Integrators ‘Waking Up’ to LED Lighting Benefits, Profits

In the January issue, CE Pro declared LED lighting as one of its "Top 5 Trends to Watch in 2012.” That conclusion is certainly logical as integrators are already in the home selling and installing low-voltage equipment, including lighting control and other energy-saving devices.

You would think LED lighting manufacturers would be frothing at the mouth to establish re-selling relationships with integrators, but the big players in LED lighting are not actively reaching out to dealers. That hasn’t slowed down some integrators.

Jay Gowda of Audio Communications in Monroeville, Pa., is very bullish on LEDs. He has been installing LEDs from a manufacturer called Cyron Lighting for about five years, mostly in aesthetic applications. Some of the applications he has done over the years include step lights in theaters, accent lighting in cabinets, trays around the base of the theater ceiling, and behind bathroom mirrors and under cabinets to “help them look more like furniture.” He is even working on a job where he will be illuminating an old stone foundation in a 100-year-old home's basement.

Likewise, CE Pro 100 integrator Diamond Case Designs in Anaheim, Calif., has been installing lighting in its custom furniture for about 15 years to illuminate the electronics and highlight the cabinetry. The company made the switch from CFLs to LEDs about three years ago.

"The most common application for the LED lights is a bias light behind a flat panel TV," says Steve Hartfelder. "Not only do the lights improve nighttime viewing, they look incredibly cool as they are color changing. We can integrate full control of the lights into our universal remote controls. We are also able to use the LED lights in our entertainment centers, display cabinets, and bookcases."

Currently, he estimates about 20 percent of Diamond Case's jobs include LEDs of some sort, with the average LED sale between $300 and $600. Over the past year, Hartfelder estimates he's experienced 10 percent to 15 percent growth in selling LEDS

"The success of the lights rests on great presentation. Once I sit someone down in a dark room and toggle the lights on and off and they see how much more comfortable TV viewing is with a bias light, the success rate jumps. Plus they're just cool," he adds.

Diamond Case has even put together a one-minute video showing off its use of LEDs.


For its part, Cyron Lighting in Chatsworth, Calif., is definitely paying attention to the custom installation channel. The manufacturer had a booth at the CEDIA Expo last September in Indianapolis to showcase its profit-laden home theater accent lighting ribbons. The eight-year-old company has three concentrations: LEDs for A/V, motorcycles and industrial applications for its LEDs, which last an average of 40,000 to 50,000 hours (or 10-plus years).

“Custom installers are finally waking up to a profitable vertical market that is untouched,” says Shell Reinish, vice president of sales. Reinish should know, he used to have his own A/V integration firm. “It’s so logical … dealers are already installing all the low-voltage electronics in the home and our products are all 12VDC or 24VDC. All you need is a power supply and a controller and you are done.”

So why are dealers so shy about the category? “There is a fear of the unknown,” says Reinish. “They want everything to be plug-and-play. LED lighting is exactly that. But once they cut their teeth on a few jobs, integrators are thrilled and get very creative.”

Similar to Audio Communications’ applications, Reinish has seen under-kitchen cabinet lighting, stair risers, TV backlights, shelves, equipment racks, pools and more. He has even seen dealers set up soffit and sconces to wash walls in different colors, including one that allows the system to match the color of the homeowner’s wife’s dress for parties.


Energy Savings Sales Pitch
While aesthetics is the primary purchase motivation for home theater LEDS, there is the energy-saving sales aspect to LEDs. A 125W bulb uses just 15W of energy. Reinish advises custom installers to “take the pulse of their clients regarding energy savings” before talking about that aspect during the sales presentation. If energy savings is important to clients, dealers can pursue rebates and subsidies for clients at both the federal and state level.

Audio Communications isn’t using the energy-savings sales pitch at this point, but Gowda says LEDs are an absolute no-brainer for hard-to-reach bulbs. For example, clients with two-story great rooms where the bulb will be on quite often will have to pay for scaffolding to be erected every time the bulb blows out. Those applications make perfect sense for a long-lasting LED.

“I'm very positive on LEDs,” he notes. “It’s fairly straightforward and we integrate with Control4 easily.” With step lights, he uses a rheostat vs. dimming those LEDs so we “can set it and forget it.” But for tray ceilings, he makes sure to add a special transformer that gives him the control flexibility the system needs. He says the only hurdle is when the homeowner or designer wants a certain brand of dimmer or switch that can’t dim Cyron LEDs.

In addition to aesthetic uses, white task light is also available. Cyron’s products come with a wireless remote (RF or IR) and integrate with Crestron, RTI, URC, Savant and other controllers. The company is currently selling its product line via its website and direct to dealers (with minimum volumes required). Based on its CEDIA experience, it is setting up distribution agreements also. There are strong dealer margins built in.

Hartfelder at Diamond Case says LED lighting is similar in profit "to just about everything in our industry. There are some low-cost lighting solutions available that offer no margin opportunity and are typically installed by DIY type customers. We stay away from those systems. We have chosen to align ourselves with Cyron because they have a quality product with some neat options. We strictly work with their pro controllers which allow full control of the lights via remote. You can make a little on the lights themselves and then of course labor to install them and program them into the remote control."