Pidgeon notes that regional or specialty retailers “always looked at the sale” of a home system as a whole. There was profit in the products which subsidized the installation group, but he notes that business plan “is coming to an end quicker than most people thought.” As more involved home automation, smart appliances and IoT systems grow in popularity, he warns, “Without profitable installation models, [dealers] are going to find themselves in a really tough spot because they won’t be able to subsidize that from other parts of their business.”
Regional retailers and specialty dealers are challenged because “the largest retailers are changing the landscape and the way business is done. It can’t be concentrated around storefronts anymore,” Pidgeon says. “Plenty of players are reaching out to their customer bases online. Regional retailers need to be armed with the tools these larger competitors are now using” which increasingly includes quality installation.
Brands are defined by how their products make consumers feel.Daniel Pidgeon President of Home Service, Goodman Networks
Based on its experience last year, Goodman covered 61% of the U.S. population with its trained employee workforce. He says that Goodman will hire “1,000 new technicians this year to support existing business,” and that their U.S. population coverage could grow to 78% by the end of 2020.
Many networked products are described as plug-and-play. However, Pidgeon says, “While they may be ‘smart,’ they are not ‘simple’ to set up.” A disappointed consumer with a low QOE after an installation is serious.
He says, “Brands are defined by how their products make consumers feel.” A major part of that is the installation of these new connected home systems. Pidgeon says Goodman’s program working with dealers and suppliers will help consumers experience and enjoy their new systems, without having to think about the installation.
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