The Integrator's Voice

By Leslie Stevens · November 2006

Established players come together to form one-stop shop for home solutions

Spotlight On: Rich Apgar and Sean McDermott

JUST as times change, so has the home A/V business. Rich Apgar and Sean McDermott have weathered the changes and created a full-service company that caters to home builders and owners with a myriad of complete solutions. We talked to Apgar and asked him about the company he founded with McDermott, AES2.

Q. How did you start in the business, and what services did you offer?

In 1985, it was tough to work with builders because they didn't understand structured wiring and electronic upgrades. They avoided it because it slowed down their production cycles. We had to educate them on structured wiring and the financial benefits that could be made.

A. I first got started back in the mid 1970s by outfitting Navy ships with audio/video solutions, which is how I received my initial training. Then in 1979, I started Early Warning Industries, a security monitoring company. During that time, I hired Sean McDermott, who is now president of AES2, our full-service A/V company that we currently own and operate.

During the mid 1980s, we expanded our monitoring services to include Nutune, CVAC and audio for residential market. We promoted these solutions as attachment selling to our alarm monitoring systems.

Later, I got sick, and gave all the new leads to Sean to start his own company. Sean then built his own company, but I still retained the existing monitoring business.

Q. How did you expand into A/V? How did you learn to design and install these systems?

A. I wanted surround sound in my own house, so researched systems that were shown at trade shows. I then called the manufacturers and read trade magazines to get more information. I already had the design and installation skills due to my time with Navy ships.

After I installed my own house, my health got better. My existing customers began to ask for the same audio system I had. They liked the fact the speakers could be heard but not seen. So in 1986, I got serious about audio and added it to the list of services we offered. Early Warning Industries then became the only alarm company in the area offering these services.


How did you expand into the new construction market?

A. In 1985, it was tough to work with builders because they didn't understand structured wiring and electronic upgrades. They avoided it because it slowed down their production cycles. We had to educate them on structured wiring and the financial benefits that could be made. We also had to demonstrate why we wouldn't slow down their construction schedules.

Along with educating builders on electronic upgrades, payment terms were difficult to manage. I had to create my own method to ensure that the builders paid on time.

At first, builders only wanted to offer CVAC, intercom systems and security. However, through our promotional efforts, we were able to get the builders to expand their offerings, which included audio and video. We eventually became a one-stop shop for builders.

How did you first promote the upgrades to home buyers?

A. Due to my Navy days, I learned how to wire correctly and got in the habit of cleaning up each day -- so builders let us set up demonstration boards. We built these portable walls, which went right into garages of model homes. We mixed different products onto the same wall. And once the wall went up, it was stationary until the model sold out. A glass door was installed between the house and garage to invite in homebuyers into the demonstration area.

How did get AES2 started?

A. As my new business grew, so did Sean's business. We saw synergy among our two companies. So in January 2001, we merged to become Advanced Electronic Solutions 2, or AES2.

What were your biggest challenges, and how did you overcome them?

A. We were having a lot of failures with products. That was challenging us to have enough employees to source new equipment and properly provide service for customers. To solve the problem, we started testing the products in-house and at a maximum output. We wanted to make sure the electronics didn't overheat and blow up in a customer's home.

What complete solutions do you offer today?

A. Today, as a full service integrator, we can design and install an electronic, low-voltage system that will enhance the homeowner's lifestyle. This includes, but is not limited to, distributed audio, home theater, access control, monitoring, home automation and CVAC.

Looking back, was it the right thing to do?

A. Absolutely. It was right for a lot of reasons. Audio and video solutions have become the most profitable for us. Homeowners are willing to spend more money on fun items than alarms. If we only did alarms, we would have been out of business a long time ago. It also wouldn't have been as fun for us.

Spotlight on: Rich Apgar and Sean McDermott
Company name: AES2
Headquarters: El Cajon, Calif.
Web site: www.aes2.net
Telephone: (619) 449-1818

This article originally appeared in the November 2006 issue of Security Products, in The Integrated Home section, pg. 80.

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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