By Rob Fanjoy
Home automation is a booming segment of the residential construction market, but builders and remodelers should know that they don't have to become installers themselves to get a big chunk of the profits. By knowing how to sell automation products and upgrades to their clients, as well as choosing and working with dedicated autoFmation professionals, contractors can really see a surge in their bottom line.
"Builders can make a lot of money by offering any combination of home automation products and services in their homes," says Jim Heckendorf, V.P. of sales and marketing for Cybermation, Inc. in Waite Park, Minn. "Just the mark-up alone on a typical $30,000 automation job can be substantial."
Many contractors may be wary of the automation game because they feel they don't have the technical knowledge to specify, install and service such systems. And the simple fact is that most don't. But that doesn't mean they should be scared to jump into it.
"The biggest problem for most builders is the fear of the unknown," according to Jay McLellan, president of HAI (Home Automation, Inc.), a manufacturer out of New Orleans, LA. "There's a broad batch of products out there that can do just about anything you can imagine. But if they remember that the main focuses of the technology are security, lighting and environment control, and audio/visual, then they have the knowledge to work with a professional to make their client's homes more efficient and accessible."
Building as (almost) usual
The first thing a contractor should do is offer structured wiring packages and pre-wire for a security system. The added expense is pretty minimal in the overall scheme of a home's price, and it minimizes the costs and time needed to install any other components the client (or future clients) may choose.
"A builder may also need to include some extra blocking during the framing stages to install some A/V components, such as hanging a 200-pound plasma TV on a wall," says Frank Theisen, installation manager at Cybermation, Inc. "But other than that, there's not much more a contractor has to do that's different than normal."
Frank says that even by only offering structured wiring, homeowners will realize several benefits now, and be able to take advantage of other benefits later. "There's no need to daisy-chain phones with structured wiring, and people can move other electronic equipment such as computers and TVs from room to room without extra wiring or splicing cable," he says.
Jim echoes that sentiment when he says, "We use the term 'future-proofing' a lot. To take full advantage of the new technologies that are coming into their own, like high-definition TV (which the FCC is mandating be phased into nationwide use in the very near future) and VOIP (voice over internet protocol, or using the internet as a phone service), a home has to have structured wiring. This is much easier and less expensive to do during new construction or extensive remodels."
Finding and working with installers
Automation installation typically occurs after the framing, plumbing and wiring has been completed and before the insulation and drywall is installed. Final installation of components typically occurs after the paint ands trim is done. To ensure seamless installation and staying on time, Jim recommends builders schedule a walk-through like they do with electricians. "This way, the builder and the customer knows exactly where everything goes. This is typically done right after the electrical walk-through, but it is often best to have an electrician and the HVAC installer with you at this time so everybody is on the same page."
Jim, Frank and Jay also offer the following tips on how to choose the right automation installer for you and your projects:
- A contractor in your local area will be able to provide service after the sale. A company with enough staff to handle the inevitable customer questions is also key.
- Get multiple quotes from various vendors and make sure they have the proper marketing materials to help explain the products to both you and the customer. Some vendors also have builder programs, which offer training programs and product discounts.
- Look to trade publications and automation web sites (TecHome Builder, www.techomebuilder.com and Electronic House, www.electronichouse.com) for product info and help finding installer in your area.
- Go to automation trade shows to establish and maintain strong relationships with vendors.
Selling it to customers
Even though high-tech is in high demand, you may still need to develop some selling techniques to convince a few of your customers they want or need some of these upgrades.
- Added resale value: Jay says that many of his builder clients tell him their automated houses sell 50% faster and at 3 –5% more than those without the components.
- Improved lifestyle and energy savings often more than make up for any higher initial cost.
- Busy people who may travel a lot love the benefit of being able to remotely monitor and control their home over the internet, which is offered by most automation systems.
- Use the TechHome Rating System from the Consumer Electronics Association (www.ce.org) to accurately evaluate your home's technological capabilities. Consumers love third-party rating systems and they often make it easier to understand the benefits.
And if you're building spec homes, Jim highly recommends installing as many bells and whistles as you can, as customers are often sold when they see the products in action. "Once they see that plasma screen in action, they fall in love with it," says Jim. "A builder can make about $1,000 on a $10,000 plasma screen, and our typical contracts run about $30,000."
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