Crunching a few numbers, integrator David Daniels shows a production-oriented home automation business model that could yield $80M sales and $15M profit in 10 years.

Much was discussed during the recent Azione Unlimited conference about moving into the middle market, with a whole presentation on the subject by David Daniels, principal of the Aspen, Colo.-based integration firm Xssentials.
He noted that there are 125 million U.S. urbanites in the mid-market, just ripe for home control, but it takes a different business model to cater to them.

He sees a new breed of specialists performing “light integration” and actually achieving the age-old dream of “get in, get out, get paid.” But in this case, Daniels adds, “… and paid … and paid … and paid ….”

Indeed, the new model will center on recurring revenue and “white glove” service, as opposed to elite, hand-holding service expected of today’s typical high-end integration customer. The production-oriented business model, he explains, is: Acquire, retain, recur, refer.

Read the full article on CE Pro

Article Published By Julie Jacobson of CE Pro, October 20, 2014

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