Jamie Sasser, partner, Playback Audio and Video Creations, Raleigh, N.C., runs a CEDIA member company that understands the builder needs to make a profit just like he does. “We sold a six-zone music system to a builder at about 40 percent off what we’d normally charge because we know he’ll choose it over and over again without having to sell a client on it ever again. And because it’s a whole-home system, there’s a world of upsell opportunities for us and the builder such as lighting control, expanding music capabilities and adding a home theater. We can forego making money on the basic elements because we know all sorts of options can be added either during construction or after,” Sasser says.

Making profit comes down to good communication between a technology firm and a builder. Some builders say they don’t care about making a dime, as long as the technology partner takes care of their client and doesn’t screw up the schedule, Sasser adds. “Other guys say to us, ‘Here’s my budget for low voltage, help me economize, and I’ll make sure my client will come to you for upgrades.’ Everyone needs to benefit.”

Focus on Upgrades

Builders and technology integrators agree that the margins aren’t always made on the basics of home technology; they’re made on the upgrades. Many also agree that if only one technology should be standard in every home, it should be a lighting control system. Custer Homes installs lighting control for a number of reasons, one of which is profitability. Another reason is a homeowner’s sense of security walking into a lighted house by pressing a button on their car’s sun visor.

Lusso Homes’ Cioe agrees. “A lighting control system for security is an easy sell to any homeowner. What woman wants to come home to a dark house when pressing one button on a key chain will turn on all the key lights throughout the house? It’s a no-brainer to sell lighting control. There’s no reason with pricing today that lighting controls aren’t in every house over half a million dollars.”

Cioe recently completed his own house, which includes a special upgrade not every home has — an outdoor theater (pictured on the right). “An outdoor home theater won’t be used five days a week, but when we entertain, that’s a showpiece that people will talk about. And that’s something that can differentiate and sell my home over another.”