© 2011 eh publishing home technology integrators understanding the channel julie jacobson editor,...

© 2011 EH PUBLISHING

Home Technology IntegratorsUnderstanding the Channel

Julie JacobsonEditor, Co-Founder CE Pro/EH Publishing

www.cepro.comwww.ehxweb.com

[email protected]@juliejacobson

CABADigital Home Forum

http://www.cepro.com/

http://www.ehxweb.com/

mailto:[email protected]


About Us

• CE Pro www.cepro.com– Launched 1994– 40,000 print subscribers– 700k pv per month CEPro.com– Audience: Low-voltage integrators

• Custom Electronics specialists• Security dealers• Audio, video, other low-voltage installers

• EH Publishing www.ehpub.com– CE Pro (trade)– Electronic House (consumer)– Commercial integrator– Electronic House Expo– Research– Plus: Robotics, Pro Sound, Logistics


Agenda

• The people: Understanding the CE pro• The custom business: size, scope• Distribution: How CE pros buy product• Growth areas for CE pros• National coverage• Installer networks and DIY• Why and how to work with CE pros


What is a CE Pro?

• Custom – Specifies, sells, installs, integrates and services

• Electronics … specifically for the home– Home automation– Home theater– Distributed audio and video– Lighting control– Security– Energy management– Remote home monitoring & management– Home networks– Telecom

• Professional– High touch– Long-term service contracts


What is a CE Pro?

AKA…• Custom Electronics Professional (CE Pro)• Home Systems Integrator• CEDIA Dealer• Home Automation Professional• Electronic Systems Contractor (ESC)• Custom Installer• A/V Specialist• Low-Voltage Guy• Home Technology Integrator• D/I (Dealer/Installer)• CI (Custom Installer)


CE Pro Purchasing Power

# of firms

$ value of product purchased

"Market Size" billed value of installations

2005 13,500 $4.8 billion $12 billion

2006 14,637 $5.3 billion $13.5 billion

2008 13,173 $6.3 billion $15.7 billion

2009 12,119 $5.5 billion $13.7 billion

Source: © EH Publishing2010 Custom Electronics Installation Business Survey (CEIB)

www.cedataonline.com


Company Revenues 2010e

Revenues 2010e % Integrators

< $250k 30%

$250k - $500k 18%

$500k - $1M 15%

$1M - $2.5M 20%

$2.5M - $5M 10%

$5M - $10M 4%

> $10M 3%

MEDIAN $567,000

AVERAGE $1,602,500

Source: © EH Publishing CEIB 2010


Typical Job Size & Volume

2010e 2011e

MEDIAN 25 35

AVERAGE 95 114

2010e 2011e

MEDIAN $15,000 $17,500

AVERAGE $26,676 $34,631

Revenue Per Installation

Number of Installations



Reach

Dedicated CE pros touch more than1.3 million homes per year

---Larger community touches 5 million+

---Very long term relationships

Customers for life



Business Sectors• High-end integrators [2,000- 3,000 dealers]

– Low-volume, high-cost installations– 5-20 homes/year– $50,000+ installations– Install : highly integrated, all subsystems, extensive home theaters

• Mainstream integrators [8,000 – 12,000 dealers]– 40-200 homes/year– $8k - $40k installations– Install: “mass customization”, all subsystems; modest theaters

• High-volume integrators [2,000 – 3,000 dealers]– 300 – 12,000+ homes/year– $2k - $10k installations– Install: infrastructure wiring, security, distributed audio, lighting control, energy

management, surround sound systems

Shift expected due to ADT, others entering home control business

Source: © EH Publishing


Business Sectors• Home theater specialists [3,000 – 5,000 dealers]

– 5 – 25 homes/year– $10k - $1,00,000+– Install types: Mostly single-room theaters, from fairly modest to ultra-high end

• High-volume specialists [50,000-75,000 dealers]– Single area of expertise but other low-voltage attachments– Security dealers– Electrical Contractors– AV Retail– IT

Source: © EH Publishing


How they Buy

Percentage of Products Bought Through:

2010 2008

– Direct from Manufacturers 40%47%

– Distributors 4642

– Electronics/Appliance Retailers 9 6– Building/Home Supply Retailers 6 6

Source: © EH Publishing (older data)


CE Pro Growth Markets

Product/Service Unlikely Somewhat Likely Likely Very Likely

Higher-end control systems 18% 28% 31% 24%

Wireless Installations 11% 28% 39% 22%

Streaming Media 22% 24% 33% 21%

Entry-level control systems 18% 32% 33% 17%

Managed/remote services 25% 34% 26% 15%

Energy Management 41% 33% 17% 10%

Video Conferencing 47% 30% 13% 9%

Gaming 46% 29% 18% 7%

Home Healthcare Tech 51% 27% 15% 7%

In which of the following areas will your company likely see growth in the next 12 months?



Why CE Pros are Good for DH Vendors

• Touch 1.3 - 5 million+ homes/year• CE Pros can spec products (or highly influential)• Technical competency in key categories• Reduce tech support burden on vendors• High touch, customers for life• Ensures optimal consumer experience, from install

to training the customer• Access to and influence with homebuilders,

developers, architects, interior designers, others• Excellent feedback for product development


National Coverage

• Buying Groups– Home Technology Specialists of America (HTSA)– Pro Group– Home Entertainment Specialists/BrandSource– Specialty Electronics Nationwide (SEN)

• Distributors– AVAD– Worthington– DDG– ADI– Many more…


National Coverage

• Retail– Best Buy/Geek Squad– Circuit City/Firedog– Ultimate Electronics

• Other – Security installers such as ADT, Vivint (APX),

monitoring companies– Electrical contractors– Meter installers such as Meter Solutions (Vivint)


National Coverage

• Installer networks– Sears/ServiceLive– Zip Express– Service Magic– N.E.W.– OnForce– InstallerNet– Installs Inc.


Example: ServiceLive


Describe Project


Compare/Select the Pros


Getting it Done

• Either bid is accepted or prices offered• Discuss with pros• Select pro• Fund account• Arrange install• After job is completed, release funds• Rank the installer


DIY?

• Ain’t gonna happen• But wait …

– FrontPoint Security


Repeat: Why CE Pros are Good for DH Vendors

• Touch 1.3 - 5 million+ homes/year• CE Pros can spec products (or highly influential)• Technical competency in key categories• Reduce tech support burden on vendors• High touch, customers for life• Ensures optimal consumer experience, from install

to training the customer• Access to and influence with homebuilders,

developers, architects, interior designers, others• Excellent feedback for product development


Working with CE Pros: Advice

• Recurring Revenue?!• Training• Dealer programs

– Marketing, financing, community• Explore distribution• Industry trade shows & associations

– CEDIA, CEA, EHX• Form factors: Think equipment rack &

entertainment centers


Thank You

Julie JacobsonEditor, Co-Founder CE Pro/EH Publishing

www.cepro.comwww.ehxweb.com

[email protected]@juliejacobson

CABADigital Home Forum

http://www.cepro.com/

http://www.ehxweb.com/

mailto:[email protected]

© 2011 eh publishing home technology integrators understanding the channel julie jacobson editor,...

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