Home Theater Seat Store Official Source for Home Theater Seating At Guaranteed Low Prices! Huge Selectiion of Major Brands. 100s of Styles, Colors & Fabrics for Any Setting!
As much as we would like to bury our heads in the sand, or carefully
parse words concerning the truth of a U.S. economic recession, the
reality is all around us. If the fact that former baseball MVP, Jose
Canseco recently admitted to having a judgment on his $2.5-million home in Encino, California, isn’t a sign of the struggling house market, then I don’t know what is.
We
in the custom installation market have been reluctant to point to the
sky and holler about it falling -- choosing instead to quietly
acknowledge that things are getting tougher for both manufacturers and
dealers (but not impossible) and certainly not channel shattering.
Niles Audio,
the 30-year-old AV solutions company based in Miami, Florida, has
always maintained a leadership role in systems integration, and even in
these troubling economic times the company remains positive, pushing
forward with a number of new products in time for CEDIA EXPO 2008.
Frank Sterns lead me on the tour of Niles' faciliities.
Last
week, I paid a visit to Niles’ 60,000-square-foot factory in Miami to
talk to president Frank Sterns, and vice president of sales and
marketing, Mike “Sparky” Detmer, about how they see the current state
of the custom installation market, where Niles Audio is in this
reshaped landscape, and what the company is doing to stay in the game.
Philosophical Foundations
Niles Audio prints its mission and values on a business card.
Most
companies have their mission statement prominently displayed in their
offices. Often, this statement is included (and lost) amongst the thick
packets of introductory folders handed to a company’s new employees. To
underscore the significance and importance of its mission statement and
values, Niles Audio has re-crafted the concept: it has printed its 14
core values, its vision, and its mission on wallet-friendly business
cards. This simple approach to maintaining focus on the goals of the
company and the people who are responsible for its design, testing,
manufacturing, and sale of its products is built into how Niles, led by
Frank Sterns, goes about conceiving of viable, unique solutions for
custom installers.
“We have a key guiding principle that says
we will develop ‘innovative, reliable, application-specific products
that delight our customers,'" Sterns said. “That means we spend a great
deal of time understanding installers and end users and developing
products that are appropriate for the specific application.”
Accomplishing Missions How?
At its massive headquarters, which spreads over a number of lots, Niles
Audio has created pods and pockets of employees who, by virtue of their
office locations, are in constant collaboration. This set-up is
especially poignant when following the path of a product from creation
to shipping.
Humberto Oscar is an electronic engineering technican working on a prototype of the ZR-6.
During my visit, Niles project
teams were working on the prototype of the ZR-6 IntelliControl
multi-zone audio system, and adding functionality and features to the
popular iRemote TS system controller. Amid the drawers and containers
of screws, cables, and soldering tools, were members of the production
team, all of whom sat within shouting distance of each other -- heads
often popped up above low-lying cubicle dividers and in some instances,
a colleague was a chair swivel away.
“We use a team approach
that is cross-functional and collocated,” Sterns said. “By that I mean
we assign an 'experience' to a product development group such as
‘design a home theater automation system that will appeal to aging baby
boomers.’ We then assemble a team that represents all aspects of the
company, from hardware to software to purchasing, marketing, quality,
etc. We put everyone on the team together in their own area of the
building and they work together to develop the product.”
Sterns
added that the benefits of this team design enables quick decision
making, efficient and effective communication, and facilitates better
solutions to stubborn problems. “We employ multiple teams working on
different products and thus are able to maintain our broad assortment
of solutions for custom installers,” he noted.
Ed Belange is the company's compliance manager.
From
production, Niles products undergo a rigorous testing phase, led by Ed
Belange, who is tasked with verification and validation of each product
while also serving as the company’s compliance manager. Belange, who
during my tour was working on finding any possible software kinks in
the new wireless iRemote TS, showed a great fondness and seriousness
for his role as both product taskmaster and potential disgruntled end
user. Surrounded by AV equipment (flat-panel display, high-end stereo
system, and sophisticated computer software), Belange runs products
through their paces, alerting production immediately to any
malfunctions or software anomalies.
iRemote TS are placed through various quality control tests before shipping.
Once
a product passes its quality control (QC) tests, it is sent for mass
production at the company’s manufacturing plant in China. Products and
units are then shipped back to Niles, where further QC tests are
carried out, before inventory is released to dealers for sale. All
product repairs are conducted at the Miami base, with a turn around
time of approximately seven days.
The Cost of Excellence Niles
Audio prides itself on the immense talent of its production team. Such
an attentive, detail-oriented staff does not come cheap. While other
companies first look to staff cuts to financially weather economic
downturns, Niles Audio has chosen to remain aggressive not only in
maintaining its cache of engineers and innovators, but also in its
delivery of new products.
Before a Niles product is made, a variations of it are made using a sand-modeling machine. These are the results.
“Niles is
focused on introducing significant new product offerings that drive
their respective categories and take share from weaker competitors,”
Detmer said. “One example is our new ZR-Multizone receiver line.
Featuring ZR-4 and ZR-6, each model has significant advantages over
competitive brands in their respective price range – for example,
robust amplification that drives 4-Ohm speaker loads, weather-resistant
keypads with metadata displays, and plug-and-play iPod integration.”
Detmer
backs up the effectiveness of the company’s strategy by noting that
Niles Audio -- aside from its branded and impressive rang of products
-- has a number of value-added wares that keeps them more than
competitive. “Niles sets itself apart with our vast value proposition,”
Detmer said, “which includes
The shipping area of the facility is packed and well organized.
a complete and
up-to-date assortment for one-stop shopping, dealer loyalty programs
that provide high margins, just-in-time delivery with three-day
availability or less to virtually every major market, and extensive
training and technical support. All of this couples [up] for a strong
and consistent brand image that is recognized as the first name in
custom installation.”
Dealers Have a Say While
Niles Audio, as a manufacturer, remains confident that its products and
its vision will more than sustain it through these tough times, the
company is also looking to share some of this fearlessness by staying
in close communication with its dealers.
“Frank and I are
conducting a series of "Town Hall Meetings" where we meet face-to-face
with our dealers in a forum setting to openly discuss the challenges in
the market and propose business practices dealers can use to keep
healthy and growing,” Detmer explained.
The first of these was
held in Newark, New Jersey, toward the end of April during the two-day
“Ticket to Success” expo at the Frontage Road Holiday Inn. Along with
an open forum, training seminars for the IC2 Home Theater Automation
and Control systems and ZR-4 multizone receiver kit were also held.
Detmer added, “During these meetings dealers provide us
with valuable insight about our products, policies, operations and
promotions that we use to adjust our business to best suit dealer
needs.”
