CE Pro August 2023 - 39

a more consultative role. The dealer will
need to discuss with architect, designer,
and homeowner about various finishes and
textures in the architecture and furniture to
fashion complementary lighting.
Lastly, dealers can offer a " handling fee "
to the electrician based on the fixture cost.
That handling fee is often more profitable
for them than if electricians themselves had
purchased and installed the fixtures.
As an example, if an electrician was going
to charge $10,000 to purchase and then
install lighting on a project, their profit margin
would be about $2,500, with almost all of
that in labor profit. When an integrator is
involved in a project, many times the cost for
lighting will be quadrupled, so $40,000 in this
example. That means the electrician will make
$10,000 in labor profit, while the integrators
earn margin on the product. For larger projects
in which the lighting fixtures costs might
reach $100,000, the integrator might offer a
much smaller percentage to the electrician,
such as 5% or 10%, but it would still enable
the electrician to earn 3X to 4X in profit from
what they would have made on their own.
" So, while the electrician originally viewed
us as a competitor, we are now making
them a lot more money, while at the same
time we are specifying the lighting fixtures,
handling all the controls and the panels, and
purchasing the product, " says Lee Travis of
Wipliance in Bellevue and Spokane, Wash.,
and Scottsdale, Ariz.
He advises integrators to listen for cues
from their electricians when they balk at the
integrator " eating into their profit " before
offering them a higher percentage of the pie.
" Once you offer it, you can't go back. So,
you don't want to be stuck giving them a
higher percentage on the next 10 projects, "
he warns.
" Whenever I hear an electrician complain
to me about adding more and more fixtures
to a job so that it is holding him up from
getting to the next project, I say, 'You're welcome'
because I am making him more money. "
Cultivating Electrical
Contractor Relationships
Joe Borress, president of Tri Star Electric
& Automation in Malibu, Clalif., is a unique
custom integrator in that the company is
also an EC; however, that does not preclude
Borress from forging relationships with other
electricians in regard to lighting fixtures.
" You either have to partner with an electrical
contractor and bring him into your company
umbrella, or you have to become very
friendly with the electrical contractor on site,
which may or may not be a challenge, " he says.
In either case, Borress says not being involved
in the lighting at all is not an option.
" If you're on a project where you're not
doing the lighting, you're allowing another
trade to install a system that you're going
to be controlling through your lighting
control system. There's such a gap between
the integration and electrical trades. It's
like you don't speak the same language and
" You either
have to
partner with
an electrical
contractor and
bring him into
your company
umbrella, or you
have to become
very friendly with
the contractor on
site. "
-Joe Borress,
Tri Star Electric
& Automation
Lighting BOSS: Automation, Audio & Lighting Go Hand in Hand
Outdoor lighting
has a similar install,
similar design and
most importantly,
similar clientele to
audio and automation.
As an
integrator, you hold
the keys to it all, so
why not offer the full outdoor experience to your clients?
They are 100% going to invest in landscape lighting so the
question is, are they going to get it from you?
Lighting is key for aesthetics, functionality and security
and has always been a phenomenal industry that continues
to grow in popularity. By entering this space, integrators
will maximize time and increase profit margins.
Investing in education however is very important. Think
of outdoor lighting consisting of three equal pieces:
1. Learn how to properly install and maintain systems.
2. Understand how to design to maximize profits.
3. Know the different products that are out there in
the market. Not one manufacturer has everything
you need.
There are many resources available to integrators to help
get you started, so don't leave money on the table.
-Ryan Jaso, Founder of Lighting BOSS
cepro.com
August 2023 CE Pro | 39
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CE Pro August 2023

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