Homebuilders Become Techie Marketers

In a response to consumer demand for more pre-installed high tech features, builders are offering more technology related options than every before. In order to stay current and maintain a competitive edge, this offering has become the norm in the building industry.

According to the Consumer Electronics Association (CEA) in the case of home theatres almost one quarter of new home buyers wish they had added this at the building stage. If the consumer could view these products installed in model homes or design centers, prior to building, they may be more likely to purchase them.

In luxury homes, the options of distributed audio, home theater and lighting control are standard features. In moderately priced homes most builders offer these systems as options.

There are still a lot of builders needed to jump on the bandwagon for complete home automation. Having a home theater is one thing, but integration of the lighting control and security systems are being offered to 75 percent of luxury homes and only 44 percent of starter homes. Most builders provide information to their customers upon request, where only 28 percent actively marketed structured wiring.

Considering the large amount of home owners who purchase home theaters, security systems and similar technology, builders who do not offer these options are missing out on a huge chunk of the marketplace.

To break it down by technology, the CEA 2007 State of the Builder Study reports builders are offering: 82% Structured Wiring, 83% Monitored Security, 67% Multiroom Audio, 73% Home Theater, 58% Lighting Controls, 50% Home Automation, 53% Energy Management, 68% Intercom Systems and 76% Central Vacuum.

Installers of these high tech upgrades vary depending on the builder. In rating builder satisfaction, 78 percent prefer custom installers, 76 percent use security installers, 73 percent use electrical contractors, and only 51 percent use major retailers for installation.

In order to fill this demand for quality, economical installation, many builders are establishing partnerships with vendors who can design, supply, install, and provide customer support for the upgrades being offered.

Home builders are not only satisfying customers by keeping up with their demands, they are increasing their profits. More than 30 percent felt that home technology systems increased their revenues, while 61 percent said it helped to maintain their revenue. All claimed the option was offered to stay competitive. In addition to agreeing on the importance of technology based features, now more and more they are being adopted as standard features instead of optional upgrades.

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