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Richard
Riehl
is a Los Angeles-based consultant to the CI business and creator of BidMagic.
It took weeks of calling and lots of patience to finally break through
and get the go ahead for this important sales meeting. You are being
ushered into the conference room of a very prestigious homebuilder. You
feel a bit anxious because if you make the right impression, you could
win the opportunity to work with this high-end builder. The
members of the builder’s team assemble in the conference room and take
their seats. Then the owner of the company enters and begins the
introductions. He smiles at you and starts off by saying he has heard
lots of good things about your company. You reply that you have been
very impressed with his organization and that you would like very much
to work with them.
The meeting moves forward even better than you had hoped and the
builder tells you he is interested in having you bid on his next
project. Your energy is peaking as he unrolls the blueprints for a
beautiful new $5 million home. Then you hear the words you have been
waiting for: “We would like you to give us a bid for this new home.”
Then he continues, “We want a single sub who can handle all of the
audio, video, lighting, and low voltage for us. Can you do that?”
Those words hit you like a baseball bat. Sweat drips from your forehead
as you try to stall. Everyone in the room is staring at you and
wondering why you have not answered yet. Stop and ask yourself: What
would your company’s answer be right now? If you answered “Yes,” could
you back that up with a dozen successful jobs to show him? If you
answered, “No, We only do audio and video,” could you salvage anything
or would you have just blown your great opportunity?
The Importance of Yes
My point is, today it makes sense for savvy builders to consolidate all
of these requirements with a single subcontractor. From the builder’s
perspective, it is much more difficult to manage construction projects
when there are eight different subcontractors involved. Each of these
additional subs represents more time and effort needed by the builder
to review bids, process billing, scheduling, coordination, and problem
solving. Is your installation company prepared to offer the full range
of products and services the home needs? If your answer is a solid
“Yes, you can trust us to do it all,” then you can profit greatly.
How to Deliver
Let’s break down exactly what is needed to provide the complete package
for this builder. Your sales/design team will need the expertise to
build a proposal that includes everything in a complete low-voltage
package. That includes providing wiring and equipment for telephone,
security, intercom, cable and satellite television, Internet, home
theater sound and video, distributed audio, and control systems.
Sophisticated homes will also control lighting, HVAC, window blinds,
pool systems, home automation, video distribution, gate systems,
surveillance, etc. The pre-wire phase for each of these systems is
similar. Many CE contractors already have much of the knowledge
required to handle the installation of wiring for these systems.
But then, you would need to have sources for all of the equipment
needed for each of these systems. Then you will need experience to
properly design, program, and install each system and interface it with
the other home systems. Finally, you will need service people who are
trained in working with all the gear you sell and all of the other
systems that they connect to and control throughout the home. It would
be a huge mistake to deceive the builder or yourself by promising to
provide all of this work if you do not really have the experience
required. That would be the perfect way to destroy your future with
this builder on your very first job.
Other Avenues
I am writing this column after leaving the largest tradeshow for
installing security dealers. AV contractors would be wise to consider
adding security installation because of the recurring revenues
available there. Because of the similarities in wiring residential
low-voltage systems, I believe we are moving towards consolidation of
contractors in this field. As our industry matures, those installation
companies who truly offer complete low-voltage packages with the
expertise and skilled personnel required to deliver top-notch results
will be in an enviable position to leverage growth and profits in their
markets. If you really can offer the whole package, you can walk out of
this sales meeting with a very sweet contract.
