Are You Ready for Commercial Installations?

Every residential integrator should be investigating and installing commercial products.

You know why:

• New-home construction is the lowest level since World War II
• Dips in housing values and the stock market have taken away available cash
• Tight credit has made it too hard to borrow

The bottom line is that homeowners don't have the same amount of cash for custom installation of home theaters, home networks, multiroom audio, etc.

Those circumstances have already forced many integrators into the commercial world. A recent CE Pro survey shows that 77 percent of dealers performed commercial installations in 2008. That's up a whopping 20+ percent in just two years. Nearly 50 percent of integrators say 10 percent of their total revenue comes from commercial work.

I can see why this trend is occurring. The commercial market opens up a whole new arena for residential companies to ply their customer service and installation skills. You can earn the same loyalty from corporate clients that you have achieved over the years through word-of-mouth referrals from homeowners.

The commercial market is not just churches, bars/restaurants, schools, hotels, convention centers, retail stores and offices. It's also niche markets like dental offices, funeral homes, car dealerships and more.

Some myths persist about the commercial market. Namely, that it's always a low-bid situation and there is little need for installation quality because all the wires are run above dropped ceiling panels.

No one said doing commercial was going to be easy. Some of the problems integrators encounter when they enter the market include understanding the bidding process, finding distributors and products, overcoming installation challenges (like conduit and large-zone A/V), having enough capital/cash flow and even getting the proper permits.

For the latest commercial news, products and advice, check out CE Pro's new Commercial section.


Commercial is one of six pillars of EHX Spring 2010, Orlando, Fla.