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

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


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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.


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2 Comments (displayed in order by date/time)

Posted by Steve Gools  on  12/13  at  02:31 PM

They is a very well written article that I happen to agree with.

Posted by Lee Distad  on  12/13  at  04:23 PM

I agree, that was very well done.  Thank you.

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