Novatoo partners talk about their rapid growth

by Don Kreski

2006 was an eventful year for Novatoo Audio Visual.

In addition to establishing a regular marketing program, partners Tim Novak and John Toomey moved in earnest into AV systems installations.

“This is something we had been thinking about for a long time,” says Novak, “but we just didn’t have the right person. Then an old friend, Santo DiBenardo, came knocking on our door.”

DiBenardo had 12 years experience in AV systems design and installation, and he had managed the systems department for the same dealership Novak and Toomey had left. “It just fell into place, like most things,” says Novak. “We have felt for a long time that if you try to force an issue, to make something happen when the pieces aren't there, it's not the right business decision.”

The partners have always felt there’s an opportunity for systems business from existing rental customers. “When a client finds they’re renting a particular piece of equipment regularly –say a projector or a sound system– they start thinking about buying. It only makes sense for us to continue to take care of them when that happens.

For his part, DiBenardo has worked hard to bring new customers into the firm. “Things are really starting to roll. Once I do one job, they refer me to someone else, and it’s been snowballing.”

In addition to his own projects, DiBenardo has been working as a subcontractor for two larger Chicago-area integrators. “It’s about 50/50,” he says. Novatoo’s own customers include local businesses, two large school districts and several hotels. “Typically hotel staff will use portable equipment, but they’ll have cables all over the floor. But now some of them are starting to have everything permanently mounted. They feel that the better equipped their hotel is, the easier it is to get people to come in.”

For these projects, DiBenardo generally brings in a crew of one to four installers. “It’s true that we’re small, but there are a lot of small projects out there. It’s keeping me very, very busy.

Rental booming as well

Novak says the rental business is also booming at Novatoo, and he credits a lot of the growth to their free delivery policy. “Our price guide says delivery is free with a $50 minimum order,” he explains, “but generally we give it to anyone who rents from us on a regular basis.” Part of the purpose of the policy is to attract attention, but a lot of it is just a ‘thank you’ for regular customers. “We believe that if you help people out now, even with a very small order, they will come back to you with greater needs later on.”

The firm’s new marketing program, though small, has had an effect. Novak says “we know that one of our larger rentals this year came directly from a PR placement. The client saw us interviewed in Rental & Staging, kept it on hand, then called us a couple of months later.”

Overall the firm grew about 30% in 2006. “October and November were our best months ever,” DiBenardo says. “John and Tim are swamped. And this month looks looks the same. They’re just as busy as I am.”