101118.Agetek.Grandcare.Webinar.Understanding Cepro Channel11 18 10

© 2010 EH PUBLISHING

Home Technology IntegratorsUnderstanding the Channel

Julie JacobsonEditor, Co-Founder CE Pro/EH Publishing

www.cepro.comwww.ehxweb.com

[email protected]@juliejacobson


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


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


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


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)


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: © EH Publishing2010 Custom Electronics Installation Business Survey (CEIB)

www.cedataonline.com


Company Revenues 2010e

Revenues 2010e % Integrators< $250k 30%$250k - $500k 18%$500k - $1M 15%$1M - $2.5M 20%$2.5M - $5M 10%$5M - $10M 4%> $10M 3%

MEDIAN $567,000AVERAGE $1,602,500

Source: © EH Publishing CEIB 2010


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



Reach

Dedicated CE pros touch more than1.3 million homes per year

---Larger community touches 5 million+

---Very long term relationships

Customers for life



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: © 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



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 Amplif iers

In-Wall, In-Ceiling Speakers

% of Dealers That Install

Audio

Video/Theater

Networks, Telecom, IT

Security

Controls


How they Buy

Percentage of Products Bought Through:

– Direct from Manufacturers 47%– Distributors 42%– Electronics/Appliance Retailers 6%– Building/Home Supply Retailers 6%



Wholesale Channels

• National Distributors – Multi-location– Single location

• Regional Distributors• Regional Distributor Groups• Rep Distributors• Buying Groups


CE Pro Growth Markets

In which of the following areas will your company likely see growth in the next 12 months?



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


Why CE Pros Embrace AIP Mkt

• “Customers for life” are aging• Demographics are there• Resolve from government, insurance co’s• New outlets for their existing skillset

– Customer base– Service infrastructure– Core tech competencies: automation, lighting,

security, communications, audio, video …

• CE Pro & EHX are relentless


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


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


Beyond Whole-House Care

• Lighting for the elderly• Single-purpose devices

– PC-free email– senior-friendly computers– Communications/videocon

• Music


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


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


Advice to AgeTek Vendors

• Recurring Revenue?!• Training• Dealer programs• Explore distribution• Industry trade shows & associations• Form factors: Think equipment rack &

entertainment centers


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


Thank You

Julie JacobsonEditor, Co-Founder CE Pro/EH Publishing

www.cepro.comwww.ehxweb.com

[email protected]@juliejacobson

101118.Agetek.Grandcare.Webinar.Understanding Cepro Channel11 18 10

Documents

Transcript of 101118.Agetek.Grandcare.Webinar.Understanding Cepro Channel11 18 10