6 Ways to Make More Money in 2011

There were signs of optimism when CE Pro released its 2011 State of the Industry Report. Unlike the 2010 findings, this data showed the custom electronics bouncing back with an average 6.5 percent increase in revenues.

Eighty-one percent of integrators capped off 2010 with higher revenues (or the same revenues) than 2009, and the anticipated number of installations for 2011 increased by 40 percent from 2010. Dealers predict an average installation price per job of $17,500 in 2011, up 16 percent from 2010.

While there is still a ways to go, CE Pros are taking advantage of new opportunities to increase profitability and foster growth within their business.

New Opportunities to Make Money
After analyzing trends and identifying new growth opportunities, the CE Pro editorial team has put together a lineup of owner oriented CE Pro “How to Make Money” sessions to be presented at EHX: The CE Pro Event (March 17-19 in Orlando, Florida).

“The slate of educational sessions being offered at EHX this year all revolve around key areas of technology and business,” said Editor Jason Knott. “Among the key seminars is a comprehensive collection of IT educational courses. In the not too distant future, everything installed in the home will require an IT backbone, from security to streaming media to smart thermostats and energy management. The IT courses will offer a solid foundation for you to grow your business in 2011 and beyond.”

Knott will be joined by Julie Jacobson and other members of the CE Pro team to share profit building strategies in these new technology categories.

Streaming Media
CE Pro says, “In terms of new opportunities, integrators identified streaming media and home controls as the most promising.” Last year home controls saw a 20 percent increase in purchasing – the largest of all products – while networking equipment increased 14 percent as well.

Find it at EHX:

• Your Future with iPad, Apps, 3D and Smart TV
• How to Make Money as a Streaming Media Aggregator/Consultant

Smart Energy
CE Pro says, “As energy costs continue to rise, consumers are looking for ways to cut their utility bills. Energy management ‘dashboards’ communicate with the smart meter to give homeowners real-time status of their energy usage and can be programmed to initiate change, such as reducing lighting levels.” This desire from clients to save means a chance for integrators to profit in smart energy.

Find it at EHX:

• Making Money on Energy Management - Overview and How-To
• Expanding Profits with Lighting Control
• Making Money with Motorized Shading Control

Security
CE Pro says, “Integrators can offer attractive security solutions with home automation for less money per month than homeowners are currently paying for their alarm and telecom combined.” A new growth opportunity emerges as many customers move away from landline-based monitoring.

Find it at EHX:

• Getting Started in Security and Monitoring
• Combat Xfinity with IP-Based Security Solutions
• Profit Add-On’s for Security Dealers

Home Health Tech
Even though there is a large opportunity to profit from home health technology, not all CE Pros have realized the opportunities at hand yet. Their loss. CE Pro says, “There are several very highly profitable product categories that dealers do not see as vital areas in 2011, including burglar and fire alarms, lifts, motorized window treatments, furniture/seating and acoustical treatments.”

Find it at EHX:

• How to Get Your Foot in the Door with Home Health Tech
• Home Health Technology Solutions for Custom Integrators

Recurring Revenue
CE Pro says, “Even in the face of last year’s reality check, integrators were an optimistic bunch, predicting an increase in revenues in 2010. Those predictions held true, and there is even more optimism heading into 2011 as dealers foresee revenue gains of 9.5 percent and profit increases of 8.9 percent.” Discover new ways to profit with recurring revenue opportunities.

Find it at EHX:

• Remote Diagnostic Solutions
• Building a Better Business Model: Keys to Profitability for Service-Focused Companies

Marketing & Management
CE Pro says, “Dealers also expect to do a lot more installations. The median number – the amount in which half the responses are above and half are below – of new projects in 2010 reported by respondents was 25, about the same as the previous year. But for 2011, dealers expect to do 35 new jobs.” Gain strategies to attract new customers – and retain current ones – to increase business.

Find it at EHX:

• Smart Marketing Strategies to Boost Retrofit Sales
• Win New Customers Using Search Engine Marketing (SEM) and Optimization (SEO)