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Tuesday Morning Coffee

Tuesday Morning Coffee

VITAL Question #51

Posted on February 3, 2015 at 6:30 PM

Is There Still an Opportunity for High-End CI Services?

With the proliferation of DIY smart home devices and the willingness of Gen X’ers and Millenials to use multiple apps to control things, one could paint a distressing picture for the future of high-end custom integration.

 

But is it our destiny to give way to the baseline services of Xfinity and ADT, or… Is there still an opportunity?

 

Steve & I come down solidly on the side of, there is a BIG opportunity.

 

The top 2% of US households have annual incomes of $400,000 or more. That’s approximately 2.5M households. If each of these households were to spend just $20,000 on a CI system, that would represent $50 billion in potential business. Some estimate the annual turn for luxury systems has grown to $1B per year; suggesting about 10% to 15% of the total market has been served in the past 10 years.

 

These households are not the type to buy Iris from Lowe’s, and most would want to receive something better than what Xfinity, ADT, or even Best Buy have to offer. These households are prime candidates for systems and services from CI companies that provide lighting, shades, control, networking, installed audio/video and more.

 

Unfortunately, the thousands of independent CI companies purporting to serve this market are impossibly fragmented in terms of market share, quality, and process. Only a very small number of people actually know about any one of them.

 

That’s the opportunity.

Imagine 50 to 100 top CI companies serving key markets across the US. Imagine they are united under a single luxury brand, with a nationally-promoted website directing inquiries from millionaires to local affiliates. Imagine further that these companies have developed a consistent, client-friendly sales process – with a common set of metrics to measure and manage company productivity, and customer satisfaction.

 

That is the mission of VITAL. For the past year, we’ve been working with a select group of dealers to research and test our ability to develop a national network of independent dealers. We are now about to embark on a 1000-day journey, under a soon-to-be-announced brand, that will lead us to become a recognized national delivery system for luxury CI services.

 

Along the way, each of our members will profit and grow in ways they could not have realized on their own. If your company is qualified – and if you, the owner, are committed to growing your company – you are invited to apply for membership in this exclusive group.

 

There is no other opportunity like this.

Categories: VITAL QUESTIONS

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