Photography by Andy Freeberg.
Three divisions converge to facilitate that solution: Summit Electric Inc., the high-voltage, electrical contracting division; Summit Electrical Service, a 24/7 electrical service provider; and Summit Electronic Systems, specializing in the design, project management, installation and service of customized low-voltage electronic solutions for homes and businesses spanning home theater, lighting control, total control, security and surveillance, voice and data networks and boardroom systems.
Marking its beginnings in 1968 as Summit Electric, the Santa Rosa, Calif.-based company was the brainchild of Richard Dashiell. His son, Larry Dashiell, was a child himself when he began working for the electrical contracting company in the 1970s.
In 1986, at a mere 21, he suffered the sudden loss of his dad and shouldered the responsibilities of running the electrical contracting business. Now, some 21 years later, it’s safe to say Dashiell did his dad proud.
- Company: Summit Technology Group Inc.
- Locations: Santa Rosa, Calif.
- Years in business: 39
- Number of employees: Approximately 100
- Revenues (for 2006): Approximately $12.3 million
- Expected Revenues for 2007: Approximately $15 million
- Top 5 brands: Kaleidescape, Lutron, Crestron, B&W, SpeakerCraft
The timeline is a compelling one, colored by progressive thinking, acquisitions, re-structuring and consistent growth. That growth got a shot in the arm around 1991, when Dashiell noticed clients needing electronic solutions that stretched beyond the realm of standard electrical contracting services. When he couldn’t come up with a reputable company to refer his clients to for voice, data, audio, video, home theater and home automation technologies, he launched a new division called HomeTech.
To fill another gap—the lack of larger electrical contractors willing to provide minor service, maintenance and repairs to residential and small commercial clients—he launched yet another division in 1996, Summit Electrical Service.
In 2001, in response to exploding technology and dot-com mania, Dashiell unveiled CloudBuzz, a voice and data infrastructure provider to install commercial server rooms, data centers and structured cabling systems. A few small business additions to better serve the changing needs of the residential and commercial markets followed and, in 2006, Dashiell re-structured the parent company, dividing the functions of the businesses into its current three specialized divisions.
Growth Is Electrifying
Builders and clients like having one point of contact, Dashiell contends.While there are some jobs for which Summit does not serve as both the electronic systems integrator and electrical contractor company, for most, they do.
The beauty of that, he says, is that the company is “not at the mercy of the electrical contractor to get the job completed on time. Our companies are inter-connected so we don’t run into that problem.
A Working Class Family
Keeping customers satisfied is always key, but Dashiell sees his employees as being just as important. As a result, Summit experiences little to no turnover.
“We do the cool projects in the area and are the kind of company everyone wants to work for. With higher margins in the A/V division compared to the electrical, we can pay our people above scale. I give them feedback and engage them in the company.”
Summit sends out a monthly newsletter and e-mails to employees to let them know what’s going on and where the company is going. “I try to involve them in the organization. We have company outings, fishing trips, barbeques and monthly breakfasts that we cook together. If your people know that you care about them and their families, they’re less likely to jump ship on you.”
Dashiell views feedback from management to employees as an important component to employee retention. “A lot of companies are guilty of not communicating enough to their employees. Competitors don’t steal employees from you—you lose them. You need to communicate with them constantly and talk with them about their career paths and where they want to go.
“Sometimes it’s difficult. We have over 100 employees but people have to feel appreciated and proud of where they work. Money is not the most important thing; the benefits, security and liking where they work are also very, very important.”
“Our guys are trained and we’re constantly communicating between ourselves on any given job so we don’t have to wait on someone else. We’re efficient and the clients and builders love it. We flow right through the project to completion and the client doesn’t have to call on other companies to do anything else.”
Although they often work side by side, Dashiell opts to keep his divisional crews separate. That’s because the state of California requires that electricians be licensed and some of Summit’s low-voltage techs are not. Most, however, are CEDIA-certified.
“We have a few technicians on the low-voltage side that are licensed so they can do the electrical work if called upon. We always have one superintendent that works on a site and schedules who’s working on what at any given time. Crews will work together in a pre-wire or rough wire phase, so an electrician may pull some phone or data wire in order to get a job done on time. We work closely as you’d expect sister companies to,” he explains.
“Most of all our work comes from the electrical side. It has really propelled all of our low voltage growth.”
The divisions are kept separate on balance sheets and profits and loss statements, but are all rolled into one tax return. Additionally, Summit Electronic Systems operates about 10 miles south of the other two divisions in its 7,500-square-foot Petaluma facility. It’s equipped with a design center, where client demonstrations are held to convey how simple systems are to use if installed and programmed correctly.
Putting Out the A/V APB
Dashiell points out that most clients know from the get-go that they need an electrician, but many don’t realize until later on in the project that they also need an electronic systems company to design and install the systems.
“Depending on the level of the project and the systems clients want, often times the A/V companies don’t get brought in to the project until later, when the homeowners scramble for someone to design and install their systems. If they’ve hired a contractor, that contractor may not even know at the onset that they want a sophisticated system put into their home.”
Summit can take the segregation out of the work and simply provide a onestop, efficient and economical solution for clients.
High-End Juggling Act
Summit Technology Group does mainly high-end custom jobs—about 90 percent—and no production work. “There are different ideas of what’s high-end custom,” Dashiell clarifies. “If a client is putting $80,000 worth of electronics in a million dollar house, we call that ‘Fast Track.’ ‘Design Track’ is what we term integrating multiple systems in their homes—high-end stuff that’s elaborate.
Fast track fills out the valleys we get because Design Track work can take up to two years to complete. You could be at a house for six to eight weeks doing the pre-wire, then be gone for six to eight months. So, Fast Track work keeps the cash flow moving. The beauty of our company is we’re so diversified. Divisions can get slow and hit lulls, but there’s always one division hitting on all eight cylinders.”
Process Is Customer Oriented
Dashiell explains the Summit process for a typical home theater install, from start to finish. “We go through a meet and greet, hopefully in our design center, to educate our clients on what’s available,” Dashiell explains.
CEDIA Connections
A CEDIA member since 1995, Larry Dashiell joined to learn more about the industry. He notes that, on the electrical side, there are many associations and networking opportunities with peers, which he sees as the best way to learn things.
“It’s so valuable to listen to people who have been out in the trenches,” he says. “I always come back with one or two really good nuggets from every CEDIA show.”
Dashiell has served on CEDIA’s board of directors and also as treasurer. He’s taking a bit of a hiatus since the birth of his third child, but plans to get back to a high level of involvement when his kids get a bit older.
“We should all try to participate as much as we can in industry organizations to help us grow. Educated competition is good competition. Uneducated competition messes up the market and leaves bad feelings about the industry as a whole. Sharing is good to do.
“We should all share as much as we can and not worry so much about the competitiveness. We can all learn from each other.”
Awards:
- 2004 CEDIA Best Home Theater Level VI: $285,000–$550,000
- Diamond Certified—2004, 2005, 2006, 2007
- Ranked #5 in the North Bay Business Journal’s
- Top 20 North Bay Electrical Contractors
- Member of the CE Pro Top 100
“I stress that it is not a sales pitch, but rather is intended to bring them up to speed on what other clients are installing and what’s available. We talk about the different levels that a theater can be and lay out all the options so they can see for themselves and they can decide how they want to proceed.
“From there, we draw up a design agreement and go over the details of what level they want and we design the system based on that agreement. Then we have a complete set of construction drawings drafted to develop a proposal so they know what it will cost. The rest is project management.”
Managing Expectations
Summit employs one person on its design track job to solely manage customers’ expectations. “He’s like a concierge for that client,” Dashiell notes.
“He manages the punch list, coordinates communications, any changes a client may want and his primary responsibility is making that customer happy. He’s managing that client 24/7 and making sure we exceed the expectation that was promised. It’s the last 2 percent that companies often neglect of a project. Project managers often want to get on to the next project and it can destroy the whole process. They may have done an excellent job to that point, but if they drop the ball at the end, that’s all that the customer remembers.”
Following through to the bitter end pays off, according to Dashiell. “It’s amazing how much more business a proper close can generate,” he says. “Clients will come back and say ‘I want to add this or change this.’ They refer you on and it brings on new business.”
The most in-demand new business Dashiell sees is from lighting control and distributed audio and video. “It’s getting very strong. People like to distribute audio and video to various parts of their home and want to distribute media around the house,” he says.
Picking Products, Making Expansions Plans
Summit welcomes new products but tries to keep its matrix to three—good, better, best. “We don’t want to be too wide and we want the support of our manufacturers. So, if someone shows us a speaker, we test it and if we like it, we meet with them. If they don’t want to supply us a demo to test, we don’t use them.”
Dashiell explains that Summit does so much business with its lines that it prefers to be choosy. “We test stuff, see how it integrates with our systems, we look at controllability, reliability, look, aesthetics and sound and then vote. Most all products we use are chosen by the people within our company—designers, technicians and project managers. CEDIA Expo is big for us. We take binders to the show and each employee is designated to speak to reps and look at new products. They have to earn their way to the Expo.”
Currently operating in Sonoma, Marin and Napa counties, the Summit Technology Group is looking at a few additional new markets, but there must be enough work to meet its three-year growth goals to justify it.
“We’re getting pulled to new markets by our clients who are building second homes and resort destinations. So, if Summit is in a new area for that anyway, why not do more while we’re there?” Dashiell reasons.
Measuring Productivity
Dashiell employs some key business metrics to help determine how many business development professionals, technicians and programmers Summit should employ.
“I have learned the financial part the hard way; I measure their billable hours versus their productivity to see what their productivity really is. We measure how much gross profit a project manager can effectively manage and we look at that to see if he’s coming to the end of his bandwidth. If you keep piling on the work, mistakes can be made and profits erode.
“Materials have to be ordered on time, and you have to confirm that projects are ready for you before sending crews out. It’s the same thing on the design side,” he adds. “You can have four to five designs going on and then none. We have some project managers that do design work, so we bring them in when needed.”
Dashiell is also staring to outsource some of the programming. “We do inhouse programming on the smaller projects, but if you have a large project, you can sub out the programming.”
Letting Go
Like most business owners, Dashiell finds delegating difficult. “The biggest challenge I face is letting go,” he admits. “It’s your baby and your clients. You built the company up and then there comes a time when you have to challenge the people who work for you, hold them accountable and then get out of their way and let them do their jobs.”
He’s not kidding—Dashiell formed a board of directors a couple of years ago and actually has people holding him accountable, making sure he delegates and isn’t allowing himself to be sucked into the day-to-day operations. “I hire people who are smarter than me in their job and pay them really well and get out of their way. It’s hard but if you want to grow your company, you have to get past that fear or you’ll never grow because you just can’t do it all yourself.”
The last part of the business he surrendered is the business development side. “I loved sales, but when the company is as big as we are now, I’m spending half my time on strategic development and am not out building relationships and networking.” Dashiell just recently brought on a business development manager to develop relationships with architects, designers and builders because, he contends, “It’s not about sales; it’s about relationships.”
Dashiell contends the Summit’s culture is still centered on the values with which his father founded the company. “To me it’s all about being an ethical business person. This industry is young on the low-voltage side. People need to make sure that they live by strong morals and ethics in business. I see some pretty substandard work and gauging going on, but everybody knows everyone and that comes back to bite you. It’s always best to be truthful with people and treat them well.” It’s a basic principle, but it speaks volumes about the success of the Summit Technology Group.
Erin Harrington is a freelance writer based in Lindenhurst, N.Y.
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