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Builders
and Remodelers Benefit from Multi-Room Audio and Video
Trends
Al
Baron
Today’s home buyers
want increased accessibility to music. Even with a
looming market, Apple reported 22,121,000
iPods sold during the 1st quarter of 2008,
showing a 17 percent revenue growth over last year’s
quarter.* High quality speakers are available in every
price range from modest installations to
showcase-quality professional designs. Multi-room audio
is scalable to the home buyer’s budget. Another point
to consider is the invisibility angle of technology
products – it’s important to consumers who are
opting for sleek looks. There are many available options
for builders to satisfy this demand while preserving
great sound.
What multi-room
audio trends are driving home buyer demands?
1) Music
anytime, anywhere.
More consumers are able to enjoy music in a variety of
areas in the home – this is due to extended
connectivity, increased affordability of technologies
and the growing consumer trend toward convenience.
• Outdoor
Speakers. Home owners are spending more time
outside - on the deck, pool or the patio. Nearly 100% of
all multi-room audio systems (also called whole house
systems) include weather resistant speakers with high
quality sound reproduction outside. They can hang under
an eve or mount on a deck.
• Shower
Speakers. The rekindled passion for music has
been revealed by the iPod revolution. Customers can now
be awakened by sounds and water or connection to local
and world events during their daily routine. Waterproof
and stylish speakers are now available and capture the
interest of the audio-loving and multi-tasking
tendencies of home buyers.
2) Invisible or
built-in sound.
Big bulky speakers are out. Heard but not seen is in.
This is growing in importance as home buyers want the
equipment to be invisible or blended in with their
design choices. Builders have many options to offer
their customers.
• Subwoofer/Satellite
Systems. This type of speaker has been growing
in popularity for the last 10 years or so. Builders can
offer have installers put tiny speakers on the wall and
then locate the small subwoofer anywhere in the room.
• Built-in
Ceiling or In-wall Speakers. The in-ceiling
speaker category commands two thirds of all built-in
speakers.* Folks can now listen to high quality
performance and sound without having to give up space
for large tower speakers.
• Bar
Style Surround Sound Systems. Zero clutter, no
rear speakers, and no rear wires. Complete surround
sound is available from a single slender speaker that
nestles right under a flat panel TV. Enhanced sound is
seamlessly matched with movie-quality viewing. Builders
can offer these with all the electronics and DVD player
in a console.
• On-Wall
Home Theater Speaker Solutions. These encased
speakers are great for clearing up floor space. They
offer high performance surround sound combined with a
sleek and high visual appeal demanded by the market.
Why should
builders offer multi-room audio and structured wiring in
their sales packages?
1) Make money
and maintain revenue on every opportunity.
• Nine in ten builders say adding home
technologies increased (31 percent) or maintained (61
percent) their revenues.*
• Increase profit margins on all home technology
sales and installation packages. You can’t make
revenue on products not offered.
2)
Differentiation from the competition.
• You have the edge over the builder down the
street if your offerings are better. And if the
remodeler who gave other estimates to your customer
doesn’t have it – well, what will drive the customer
towards you?
• Studies showed that almost 89 percent of
builders stated that home technologies are important for
marketing homes. *
3) Meet home
buyer demand.
• Over 67% of home builders in 2007 offered
multi-room audio to their customers, making it the 3rd
most installed technology in homes. *
• Structured wiring (installation services for
home technologies) is the top most offered technology
offered by builders in 2007.*
4) Increased
home buyer affordability.
• Multi-room audio products are available in a
broad range of prices and options. There is a huge
opportunity for production, single family small volume
and multifamily builders and remodelers to capitalize
the mainstream market.
• Home technologies considered as built-in
amenities may be rolled into the mortgage.
5) Establish
business partnerships with the 4th trade.
• Partnering with a qualified Electronic Systems
Contractors (ESC) enables builders and remodelers to
utilize professionals who have the expertise, education
and experience in home technology products and
installation. This is the same type of relationship
modeled with other trades (e.g. HVAC, plumbing, etc.)
• Builders can arrange for ESCs to have separate
agreements between the home buyer and ESC (to cover
product warranties, service, additional training, etc.),
and reduce callbacks.
6) Increase
customer service through established builder
arrangements with Electronic Systems Contractors (ESCs).
• Customers are provided training by the
ESC on how to use their new multi-room audio and video
technology.
• Customers can call ESCs directly for questions
and service needs on products and installation.
7) Decrease
builder worry to keep up with home technologies.
• Technologies upgrade and change quickly -
it’s the specialty of the ESC trade to keep up with
the changes and know the intricate details of audio and
video products. Much like relying on other trades for
their expertise, builders and remodelers can focus on
the business of building.
About Al Baron:
Al is Product Line Manager at Polk
Audio, one of
the leading manufacturers of premium loudspeakers and
consumer electronics products for the custom
installation and retail channels. He has held
positions in marketing and international management over
his 30 year career in the consumer electronics industry
and is an active member of the Home
Technology Alliance (HTA) and CEDIA
(Custom Electronic Design & Installation
Association). For more
information please contact Al Baron at abaron@polkaudio.com
or (410) 764-5202.
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