There are many things that make one house better than another. Great location, cool countertops and central vacuuming systems are just a few. When you're talking about $1 million homes, however, they're probably going to have those things. The challenge for builders is to find ways to make their upscale homes a little more upscale than those of their competitors, and to do so without obliterating the profit margin and dismantling the construction schedule. The answer to this dilemma -- at least the one that AMX is banking on builders grasping onto -- is offering a user-friendly, future-compatible control system. AMX recently went nationwide with its Residential Builder Program, which had been tested in Dallas and Chicago.

Basically, the program lets semi-custom and spec-home builders choose an integrator in AMX's network and work with it to select the AMX control technology for a particular homebuyer or property. Some packages include Lutron lighting, multiroom audio, HVAC and security. The packages start at $10,000 installed and can be built upon.

The program is designed to help builders "increase revenue while making control and automation systems affordable for homeowners ... differentiate their properties and increase their profit," according to AMX.

Few upscale builders would argue that control and automation systems wouldn't differentiate their properties. One question, though, is why does it make sense to partner directly with a manufacturer and its network of integrators, rather than going it alone or partnering with an integrator on your own? Chris Westfall, AMX director of business development, says there are a few reasons.

It comes down to lifestyle, says Westfall. For builders who are making a commitment to selling a certain type of lifestyle, the AMX program helps builders to drive that lifestyle home from the "time they walk into the sales center until they take charge of their property."

EDUCATION FIRST

How? Builders involved in the AMX Residential Builder program get discounts on demo equipment to install in their sales centers. According to Westfall, this is big because the hardest obstacle with selling control to homebuyers is education. "Everyone knows what cherry wood paneling is," he says, pointing out that homebuyers tend not to be as familiar with control upgrades as they are with furnishing and appliance upgrades. When it comes to control, "they don't know what they want until they see it."

Westfall adds, "What we do at the program is help buyers, as well as builders, get educated. We provide incentives so that the sales center or model home can demonstrate the capabilities of the technologies to prospective clients." Along the lines of education, AMX provides builder partners with marketing support. One integrator involved in the program, Tom Turner of St. Charles, Ill.-based oRat, says the marketing support will be big for builders in the program, because it's something they often lack. As an integrator, selling control is made easier because "we must have a showroom," he explains.

In its brochure, AMX asserts that the program allows homebuilders' clients "to see AMX in action so they can picture how dramatically home automation will enhance their quality of life."

That's key, says Turner, because seeing it alleviates apprehension. "Control is easy to sell if the client doesn't fear it."

BUILDING ALLIANCES

Still, integrators can fill this role independently of the AMX program or any manufacturer program. Many builders offer control through integration partners. An advantage to this program, says Westfall, is that it allows builders to "connect with an integrator who has always worked with AMX. That's an advantage to the homebuyer because it alleviates some of the pain and suffering of some of the more advanced installation challenges." Westfall adds that the AMX partnership ensures that builders can market their control systems as compatible with other manufacturers' equipment and as "future-proof."

"Using AMX as the centerpiece allows [homebuyers] to include Lutron, Vantage, home security systems, routing of audio and temperature controls or HVAC," he says. "It's a best of breed solution that's customized; it's not one-size-fits-all. We design systems through our builder's integrator partners that match what the clients want -- their decorating ideas, their lifestyles. It's a very customizable program."

In terms of the 'future-proof' moniker, Westfall says, by participating in the program builders are "giving the buyer a platform for growth. They aren't buying a PC-based product with a short lifecycle. They are buying a product that will grow with their home and lifestyle for many years to come."

Another big benefit that AMX markets with its Residential Builders Program is increased builder profitability. "It will inject profit into the house at closing time and when buyers want to upgrade," says Westfall who also says, "By having AMX in there, builders can have access to profit/revenue sharing on upgrade revenues."

Westfall contends that builders will be able to close more houses more quickly because of the control features they offer. That's an opinion. A little more tangible is AMX's contention that the program leads to quick construction cycles. AMX;s pre-packaged EHXPerience kits include all the equipment needed for a basic whole-house system, says the company, and accelerates the decisionmaking process. After finalizing the sale of a technology package, the builder's integration partner can use AMX's VisualArchitect software to quickly program the system, says AMX. When more options are desired, AMX's Whole Home System Design Library is designed to help builders and integrators select additional products.

The program, however, isn't targeted at all builders. While it's a specific type of builder who would likely align itself with a control manufacturer, Westfall says, "I don't want to put a stake in the ground, but we are generally looking at the high end of the market." He describes "semi-custom home builders" as ideal for the program.

"They're building spec homes that start at around $800,000 and our sweet spot is a little north of that (using a Midwestern price scale)," says Westfall. "That's a pretty good benchmark. We do see some folks building townhouses that start at around $600,000 per unit and they're interested, too."

Builders within the program also vary in terms of constructions per year. "They are building between six and 60 homes over the next year," Westfall estimates. "We don't want to exclude folks who are working in the very high end of the market, but we are already working with them.

"This particular program is typically for builders who have not known about this part of the market."

5 Points about AMX's Builders Program

Among the big-picture goals of the AMX Residential Builders Program is to help a new crop of builders use control as a differentiator.That new crop presumably doesn't know a lot about the control market. Before pursuing that market with AMX, however, builders will want to know the key components of this new program:

1. Builders sign a commitment to install AMX equipment in a pre-determined number of properties over a 12-month period.

2. Builders get discounts on demo equipment to help them demonstrate control and automation in their sales centers.

3. AMX's portfolio of products -- touchpanels, keypads, controllers and digital content servers -- are available to builders in the program.

4. Marketing support is provided by AMX to participating builders.

5. Builders choose integration partners through AMX's 'certified dealer' network.