Contracting Business Reports on the ‘Connected Home’

Great article from Contracting Business on why ‘connected homes’ are a natural fit for HVAC contractors, writing:

“What’s In It For Contractors?” (This excerpt is an interesting angle you may not have considered. Read on…)

“Connected home solutions offer significant revenue opportunities through cloud (WiFi) or cellular data services.  The connected home doesn’t work without the ability to store video and connect with mobile phones, tablets, and/or computers.  Without the cloud or cellular connectivity, a homeowner may be able to see who is at the door from a phone while at home, but not while away, which is uninteresting to most people.  The data service necessitates a monthly charge.

Because they bundle financing for installed equipment with the data services, cable and security companies charge as much as $70 per month. Contractors can give people the option to finance installed connected home equipment or pay for it outright, while separating the data service. The cost of the data service under this approach can range from $20 to $30 per month or be combined with an HVAC service agreement for more.”

Consider this, it says:

1000 connected home service agreements X  $20 gross profit per month per agreement X 12 months = $240,000 gross profit. That is $240,000 free and clear of the maintenance portion of a service agreement for every thousand agreements put in place.”

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