Integrating Smart Home Installation
Into Your HVAC Business
Sept. 2019 • 3 min read
There’s no doubt about it, the explosive growth of smart thermostats and smart home products are here to stay. By 2025, growth is expected to continue and could surpass $6 billion. The question HVAC residential dealers need to be asking is, “How can I get a piece of the smart home technology market share?” The evolving market presents unique opportunities for owners to create new service models that can help grow their business.
One idea many HVAC owners are airing out is focusing on the homeowners’ journey using smart technologies — from understanding ideal temperature ranges, utilizing virtual assistants, to the installation of smart devices that work with the homeowners HVAC system.
In the U.S., 27 percent of people own and use a virtual assistant, such as Alexa, Google Assistant or Siri. These are popular smart home control devices that leverage cloud technology. Many smart home products connect to a variety of components that interact with heating and cooling systems. It only makes sense since HVAC techs routinely maintain these systems the next logical step is to offer smart home installation as a service.
Smart Home Technology Can Help Grow Your HVAC Business:
Smart home installation is a year-round service
As part of their job, HVAC professionals must work with unseasonable weather conditions. Fortunately, smart home technology is not dependent on seasons, your business can promote smart home installation year ‘round.
Homeowner’s with maintenance contracts present the perfect opportunity. As a loyal customer, comfort advisors can upsell smart home devices and installations. Your local Lennox Stores or LennoxPros can provide a wide range of thermostats and smart devices from Lennox iComfort Smart or Programmable Thermostats, security devices, to video doorbells, smoke detectors, and all the parts and supplies you need to do the job.
There’s a growing demand for smart home systems
A recent smart homes study showed most consumers believe smart home systems are considered standard features when purchasing a home.
- 44% of consumers associate a “move-in ready” home as one having a smart home system.
- 57% think a “renovated” home is one with a smart home system.
- 36% of consumers polled said smart home systems are a major selling feature.
The study also illustrates that it’s not only tech-savvy millennials who are interested in smart homes. Other generational groups polled expressed their interests:
- 50% of baby boomers.
- 52% of Gen-Xers.
- 61% of millennials want smart home systems.
Professional installation can be an attractive incentive for homeowners
Even though most smart home products say they’re ‘easy-to-install’ many homeowners are not Do It Youself’ers (DIY). They either don’t have time, tools or patience.
Data shows 32% of homeowners lack confidence and skills when it comes to installing smart home products. For many homeowners, setting up an app-controlled small kitchen appliance is less intimidating than attempting to retrofit a new smart thermostat to their existing HVAC system.
When you’re talking to homeowners about smart home installation services, inform them that improper installation of heating and cooling equipment can reduce energy efficiency by 30 percent. This loss would outweigh the energy-saving benefits as part of their smart home upgrade. Your professional expertise will give them peace of mind knowing their new smart home system will work as efficiently as possible.
A good problem to have
As smart home devices continue to gain popularity, now is the perfect time to recalibrate your business model and consider the possibilities of adding a smart home installation service. It’s not only a strategic way to attract new business, but it also keeps your techs busy and gets your comfort advisors into more homes to promote your services.
Its obvious smart home installations are not going to yield the same margins as HVAC sales and installations, however, you can get a piece of the market share while providing your business with a supplemental income. The key to success is keeping your employees and business attuned to what’s trending so you can competitively offer homeowners the latest smart home products and HVAC services.