1. 息 2010 EH PUBLISHING
Home Technology Integrators
Understanding the Channel
Julie Jacobson
Editor, Co-Founder CE Pro/EH Publishing
www.cepro.com
www.ehxweb.com
juliejacobson@comcast.net
@juliejacobson
2. 息 2010 EH PUBLISHING
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
3. 息 2010 EH PUBLISHING
Agenda
The people: Understanding the CE pro
The custom business: size, scope
Distribution: How CE pros buy product
CE pros and the Agetek market
Why/how to get involved with CE pros
Moving forward: CE pro and Agetek
4. 息 2010 EH PUBLISHING
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
5. 息 2010 EH PUBLISHING
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)
6. 息 2010 EH PUBLISHING
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: 息 EH Publishing
2010 Custom Electronics Installation Business Survey (CEIB)
www.cedataonline.com
8. 息 2010 EH PUBLISHING
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
Source: 息 EH Publishing CEIB 2010
9. 息 2010 EH PUBLISHING
Reach
Dedicated CE pros touch more than
1.3 million homes per year
---
Larger community touches 5 million+
---
Very long term relationships
Customers for life
Source: 息 EH Publishing CEIB 2010
10. 息 2010 EH PUBLISHING
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 1,000+ 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: 息 EH Publishing
11. 息 2010 EH PUBLISHING
Business Sectors
Home theater specialists [1,000 2,000 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: 息 EH Publishing
12. 息 2010 EH PUBLISHING
What CE Pros Install
Source: CE Pro Reader Survey, 2006
34%
46%
70%
44%
61%
51%
58%
74%
74%
75%
27%
46%
46%
72%
76%
65%
71%
77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Central Vacuum Systems
HVAC Controls
Home Automation Systems
Burglar & Fire Alarms
CCTV
Computers and Monitors
Telephone Systems
Netw ork Hubs/Routers
Wireless Netw orking
Structured Wiring Systems
In-House Gaming Systems
Home Theater Furniture/Seating
Satellite TV Systems
Home Theater Receivers
Flat Panel Displays
Audio Hard Drives/Media Servers
Distribution Amplifiers
In-Wall, In-Ceiling Speakers
% of Dealers That Install
Audio
Video/Theater
Networks, Telecom, IT
Security
Controls
13. 息 2010 EH PUBLISHING
How they Buy
Percentage of Products Bought Through:
Direct from Manufacturers 47%
Distributors 42%
Electronics/Appliance Retailers 6%
Building/Home Supply Retailers 6%
Source: 息 EH Publishing
14. 息 2010 EH PUBLISHING
Wholesale Channels
National Distributors
Multi-location
Single location
Regional Distributors
Regional Distributor Groups
Rep Distributors
Buying Groups
15. 息 2010 EH PUBLISHING
CE Pro Growth Markets
In which of the following areas will your company likely see growth in the next 12 months?
Source: 息 EH Publishing CEIB 2010
16. 息 2010 EH PUBLISHING
CE Pros & Aging in Place
Electronic House Expo
4 years with Home Health Technology Pavilion
First educational track for home health 2010 [SRO]
CE Pro magazine
Enhanced coverage
Wildly popular Webinars
17. 息 2010 EH PUBLISHING
Why CE Pros Embrace AIP Mkt
Customers for life are aging
Demographics are there
Resolve from government, insurance cos
New outlets for their existing skillset
Customer base
Service infrastructure
Core tech competencies: automation, lighting,
security, communications, audio, video
CE Pro & EHX are relentless
18. 息 2010 EH PUBLISHING
What CE Pros Do Know
Demographics
Government, insurance companies investing in
independent living
PERS
Grandcare
Closeby Networks (Control4)
That guy that Julie always writes about
(Jason Ray, SimplyHome)
EHX is doing home health technology
We gotta be in this space
19. 息 2010 EH PUBLISHING
What CE Pros Need to Learn
Who are the decision makers?
Who pays?
Government, insurance reimbursement
Vertical markets
Which trade shows to attend
Best organizations to join
Product choices and opportunities
Liabilities
20. 息 2010 EH PUBLISHING
Beyond Whole-House Care
Lighting for the elderly
Single-purpose devices
PC-free email
senior-friendly computers
Communications/videocon
Music
21. 息 2010 EH PUBLISHING
Who are the Players & Payers
Consumers themselves
Caretakers family
Caretakers professionals
Visiting Angels, Comfort Keepers, Family Caregiver
Alliance, Geriatric Care Managers
Homeowners Associations (HOA)
MDUs & other master-planned communities (55+ active
adult)
Physician Practices
Family medicine, psychiatriasts, gerontoligists
Rehabilitation
Senior Housing
Assisted living facilities, nursing homes, continuing care
retirement communities (CCRC)
NAHB CAPS professionals
22. 息 2010 EH PUBLISHING
Why CE Pros are Good for AIP Vendors
Touch 1.3 - 5 million+ homes/year
CE Pros spec the 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
23. 息 2010 EH PUBLISHING
Advice to AgeTek Vendors
Recurring Revenue?!
Training
Dealer programs
Explore distribution
Industry trade shows & associations
Form factors: Think equipment rack &
entertainment centers
24. 息 2010 EH PUBLISHING
2011 Trade Shows & Events
CES (CE retailers)
Jan. 6-9, Las Vegas
Silvers Summit & Expo
www.cesweb.org
Electronic House Expo (CE integrators)
March 17-19, Orlando, Fla
Seniors Pavilion and AIP curriculum
www.ehxweb.com
CEDIA Expo (CE integrators)
Sept. 7-10, Indianapolis
www.cedia.net/expo
ISC West (security)
April 5-7, Las Vegas
www.iscwest.com
25. 息 2010 EH PUBLISHING
Thank You
Julie Jacobson
Editor, Co-Founder CE Pro/EH Publishing
www.cepro.com
www.ehxweb.com
juliejacobson@comcast.net
@juliejacobson