Experts Blast the Myths and Misconceptions about Selling Home technology

Homebuyers are consumers who, when building or remodeling a home, have many important decisions to make, and often with little time. These consumers are increasingly aware of, and interested in, the many benefits that home technology can offer them. In many cases, it is more than a desire. It has become a need!

Unfortunately, many builders and home technology installers are slow to realize that consumers generally are not interested in the technology itself, but rather in what it does for them. With that in mind, homebuilders need to get past the misperceptions about home technology, access the latest information on what’s hot and why, and get advice on how these products can be successfully marketed and sold.

To help builders do that, tecHOMExpo will present a panel of industry experts to discuss ways that manufacturers of home technology products, in concert with homebuilders, can successfully market those products to homebuyers. Along with myself as the moderator, on hand for this discussion will be Brad Nielsen of Aprilaire, Jack Merrow of Leviton and Joe Piccirilli of AVAD. This group of panelists represents a broad cross-section of the hottest technologies such as structured wiring, home networking, telephony, lighting and climate control, home automation and multiroom audio/video. The panel will also explore the latest trends in marketing and distribution to homebuilders and their electronic contractors.

One of the initial challenges for builders in this marketing effort is a lack of awareness by the public of what technology and products are actually available and what benefits they offer. So to arrive at a successful home technology sale, the overarching task is to create awareness and visibility while educating everyone in the chain.

"Homebuyers need to understand their options when building and how their choices can affect the cost of living in their new home and how comfortable they will be," explains Brad Nielsen of Aprilaire, a manufacturer of indoor air quality and home automation products. "Our efforts focus on all the stakeholders in new homes—builders, buyers, and in our case, HVAC contractors. We understand that homebuyers play an important role in what products wind up being included in their homes. Of course homebuilders need to understand what their customers are looking for in a home."

That view is shared by Jack Merrow of Leviton, which manufactures a complete line of structured wiring, networking, lighting-control and power-quality products for the home. He too sees awareness and education as a vital process for everyone in the homebuilder/buyer chain.

"The builders’ first priority is to provide a quality home at an affordable price for the new homebuyer and still make a reasonable profit," Merrow says. "However, many builders that we deal with know that, just as a third garage space helps sell the home (first sale and resale), so does the structured wiring that enables the lifestyle new homeowners want."

Merrow points out that many new homebuyers have grown up with computers and sophisticated consumer electronics, and expect them. "They at least want the option to network multiple computers and share access to the Internet," he says. "In addition, multiroom stereo and even home theater options are more common. Many builders now recognize that homebuyers will ask about structured wiring, and they are at a disadvantage if they do not have it in their homes."

Homebuilders, as much as homebuyers, need to know what applications products and systems provide, Merrow says. "They also need to know that these products conform to a standard, and that they should make sure that their completed home also conforms to the Residential Telecommunications Cabling Standard (TIA/EIA-570-A and soon, –B)."

Finally, Merrow says builders should choose contractors certified by the manufacturers and have those contractors provide test results of their installation prior to signing off on the work.

To a large extent, a successful marketing campaign to the homebuyer will be one that addresses common misperceptions. One myth is that all home technology is extremely high-end, expensive and only for the "rich and famous."

Another homebuyer concern is that it will be unsightly and difficult to decorate around; or that the homebuyer must have a doctorate in engineering in order to operate the products. And some even fear that much home technology is simply vaporware and doesn’t really exist yet.

Get rid of technical jargon and spec-speak, and your efforts to promote the benefits of affordability, attractive architectural styling, ease of use, resale value and plain old enjoyment will be far more successful.

Leviton has found some successful ways to explain home technology to both the builder and the homebuyer, according to Merrow. "In our experience, a brief, focused presentation to builder marketing management is a first step to get buy-in.

"We realize that Leviton is not talking to the builder every day and it is often difficult to get in front of the homebuyer," he explains. "But the installation contractor is in an ideal position to do both. So, the next step is to make sure the builder’s installation contractor is trained and certified, and thoroughly familiar with the applications and products to address them."

The third step: "Bring the builder’s marketing team and contractor together with Leviton to decide what base and optional packages will go into the various models of homes. The contractor can quote installed pricing to the builder," adds Merrow.

Merrow says that Leviton then helps the contractor develop personalized marketing collateral that will help him and the builder address various options with homebuyers. "Most contractors and builders realize that they make more profit on upgrades than the base packages, and if the homebuyer is aware of the possible upgrades before moving in, they will choose what they want and end up more satisfied with the final product. Everyone wins," he says.

Aprilaire’s Nielsen agrees: "One of the best ways we have found to market to the homebuilder market is to help be the mediator between the builder, homeowner, and HVAC contractor. We are the link for each element because we understand each individual’s needs and how they can come together."

Nielsen acknowledges that there is much work to be done on all sides in this marketing effort. But he stresses that the investment is well worth it.

"Builders understand that they exist in a competitive market, and they can thrive through both differentiation and profitability. Home technology has become one of the next big things that can help give them an edge and, in turn, make them more profitable," Nielsen says.