Electrograph To Launch Higher-Margin Displays

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Electrograph Systems on Tuesday plans to launch its own line of LCD and plasma displays aimed at the consumer, government, education, professional audio/video and digital signage markets.

And there's good news for VARs: The new displays are designed to generate up to 15 points more margin than similar products made by top-tier manufacturers.

Electrograph's RevolutionHD line will include 32-, 37- and 42-inch LCDs and 42- and 50-inch plasmas. The displays feature HDTV compatibility, a selection of A/V input and connectivity options, enhanced 1080i processing, RS-232 control, split-screen picture-in-picture, integrated calibration controls and portrait/landscape mounting.

RevolutionHD will replace Electrograph's self-branded line of displays, which will be phased out during the first quarter, said Sam Taylor, president of the Hauppauge, N.Y., display products distributor.

Although the RevolutionHD line can fit into a variety of commercial applications, the displays are aimed primarily at the exploding home entertainment market.

"Electrograph is not a brand that anyone in the consumer market would recognize. Electrograph is more of an engineering brand. We want Electrograph to be known as the distributor," Taylor said. "Margins on displays are down, so we wanted to release a line that would give dealers, integrators and solution providers 10 percent more for 10 percent less. We want our dealers to make more margin on a line that has more features."

Pricing information wasn't available yet, but Taylor said margins on the new line will average about 25 points, compared with the 10 points to 15 points that dealers make on the branded displays Electrograph sells, Taylor said. Margins on Electrograph's branded displays were about 15 to 20 points, he added.

"There's a huge demand for displays and, as a result, they are quickly becoming commoditized," Taylor said.

By working closely with its Korean manufacturer and maintaining exclusive distribution, Electrograph can keep the RevolutionHD's costs down and margins up, he said.

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