Building a Profit Margin with Intercoms
By Lesley Boyd

CEA’s Annual State of the Builder Technology Market Study (supplement to the NAHB Annual Builder Practices Survey) cites builders offering intercom systems as an upgrade by 68% of builders across the nation illustrating builders valuing home technologies.

However, even though intercom systems are a popular option, many builders are unaware of the modern nuances and cannot, therefore, offer this type of upgrade in its full potential to the home buyers.

Partnering with an ESC (Electronic Systems Contractor) can help educate both the builder and the end consumer, resulting in happy customers who will request more technology upgrades that, in turn, results in higher revenue for the builder.

Let’s be honest. The word “intercom” is a relic in home technology terminology that brings to mind the 70’s era of large, clunky brown wall boxes that used to talk to someone at the front door and doubled as a low fidelity whole home audio system. Although its longevity in the marketplace makes it part and parcel of the builder’s repertoire, today’s intercom systems bear very little resemblance to their predecessors either in style or quality.

Yet many builders still choose to display this option in its original form, complete with scratchy background audio.

Enter today’s modern intercom system, a category that is very popular among home buyers. Today’s intercom systems range from the truly simple to the complex including two-way "voice only" communication panels to video intercoms, incorporating a range of integrated safety, security and entertainment capabilities.

The transformation from the clunky box to today’s sleek new styles and purposes has been a long journey.  “Legacy systems were designed to be both an intercom and multi-room audio system,” said Scott Sylvester, Vice President of U.S. Operations for LeisureTech Electronics. 

“With sub-par speaker systems, the audio was of poor fidelity and the intercom and stereo canceled each other out. Additionally, with one central amp, the energy usage was enormous and if one component broke, the entire system went down.”

Over the past five to eight years, however, many companies such as Russound and Honeywell have incorporated LeisureTech Electronic’s A-BUS patented technology to utilize intercoms over Cat5 cable resulting in new and improved stand-alone intercom systems.

“Today’s intercoms offer a wider range of not only capability, but also affordability,” continued Sylvester. “As a modular product intended to utilize Cat5 cabling, home buyers can choose how many rooms they would like to connect and it doesn’t cost the builder much more in labor costs (which would be passed on to the consumer) to connect them because the structured wiring already exists for the A/V, Security and telephone, thus unifying the systems.

As an added bonus, security cameras can be integrated with the intercom system to allow the homeowner to not only speak with a visitor at the front door, but see who it is before deciding.”

Primarily intended as a point-to-point communication device, the modern intercom can also be utilized as a baby monitor or coupled with security cameras to monitor the entry points to a home as well as safety devices to watch the pool and backyard for those home buyers with children.

“Until recently, we have not actively marketed intercom systems to our customers due to the fact that legacy systems actually detracted from the overall ambiance of a home. Manufacturers today have not only improved the audio components, but also developed sleek new designs that seamlessly meld with the interior décor of the home with plates around the intercoms intended to mimic those around light switches,” said Shawn Smith, President of S&S Electric.

“Home buyers, especially those with children, are not only interested in a seamless integration with their décor, but they are also intrigued with the capability of keeping an eye on their children no matter where they are around the home.”

Although modern intercom systems are intended as voice communication devices, they can integrate seamlessly with multi-room audio systems.

 “For example,” indicated Smith, “when the doorbell rings or the intercom is activated, it will mute the audio throughout the home.” 

In partnership with M/I Homes, Tampa, S&S Electric offered many technological upgrades for Easton Park’s Bordeaux IV model, including intercom systems. In a community of 250 homes, S&S indicated that 1 out of every 4 customers (25%) decided to purchase an intercom system because they were informed about the advantages during initial meetings with the S&S Design team.

“Intercom systems are not an option that belongs on a sell sheet,” said Dave Treloar, Sales Manager for S&S Electric. “A qualified ESC should be involved in the design phase to interview the homebuyer about their lifestyle needs and to determine whether or not an intercom system is right for them and which components would be the best fit for their lifestyles. With a 40% profit margin for builders, they can’t afford to ignore this versatile upgrade.”

The current market is full of steep competition, so builders can’t afford to forgo this upgrade option and opportunity to set their developments apart from their competition.

Intercom Quick Facts:

• Today’s intercom systems are modular, complete with individual amps and parts that allow for easy service access, most of which contain built-in diagnostic systems. Gone are the days of difficult service calls where one glitch takes the entire system out of commission. 
• Intercom systems offer a higher energy efficiency rating over legacy intercoms due to the tiny amps located 1 inch away from the speakers inside each intercom.
• Intercom systems can be used to remotely unlock the front door or gate for guests.  
• Intercom systems can double as a baby monitor allowing the homeowner to listen in on their child from any other room in the house.  
• Many of today’s intercoms can be installed using Cat5 cabling which is readily available and less expensive than legacy system wiring. 
• Modern Intercoms are stand-alone products designed to handle point-to-point communication; however, they are intended to integrate with multi-room audio (MRA) products. 

Lesley Boyd is from Orlando, FL. She offers an objective and unique perspective on up-and-coming technology, applications and integration in the CE arena. CEA TechHome Division is unique in that it represents the entire channel for home control and networking products including integrators, distributors and manufacturers. She can be reached at LesleyABoyd@gmail.com.

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