Retail Observer

RETAILOBSERVER.COM JUNE 2015 74 B U Y I N G G R O U P N E W S MEGA GROUP USA IS PROUD TO ANNOUNCE THE ADDITION OF BROOKE FELDMAN TO ITS MARKETING DEPARTMENT Brooke comes to MEGA Group with a background in marketing predominantly in the home furnishings and performing arts industry. She led digital marketing efforts for one manufacturer and elevated their prominence through social media, email campaigns and other interactive media usage. As a young professional she has also served on boards and councils focused on sustainable living, best practices in digital communication, and the new initiatives promoting the fight against cancer. Brooke is also a contributing writer for RetailerNOW magazine focusing on next generation of home furnishings leaders. Most recently, Brooke joins us from a mobile advertising firm, focusing on location-based, new technology marketing. Brooke also dedicates some of her free time to community theater projects as well as cultural organizations that promote good will on a local and national level. She is instrumental in helping these organizations market themselves to promote participation. "We're excited to have Brooke on board," said Jim Sendrak, MEGA Group's executive VP of marketing and consumer electronics. "She brings a skill set centered on new marketing technology that will fortify and complement existing marketing initiatives that we have in place." THE NEXT BIG THING IN CONSUMER ELECTRONICS—HOME AUTOMATION You've seen the commercial of the young adult kids visiting mom and dad at the family camp. They reassure their parents they have shut down everything at the main home. Dad breaks out his smart phone, hits an app and clearly sees that nearly everything has been left on, unlocked or open. He pushes a button and the running water and TV turn off. Doors are locked and the alarm is armed. Your cable bill arrives by snail mail or email. There's an insert in the envelope or a pop-up on the website. The promo reads: • Get peace of mind with a total home security and automation solution. • Get started as low as $30/mo* (for 12 months). There is hardly a cable provider or telephone company (wireless and wired) who has not embraced this new phenomenon of home automation. Actually this is really nothing new at all. Home security systems have been around nearly as long as the invention of electricity. Wired and wireless door locks, thermostats, cameras and entertainment controls are nothing new either. What makes this all new and fresh has largely to do with the advancement of smart phones and smart devices. Now, from around the world or just down the road you can monitor and control just about anything in your home or office… and it's fun! Why is this technology so fought over by the above mentioned businesses? It fits their business model. What do they do? They provide a service and bill you every month. That is called reoccurring revenue. You as an independent retailer also have an opportunity to participate in the home automation industry and amass a significant portfolio of monthly reoccurring revenue. This might sound familiar to those of you who participated in the early days of cell phones and satellite television. After you made the sale, those businesses paid you monthly commissions, or residuals, for a fixed period of time; generally two years. This is similar but there is no time cap. For as long as the customer remains active and pays monthly bills, you continue to receive commissions for years and years. Over time this can amount to additional annual income of six- figures. Not to mention its true asset value if and when you decide to sell your business (more on this another time). Why consider entering this business? First, the obvious; who wouldn't want to get checks in the mail every month? Free advertising. All of these huge corporations are rapidly making consumers all over the country aware of this amazing new technology. You have customers walking into your store every day that have some knowledge and level of intrigue about home automation. They know you; they trust you and would probably consider buying this from you. Getting started takes some time, money and work just like anything that is worth doing. There are lots of moving parts to the process. You need dedicated, educated staff to make it happen. But, for what can be earned from it after a full analysis of the business you may find home automation to be one of the most exciting opportunities that has presented itself for a very long time. RO Jim Sendrak - executive vice president Marketing & Consumer Electronics, MEGA Group USA (860) 871-8129 RO

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