The final few months of the year often find integration companies busier than ever as they aim to complete ongoing projects so their clients can enjoy the technology during the holidays. No one wants a technician trudging around their hallways when family and friends are usually visiting. But while November and December are less busy than the rest of the year, the surprise occurs in January. Let's dig a bit deeper.
According to data drawn from 116,062 proposals and 47,0645 signed contracts created in D-Tools Cloud in 2023, there is very little seasonality to the smart home industry. In terms of proposals, integrators will on average produce between 13 and 14 proposals per month. In terms of installations, integrators sign between 6 and 7 contracts per month on average. For the most part, business is steady throughout the entire year; however, there are some curious minor fluctuations.
It is curious to see the increase in proposals and installation contracts in the month of January, which is not a month usually known of increased business activity.
Looking more closely at proposals, there are a few months that are slightly higher than others, with May being the peak month with an average of about 15 proposals being generated per integration company. April is the second highest month when clients are asking for quotes. Surprisingly, January is the third most popular month for proposals and tied for the most-busy month in terms of installations.
Those spring months being the busiest make sense; namely because the weather is warming up and it would be the logical time for customers who desire to have outdoor technology installed in their backyards to seek out an integration company. But January... what is going on?
January is the depth of winter, so the weather is generally bad. Affluent customers are prepping their taxes so typically don’t want to spend money with a pending tax bill, and most consumers are paying off their holiday bills. So how could January be busy for both proposals and installations?
The answer may lie in the project size. When we look at the average installation value month by month from the recent D-Tools 2024 Midyear Market Report, January stands out for having the lowest average price point by far. The average installation revenue in January 2024 was $15,959. That is well below the $18,203 monthly project size average for the rest of the year… 12% lower to be precise.
Corresponding with the increased number of projects in January, the month had the lowest average installation revenue. The theory is that customers are seeking out "Do It For Me" solutions for their holiday smart home gifts.
The logical conclusion is that January is when consumers are looking to have their smart home technology gifts installed. Technology has become a trendy gift, with purchases of big screen TVs (for the NFL playoffs), video doorbells, surveillance cameras and smart thermostats under the Christmas tree. But most consumers quickly realize they do not have the ability to install those devices, and they seek out professionals to install and connect them.
The conclusion is that January is a good month for integrators to promote “Do It For Me” month to their potential clients. Is it worth a try? The data says it is!
