivity, And pRofit

Richard Tait, creator of the board game “Cranium,” offered his business insights to attendees of the 2009 CEDIA Management Conference in Carefree, Arizona.


Obsolete Yourself DailyStepS you CAn tAke to impRove youR life And youR buSineSS

by Jeremy Burkhardt

As I gaze across hundreds of eyes in crowds of business owners I hear many points of view on where our current “industry” is or is not, or where it will or will not go. Many of these views are negative, but it’s amazing that at every gig where I speak, roughly 20 percent of dealers have grown in double digits in the last year.

Being a curious person, I want to know why and how. So I quiz these companies and have come up with an overview of things that individuals do that make them a success. Right or wrong, fun or hard work, ready or not, it is time to “obsolete” yourself daily.

LEARN SOMETHING NEWThe current you that sits here today is an out-dated model by tomorrow. A perfect example of this is how the amount of technical information in the world doubles every two years. This means that a person getting a four-year college technical degree will find that over half of what they learned in their first year will be obsolete by their third year.

This incredible rate of change is reflected in everything about our daily lives. We must move forward constantly. How and why are a given. We must grow our minds and bodies daily. To do this we must humble ourselves, work harder, be more disciplined, more determined, and purpose driven. The first step is to make a list of the actions that you do daily to grow and learn new things, as opposed to the standard process of most business owners of living by their wits and crafts.

Feel the urge to push yourself to out-learn, outlive, and out-think the current you. Below is a process that could put you on the right track. Live with a strict mind and a life based on purpose.

GET SOME RESTLet’s start with simple things like sleep. Are you getting seven to eight hours a night? I know this is a hard thing to do, as we live busy lives and can barely find enough hours to get the things done that we need to do. However, it’s a must, even though I’ll admit to spending many days depriving myself. Find a ritual that you do every night and get on a schedule. We do it with our children, so do it for yourself—set a bedtime.

Don’t lay awake thinking about what you wish you could change in your life. No matter what you do during this time, there isn’t anything you can do at that moment. Instead, clear your mind, do a breathing exercise, and sleep.

WAKE UP! It all starts with just getting up and doing one

thing at a time. If you look at life as a process of small steps, as opposed to a huge bundle of things that need to be done, you will amaze yourself at what you can accomplish.

I believe that a morning exercise routine is an absolute must. It all starts with the first step. Commit yourself to exercising daily. Write down what you are going to do and do it. A Harvard study over seven years has shown that the number-one thing above all in losing weight is exercise. Most Americans are overweight, and we must get into better shape. Look at your body and ask the question, “If the grocery store went away, could I run, fight, and kill my own food or plow and farm enough to provide for my dependents in my current physical shape?”

SIT QUIETLYTake time during the day to sit quietly alone for 20- 30 minutes. Shut your eyes, aware of all that is going on, but not thinking about any of it. Quiet your mind and breath deeply. Sit and relax. Don’t think or talk to yourself. In your head, stop categorizing what you hear. Just take the sounds in and relax, focusing on the present moment. This is your time to let go and not cling to anything.

READ, YES READWhat have you learned today? By reading, you embrace new ideas and processes to grow and learn. Most people in America don’t read more than one book a year. You can pound through a book a week, so make time and do it. It is part of the process of your life.

I often hear, “I have a hard time reading.” That will continue to be the case until you develop your mind and make it a consistent effort. It’s just like exercising a muscle.

I suggest that you identify the areas that you want to improve before entering a store to pick out a book. Billions of people have gone before

Take time during the day to sit quietly alone for 20-30 minutes.


us, and we can learn from both their mistakes and their victories. What you should read is up to you, but walk into a bookstore or library with eyes of wonder. Pick up 10 books, then when you get home take out a Post-it note and write the date you that you will complete each title and stick it on the book. These books need to taunt you. Place them in the spot where you will most often see them and always have a book with you. You should never have to sit idle except when you do so intentionally.

TAKE A FRESH LOOK AT YOUR BUSINESS.Walk through the front door of your company like it was the first time ever. Look around and consume what you see. What is the general attitude of the staff? What is the condition of the place? How can it improve? Where are the clients coming from? How many times does the phone ring before it is answered? What does the stockroom look like? What do you have in the line for new jobs? Why? What is your referral process? How do you interact and qualify clients? Where are the most profits generated? What can you improve?

What are the most important procedures in your business? Look at each element of the company, then sit with your staff around a table or in a circle and do a review of each department where everyone contributes input on how you can improve. Allow each individual to speak, and do not interrupt. It will blow you away how much input your team will give you if they feel that you are truly listening to them. It’s a fact that a lack of communication between management and the work force is one of the biggest problems in most businesses.

IT’S AN EVERY DAY THINGThere are many other areas in which you can focus your attention and improve. The key is to do so every day. Consistent small steps will move you and your company forward. An attitude of growth and development is only effective when it becomes a part of your personal existence. Challenge yourself and those around you to be constantly looking for growth opportunities. These may be chances to develop yourself physically, intellectually, spiritually or in business.

The choice is yours, and it is a very important one. Begin today. n

“Consistent SMALL STEPS will move you and your company forward.”

THISIS THE SYSTEM

that powers subs and speakers without wires plus other features.

by Jeremy BurkhardtThis past week led me to reflect on some fundamentals for dealing with change, worry, and life in business. Whether your business is booming or reorganizing, I have a few rules that will help you and your team perform better regardless of the situation. I taught a class on these principles last month and reflected upon them multiple times daily during CEDIA EXPO. In fact, they helped me handle all the excitement of the show, manage my stress, and keep moving forward. So, here are my Capitalist Zen Rules:

1 tackle one thing at a time . trying to do more is setting yourself up for failure .

2 Slow down and be deliberate in thought . everything changes, and you are better off being deliberate and initiating change, as opposed to waiting for it .

3 do everything you choose to do with 100 percent effort .

4 do less with more . get input from advisors, make a decision, be flexible, and move forward . you don’t need everyone on your social networking site to tell you what to do .

5 Create repeatable rituals that work for your success . Success doesn’t happen by accident; it happens by being deliberate on a regular basis .

6 only think about what is necessary now . We harm our minds and bodies by thinking too much about the unknown . think about what you can do that will create forward progress .

7 live and think simply . We have a tendency to complicate life by making things more difficult than they should be . do your work, serve others the best you can, then step back and live in this moment .

Business is a great game that we are lucky to play every day. You are choosing your future every moment by whom you surround yourself with, and by what you learn and do. Do what is necessary, and enjoy the journey. n

My Capitalist Zen Rules of Business THIS

IS THE SPEAKERthat makes the walls sing without you seeing a thing.

Love Your ChoiCes | J A n u A R y 2 0 1 2 15


Why Play Paysputting tHe fun bACk into WoRk CAn booSt Job CReAtivity live | Work | love | Play

by Jeremy Burkhardt

“This is serious business!” How many of us have heard those words rain down upon us as a co-worker or manager has attempted to impress upon us the gravity of a particular situation? “We need a sense of urgency, a grip on reality, a firm understanding of the balance sheet or a more professional demeanor!” Very early on at my first lemonade stand I managed this way and let me tell you, by the time I sold SpeakerCraft for $58 million and teamed up with Nortek, my style was way different; if it feels good, is fun, and is a solid plan. Let’s play. All in.

When things are tough, when the pressure is on, when I am being pulled in three different directions at once, I choose to play. How about a nice water balloon fight, a dress-up day for all of staff, lunch Fridays, holiday tree and candle decorating, or a huge game of tag? Sometimes we need to get serious and go jump out of a plane or snowboard down virgin powder in the backcountry. Instead of hunkering down and working harder (sometimes we forget that truth and creativity come from the trenches, a good executive thinks 60 percent of the time...alone)

let’s take a moment to share the latest hilarious anecdote or a passage from a recent book.

Kicking the Red BallIf you’re not having fun, you are doing something wrong. Life is an incredible adventure filled with beauty, wonder, play, and enjoyment. Have you lost that incredible childlike view of the world that made everything from a blue summer sky, the smell of the playground, to a ladybug on the back of your hand a miraculous experience? If so, an adjustment is in order.

Having just returned from this year’s CEDIA Management Conference in San Diego, I had the chance to listen to the words of Kevin Carroll. Here is a person whose childhood was marred by alcoholic parents, numerous episodes of being uprooted and moved to different cities, and finally being asked to raise himself at the age of six. His challenges led him to a red rubber ball—a toy that he says literally saved his life. This ball was something he could count on to bring him joy regardless of the circumstance. Simply standing in an open field, kicking the ball high into the air, and then chasing it down took his mind off the frustrations that surrounded

him.This red rubber ball led him to service in the

military where he traveled the world and learned five languages. He later received a degree in sports medicine, after which he worked as a trainer in the NBA and then for the Serbian Olympic team. His experience brought him to Nike where his business card literally stated his title as “Katalyst” (misspelling intended) as he was truly an agent of change who helped numerous departments turn creative ideas into reality. And at the core of all this success was the concept of play.

Free Your MindFreeing up your thinking through a playful, creative mindset produces fertile ground for ideas that would rarely surface in a boardroom, which is often no more than a “bored” room. Daily activities tend to hypnotize us like poorly written TV shows: mind numbing and pointless. Soon our brain is focused on the mundane, the ordinary and the commonplace. What we need is a regular shock to the system that makes us laugh, reenergizes our attitude, and puts our whole life back in perspective.

All I do is work. It’s my life. I am not really all that good at any particular aspect so I just get aggressive and give it my all in a variety of areas. I try to play and have fun while influencing others. This leads to creativity and opens up many new avenues for growth. By approaching work as play, I find that my team and I are more engaged and less afraid to fail. When we eliminate fear and allow free thought, true innovation and inspiration occur. Hell, even the company intercom is a toy. Make the troops laugh.

Humanity grows, evolves, and succeeds—not because we have sold out, become super responsible or overly mature—but rather through ambition, play, love, and fun. n

4�people depend on you to help them chase and catch their dreams4�it is each of our jobs to be a catalyst for

change . don’t slow down or become stagnant4�don’t have an agenda, don’t let preconceived

notions or thoughts block open meetings with people . Help for the sake of help4What are you willing to fight for?4people deprived from play freak out4�Adults become risk adverse . Ask yourself

why?4turn any and all good ideas into reality4�Have eyes of wonder: see the world through

the eyes of an eight-year old . don’t be afraid to let go4be around what you love4�uncork the possibilities within you and those

you touch4�What replenishes your energy? find it and

suck it in4�do the lonely, hard work late at night, early in

the gym, alone reading and improving . that is the work that will exhaust you, and from which you will grow . it’s all about you and the desired goal working to become one .

Taking poinTers from kevin CarroLL

CEDIA Management Conference keynote speaker, Kevin Carroll, attributes his success to having used play to overcome several of his life’s challenges.

You are the coach of your business, but it is up to you to determine what game you are playing and what winning means, from the types of installs that you do, to how much profit you make, and how many jobs you want do per year.

But even coaches need coaches. We all need mentors and people to whom we can turn for advice on processes that can help us succeed.

Learning From Phil JacksonTen years ago I had one of my childhood dreams come true when I got to hear NBA legend Phil Jackson explain coaching in a sponsored session called “Chalk Talk.” Michael Jordan was amazing, but to me Phil was the one who really led and designed the Chicago Bulls and now the L.A. Lakers basketball championships as the head coach. The principles he shared on coaching were not original; in fact many were from Native American or Zen teachings that are thousands of years old. Yet they led me down a unique path.

I try to practice many different facets of this philosophy, daily, from meditation and breathing exercises to yoga, stretching, and just enjoying the moment. Life is better when you live for experience verses the theoretical way many people think of living by imaging a future that may never come and dwelling on a past that they cannot change.

We’re Always RookiesPhil Jackson’s first-year coaching card has been on my desk for 20 years and reminds me of a Zen idea that we are all rookies at something every day and that being a leader and coach is an ever-evolving process. To grow, we must cultivate a childlike and open mind. It’s when we have difficult and predetermined thoughts that we become less able to flow with life and learn new things.Do Your Players Respect You?

I love this quote by Phil: “Despite their tremendous talent, [NBA players] are still, by and large, young adults, seeking validation from an authority figure, and there is no greater authority figure on a team than the coach. Needless to say, in today’s warped, self-indulgent climate, too many players couldn’t care less about appeasing the coach.” How true does that ring in your business?

How can you gain your players’ ultimate respect? Here is an old Zen saying that relates well to managing your team: “To give your sheep or cow a large, spacious meadow is the way to control him.” I find that often you can get more out of employees by setting up the goal and time line and leaving the tactics up to them.

Prepare Well, Visualize SuccessDuring a time out in an NBA game featuring one of Phil’s teams, it’s not uncommon to hear him say something like, “OK guys relax and breath deep; you know what to do, so enjoy this moment and go make it happen.”

Most other coaches are busy drawing up plays, yelling about fundamentals, and rushing through the whole timeout with non-stop coaching. Meanwhile Phil’s team takes a breather and visualizes success. They can do that because they have practiced what needs to be done, and now they must execute the game plan. Often after a win, instead of boasting I have heard Phil say some version of this: “Winning is important to me, but what brings me real joy is the experience of being fully engaged in whatever I’m doing.”

We often don’t realize that we can gain more by letting go, or just “going with the flow.” When I sit in front of a stream or watch Koi and just “be” as the water flows, I often recite “Panta Rhei” or “Everything Flows” by Heraclitus to myself.

I want my life and business to be like water, because nothing in nature stops it, and it continues and adapts, without hard rigid straight lines, to find its way. I think we can continue to play the capitalist game we choose and enjoy winning even more by letting go, focusing on our breathing, and enjoying every moment without labeling it as good or bad. n

Trying to Be Like PhilleSSonS on HoW to beCome A betteR CoACH foR youR CompAny

Phil Jackson’s first-year coaching card has been on the author’s desk for 20 years to remind him of a Zen idea that we are all rookies at something everyday and that being a leader and coach is an ever-evolving process.

[ ]Who is heraclitus?Heraclitus of ephesus was a pre-Socratic greek philosopherwho regarded himself as self-taught and a pioneer ofwisdom . He is famous for his doctrine of change beingcentral to the universe, as stated in his famous saying, “youcannot step twice into the same river .”



If you are like most people, then you are working twice as hard for half the money, and it doesn’t seem to be getting much better. If you are reading this, I am going to make the gross assumption that you are still in business and have weathered one of the toughest economic times in our country’s history (and it’s not over yet).

Most dealers that I know have had to lay off employees, find new ways to get business, don’t have the same credit lines or cash flow, and have had to take a pay cut. On the upside, you have earned a virtual MBA in a very short time, and these tough lessons have made you a better businessperson for the rest of your life.

It’s All About ProfitsThe best way to stay in business is by selling superior products for higher margin and providing a better value to the consumer. Anyone can make and provide either cheap or overpriced products and adequate service. You must constantly differentiate yourself with better products, better quality of installation, and better after-the-sale support. All of these things come at a higher price.

Know Your Value PropositionYou should always provide better sound and video quality, systems that are easier to operate, cleaner installations, a relationship based on integrity and an overall better value. You decide what the value differentiators are and highlight them as you

present your proposal to the client, including your install process, your forward commitment, and a serious service contract.

Remember that you set the level of profit that you want to hit. You choose the staff and what they

get paid. You decide on your building, your demo facility, and your vehicles, and you determine all expenses. If things cost too much, make cuts now.

If you have to be your own best salesman to survive, then do it. Make the hard choices so that you can continue be a great service provider to your clients and a great provider for your family. Remember that your client’s trust and your desire to please them should always come first, both consciously and subconsciously.

Powered by YouIf you’re a good salesman, then you should do what you say that you’re going to do, and your service and finished product should be better than what the customer expected. In this economy you must find new clients anywhere that money exists, from car showrooms to country clubs.

I am currently mentoring a skate, urban wear, and snowboard shop. I had the local BMW dealer agree to provide every client that purchased a new car with a coupon to the shop for a free gift and

a discount. I also advised the shop’s owner on other ways to generate cash flow with discounts on product, mailing past clients, asking the landlord for a rent reduction, and getting vendors to give better terms.

You, however, can’t depend on anyone to help you. You have to constantly get referrals from every client and market yourself in the community. Don’t get trapped behind your desk, because business occurs outside and not in your office. Go find the clients and use print materials, promotions, and technology to hook them.

You already have survived a very tough time. Now go prove that you are worthy of that survival. Being slow and conservative isn’t for you or for now. Now is the time to rise up and go create the market and circumstances that you desire. There must be urgency in your vocabulary and your actions. If you have to bust out all the old files from past clients and call everyone and offer a personal visit to check out their system and make recommendations, do it. Do whatever it takes to make business happen.

The Collapse You SurvivedApplying vAluAble leSSonS leARned fRom tHe neW eConomy

The author is currently mentoring Brandon Beaudoin, owner of Riverside Ski & Sport, by helping him generate cash flow with discounts on product, mailing past clients, asking the landlord for a rent reduction, and getting vendors to give better terms.

“In this economy you must find new clients and ‘hustle’ every place where money exists, from car show rooms to country clubs.”


My passions are the most important part of my existence. From listening to music to creating new products, from time with my son and time spent in meditation, to backing various charities and mentoring kids, I live a life filled with amazing experiences and great relationships.

I love my choices everyday, and if I don’t, then I just change what I am doing to make the next day even better.

Giving back is something that I think everyone should do. Being a capitalist is a lonely business, but when you give back it makes a change that you can’t just measure in dollars.

A Cause That I Care About DeeplyRecently I have taken an aggressive position in the effort to save the incredible creatures that populate the world’s oceans. I became a vegetarian after watching Food, Inc. and The Cove, movies that both had me in tears. I am now involved in the campaign to end the illegal slaughter of whales and dolphins by Japanese whaling fleets in the southern oceans, having become a vocal and financial supporter of Captain Paul Watson and his team at Sea Shepherd. You may be familiar with Watson’s efforts as they have been documented on Animal Planet’s Whale Wars. This successful series and Oscar-winning documentary, The Cove, have shone a light on how crazy some people can be in regards to illegal activities, like the underground slaughter of helpless animals for their meat. Many are standing up to Japan, in this case, which I believe has blood on its hands as a result of this horrible practice.

Our Oceans, Our SurvivalIn a recent conversation with Captain Watson we discussed the plight of the whales and other endangered species. It’s a fact that our oceans and life in them is essential to human survival. Even if this effort were merely a matter of self-preservation for mankind, it would be important. But it is even more than that. These incredible living beings are beautiful in their simplicity and have every right to share this planet in peace and harmony with humans.

Greed is Not GoodAs with most of man’s decisions, greed is the motivation for illegal harpooning, slaughter, and

potential extinction of whales, dolphins, and bluefin tuna. I was offered whale meat as a delicacy in Japan, once, and I said, “No thanks.” I wish, now, that I would have stood up and made a scene about it, but I wasn’t educated to how whales are hunted and killed against international law by Japanese gangsters.

The economics of extinction are easily understood. A perfect example is the four-year supply of bluefin tuna that is warehoused in Japan today by a division of Mitsubishi. The goal, I’ve heard, is to amass a 15-year supply of this species of fish that will multiply exponentially in value as they become more rare, or worse, completely extinct. We are talking about a multi-billion-dollar return on investment.

Sea Shepherd’s MethodsSea Shepherd is an interventionist group attempting to locate and interfere with whaling operations wherever possible. They believe in an aggressive, yet non-violent, approach as they put themselves

in harm’s way. They literally place themselves between the harpoon and the target. “It’s not a matter of whether or not the whaler’s activities are illegal. That is a matter of fact,” Watson told me. “We are simply attempting to enforce international laws that are already in place.”

When I look at our industry, the industry that I have chosen for my livelihood, I believe we provide a positive service for our fellow man. We fill homes with beautiful music, creating a more pleasant atmosphere for those who live there. We create a portal for news, information, and entertainment that creates enjoyment for all who choose to partake of it. But, I want to do more.

I applaud those people within these countries who are already putting pressure on their governments to cease all illegal whaling and fishing practices. I also ask for your help. We all have passions and causes that we want to support. How you gauge the value is up to you. But if we all just work to make the world better for our kids than it is now, we have done something worthwhile.

Love Your ChoicestRy mAking tHe ACt of giving bACk A pARt of youR life

When asked about the methods employed by his Sea Shepherd organization Captain Paul Watson is very direct, “We are protecting species from poachers who are hunting in a sanctuary,” he said.


It’s your job not only to design systems for your clients, but also to “design” the relationship that you have with them. And just like you wouldn’t want to take anything about your systems designs lightly, you shouldn’t leave your client relationships up to chance.

Each and every client you meet should be thought of as a client for life. The better you get to know the person you are servicing early on in the relationship the more you can build on the foundation and establish an amazing relationship for life.

It is your job to understand, qualify, and fulfill your clients’ needs. In this business we often don’t sell to a client’s needs but to the level of technology that we feel comfortable with or to the price points that we can afford ourselves. Instead, try to learn the most that you possibly can about what a client really wants by engaging them, asking good questions, and really understanding their needs.

Throughout the year, I have conducted President Circles with dealers around the country, and together we developed an information sheet

that I believe should be filled out for every client that you have (see below). If you have a great relationship with your client, then each of these questions should be easily answered by you or someone on your team.

Check out the questions we came up with and keep this in your client’s file or on their job

memory stick and continue to update it throughout the course of your relationship. The business partnerships that you make now should be viewed as building blocks for life-long relationships. In

general, ask open-ended questions that will allow you to better understand your client’s lifestyle and therefore better service the individual or family. These questions shouldn’t be read like a list but casually discussed and filled out on your formal qualification sheet later.Taking notes is great and non-offensive as long as you are sincere and really interested in helping them with the knowledge you gain.

These are just examples of some questions you should ask and know about your clients. You can use each piece of knowledge gained to show them that you pay attention, listen, and care about servicing them.

From showing up to finalizing the system with popcorn, licorice, a bottle of wine with wine glasses and a DVD that they will appreciate, to asking about their children by name if their video game is easy to use on their new flat panel, it’s all about service. The better you know your clients, the better you will be able to serve them. Be an active listener; people love to talk about themselves. And, the more you know the better you can treat them.

Burkhardt’s Ice BreakerstHe moRe you knoW About youR ClientS, tHe moRe you CAn gRoW

20 r e s i D e n t i a l s y s t e m s | D e c e m b e r 2 0 1 0 | residentialsystems.com

It’s your job not only to design systems for your clients, but also to “design” the relationship that you have with them. And just like you wouldn’t want to take anything about your systems designs lightly, you shouldn’t leave your client relationships up to chance.

Each and every client you meet should be thought of as a client for life. The better you get to know the person you are servicing early on in the relationship the more you can build on the foundation and establish an amazing relationship for life.

It is your job to understand, qualify, and fulfill your clients’ needs. In this business we often don’t sell to a client’s needs but to the level of technology that we feel comfortable with or to the price points that we can afford ourselves. Instead, try

to learn the most that you possibly can about what a client really wants by engaging them, asking good questions, and really understanding their needs.

Throughout the year, I have conducted President Circles with dealers around the country, and together we developed an information sheet that I believe should be filled out for every client that you have (see below). If you have a great relationship with your client, then each of these questions should be easily answered by you or someone on your team.

Check out the questions we came up with and keep this in your client’s file or on their job memory stick and continue to update it throughout the course of your relationship. The business partnerships that you make now should be viewed as building blocks for life-long relationships.

In general, ask open-ended questions that will allow you to better understand your client’s lifestyle and therefore better service the individual or family. These questions shouldn’t be read like a list but casually discussed and filled out on your formal qualification sheet later. Taking notes is great and non-offensive as long as you are sincere and really interested in helping them with the knowledge you gain.

These are just examples of some questions you should ask and know about your clients. You can use each piece of knowledge gained to show them that you pay attention, listen, and care about servicing them.

From showing up to finalizing the system with popcorn, licorice, a bottle of wine with wine glasses and a DVD that they will appreciate, to asking about their children by name if their video game is easy to use on their new flat panel, it’s all about service. The better you know your clients, the better you will be able to serve them. Be an active listener; people love to talk about themselves. And, the more you know the better you can treat them.

burkhardt’s Ice breakers

The More You Know About Your Clients, the More You Can Growb y J e r e m y b U r k H a r D t

Jeremy burkhardt (jburkhardt@speaker craft.com) is president of speakercraft in riverside, california.

MotivatingMessage

>BurKharDt’s BreaK the ice Questions anD Personal inforMation sheet1. client name 2. current Home address3. How long have they lived there? 4. Where did they live before? 5. First date and place you met the client? 6. Who referred them to you? 7. if not a referral, how did they find you? 8. immediate family members names 9. Do children have video games? 10. How much time per week is each family

member on the computer and where? 11. Do they have pets and what are their

names? 12. Where did they grow up? 13. What generation or age are they? 14. Where did they go to school? 15. What did they study?16. Where do they work? 17. Do they like their job? 18. ask open ended questions about their

lifestyle, such as do they use twitter, do

they text, surf the web on a mobile phone; would they rather text or talk on phone?

19. are they technical? 20. Do they have a DVr now? 21. What are their hobbies? 22. What do they like to talk about? 23. What types of movies do they like? 24. What are their top three favorite movies? 25. What are their favorite bands? 26. What music do they dislike? 27. What concerts have they attended? 28. How often do they rent movies? 29. Do they watch movies alone or with

friends? 30. How often do they go to the movies? 31. Where do they sit? 32. Do they drink alcohol? What kind? 33. Do they drink still or sparkling water? 34. Do they eat popcorn or candy during the

movies; what kind? 35. What type of car do they drive?

36. What kind of watch do they wear? 37. What kind of shoes do they wear? 38. What kind of belt do they wear? 39. What pen do they use? 40. How do they describe their house? 41. are they architecturally astute? 42. How astute are they about their furniture? 43. Do thy read about design? 44. What magazines do they read? 45. What are they the most proud of? 46. How do they view you?

“You can use each piece of knowledge gained to show them that you pay attention, listen, and care about servicing them.”

More OnlineNo Need to Retype This Listif you would like to integrate these questions into your sales

process, then visit www.residentialsystems.com/december2010 to download an ms Word version of the list.

“You can use each piece of knowledge gained to show them that you pay attention, listen, and care about servicing them.”

-


Technology propels itself forward faster and faster. It seems like the last five years have been some of the most innovative ever. The efforts of manufacturers to compete for your loyalty accelerates the pace.

I find myself actually enjoying how fast technology has changed and how much easier life has become. What an awesome time to be alive and in business. Music is being consumed and shared at a rate unimagined. Sources from iPods, iPads, Win7, Droid, and so many other digital sources to cloud-based delivery systems are providing people with virtually limitless options.

Whether you want to download old-school Iggy Pop or the Velvet Underground, more music exists at our fingertips than we have time to listen to. Maybe you want to dial in your Pandora channel from the music you grew up listening to or even the Dalai Lama talking about life and happiness; it is all available at the touch of a button.

The concept of whole-house audio is now a reality for most everyone. Throw Apple AirPlay into the mix, and multi-room audio just became about as plug-n-play as a toaster. I know there are some of you out there shaking in your boots and screaming, “Stop the madness! How will we remain relevant in this wireless, simplistic, consumer-friendly, anyonecan- do-it universe?” Trust me, those same thoughts have cost me many sleepless nights, as well.

But then I realized a simple fact: I don’t mow my own lawn. Although I own a lawnmower and have spent plenty of hours behind it, I choose to allow someone else to do that for me. Just like I allow someone to clean my pool and wash my car. We are in a luxury business and that means our customers value their time more than their money. They pay for numerous services that they could perform for themselves. It’s not a matter of whether they can; it’s that they prefer not to.

You install gear that disappears into the home and works every time, and you are contacted when a problem occurs. Over the holidays I got way into vinyl and listened to hundreds of tracks with my son. He and his buddies were excited to hear how great music could sound. Don’t forget that it’s all about delivering great-sounding systems and educating the next generation

about how much better lossless sounds than compressed music. Demo, baby.

You are a solution that your clients need, instead of spending their valuable time researching their options and installing the technology themselves. Yes they can, but they won’t. These are the same people who never programmed their VCR. Why, because it was too much drama. The result was an industry revolution represented by the DVR. Now the ability to record the latest episode of Dexter or Sons of Anarchy is a simple point and click. Did this render us impotent and irrelevant? No, in fact it created an even greater demand for quality audio/video systems, because people rediscovered the joy of entertainment that they could experience on their own schedule and not that of a network executive.

You should be reveling in the opportunities created by the $250 multi-zone entertainment system. Just like the iPod revitalized the music business, these new delivery and control options will bring what was once only the property of the

wealthy to the masses. And the masses will drive our business forward like never before. Does this mean a shift in our perspective? Of course it does. Maybe instead of installing 20 $75,000 systems a year you will be looking at 200 systems at $10k. Or possibly you have five or six massive systems and 100 small installs to fill in the gaps.

The idea is to be flexible and adapt to the changes that are coming as only you can. When the growing custom market was in its infancy there were plenty of brick-and-mortar retailers who refused to believe it was a viable business model. They stuck to their guns and sat behind the counter waiting for customers and their credit cards as they had always done. They advertised and merchandised their way right out of business. Don’t get caught in the same trap. Now that custom is a major force in the market, many dealers are looking at new technologies as threats instead of opportunities. Now is the time to take advantage of your ability to deliver to the customer every option you can. They are waiting for you. Don’t make them wait too long.

Adapting to ChangenoW iS tHe time to deliveR eveRy neW teCHnology option tHAt you CAn

The concept of wholehouse audio is now a reality for most everyone. Throw products like

Apple TV into the mix, and multi-room audio just became about as

plug-n-play as a toaster.


I recently visited with more than 100 integrators in a three-week period, sitting down to discuss business in small groups and one-on-one. I was posed with questions in almost every business meeting; most of them were about selling to builders and how to effectively use social media. Here are some ideas that I hope you will find useful.

Creating Business with BuildersThe world works based on relationships, period. Everything you do is intentional from the way you talk, where you hang out, what you wear, and how you are perceived. I suggest meeting builders in their favorite places outside the jobsite or office, like the country club, a bar, or home building councils.

When you meet a builder that potentially could be a great partner, spend the time understanding the demographics of his clients and the houses he builds. Position your company as the solution for turnkey work. If you offer multiple solutions and are organized, then you just made that builder’s life easier. Ask many questions about what their experience has been with what you do; chances are they have worked with an installer in the past and had a bad experience. Explain how you will not be like the last company. Tell him how your systems will help him sell his house. Explain that the homebuyer wants integration, they want to be able to play their iPod around the house, and/or

that they want a big display and outdoor audio.Always remember that you are a specialist

and offer products that are not easily available to everyone. Don’t sell based on price, but instead on your ability to deliver amazing performance and to help the builder better serve his clients.

If the home is being custom built, then talk your way into getting a meeting with the owner. Often the builder asks what is in it for them. You decide if you want to give them a free system and then accrue a percentage toward their purchases with you. I also have seen people give a straight percentage to the builder. I like the idea of giving them a system, because they will be yoked to you for the life of the system, and you can show off how great the work is that you do.

How to Use Social MediaI am asked about social media daily. It is a hot topic, and I am blown away by how many people don’t know anything about it. USC has been my son’s home for five years, yet I feel very close to him and his friends because they are my friends in a social media circle. To develop a killer social media reputation for your business, however, you have to follow a few rules. People don’t want to be marketed to with products; you will only piss people off by pushing product with social media. How would you like to be sold first thing in the morning while talking with friends? You

wouldn’t. Don’t pitch product and services; tell stories about what you do.

Don’t market your goods or services like you would through an ad. This is not a place to sell stuff. It is a place to build relationships and trust. Who are you, and what’s your business life like; what do you feel? Continually create, share, and reinforce the value and mission of your company. Share experiences related to the products that you deliver. For example: “I am blown away by the bass response of the speakers we just installed. Our client was playing the new Odd World track, and the bass from the subwoofer was so heavy it shook the walls.” Just don’t write something like this: “The new SpeakerCraft Aim Five has a Kevlar driver and the sub was so good that our client was bumping it. Call for a quote today.”

When setting up a social media account, first add friends that you already know. The goal isn’t to get as many people as possible; it is to communicate with people you care about and consider your friends.

Don’t just post updates. Instead, have a strategy when you post comments and plan your posts to ensure that your communication is on point and hitting your objectives. Friends usually respond to notable contributions from others.

Your company has a great opportunity to gain business with new technologies and better products than ever before. Your dedication to being the “system doctor” will determine your success. Like a doctor, you have the ability to make sure your past clients are satisfied and to continually take care of them. Your new clients have yet to experience the amazing work that you can do, and you can exceed their expectations. They are your best advertising tools and will recommend you to their friends if you do a great job on their system.

Lessons from The Roaddeveloping buSineSS tHRougH buildeRS And SoCiAl mediA

“If you offer multiple solutions and are organized, then you just made that builder’s life easier.”

When you meet a builder that potentially could be a great partner, spend the time understanding the demographics of his clients and the houses he builds.


As an independent business owner in the custom industry you often have most of your brand interface with an independent sales representative who sells many different product lines. This has been a popular go-to-market strategy, because it costs the factory less money than hiring a full-time team of people for each territory. The question I hear many dealers ask is, “What is the rep supposed to do and why do they get big commissions on every single product I buy?”

In recent months a spate of independent sales reps have been fired by various manufacturers searching for a new ways to survive. Now, I have never fired anyone that I thought was doing a great job, and I think that is probably the rule for most factories. But as business has slowed in the channel, some manufacturers think they can bag their reps to save money in the short term. My feeling, however, is that without a great sales team in place, products won’t sell and that many of the recent terminations will be rehired in the next six to 12 months.

How can you run a great brand without someone leading the charge, daily, with every dealer? Having had both factory-direct and independent reps since 1994, I want to give you the low down on what a good sales rep should do for you.

The following has been compiled with SpeakerCraft dealer input around the country in

discussion groups and factory focus groups. You have told us that you have some great reps and some lame reps as well. Reps are your lifeblood with the factory they represent for you and should be seen as your business partner. As with any business relationship I suggest you establish a clear set of expectations of what you want from a rep upon visiting you. The days of “just dropping in” are long gone. These days, it’s all about delivering

value to you, so when your meeting is over you can make more money. Here are eight suggestions to help reps perform better during challenging times:

1) Fix StuffThis is the most important thing a rep can do on a dealer’s behalf. When something goes wrong with a product, on an order, or any issue, they need to be your go-to person to get stuff fixed. The rep is the dealer’s factory contact, and no matter what it takes, they need to make the calls, get the right product shipped, follow through, over-communicate, and make sure the dealer is always taken care of, properly.

2) Protect Your TerritoryDealers want to know who is selling products and who is in business competing against them in their territory. The rep needs to keep the dealer in the loop and respect his distribution parameters.

3) Product MasterThe rep is the person that should know more about the products they sell than anyone in the market. If a rep isn’t technical and his dealers have to call a factory for an answer, then that rep is not good at his job. This is how reps get paid, and they need to bleed technology and knowledge.

4) TrainingA good rep should have full PowerPoint trainings on each brand that he sells and at any time be able to make an appointment to train his dealers and their staff. The best reps will introduce dealers to new business opportunities by training on more than just products.

5) Factory AdvocateA good rep needs to be able to go to bat with his manufacturer partners to help his dealers gain better sales deals, terms, and credit limits. The rep is in charge of helping his dealers flourish with the brands they carry.

6) Business AdvisorReps should be able to share best practices with their dealers and evaluate their facilities, their

showroom, employees, pay, contracts, and ideas to help them grow.

7) CommunicationDealers should have one or two days a month when all reps are asked to visit. A savvy dealer will send their reps an agenda of what he wants to cover, well in advance of this meeting.

8) Provide Sales and Training SupportFrom simple product literature to deep training on how to program or install, if a rep doesn’t have a car full of samples and sales support materials, then they are doing their dealers a great disservice by not providing tools that manufacturers spend millions of dollars to produce.

Your local rep is your friend and advocate, so use them all you can, because their commissions range from one percent to more than 10 percent on every product you buy. Become important to them by establishing sales targets and hitting them, and I promise that if the rep is worth their salt, they will take good care of you.

In Defense of Good RepseigHt WAyS SAleS RepS CAn exCeed deAleR expeCtAtionS

Establish sales targets and hit them, and any independent sales rep worth their salt will take good care of you.

“Your local rep isyour friend andadvocate, so usethem all you can.”

THISIS THE COMPANY

that invented the speakers that AIM the woofers & tweeters.

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Love Your ChoiCes - Inside CIinstallation business quite like Jeremy Burkhardt. He’s outspoken, outlandish, and maybe just a little rough around the edges. But he’s also the president