October 30, 2006/—During these days of slowing sales, all builders are looking for an edge when attracting customers. Often, they seek that edge in decorative items such as 10-foot coffered ceilings, or in an upgraded appliance package, or perhaps in energy efficiency–low-e glass and super-efficient heating and air-conditioning systems.
It's no wonder that builders are eyeing home electronics as something that can set them apart. Recent studies affirm that up to 80 percent of new home buyers are asking about such things as electronically controlled heating and lighting systems, home theaters and Internet access. A recent study from the Consumer Electronics Association reveals that builders are now installing home electronics in more than half of their new homes. Nearly half of the builders report that their new homes include structured wiring, and almost one in three includes monitored security systems.
Builders cite several reasons for including technology in their new home offerings. The most important is that such offerings increase revenue. Nearly as important to those surveyed was the need to keep up with the competition.
However, some builders shy away from electronics, mainly because the field comes with imagined baggage. "First, builders feel that installing electronic systems carries too much cost and that the buyer won't pay for it," says Meghan Henning, a spokesperson for the Consumer Electronics Association, Arlington, Va. "Second, the technical aspects of the systems frighten them. They're afraid that people won't understand them."
Builders need to provide as much information as they can about how systems work. One way is to partner with an expert installer, Henning says. "A builder isn't necessarily an expert in plumbing, even though he may know a lot about it. He relies on his plumbing contractor to be the expert. In the same way, a builder need not know everything about home electronics, but he should find an expert in the field. Our survey shows that increasingly, builders are turning to custom installers to be their experts in the field of home technology. More than half, 51 percent, of builders turn to custom installers for their technology installation, up from just 34 percent a year earlier." Henning points out that the custom installer can help the builder demystify home technology for the builder's customer.
A second alternative is to develop that capability from within. A major player in the inclusion of home technology in its homes is the Estridge Companies in Carmel, Ind. Estridge has long included home technology as a part of its new home offering. In fact, structured wiring is an included feature in every new Estridge home. To further serve its customers in the area of home technology, Estridge recently added a home-networking department to its corporate office. That department is headed by Josh Gray, a home-networking system specialist who has nearly 10 years' experience as a marketer of such systems.
Says Gray, "There is a real need to educate the public about just what home technology can do to enhance their homes. The field changes daily. We try to show the buyer how to enhance his lifestyle through the use of home electronics." In order to do so, Gray says, the builder either needs to add such expertise to his own staff, or else ally himself with someone who is an expert.
