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Topic:
Creating consortium to run tracts
This thread has 3 replies. Displaying all posts.
Post 1 made on Sunday November 13, 2005 at 08:52
Wire Nuts
Active Member
Joined:
Posts:
June 2005
611
I have been appraoched by a customer of mine who is a big player in the tract market here. They currently do not have an av integrator involved in their houses. Ones in the past could not keep up. They currently use just sparky to put the little prewire in that they do. They have numerous locations in the area. They are moving approximately 50 homes a month.
They want to have more offerings to compete with other tracts in area. He even suggested to have preinstalled 5.1 surround sound systems with TV's in every home they build.
I have come up with predesigned packages to cover structured wiring, intercoms, central vacuums, distributed audio/video, security, and home theater. They are set up with lower profit percentages built in, but allow builder to still make 15-20 points on overall sale of various packages.
My biggest logistical issue would be manpower. My initial thought was to find trusting subs to execute the work. Assign them individual subdivisions to work in. I would even be willing to set up a consortium of sorts to make it profitable for all. I would be interested to hear from other integrators who may have set up something similar or who might even be willing to be involved in this.
Post 2 made on Sunday November 13, 2005 at 19:23
2nd rick
Super Member
Joined:
Posts:
August 2002
4,521
I have known quite a few companies that have followed that model...
Some are very successful but they are the exception, many are driven into bankruptcy.

The cash flow can be brutally slow, and the "say anything" construction manager / expeditor will have you jumping through hoops and rolling trucks all over the region, and will promise that you will have access to the homeowners to discuss equipment, upgrades, etc.

That same manager will likely wait until their sales team are all done selling flooring upgrades, window coverings, countertop upgrades, lighting and plumbing fixture upgrades, etc. before he sends that number to you. Even if you get those phone numbers, the homes are days away from being buttoned up and the homeowners are at the bursting point with their budget, and you wouldn't have time to react to get someone back to pull more wire even if they wanted to upgrade.

Good luck.
Rick Murphy
Troy, MI
Post 3 made on Sunday November 13, 2005 at 21:22
Moe's original BBQ
Active Member
Joined:
Posts:
July 2005
703
Wire Nuts, I did this in the very begining. It was the worst thing I ever did. I see your from Parker, CO. I think I know who you are talking about, if I am right, it is the same company that I started this concept with a few years ago. Please feel free to email me, I would be more than happy to tell you my experience, but I will not air it in a public forum.

Last edited by Moe's original BBQ on December 21, 2005 18:07.
Post 4 made on Sunday November 13, 2005 at 21:54
pilgram
Loyal Member
Joined:
Posts:
November 2004
5,684
I tried that route about 10 years ago.

Granted, money doesn't fly as free in my market but, I'm still waiting on a phone call!!

I've heard that most of my potential 'clients' are watching the same 32" TV that they moved in with.

Lack of priorities, I guess.
Every day is a good day.......some are just better than others!

Proud to say that my property is protected by a high speed wireless device!


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