Finding The Hidden Profit Within The Product

Let’s face it: generating the same level of profits today on your premise wiring jobs that you used to get in the last few years is getting much more difficult based on increased competition. It is likely that you have already been looking for ways to cut your costs to maintain the profits you make on each installation.

You probably have already spent a great deal of time and effort searching your business for savings through better upfront job planning, increased coordination, just-in-time shipment strategies with your key distributors, and streamlined business practices; but it is very possible that you have overlooked an area which can provide significant additional savings based on the choice of components you select to use in your installation. By evaluating each product used in your typical installation for the greatest value and ease of use you may well find the cost savings you are seeking.

Like many industries before this, as the technology moves forward, you are presented with manufacturers who claim to be capable of supplying products sufficient to meet your needs, but not all of these products are created or designed equal. It is important that you approach the selection of your products with a solid game plan in order to reach the savings desired without compromising any of the quality or performance. Your game plan should focus around four key factors: the product’s quality, performance, price, and its ease of use.

Product Quality

  1. Are the products well made?
  2. Will they hold up and last over time?
  3. Will the manufacturers be there for support when you need them?
  4. What types, and lengths, of product warranties are offered?

Even with the highest quality products there will be times where you run into questions, and some of these times your local supplier or distributor will not be able to answer your particular area of concern.  Therefore, finding manufacturers where you can contact their technical support team directly for answers will save you a great deal of time and money. Look for products from companies with ISO 9001 certifications. Their products will give you more consistent performance, quality, and reliability. It does not necessarily mean that their products will perform better or have higher quality, but it will give you some comfort that as an organization they are committed to providing you with consistent products.

Most solid reputable manufacturers offer long extended warranties on their products and solutions, anywhere from 20 years to lifetime warranties. The exact timeframe really makes no difference since they all exceed the expected lifetime of the product technologies. Watch out for manufacturers with slim to no warranties, their products will likely not perform up to industry standards and you are likely to experience more problems from their products at some point in the future. Problems with the installation cause customer call backs, something we all want to avoid

Performance and Price

  1. Do their products meet or exceed industry standards?
  2. How do they compare to other similar products?
  3. Are they reasonably priced compared to same type products from other manufacturers?

Look for companies who freely give their testing results for all their products before selecting which product to buy. Compare the test results they provide for each of their products. Also check for third party test results, such as UL or ETL. These outside parties being industry neutral will give you a true indication of the products performance and will show without a doubt that it meets or exceeds the industry’s specifications.  You should also test the products for yourself; many times manufacturers’ will highlight only the specifications they want you to see. Take a look what each part costs. Some manufacturers offer products with very high quality and performance at very attractive prices. This is where you will find the best opportunities for high profitability without sacrificing any of the performance or reliability your customers need for their networks.

Ease of Use / Saving Time

  1. Are the products designed in ways to save you time?
  2. Are the products easy to use and install?

Today, labor accounts for a very high percentage of the cost of a typical low voltage structured wiring installation. Finding products where you will be able to save time can be as important as finding products that offer the best value. Products which allow you to reduce the installation time often translate into direct labor savings, raising your net profit and allowing you to take on additional jobs.

The design of commonly used products, such as Cat 6 and Cat 5e modular connectors, can have a very significant impact on the installation time due to the sheer number of these products found in a typical installation. These connectors come in two different varieties: split back models where the IDC is divided into two separate parts and a flat back design where the IDC is flat and continuous.

The flat back style of jack allows for quicker and easier termination of the UTP cables. It allows the wiring pairs to be laid out and terminated quickly, which saves time without requiring you to split the colored pairs and route them to separate IDC locations. You can save some additional time by using termination caps to complete the installation.

The time-savings per connected jack can be as much as 10 to 15 seconds when using a flat backed connector design when compared to spilt back connectors. In larger installations this often translates into large labor savings, making this a great area to start your cost cutting efforts on.

Total Installs

Time Savings (min)

10

2.5

100

25

500

125

1000

250

 

Most 110 blocks are wall mounted, but once they have been mounted it is difficult to add additional cable runs without removing the entire assembly. Hinged 110 blocks allow you full access to the rear, making it easier to add additional cables. Hinged racks provide similar benefits to the hinged 110 blocks. By providing greater access to the rear section of the patch panels and active devices it is easier to make any moves, adds, and changes you have planned go faster and smoother.

Preconfigured faceplates come in two distinct termination styles: screw down and IDC. They provide significant time savings by eliminating the need to pre-kit the outlet solution. Their design minimizes much of the removal and disposing of the individual packaging. They also eliminate the need to snap in each of the individual connectors into the faceplate. Their rigid structure provides a superior built-in stable platform for hand-held terminations eliminating having to use a separate tool. These products are usually priced lower than all of the individual connectors and faceplates, thus making them a great solution for both labor and material savings.

When installing home theater systems time savings can be found by using modular speaker spring clips to connect the speaker cables to the surround sound system instead of solder tip, banana jacks, or speaker binding posts. The modular speaker spring clips provide the quickest and simplest way to achieve a positive connection for the audio surround sound system allowing for maximum time savings.

Innovative product designs, such as mobile patch boxes, can also save you a great deal of time by eliminating the need to individually wire multiple workstations for data or voice connections. Their design is similar to a MUTOA, Multi-User Telecommunications Outlet Assembly, acting to locally distribute signals to multiple users.  This speeds up the installation by reducing the number of workstation outlets to wire.

Finding the right tool can also make a great deal of difference in your bottom line. Instead of using the “tried and true” hacksaw for cutting raceway sections to the right length, you might consider trying a raceway cutting tool. These tools cut and trim the raceway sections, and the adhesive backing, in one quick clean cut, replaces the ragged and time-consuming cuts produced from hacksaws. The clean cuts allow the track sections to fit together better, saving on the installation time and creating a much cleaner and more finished look.

Multi-use tools provide a significant time savings when compared to their single-use counterparts. It is not necessarily in the amount of time to complete each task but in that the installer does not need to constantly be changing their tools that can provide for labor savings.

Compression tools, capable of compressing different types of individual connectors onto a coax cable, are one example where tools can make a difference. These tools can compress F-connectors, BNC, and angled BNC connectors for video based coax cables, as well as RCA connectors for high definition audio or video.

Crimp tools are also a great way to achieve time savings. These tools allow crimping of many varieties of modular phone plugs without needing to switch to another tool for a specific type of plug.

Another example of where finding the right tool can save you time is found in multimedia line testing tools. Multimedia line testing tools allow the installer to quickly test and verify their RJ-45 data lines, RJ-11 voice lines, and coax based video lines for opens, shorts, reversals, and split pairs within the same tool. They allow for fast and accurate measurements while providing specific feedback on the wiring circuit.

Ergonomically designed tools can also reduce your labor time. Consider how many times you use a punch down tool to terminate a 110 or 66 block. Simple things like the way a handle and grip are designed or how the tool handles the impact at the termination can make a huge difference. Fatigue can slow down your installations to where your installers exceed the estimated time to complete each task.

Sometimes labor reductions can be found by finding truly innovative ways to use products. Cable management bend radius units, although designed for racks, can be installed on “D” rings attached to the ceiling. Helping you keep your copper, or fiber optic cables at the correct bend radius when moving them around corners and through areas requiring complex routings.

Careful selection of the primary products and tools you use in your premise wiring installations can be very critical to the profitability on each job you take on. Centering on the two key concepts of finding products with exceptional product value and product designs which can save you time during your installation should allow you to reduce your material and labor costs.

Article Credits
Rod Bleam                   Product Specialist            ICC
Mitchel Macauley            Product Specialist            ICC



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