Why Partnership Agreements Are Important for Low-Voltage and Electrical Contractors

As integration of low-voltage equipment becomes increasingly in demand, low-voltage and electrical contractors alike will be pursuing this avenue of revenue.

Some low-voltage contractors want to pursue becoming nominal-voltage electrical contractors. Electrical contractors are exploring the facets of becoming low-voltage contractors.

But, who has the advantage in this arena? Is one kind of contractor better suited to do work in both industries?

Is there really an advantage with one type of contractor versus the other?

The electrical contractor has a slight advantage. The reason being: The electrician is one of the first people that the homeowner contacts when they are pursuing building projects.

Secondly, all low-voltage information is placed upon the electrical blueprints, again giving the electrical contractor a slight edge. The best advantage, however, is that low-voltage contractors can approach the general public and make a sale.

Low-voltage contractors have tremendous sales skills in making sales presentations and have the advantage of low-voltage systems knowledge.

High-voltage electrical contractors, on the other hand, are generally more familiar with the general public simply calling and saying, “Come, I need your services.”

So how does this play out for either contractor?

Pluses to Partnerships

Using power line carrier (PLC) switches as an example, the low-voltage contractor is more knowledgeable about the product than the normal electrical contractor.

The low-voltage contractor can sell the features and benefits of the PLC device because they know how know it interacts with equipment. That, coupled with their knowledge of what the average customer wants or needs in this area, gives them an edge.

The electrical contractor, on the other hand, is not accustomed to making a sales presentation about low-voltage products. Therefore, no sales experience equals no sales equals no increase in revenue.

What’s the answer when both contractors want to increase their revenue in this area?

My first recommendation is that both contractors—the electrician and the low-voltage integrator—explore the possibilities of partnering.

Partnering has some unique advantages for both contractors. It allows, for example, both contractors to explore the other industry to see if their company is suited for that field.

Another advantage to a partnership has to do with the time spent in education and licensing. An electrician has great skill working with nominal voltage—120 volt, 240 volt—but what about the lower voltages of 12 volt, 24 volt and DC circuitry?

From my experience, electricians really become discouraged because they are not adequately trained in the low-voltage area. Just because a person understands the lower-voltage does not mean they have the expertise to work with the nominal voltages.

Similarly, a low-voltage contractor would have a steep learning curve. Added time within the field would be necessary in order to become a licensed journeyman, master and/or electrical contractor.

The electrical contractor has the advantage in this area because they have already earned the field experience and licenses.

Since the electrician has already been trained in the electrical field, the curve is not as steep to upgrade with low-voltage education. Low-voltage licensing is typically connected to being certified from an association in the low-voltage industry.

A partnership also provides benefits regarding salesmanship and presentation. A low-voltage contractor typically has great sales experience and product education, whereas the electrical contractor does not.

Normally, electrical contractors do not have a sales staff for this. Their income is generated in a different revenue stream.

When selling the features and benefits of PLC devices, for example, a qualified sales person is needed. The sales person can relate to the client and can ask the right questions to achieve the sale.

The third advantage in partnering affects the liability issue.

By liability issue, I mean that an inexperienced low-voltage installer could inadvertently cause extreme damage or injury to themselves or others when working with nominal voltage.

As an experienced electrician, I have seen some very poor wiring methods used, which could have caused injury or massive damage if left unchecked. The majority of the poor wiring methods I have seen put into place were done so by inexperienced people.

On the other hand, the electrician should not be installing low-voltage systems without the proper training and certification. Yes, there may be no injury or minor damage from the 12 volts to 24 volts, but there are methods and standards that should be used in for low-voltage installation as well.

There are repercussions for the end user that will be using the equipment if inexperienced people install it improperly.

Having an Agreement

A partnering agreement between a low-voltage and electrical contractor does have it advantages. Still, conditions to that agreement need to be established.

An agreement needs to be in writing and negotiated between both parties to prevent misunderstandings. Both parties need to understand their respective areas of responsibility, communication and cooperation.

For example, the electrician needs to understand that when the low-voltage contractor calls for PLC devices to be installed, the low-voltage contractor is on a schedule for completion.

Also, the low-voltage contractor needs to understand that he simply cannot wait until the last minute and expect the electrician to drop everything and provide the service needed.

If a workable relationship is properly discussed and negotiated, a partnering agreement can lead to greater sales and revenues for both parties.

Verlon Myers is owner of Crown Security in Lawrence, Kansas.