ResNet: Providing Practical Solutions

David Harig provides some complex home networking solutions, but, overall, he likes to keep things simple. As the owner of Minneapolis, Minn.-based ResNet, Harig is intent on giving customers exactly what they want -- electronic lifestyles that are livable. Although ResNet serves up new technologies, open system architecture and next-generation products, the business model is absolutely based on serving people.

As Harig puts it, "I sell into lifestyle solutions above products." He recalls being at a local home improvement show with over 500 exhibitors. "A customer told me he went with us because I looked at his house, really got to the nitty-gritty about what he wanted, and offered practical solutions. Everyone else just wanted to sell him a plasma on the spot."

Taking the lead from customers has landed ResNet a leadership position in its Minneapolis market. "One of our strengths is the scope of what we've done," Harig adds. "We're a solutions provider. We've mastered our learning curve, and now teach as we go." ResNet's scope of services spans residential structured cabling, home automation, home security and whole-house digital audio and video.

Although everyone on the ResNet team brings a broad range of technological know-how to the table, they leave the lingo at the door when calling on a customer. "Many clients have a lot of ideas, and a lot of money. But they usually wear a deer in the headlights kind of look when talking about all the technology out there," he continues.

"The terminology is pretty daunting. The post baby-boomers in their late 30s to mid-40s may have a notion of high-fidelity and powerful big speakers and want to go in that direction, but have no conception of distributed audio, video, or lighting control."

Ed McNamara, lead sales rep, points out that the most difficult part of meeting with the customer is judging his aptitude for technology and responding accordingly to it. "You never want to speak down to someone who's well-versed in the technology, nor do you want to talk above someone who is not that technically inclined with too many acronyms," he says.

The key, he adds, is holding a good balance, which he usually strikes by engaging in some casual conversation first, getting to know their lifestyles and expectations, and then presents applications that tie into them.

After the Sale …

ResNet, which Harig launched in 2000 after bowing out of the telecommunications industry, typically does high-end installs, ranging from $40,000 to over half a million dollars. It caters specifically to the new home and remodeling segment and has enjoyed success in the traditional residential, cabin/lake home and condo markets.

The company has managed to stay selective about the work it takes on and is big on support and troubleshooting. Harig notes that "on a large scale system, we've been able to streamline a prototype system that stands the test of time. But on really large integration projects, that's just not a reality."

It's important, he feels, for customers to get ahead of the curve on service. If someone, for instance, bought $250,000 worth of customer electronics, the equipment won't stand on its own for 10 years without some servicing.

"Annual service agreements are so important and also another revenue stream," says Harig. "It's not like you're laying sod and walking away and leaving them with a lawnmower. You're leaving them with a complex animal that's going to need to be babied for life. If you bought a quarter-million-dollar car, you'd have it in the shop often for tweaking and for performance testing."

Despite the deep pockets some clients have, an increasing challenge for ResNet -- and many other integrators -- is the Google search. Often when the company specs a product, customers search online for pricing, but often don't realize they're comparing apples with oranges.

"Once you're into the proposal pretty deep and quoting a specific 42-inch plasma that you know will work for that particular solution, they'll Google the model number and find tons of lower priced units online," says McNamara.

What follows is a tough conversation, especially "when they're buying eight to 10 TVs," adds McNamara. "It's important that the client understands how they're being sold and for what types of applications."

Talking Products

To help educate prospective customers before an initial meeting, McNamara assembles a binder that outlines the various services ResNet offers. A thorough explanation of distributed audio and video is included, as are the various add-on options such as lighting and temperature controls.

"The installs can be very involved," he says. "We present everything, including central vac and security. We want them to be aware of all that's available to them to make their lives easier."

ResNet has done some installations that are so high-end that home lighting control has been more of a necessity than a luxury. In once case, it switched over 298 individual light loads equating to 298 light switches. Turning them off manually could be a real time consuming project.

ResNet often turns to Vantage for its lighting equipment and McNamara credits his Vantage rep for helping to identify new opportunities. The computerized control and dimming systems from Vantage use conditional logic to automate lights, fans, pumps, thermostats, audio/video equipment, sprinklers, motorized drapes/blinds/doors, security systems and more. They're integrated into various scenes that execute on a regular schedule or when activated by sensors and buttons.

Harig is selective about the product lines he'll bring on board. "I don't rely on distributors to bring solutions," he says. "We find it first and then go down the channels to get it. Our loyalties lie with the customer. We're an AMX dealer and align the customer first and vendor second. I'm more apt to promote a company because of its product and its value then any other reason."

While Harig admits to researching products "to the nines" his first year in business, he's built up a repertoire that he maintains and only brings on a new product when it's needed to fill a specific custom application. ResNet has elected not to have a showroom saying that it could limit the customer's imagination.

Not wanting to limit themselves either, Harig and McNamara are open to taking a job on the road when it makes good dollars and sense to do so. ResNet has partnered with some high-end builders and clocked 30 round trips to the Lake Tahoe area, Las Vegas and the Pacific Northwest, servicing builders and their clients. "If there's a trusted vendor in that location, we can hire some of their staff if we need to."

As for ResNet's permanent staff, there are three installers, an additional sales rep, and a bookkeeper. Keeping things simple is what seems to work for ResNet. "We're not looking to become the big star. We're small enough that we have a magic number we have to hit every year and that's fine," says Harig. "I'm an anti-headache guy. The goal is to have the business healthy and the level we're at is."