Publish Date: FEB 05

Today’s home builders are becoming a major channel for digital technology into the consumer market. This study of more than 400 builders probes why they offer, or don’t offer, various products, how much more they charge for homes with selected systems, who handles installation, and if builders are willing to partner with other firms, such as cable TV operators or utilities.

“Builders are in a new era in home building that encompasses much more than lumber, bricks, and granite countertops,” said Bill Ablondi, director of channel research. “Over one-fourth of builders have employees actively evaluating new technologies for their potential both to boost sales and serve as differentiators. Builders reported that an A/V room or multiroom audio system was as important to selling a home as a playroom and more important than a pool.”

Download PDF of Table of Contents | More Information on the Builder ePanel Multiclient

Executive Summary

Methodology & Respondent Profiles
   Methodology
      Survey timing
      Techniques to recruit respondents and sources used
   Respondent Profiles:
      Types of businesses engaged in
      Primary job function
      Number of single family homes built annually
      Percent of homes built that are custom vs. production/spec
      Breakdown of homes built by type:
         Starter
         Move-up
         Vacation/Second
         Other
      Average selling price of home built
      Average finished area of home built
      Scope of builders' operations
         Local
         Regional
         Multi-regional
         National

Electronic Products and Control Systems Offered by Builders
   Product categories offered
      Structured wiring
      Security systems
      Intercom/built-in communication systems
      Multiroom audio systems
      Video distribution systems
      Computer networking
      Dedicated-room Home Theaters
      Built-in Home Theaters in family/living rooms
      Home control systems
      Appliances connected to a control system
      Programmable Thermostats
      Zoned HVAC
      Indoor/outdoor lighting controls
      Occupancy sensors
      Vacuum systems
   Builders' choice of products most likely to positively influence sale of homes
   Builders' rating of amenities making a significant difference in selling a home sooner or at a premium price
      Oversized closets and storage areas
      Large kitchen with premium appliances, cabinets, countertops, etc.
      Spacious master bath with large shower, separate tub/Jacuzzi, his/her vanity, etc.
      Separate playroom for children
      Three-car garage [as opposed to two-car garage]
      Pool
      Room dedicated to audio/video entertainment
      Finished basement
      Structured wiring
      Security system
      Multi-room audio system
      Computer networking
      Central vacuum system
      Energy-efficient HVAC and appliances
   Builders' attitudes about offering new products
   How builder is organized internally to evaluate and make decisions about new products to be offered
      Centralized at headquarters
      Decentralized by region
      Decentralized by office
   Who decides/influences systems to be sold; dedicated resource for evaluation?
   Use of model homes to promote/sell upgrades
      Traffic monitoring techniques used
      Type of collateral used/desired
      Types of firms considered as primary vendors/partners for offering products
         Electrical contractors
         Security system installers
         Appliance manufacturers
         Appliance retailers [e.g. Sears, Best Buy, etc.]
         Cable TV operators
         Electrical utilities
         Telephone companies
         Electronic system manufacturers
         Audio/video dealers/installers
         Distributors
         Other

Probe into Selected Product Categories
   Common questions asked:
      Standard vs. optional?
      Who sells?
      Why do you offer?
      When did you start offering?
      Who installs?
      Percent of homes installed with category in 2003
      Brands offered; planned to be added/dropped
      Average cost to buyer
      Typical margin earned by builder
      How much more can house with product be sold for?
      If don't sell, why not?
   Product categories probed in depth:
      Structured Wiring
         Importance of certified installer
         Number of drops per room by type
         Number of Coax/phone outlets installed by room type in homes without structured wiring
         Applications supported by structured wiring
         Attitudes about value of offering structured wiring
         Sources relied on for brand selection
      Security Systems
         Technologies employed
         Additional equipment typically installed
         Fees received from security monitoring firms
      Multiroom Audio
         Marketing/sales support received and desired from manufacturers
         Number of rooms wired for audio
         Components offered as part of audio system
         Breakdown of speakers by type (in-wall, ceiling, etc.)
         Technologies employed for audio distribution
         Types of remote controls offered
         Suppliers of audio systems by type (A/V dealer, manufacturer, etc.)

Additional Products Covered
   Intercom/Built-in Communication Systems
      Standard vs. optional
      Percent telephone- vs. intercom-based
      Percent of homes with
   Home Theaters
      Dedicated-room
      Pre-wired
      Media rooms
   Home Control Systems
      Functionality/applications
      Home-owner demand
      Interest in offering in partnership with cable MSO and/or utility
   Central Vacuum Systems
      Standard vs. optional
      Percent of homes installed with
      Typical size of home installed with
      Reasons why owners NOT installing

Source & Selection Criteria for Non-structural Products
   Ranking of criteria used in selecting manufacturers
      Name/reputation of company
      Superior pricing
      Higher-quality product than others
      Co-op marketing funds
      Superior after-sales support
      Availability of products/widely distributed
      Breadth of product offerings
      Flexible product configurations
      Convenience or professionalism of installing dealer
      Low-hassle business relationship
      After-install warranty terms & conditions
      Superior training for our staff
   Breakdown of sources for non-structural products
      Direct from manufacturers
      Distributors
      Retail Outlets
   Interest in considering other sources for products and WHY?
   Sources of information about new products, technologies and capabilities
      Trade shows
      Trade publications
      Manufacturer's sales people
      Distributor's sales people
      Word of mouth
      Other
   Desired sources of generic industry training
      Industry events
      Associations
      Manufacturers
      Distributors
      Independent training companies
      In-house experts
   Preferences for method of training
      Live/In-person
      Online – Live Webcast with Q&A
      Online – Self-paced tutorial
      Book/manual
      Video-based

© February 2005 Parks Associates
Dallas, Texas 75230

All rights reserved. No part of this book may be reproduced, 
in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America.

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