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Where's the Profit?
Builders who don’t include technology in their homes are overlooking profit opportunities.



Profit can be made on upgrade features such as the Sony in-wall DVD/CD player pictured here, which distributes audio and video in the master bedroom.
Home design: Lusso Homes of Distinction


This outdoor home theater allows the homeowner to entertain under the starry sky and gentle breezes. The theater sits at one end of the wrap-around back patio (see inset, below).
House design: Lusso Homes of Distinction


Building a home with the proper wiring allows homeowners to pull audio and video through the in-ceiling speakers and on-wall TV in this bedroom by Custom Homes. Add-ons such as these are where builders can make profit.
Home design: Custom Homes


What was once a boring bonus room can be transformed into a profitable home theater like this by Playback with just a little planning and cooperation with a technology integrator.
Photo: Tim Buchman


Structured wiring delivers video to the TV on the wall, and audio to the speakers in the ceiling in this room by Playback.
Home theaters can be an easy sell, builders say, because so many clients want them, and they’re easy to deliver in a home with structured wiring.
Home design: Custom Homes


A bonus room is a nice perk to offer, but how much happier could clients be, and more profitable builders could be, if the room was wired for conversion to a home theater? With a little planning, extra wiring and minor expense, a boring bonus room can become a showpiece for homeowners and a profit center for builders.

Home theaters contain more product and therefore more opportunity for profit than an extra bedroom, so why not lay the groundwork? Plenty of other builders are doing it, according to the National Association of Home Builders, which reports 34 percent of home builders now offer structured wiring packages as standard or optional amenities. In addition, 22 percent of U.S. residents have a home theater system in their homes, according to research firm Parks Associates.

“Home theaters and whole-house systems are the easiest sells and what everyone wants,” says Jenny Thomas, design services manager, Custer Design Group, part of Custer Homes in Harrisburg, Pa. “We stay out of the component sales part of the business, but anything else electronic that’s installed in a home, we oversee and make a profit on.”

The key to selling home technology is believing in its value, says John Cioe, who owns Lusso Homes of Distinction in Scottsdale, Ariz., with his brother Rob. “People are willing to pay for what their builder thinks is worth it. And unfortunately many builders haven’t built up their electronics subcontractors as the experts they truly are. Builders should be saying to clients, ‘Sure I could get you a cheaper technology guy, but this guy is the best; he’s an artist. In my home, he’s who I would go with and you should too.’ The reality is most clients are looking for their builder to tell them what are the most important elements in the house. So if a builder doesn’t believe in technology, the client won’t either.”

Home builders should have a working knowledge of everything going into the homes they build, Cioe says. “Builders must have sold themselves on what they’re capable of before selling themselves to others. Your job is to sell yourself as an expert, and that ‘this house will be the best if you do it this way.’ Once your customers believe you’re the expert, they’ll buy anything from you.”

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