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TecHome Builder: The Builder's Guide To Technology


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Capitalizing on the A/V Craze

From Page #10-12

Home theater, media rooms and multiroom audio are all the rage with today's tech-savvy homebuyers. This isn't just an observation; it's documented. America Online (AOL), the National Association of Home Builders (NAHB) and the American Institute of Architects (AIA) all say that Americans increasingly want an area in their homes specifically designed for movies and TV. Meanwhile, the NAHB and the Consumer Electronics Association's joint study shows that 74 percent of builders offer multiroom audio and the technology is in 15 percent of new-home starts.

This is good news for builders. Builders can capitalize on the home electronics craze by selling these products and systems to their clients.

The first step is to form a partnership with an integrator. At first glance, the proposition of selling audio may not appear difficult. It's not as easy as it looks though.

It's not simply a matter of offering a home theater or multiroom A/V system because of the many system permutations that can be customconfigured to a homebuyer's exact specifications. That's where an integration partner comes in handy. These guys specialize in the sales and installation of not only audio and video, but also other residential technologies such as security, home networking and home automation.

Working with an installation company, builders can treat them just like another contractor such as a plumber or electrician. Reputable installation companies are often authorized dealers of carefully selected manufacturers. These brands support their dealer base through initiatives such as just-in-time-delivery services, technical support, product training and sales and marketing educational programs.

Cat Fowler, vice president of marketing and technical services for the Ky.-based A/V manufacturer Elan Home Systems, says that electronics manufacturers provide these programs not only to facilitate customer relations, but also to form alliances with new homebuilders.

"Elan has many dealers who are already highly successful in working with builders; both custom and production," she says. "In many cases these dealers have removed the mystery, complexity and fear factor [of electronics] by offering a subset of products from the manufacturer's catalog or even product packages that range from good, to better to best."

Perhaps the simplest way for builders to access some of the support programs is to read about these technologies on the Internet. Many manufacturers supply materials on their Web sites that consumers, dealers and builders can use to learn more about a specific technology or line of products.

"One way that [Calif.-based A/V power conditioning company] Furman Sound helps builders and installers is by providing educational resources in the form of Web content and literature that helps end users understand the need for power conditioning equipment," says Dave Keller, executive vice president of sales and marketing for Furman Sound. "If a builder has a question] they should contact us. At Furman we are open to working closely with builders and contractors."

Selling the Experience

If there is one thing that manufacturers agree on, it's that the best way to sell electronics is to demonstrate their capabilities. Keller notes that show homes capable of demonstrating the entertainment aspects of a home theater or multiroom A/V system have an advantage because potential homebuyers can experience the benefits of these technologies first-hand. He adds that builders don't have to rely on knowing the specifics of the technologies, and that they can sell the systems by appealing to a consumer's emotions.

Fowler says letting people touch and see electronics is paramount; it's the personal experience that drives home the "wow factor" of an equipment demonstration and the options that are available to them. "By having these systems installed in a model home, it helps homeowners realize the benefits of a built-in audio or other home-technology system quicker and also realize that they want and can use them in their everyday lives," she says. "It can be helpful to have some basic, easy-to-use systems and brochures in their model homes or show rooms. It is always important for customers to be exposed to today's A/V technologies and capabilities, and afford them the opportunity to touch and feel these technologies so it becomes real to them."

Spend Money to Make Money

The quandary of whether a builder should invest to outfit a home with the building blocks of technology such as structured cabling is answered by examining the sales potential. Jeff Francisco, vice president of product development for SpeakerCraft, a Calif.-based manufacturer of loudspeakers and multiroom A/V systems, says that builders have to accept that there will be a rise in costs associated with adding technology to a home.

Francisco adds that once a home is prewired, the builder can offer clients a variety of technology- based packages. He points out that whatever a builder does will help their clients, and the initial investment that is made into even a basic run of Category-5 cable (Cat 5) will save their clients money and aid their own sales efforts.

"I think one thing they need to recognize is that compared to appliances, there will be more required wiring before the drywall goes up," says Francisco. "For even the simplest systems, builders need to bite the bullet and pull more wire. It's too expensive to do it later."

Francisco says that many builders already offer amenities like security that are sold to homebuyers as tiered packages. He says that audio can be sold in a similar fashion, but the key to selling audio is the commitment to pulling the cabling before the walls go up. "It's not unlike the things builders are already offering" he says. "Builders are familiar with running security, electrical and coaxial jacks to every room; builders should use these examples to sell audio."

As home theater and multiroom A/V becomes more accessible, homebuyers will have a growing desire to dedicate a specific area of their home to technology. In a study released in August of 2005, the AIA says the rising prices of gas and the availability of A/V are driving interest in media rooms and home theater.

Supporting the AIA's data was a study released in the summer of 2005 by Internet service provider AOL that found that 73 percent of those consumers polled would rather watch a movie at home than go to their local theater. Francisco says that builders need to respond by providing space within their floor plans that allows electronics to blend into a home's interior environment.

"If a person wants home theater, it will be the central point of the room. The room needs to be ergonomically designed for this, and you need to put the screen and seating in certain places," he says. "Today, the value of an in-wall speaker is that it is flush and unobtrusive. When it comes to rooms that are more serious about sound, you have to look at the soundfield area, so you may have to think about an audio system that uses on-wall speakers or floorstanding speakers, and you will also need a subwoofer. It's at this point where an interior decorator may become involved."

Final Piece of the Puzzle

With the foundation of prewiring in place, the next step for builders and their installation partners is to form a sales and marketing plan. Fowler says there is no need for tech talk and that the benefits of the systems should be emphasized. "This is ultimately how the category must be sold to make the most out of the opportunity," she says. "People like to be entertained and they like to relax and feel secure at home. When we describe what we do as an industry in terms of products and boxes, we can cause consumers to lose interest or feel we are adding complexity to their lives as opposed to taking it out of their lives."

She adds that sales efforts can be supported through a number of programs that many electronics manufacturers already offer to their dealers and their building partners. Summing up the prospects of selling audio, Francisco says builders have to start by prewiring their homes. "It all comes back to the wiring, and they need to ask themselves what they want to do. 'Do I need to offer some things such as basic audio and a security system? Do I want to offer sound in every room and Ethernet [Cat 5], and what do I need to do while I am in the framing stage?' Hopefully, they decide to pull the wire because it's a cheap solution before the walls go up."