CE Pro May 2021 - 48

RESIMERCIAL
clients account for 16% of commercial jobs, while general
contractors are the main source for 14% of projects. Only 11%
of projects are in response to a competitive bid/RFP, while
designers and architects are each responsible for feeding 9%
of projects to dealers. Manufacturer-driven leads only account
for 8% of projects, while cold-call prospecting accounts for 6%
of commercial jobs.
One stark difference between the commercial world and
the residential world is that many times commercial projects
will require the integrator to file an insurance bond for the
project. However, integrators report that is only on 9% of
their commercial projects. That low percentage is likely due
to the fact that residential-focused integration companies
are taking on smaller commercial projects (as evidenced by
the $16,406 median price point) compared with the massive
six-figure projects that are the wheelhouse of commercial-centric firms.
Speaking of price points, while the median is $16,406, some
integrators do report they take on large commercial projects.
According to the study, 11% of the projects are over six figures
at the high end. Coincidentally, the same percentage (11%)
projects are under $5,000 at the low end.
To be more successful in the commercial space, CE pros believe they need more information about specific commercial
technologies/applications, such as unified communications,
AV-over-IP, digital signage, DSP configurations, and more.
2020 Sources of Commercial
Business
Cold Call
6%

Online
Lead
7%

Commercial
Client Referral
20%

Manufacturer
Referral
8%
Architect
Referral
9%

Residential
Client Referral
16%
RFP/Bid
10%

Designer
Referral
9%

General
Contractor
Referral
15%

Like the residential business, the main
sources of projects in the commercial
realm come from client referrals.

2020 Commercial Project Manhours
Less than 8
hours
4%
201+
The median number
hours 8 to 16
of manhours for a
hours
10%
2%
commercial project
81 to 120
17 to 24
is 40 hours.
hours
hours
This shows that CE
11%
14%
pros are typically
41 to 80 25 to 40
working on smaller
hours
hours
commercial jobs.
22%
20%

121 to 200
hours
7%

2020 Commercial Project Service Agreements
(Percent of Projects)
100% - Every
The median percent
of commercial
projects in which
dealers are able to
successfully sell a
service agreement
is 7%. That average
monthly service
agreement fee is
$46.50.

Commercial Project Point of
Contacts (Percent of Projects)
C-Suite
Executive
5%
IT
Director
13%
Facilities
Manager
20%

Other
2%

Owner
33%
General
Contractor
27%

Because residential dealers tend to do
smaller commercial projects than their
counterparts that are fully ensconced
in the commercial market, it is not
surprising that the most common
end-user liaison is the business owner.

51% to
99%
11%
26% to
50%
15%

Project
11%

0% No Projects
33%

11% to 25%
1% to 5%
10%
14%
6% to 10%
14%

ChartCommercial Project
2020
Headline
Lead
Time
10 to 12
1 year or more
months
2%
2%
6 to 9
Less than 1
months
month
9%
13%
5 to 6
months
13%
1 to 2
months
3 to 4
36%
months
25%
The median lead time from first
communication to starting the physical
installation for a commercial project is
just three months. This short window
indicates that resi integrators are typically
working in existing structures vs. the
commercial new construction.

48 | CE Pro May 2021 cepro.com

C2105 pp38-51 Resimercial DD.indd 48

4/6/21 2:34 PM

http://www.cepro.com

CE Pro May 2021

Table of Contents for the Digital Edition of CE Pro May 2021