The Sound of LiVing.

A Successful Story... LWS Flourishes with Builders

"I trust LWS to recommend equipment that appeals to my young market and to keep it simple, which really differentiates my project. People think the audio is cool and are choosing NuVo home audio system option even over hardwood floors!"
- Steve Ficarra, President of Betancourt Communities

Background

In a soft builder market, one Atlanta based integrator has found that they can offer an extra edge with a solution that will increase the builder's profit. Live Wired Systems (LWS), formed by Clay Lafon, Mike Scarvelis, and Neil Wilson in 2004 has made partnering with builders a top priority for their business – a strategy that has been fruitful for both parties. LWS is experiencing tremendous success in the MDU (Multiple Dwelling Unit) market in downtown Atlanta with their builders offering packaged electronics options in over a dozen developments-a practice that makes the sales process practically automatic.

5 Keys to Success:

What does it take to solidify a partnership so strong that it's self-driving 90% of your business? According to LWS there are five keys to having a successful partnership that yields profit for all.

1. Relationships are everything. First and foremost build friendships. Learn about the builder, how they operate, and how they operate their business. A mutual trust develops from the friendship, which Clay considers a priority. He has a good reputation within the industry and makes it a point to understand the builder's needs, but it is their young, aggressive personality and track record that captures the job. Clay explains what makes their services so appealing to the builder. "We get people excited about what they can enjoy everyday in the home. Most importantly we do good, honest work and have a low call back rate, which is huge for the builder." LWS recommends the best systems and components for the job and the builders trust them to be the experts in technology, so they don't have to. Their business model includes pre-wiring every unit during construction for 4 rooms of audio, surround sound, security, phone and cable. The cost is built into the selling price, so the builder can realize great profits without sacrificing for the pre-wire cost. Commitment to their partners and quality workmanship has created countless referrals for the team.

2. Keep it simple stupid. The old KISS Cliché still stands. LWS keeps it simple with fewer choices making the sale easier and reducing cost while doing so. They design two or three optimal packages, including a NuVo whole home audio system and a 5.1 surround sound package based on the community's lifestyle and the desired entertainment value of the clientele. This approach relieves the intimidation of "extras" and makes the decision easier for clients to understand and commit. What's more – the packages are affordable and can be rolled into the mortgage rather than another out of pocket expense for the homebuyer. As in the case with the Simplese system, the clients are blown away by the fidelity of audio they can obtain within their budget. Mike emphasizes their use of the Simplese "because the functionality it provides for the cost is unmatched. It's so affordable that we cannot imagine putting in a rotary volume control ever again." The classy, backlit keypads offer source selection, system power, volume, equalization, party mode, and IR control features that aren't available on other options in it's price range. The four source, four zone, 30 watt per zone audio and 5.1 theater are perfect for the condo units, or LWS can fully customize the home to the client's needs with the larger NuVo Essentia or Concerto systems, and additional luxuries such as plasma screens and home networks.

"The hardest obstacle for us to overcome is the builder's old school mentality to technology. We have to educate them to think beyond the brick and mortar and adapt to the desires of today's home lifestyle and the networked home that it demands."
- Neil Wilson, LWS Partner

3. Market as part of home. LWS creates co-branded, color sell sheets for each community's sales office, which detail the product, benefits, and pricing of the packages. Additionally, LWS takes advantage of generous programs such as NuVo's Showroom discount to showcase the available options in every model. The experience is everything when it comes to selling high-end electronics. The concern is selling the unit, but the options within deliver a perspective ambiance that integrates the electronics as part of the overall home purchase experience.

4. Set the Builder Apart. In today's market, builders compete over the same clients. Every builder is looking for ways to distinguish their self from competitors; however, they're traditionally faced with lists of upgrade options that present a far better margin than electronics. Steve Ficarra, President of Betancourt Communities, opts for the electronics, all things considered, because he "trust LWS to recommend equipment that appeals to my young market and to keep it simple, which really differentiates me. People think the audio is cool and are choosing the NuVo home audio system option even over hardwood floors!" LWS has worked with Steve to provide solutions to up the ante on his properties, which include providing a free iPod® Nano, custom engraved with the Betancourt logo, with the purchase of the NuVo whole home audio package.

5. Service. You can operate on any platform or strategy, but when it's all said and done, it comes back to service. Every job should be treated equally, regardless of size or expenditure. Every detail is important, right down to returning phone calls and keeping appointments. Service keeps customers returning and can make or break a referral. That's why LWS is known around Atlanta for their quality, experienced staff, and service.

Summary

Understanding the end consumer, the builder and their obstacles combined produce results for LWS with the builder, though it's not always easy as Neil points out. "The hardest obstacle for us to overcome is the builder's old school mentality to technology. We have to educate them to think beyond the brick and mortar and adapt to the desires of today's home lifestyle and the networked home that it demands." LWS has taken a proactive approach to gaining trust and rest any reservations the builder has to simplify the process. The combination returns incredible results. LWS is seeing over a 50% take rate on their options in the MDU's. An incredible return based on a simple, somewhat self-driving builder relationship model that compounds upon a comprehensive initial sales and marketing effort. Everyone wins – the homeowner is thrilled, differentiating and profit-adding features become part of the builders offering, and the integrator has a secure, ongoing business.

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