The Integrator's Voice

By Leslie Stevens · September 2006

New business relies on established skills to move ahead in the competitive residential installation market

Spotlight On: Craig Kiker and Fred Gray

STARTING a new residential installation business means having specialized knowledge, business skills, financial resources, patience and tenacity. Partners in Powerhouse, located in Rockville, Md., had the right ingredients to build a reputable company from the ground up. We spoke with Craig Kiker and Fred Gray of Powerhouse to get the inside scoop on what keeps this business going.

Q. Why did you decide to start your own custom integration business?

IT'S the worst nightmare for a family -- a seriously ill or injured child needing short- or long-term medical attention at a hospital.Partners in Powerhouse, located in Rockville, Md., had the right ingredients to build a reputable company from the ground up.

A. Initially, we saw the convergence of security and audio/video integration in the residential market. Based on that, we were compelled to start a new company because Fred possessed extensive experience security and I (Craig) had a solid background in audio/video. We felt the synergy between us had the making of a successful business.

Q. What were the first steps you took in getting started?

A. Our top priority was to build brand identity for our company. We wanted a strong corporate image along with an identifiable logo. We then wrote a solid business plan and began to implement it.

Once we knew the direction that we were headed, we began building appropriate relationships. These included associations with builders, architects and interior designers. We also had many contacts from our 15-year history of doing business in the Washington, D.C., area. And finally, we began building rapport with essential entities in the trade such as manufactures, independent rep firms and distributors.

Q. What were your greatest challenges and how did you resolve them?

A. Our biggest challenge was finding talented installation crews and other career-minded employees. Our primary recruiting methods included networking and Internet advertising. We were not afraid to hire -- and pay top dollar for -- good people and establish a solid benefits program with a good 401K, even plan for profit sharing. Our business model, reputation and benefits package has attracted good employees.


Our second challenge was finding suitable real estate in an impacted market (Washington, D.C.). We required an industrial space and a showroom that included office space for meeting with potential clients. This "flex space" is in high demand and short supply in our market. We spent lot of time pounding the pavement and eventually found the right building.

Q. How have you been promoting your new business?

A. We immediately developed marketing tools that we felt were essential for promoting the company. These included brochures, a Web site and decals for the trucks. Our literature was separated into two groups: one that targeted homeowners and the other that targeted builders. Along with the marketing tools, we began making outbound calls to potential customers.

Q. How do you position yourself against competition?

A. We focus on the right solution for the customer. We find that if you design affordable systems that work, then price is rarely a concern. We design intuitive solutions that accomplish the same results as complicated systems that might otherwise be more troublesome and expensive. We win contracts by the virtue of being straightforward with customers and offering them a turnkey solution.

This article originally appeared in the September 2006 issue of Security Products, in The Integrated Home section, pg. 68.

About the author

Leslie Stevens
Leslie Stevens is president of Eclipse Marketing, a full-service marketing and public relations firm. Stevens regularly contributes articles for the security market, A/V industry and builder arena. She can be reached at (949) 363-5340.


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