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Dennis Sage Home Entertainment: Sage Advice
The foresight that selling audio to builders just might work proved invaluable for Dennis Sage Home Entertainment, which completed 10,000 homes last year for $9.69 million in revenues.
Dennis Sage is living testament to the notion that when one door closes, another opens. Life's little ironies have led him to the helm of a business that's turning profits at a pace he can barely believe.
Dennis Sage Home Entertainment ranked in the CE Pro 100 among the five top gainers in 2005, reporting $2.8 million more in revenues than the prior year. The integrator has forged success in the production-home niche, a niche he was instrumental in creating. Completing over 10,000 homes a year, the Phoenix-based company is among the largest in Arizona.
But this success didn't come without its twists and turns, or without some of those proverbial doors slamming squarely in Sage's face. Fortunately, he says, he's always found another one just waiting to be opened.
Sage started in Arizona in 1979 as manager of the Phoenix Symphony Orchestra, hiring musicians, guest artists, negotiating contracts, raising money, setting the stage and hanging out with the likes of Itzhak Perlman, Isaac Stern, Yo-Yo Ma, Dave Brubeck and Doc Severinsen.
"It was one of those jobs," Sage says, "that held me captive for 80 hours a week. There were very few days off and the pay was really low. But after all the weeks of practice and preparations for a concert were complete, I was able to escape to some of the most beautiful live music the world has ever created. I didn't know it at the time, but it was the start of something much bigger. I could orchestrate things. I also found out that I had a hidden talent to please people and sell."
Circumstances at the symphony changed, though, and Sage resigned. Although sales seemed like the last thing he wanted to do, money was tight and Sage went to work for a friend of a friend in the fireplace business … in the Arizona desert of all places. Likening it to peddling ice cubes in Iceland, Sage recounts that, with his back against the wall, he started developing relationships with builders.
He succeeded in selling them fireplaces to include in their home offerings. In a few months, he says he was the top producing fireplace salesman in the West, with Phoenix playing host to more homes with fireplaces than any other Western U.S. city.
The fireplace company closed its doors, shutting another one for Sage. But another door soon opened when he was put in touch with a recruiter looking for someone to work in sales for a local audio/video retail store. Ideally, the candidate needed experience with music as well as how to approach builders. Sage's stage had been set.
He had a flash, and concluded that selling audio packages to builders would be a huge hit. It would be profitable for both the builder and the audio/video company. The systems could be financed right into the mortgage, making them accessible to homebuyers who wouldn't otherwise be able to afford them. His "builder package" brainchild was born.
"As far as I know, we were the first ones to figure this out," says Sage. "After months of tweaking, it became very popular, and I took our package to many builders."
Although the majority initially declined, one progressive builder was very jazzed by the idea. Soon they all had to have it, just to stay competitive. "Things went absolutely wild," Sage recounts.
"I started making lots of money selling Quam speakers, volume controls, receivers and CD players. It kept growing and growing to the point where the company couldn't keep up and it drove me nuts. After a failed attempt at a buyout, I decided to leave in 1995 and start Dennis Sage Home Entertainment."
Inside of two days Sage got a call from the builder who'd been his strongest client, saying he wanted to keep working with him. The account was his for the keeping and Dennis Sage Home Entertainment hit the ground running.
Evolving from an audio-only company, Dennis Sage Home Entertainment has added a spectrum of low-voltage services along the way to keep up with builder demand. It includes security, monitoring, central vac, intercom, structured wiring, lighting control, automation, furniture, warranties and phone systems.
To hit the mark with those 10,000 homes the company now completes every year, Sage employs 80 people and has a 27,000-square-foot facility/showroom. "We do whatever our builders need us to do, from $250 pre-wires to those wonderfully elaborate custom systems that cost lots of money."
Remaining flexible to accommodate all the builders' schedules is the single most troublesome issue Sage and his team deal with daily. "We're the last trade to be thought of and, for many builders, we're the necessary evil of their process," he says.
"We have four full-time scheduling men that do nothing but try to figure out what the priorities are. We've had to hire field supervisors to check the status of jobs scheduled with our busiest builders just to make sure they're on track and ready to go."
None of the crews are subcontracted, with the exception of some Crestron programming and drywall repair. They're selected from a network of referrals and have been around for years. Quality control is handled by the director of installation, project manager, and five field supers on a team basis.
They meet often, discuss jobs and direct energy where needed. "I am never the point person," Sage says. "That's left up to our sales team. And they are nothing short of incredible. They're the ones responsible for communication with both the client and the builder."
Sustaining the thousands of successful home completions they perform a year takes some sharp organizational skills. The flow at Dennis Sage Home Entertainment goes like this: When a home is sold, an information sheet is created by the builder and is sent to them. The salesperson in charge of that builder then contacts the client and the process begins.
"Every builder has different instructions on how we should handle the buyer," Sage explains. "Basically, we set an appointment, find out what the client needs, and create the necessary paperwork on time, every time. A start order is generated and the work commences. Our sales people are builder specific. Any call that comes in from a particular builder is always handled by the same person."
Typically, they don't get a lot of directions from designers. "In production homes, we know what we have to work with from the floor plans and our guys know the houses well. Very little customization is allowed. On custom projects, the sky is the limit and we'll typically deal with architects, designers, builders, cousins that are A/V experts, wives and uncles!"
Dennis Sage Home Entertainment recommends a core of products based on performance, reliability and support. "Most of our builders allow us the room to do what we know best and use whatever products we recommend. But some builders fall prey to national contracts and insist on using certain products. But those specific product requests lessen each year. Most of the time, our buyers leave the choice to our sale professionals."
Sage sees firsthand the hunger consumers have for smart homes. "Our lifestyles allow us to spend more time on the computer, in front of the TV, listening to music and talking on the phone than anything else we do in our homes. It's important to our clients," he says.
That's why he puts a lot of emphasis on his showroom. Clients, he says, love seeing the products as they'll look in their own home. They want to hear them. They want to see the latest technologies.
"Our showroom is updated immediately when a new product is introduced by a manufacturer so every one visiting knows that it is state-of-the-art. And most importantly, it's a tool for our sales team for upgrades. We have a very comfortable approach to every client. They're greeted with a smile and made comfortable immediately. There is no pressure and we laugh a lot to keep things easy," he says.
Homeowners are definitely eating up the technology, so it's surprising that some builders are still resistant to loading up their houses with it. That resistance is starting to wear down, though, says Sage. "Builders are beginning to see the importance of our industry," says Sage.
"Some are very savvy and don't want to be left behind. Automation is not included in many homes but the infrastructure is becoming accepted. Pre-wires for audio, security, structured wiring and control are more common and the builders see the need." Operating in a community that builds 40,000 to 70,000 homes a year, that's music to Sage's ears.
"We have a very good reputation in the community and that attributes to our growth," he says. "But we're facing a drastic slowdown here and it concerns us. If we continue to grow, it will be because of the products and services we've added in anticipation of this downturn."
Important recurring revenues come from security monitoring, extended warranties and service. The builders themselves are another recurring revenue stream because they keep referring clients.
"We're also creative in the types of projects that we have ventured into, like MDUs and fractional share products," says Sage. "I am not sure what lies ahead but we are very confident."
With almost 700 low-voltage licenses in the Phoenix area, there's a ton of competition, but Sage says his company's total package is hard to beat.
"We have some great competitors here and most of us get along and understand that there's a lot of business for everyone," he says. "We communicate regularly, golf with them, have a drink with them and compare notes. Most of us just don't step on each others toes out of respect."
Despite the success Dennis Sage Home Entertainment has achieved, owner Dennis Sage stays grounded. He's kept his humor, and his humility, and giving back to the community is super important to him.
He donates his time as the vice chairman of the board of directors at Barrow Neurological Institute, which is part of St. Joseph's Hospital and the leading neurological institute in the country. He's hands on in this role, and recently scrubbed in to witness a brain surgery in the operating room. Sage is also past chairman of the board at the Phoenix Suns Charities.
"This entire company understands how important it is to give something back to the community, and we do it gratefully," he says.
It's a virtue that has earned him a lot of respect -- and a lot of business. To some builders, his charitable nature makes a big difference. Consequently, Sage does no advertising at all. "We market this company through the builder network and through the charity work that we do. Our referral network is very strong."
Dennis Sage Home Entertainment ranked in the CE Pro 100 among the five top gainers in 2005, reporting $2.8 million more in revenues than the prior year. The integrator has forged success in the production-home niche, a niche he was instrumental in creating. Completing over 10,000 homes a year, the Phoenix-based company is among the largest in Arizona.
But this success didn't come without its twists and turns, or without some of those proverbial doors slamming squarely in Sage's face. Fortunately, he says, he's always found another one just waiting to be opened.
Sage started in Arizona in 1979 as manager of the Phoenix Symphony Orchestra, hiring musicians, guest artists, negotiating contracts, raising money, setting the stage and hanging out with the likes of Itzhak Perlman, Isaac Stern, Yo-Yo Ma, Dave Brubeck and Doc Severinsen.
"It was one of those jobs," Sage says, "that held me captive for 80 hours a week. There were very few days off and the pay was really low. But after all the weeks of practice and preparations for a concert were complete, I was able to escape to some of the most beautiful live music the world has ever created. I didn't know it at the time, but it was the start of something much bigger. I could orchestrate things. I also found out that I had a hidden talent to please people and sell."
Circumstances at the symphony changed, though, and Sage resigned. Although sales seemed like the last thing he wanted to do, money was tight and Sage went to work for a friend of a friend in the fireplace business … in the Arizona desert of all places. Likening it to peddling ice cubes in Iceland, Sage recounts that, with his back against the wall, he started developing relationships with builders.
He succeeded in selling them fireplaces to include in their home offerings. In a few months, he says he was the top producing fireplace salesman in the West, with Phoenix playing host to more homes with fireplaces than any other Western U.S. city.
Crossing the Threshold
The fireplace company closed its doors, shutting another one for Sage. But another door soon opened when he was put in touch with a recruiter looking for someone to work in sales for a local audio/video retail store. Ideally, the candidate needed experience with music as well as how to approach builders. Sage's stage had been set.
He had a flash, and concluded that selling audio packages to builders would be a huge hit. It would be profitable for both the builder and the audio/video company. The systems could be financed right into the mortgage, making them accessible to homebuyers who wouldn't otherwise be able to afford them. His "builder package" brainchild was born.
"As far as I know, we were the first ones to figure this out," says Sage. "After months of tweaking, it became very popular, and I took our package to many builders."
Although the majority initially declined, one progressive builder was very jazzed by the idea. Soon they all had to have it, just to stay competitive. "Things went absolutely wild," Sage recounts.
"I started making lots of money selling Quam speakers, volume controls, receivers and CD players. It kept growing and growing to the point where the company couldn't keep up and it drove me nuts. After a failed attempt at a buyout, I decided to leave in 1995 and start Dennis Sage Home Entertainment."
Inside of two days Sage got a call from the builder who'd been his strongest client, saying he wanted to keep working with him. The account was his for the keeping and Dennis Sage Home Entertainment hit the ground running.
Evolving from an audio-only company, Dennis Sage Home Entertainment has added a spectrum of low-voltage services along the way to keep up with builder demand. It includes security, monitoring, central vac, intercom, structured wiring, lighting control, automation, furniture, warranties and phone systems.
To hit the mark with those 10,000 homes the company now completes every year, Sage employs 80 people and has a 27,000-square-foot facility/showroom. "We do whatever our builders need us to do, from $250 pre-wires to those wonderfully elaborate custom systems that cost lots of money."
On Time, Every Time
Remaining flexible to accommodate all the builders' schedules is the single most troublesome issue Sage and his team deal with daily. "We're the last trade to be thought of and, for many builders, we're the necessary evil of their process," he says.
"We have four full-time scheduling men that do nothing but try to figure out what the priorities are. We've had to hire field supervisors to check the status of jobs scheduled with our busiest builders just to make sure they're on track and ready to go."
None of the crews are subcontracted, with the exception of some Crestron programming and drywall repair. They're selected from a network of referrals and have been around for years. Quality control is handled by the director of installation, project manager, and five field supers on a team basis.
They meet often, discuss jobs and direct energy where needed. "I am never the point person," Sage says. "That's left up to our sales team. And they are nothing short of incredible. They're the ones responsible for communication with both the client and the builder."
Sustaining the thousands of successful home completions they perform a year takes some sharp organizational skills. The flow at Dennis Sage Home Entertainment goes like this: When a home is sold, an information sheet is created by the builder and is sent to them. The salesperson in charge of that builder then contacts the client and the process begins.
"Every builder has different instructions on how we should handle the buyer," Sage explains. "Basically, we set an appointment, find out what the client needs, and create the necessary paperwork on time, every time. A start order is generated and the work commences. Our sales people are builder specific. Any call that comes in from a particular builder is always handled by the same person."
Typically, they don't get a lot of directions from designers. "In production homes, we know what we have to work with from the floor plans and our guys know the houses well. Very little customization is allowed. On custom projects, the sky is the limit and we'll typically deal with architects, designers, builders, cousins that are A/V experts, wives and uncles!"
Dennis Sage Home Entertainment recommends a core of products based on performance, reliability and support. "Most of our builders allow us the room to do what we know best and use whatever products we recommend. But some builders fall prey to national contracts and insist on using certain products. But those specific product requests lessen each year. Most of the time, our buyers leave the choice to our sale professionals."
Taking Technology Seriously
Sage sees firsthand the hunger consumers have for smart homes. "Our lifestyles allow us to spend more time on the computer, in front of the TV, listening to music and talking on the phone than anything else we do in our homes. It's important to our clients," he says.
That's why he puts a lot of emphasis on his showroom. Clients, he says, love seeing the products as they'll look in their own home. They want to hear them. They want to see the latest technologies.
"Our showroom is updated immediately when a new product is introduced by a manufacturer so every one visiting knows that it is state-of-the-art. And most importantly, it's a tool for our sales team for upgrades. We have a very comfortable approach to every client. They're greeted with a smile and made comfortable immediately. There is no pressure and we laugh a lot to keep things easy," he says.
Homeowners are definitely eating up the technology, so it's surprising that some builders are still resistant to loading up their houses with it. That resistance is starting to wear down, though, says Sage. "Builders are beginning to see the importance of our industry," says Sage.
"Some are very savvy and don't want to be left behind. Automation is not included in many homes but the infrastructure is becoming accepted. Pre-wires for audio, security, structured wiring and control are more common and the builders see the need." Operating in a community that builds 40,000 to 70,000 homes a year, that's music to Sage's ears.
"We have a very good reputation in the community and that attributes to our growth," he says. "But we're facing a drastic slowdown here and it concerns us. If we continue to grow, it will be because of the products and services we've added in anticipation of this downturn."
Important recurring revenues come from security monitoring, extended warranties and service. The builders themselves are another recurring revenue stream because they keep referring clients.
"We're also creative in the types of projects that we have ventured into, like MDUs and fractional share products," says Sage. "I am not sure what lies ahead but we are very confident."
With almost 700 low-voltage licenses in the Phoenix area, there's a ton of competition, but Sage says his company's total package is hard to beat.
"We have some great competitors here and most of us get along and understand that there's a lot of business for everyone," he says. "We communicate regularly, golf with them, have a drink with them and compare notes. Most of us just don't step on each others toes out of respect."
When It's Not Business, It's Personal
Despite the success Dennis Sage Home Entertainment has achieved, owner Dennis Sage stays grounded. He's kept his humor, and his humility, and giving back to the community is super important to him.
He donates his time as the vice chairman of the board of directors at Barrow Neurological Institute, which is part of St. Joseph's Hospital and the leading neurological institute in the country. He's hands on in this role, and recently scrubbed in to witness a brain surgery in the operating room. Sage is also past chairman of the board at the Phoenix Suns Charities.
"This entire company understands how important it is to give something back to the community, and we do it gratefully," he says.
It's a virtue that has earned him a lot of respect -- and a lot of business. To some builders, his charitable nature makes a big difference. Consequently, Sage does no advertising at all. "We market this company through the builder network and through the charity work that we do. Our referral network is very strong."
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