According to science, forming a habit generally takes about three weeks. However, depending on the individual and a multitude of factors, it can take anywhere from eight days to two or three months before a particular behavior becomes a habit. It’s safe to say, then, that after nearly a decade of talking about the lighting category within the custom integration channel, we’ve gone well beyond habit-forming behavior and are bordering on complete obsession.
There’s a reason why you constantly hear the drum beat about the importance of getting into this category, why it should be a part of your mix, and the benefits it can have on the rest of your business if you do. You’ve been told to believe that all of those things are true – and there are plenty of examples of that being so. But aside from a few case studies or profiles about a company realizing lighting success, there hasn’t been much else to go on.
Now, thanks to a collection of members from the Home Technology Specialists of America (HTSA), we have some hard data to point to. And the numbers state it very clearly: the integrators who have taken the time to invest in the category and grow their own lighting business are realizing success across the board, and they are realizing it at a faster and higher clip than the rest of their peers.
Let me rephrase that just a little: Lighting is helping integrators make more money across the board. Not just within the lighting category. But in sales of audio and video, networking, control systems, etc.
Before we look at how that could be, let’s look at what HTSA shared with us.
According to a recent deep dive into the purchasing habits of their members, HTSA found that members who were more committed to the lighting category were seeing higher growth across the overall performance of the company. The group split members into five different tiers, based on their lighting purchase habits. Tier 5 (the top tier) included seven members (out of 96) and realized purchasing growth of nearly 34 percent last Fall. From there, it dwindled: Tier 4 was up 24 percent; tier 3 saw 3.4 percent growth; tier 2 was up 4.6 percent; and tier 1 was down 6.5 percent.
Diving deeper, HTSA looked into the performance of the video/audio and control purchasing growth based on lighting purchase level, and there was a stark difference in overall performance. Tier 5 members were up 66.4 percent in those categories, compared to 18 percent for tier 4 dealers.
“One of the most telling data points we found is that when a member actively sells lighting – not just the fixtures, but also provides the design and works closely with clients – their overall project sizes increase significantly,” HTSA’s Director of Technology Initiatives Tom Doherty told Residential Tech Today in a recent podcast interview. “In fact, we found that those members had up to 40 percent higher revenues on average compared to those who didn’t integrate lighting into their offerings. It’s not just an add-on; it’s transformational to the scope of the business.”
Important to note, as well: Lighting sales accounted for just 6 percent of the total business across the group.
“There was some concern that we were putting too much emphasis on lighting,” Doherty said. “What that shows us is that while lighting is still just a sliver of the total business, the ones who are putting the biggest emphasis on it are having the highest return all throughout their business.”
Dealers See the Light
Many factors can play into increased revenue, but that payoff and the boost in business across the board certainly has lighting to thank, and those integrators are saying as much.
First and foremost, having that expertise on staff and being able to serve as a project consultant when it comes to lighting design in a home puts the custom integrator front and center much earlier in a project.
“Lighting is often the first technology that gets discussed in the design phase. If you can speak knowledgeably about it, you’re in the room earlier – with the architect, the designer, and the client,” Doherty said. “You’re no longer just waiting for the low-voltage plan, you’re part of the plan from the beginning. The integrators who are growing fastest are the ones getting specified earlier, and they’re doing that by becoming essential to lighting, shading, and energy conversations early in the design-build process.”
And, to that end, HTSA – and many other groups in the space – have begun encouraging custom integrators to lead with the lighting category as a way to insert themselves earlier in the conversation, before the walls start to go up in a new home build or renovation project.
Getting involved, though, doesn’t mean simply adding a lighting brand to your product mix and slapping their logo on your website. That alone isn’t going to get a potential partner or client to opt to go with you for guidance on lighting design. The HTSA dealers that are seeing success in this space have been at it for a few years now at this point. They’ve formed habits within their walls on the importance of lighting. They’ve either expanded their own knowledge base or brought in outside help to ensure they’ve got a well-rounded team on hand to provide support in the area of lighting design. They’ve made it part of their pitch to clients. They’ve dedicated space on their websites to showcase their work in the area. They’ve built relationships with the homebuilders and architects in their markets, leading with lighting in those conversations.
It sounds daunting, and it might be to some. But it’s not a new concept in the world of custom integration. We’ve done this before. Smart home and control systems weren’t part of the scope of work just a few decades ago – now they’re critical elements. Networking? Same deal. New categories are always going to crop up. Some, like lighting, will have staying power while others fizzle out.
It boils down to knowing and understanding what your clients are asking for, where the opportunity exists to address their needs, and how you can leverage those opportunities to get involved in these projects earlier than ever before. Right now, lighting is proving to be the answer to all of those questions.
