CE Pro April 2023 - 27

monthly fee and everything's included, " he explains.
" I just stole that business model. "
Total Home Technologies' business model
not only changes the dynamic related to
service calls, it changes the company's entire
attitude toward proactively reaching out to
customers for upgrades.
" Customers are usually 'in the way' of
their own support. We should not have
to beg customers to let us do a software
upgrade on their system. In our leasing
model, we encourage our customers to ask
for new things, which is a dichotomy in the
industry. If six months ago an integrator
installed a wireless router for a customer,
I dare him to proactively reach out to that
client today and ask them if they want a
new Wi-Fi 6E router. Most integrators are
afraid to make that phone call - and that
is to a customer who likes us! If we are
afraid to call customers that are happy with
us and like us to tell them there is new
technology out, that is a serious problem, "
he says, noting that many integrators feel
the need to wait several years before trying
to upgrade an existing client.
In Total Home Technologies' leasing model,
customers pay a monthly fee for the parts,
maintenance, service, customization and future
upgrades. In some cases, every piece of
equipment in the installation is leased, while
in other instances only certain gear is leased.
If a customer wants to upgrade to a newer
camera, touchpanel, wireless access point,
router or a slew of other equipment, Total
Home Technologies simply adds to their
monthly leasing fee. Total Home Technologies
takes out the old part and installs the
new part, so the client is constantly updated.
In some cases, clients could be charged a fee
for the new component.
" We will lease an entire system to them
for a monthly fee, which not only covers the
parts, but also all the things that we have
traditionally not done well in this industry, "
adds Harrison. So what does Total Home
Technologies do with the gear it replaces for
clients? Sometimes that removed equipment
is installed in another customer's home who
is not concerned about having the latest and
greatest products.
At the outset of the leasing program,
Total Home Technologies' customers were
cepro.com
placed on 3-year leases. Later, the company
added 5-year lease options. Customers can
log into the company's help desk online to
make requests, or call or email. Payments are
collected automatically via debit or credit
card so there is no time spent chasing down
the money. Today, about 90% of Total Home
Technologies' clients are on the leasing program
and it generates over $1 million per year
in recurring revenue for the company.
Higher Close Rate,
More Takeover Accounts
There are several other positive byproducts
that Total Home Technologies benefits from
due to the leasing business model.
First, the company's prices are routinely
25% lower than its competitors, according
to Harrison, which results in closing more
deals. Getting to that point takes some
guts, because the company underwrites the
equipment it installs, in essence acting as its
own bank to finance the equipment and the
installation.
" I made the decision to finance this myself,
because I wanted to be able to change
the program on the fly at any point if necessary, "
he explains.
Second, the program attracts customers
away from competitors post installation.
Harrison estimates about 30% to 35% of his
clients came from other dealers with whom
they were disenchanted.
" It's very common, " remarks Harrison.
" When a new customer comes to us, it takes
Harrison evangelizes his
leasing business model
to the entire industry
whenever possible, such
as during Total Tech
Summit 2022 in Orlando
on a panel with industry
leaders Giles Sutton (left)
of CEDIA and Lee Travis
of Wipliance.
" We live in a
world of software
updates and
reboots. If you
accept that truth,
then the problem
with our industry
is with the
integrators, not
the technology. "
-Keith Harrison,
Total Home
Technologies
April 2023 CE Pro | 27
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CE Pro April 2023

Table of Contents for the Digital Edition of CE Pro April 2023
