I understand Andrew, and I am working hard to combat retail pricing, but it's difficult this time of year. However, I have dealers that put out a couple of hundred Harmony systems a year, and do pretty well, because they are building systems, same as with anything else. They get in and out quickly, have fewer issues and callbacks, make higher net margin on their business because their labor is more profitable, and have happy clients that generate more referrals because more people can afford the systems. Plus many have a better work/life balance because there is less stress, and fewer cashflow issues because product is more affordable, and timelines on installs/payment are faster.

Here's a good article we did last year with CEPro. I got a ton of calls from dealers afterwords, that felt this article resonated with how they wanted to update their business. [Link: cepro.com]

They are just different ways of looking at the business, but I'm getting guys like JJ over at Digital Delight who have more than 400 Harmony remotes in the past year, and other dealers that still focus on their C4/Crestron systems, but understand that the market for a Harmony/Sonos/Lutron/Nest system is growing and far easier to sell, than brands the consumer hasn't heard of.

I used to think the same way so I get it, but when I got a chance to see what could be built with it, and how efficient the systems were to build I thought the opportunity was too good to pass up. While there are many things we are working to improve specific to our industry, there are many dealers who are already doing well and love the brand, the service level we provide, and the fact that we are adapting to the market. It's also why I am making a true Pro product now, with a hub that is dramatically different, and will never be sold at retail, so that should help for dealers looking for a truly differentiated product.

I always respect what any dealer wants to sell, but if you ever want to discuss the business model as a whole I am happy to. I tend to look at the full business (gross margin, returns, labor profit, truck rolls, unbilled programming, scalability, and manufacturer consumer demand generation, etc) and while product margin is important, it is only one piece of a successful business, especially one trying to scale.

Have a great weekend, and I appreciate the comment/feedback.