Basement Remodeling Strategy Feeds Integrator’s RMR
Lelch Audio Video uses strong marketing techniques, specializes in basement remodeling, and embraces responsive service plans to target Millennials.
What better way for an integrator to connect with Millennial clients than to be one...or even better, have a whole team of Millennials! That’s the situation at Lelch Audio Video in St. Louis Park, Minn., where the company has used its youthful talent and enthusiasm along with its creative services to grow to $3 million in revenues in just six years. Led by 32-year-old Alex Lelchuk, the company has carved a successful niche in the high-tech basement remodeling market, partially achieved by sharing a 5,000-square-foot showroom with its basement remodeling partner.
Lelch AV also has found a profitable domain in the tough area of recurring monthly revenue (RMR) using service agreements, dubbed “Technology Memberships,” for its client base. The service business model is built around standardized processes that include remote systems management and a paper-free operation.
Lelchuk stumbled into the custom electronics industry the same way a lot of other integrators did — he is a tech enthusiast who started mounting flat-panel TVs on walls for his buddies. He soon realized he could replicate those TV installations and make money doing it. Not long after that, customers started asking for more than just a TV on the wall.
“Fast-forward seven years later and we’ve got a staff of 16 people, and operate a custom installation business offering all sorts of solutions in home automation, smart home technology, lighting control, security, audio/video, central vacuum and more,” says Lelchuk, who combined his interests in sales and marketing with his love for technology.
In total, Lelch AV did about 175 projects in 2017. The integration company hits a diverse market base, drawing 70 percent of its business from residential and 30 percent from commercial sources. Of its residential jobs, approximately 60 percent are remodels.