Are You Ready to Enter the MDU Market?

What better place to talk about a hot topic such as the multidwelling unit (MDU) market than the state of Florida?

High rises might not be sprouting up here in Orlando as quickly as they are in the Miami area, but southern Florida integrators David Tovissi of Naples-based Criteria and Barry Lieberman of Audio Command Systems' Florida office had plenty to offer attendees of the "Selling Technology in the New Multi-Family Housing Market" session here at the Electronic House Expo (EHX) on Tuesday. They were joined on the panel by Ron Callis, Crestron's regional sales manager for southern Florida.

When one integrator in the audience noted that he saw what seemed like 20 cranes while driving around every day in Miami, Tovissi and Lieber were quick to make note that the number is actually an astounding 52. Indeed, the MDU market -- not only in south Florida but also in other major metropolitan areas -- appears to be a gold rush waiting to be mined by integrators.

"There are wonderful opportunities out there, but is your business ready to approach it?" asked Callis.

Five years ago, a developer or sales center of an MDU did not feature technology as a key selling point of the building, the panelists explained, and if they did, it was in the form of a Sub-Zero refrigerator. Tuesday, session attendees packed the room.

"There's been a major paradigm shift," Callis said, highlighting what developers used to offer potential residents. "Back then it was, 'Do you want 12-inch or 18-inch tiles?' Now it's, 'Do you want a lighting system with the unit, and a plasma with a surround-sound system already installed?'"

For integrators who are capable of entering the MDU fray -- and that includes having a sizable installation team, enough working capital to overcome late payments from developers and proper engineering knowledge -- the panel identified three points of sale:

Developer, who's looking for a differentiator from the competition, wants to increase the value of the building and increase sales.
Resident, who wants an enhanced lifestyle and control of his living space at the touch of a button, and may be close to retirement age with money to afford technology.
Homeowner/condo Association, who can save residents money and increase revenue, and earn recurring revenue with maintenance agreements and deals with content providers.

The biggest advice to interested integrators was simply to get their foot in the door and make a developer say "yes" to something you can offer that will be profitable for both parties.

"We started out with one hotel just hanging plasmas for $200 a room," Tovissi recalled. "Then it became, we'd hang the plasmas and sell them. Now it's a million-dollar business in hotel renovation."