Home Tech Problems Open Door For Integrators

Over the last year, more than 21 million home Internet users reported PC hardware and software issues, and nearly 11 million suffered network problems, said the report, titled "Managing the Digital Home: Installation and Support Services." In addition, more than 41 million home Internet users experienced problems with security.

Jeremy Nelson, president of Friendly Computer Service, a Tampa, Fla.-based digital integrator that serves homes and small businesses, said more and more customers are seeking qualified, trusted assistance with technical problems. He pointed to a home video now making its way across the Internet that shows a Comcast technician asleep in a customer's easy chair as he waited on hold with the company's services arm.

"People are sick of that kind of stuff. They're willing to pay someone $150 who they can trust to fix their problems," Nelson said.

And the Parks Associates study bears that out. More than 60 percent of those polled said they would like software that automates basic PC maintenance, and one-third expressed interest in subscription-based technical support and troubleshooting services. Home Internet users also said they would more willing to pay for peace of mind by buying additional product warranties and protection contracts.

"Consumers want access to trusted third-party providers of information, support and how-to services when it comes to their digital home products and services," said Parks Associates analyst Kurt Scherf, the author of the report.

In providing tech services to home users, it's important for integrators to ensure that customers clearly understand the cost involved. Friendly Computer Service, for example, charges $75 an hour, a $30 travel fee and time-and-a half for after-hours calls, Nelson said, adding that most of the jobs take at least two hours.

"My clients are OK with that," Nelson said. "It also shakes out people who are really cheap."

David King, president of King Systems, a Denver-based integrator that serves business and home users, said he's often asked by customers who initially hire him to install home theaters if he can work on their PCs or networks. To make sure customers don't expect something for nothing, King charges an upfront $65 "bench test" fee, saying he can look at the products on-site or back at his facility. In addition, he charges $65 an hour for all repair and consulting services.

King said several home networking jobs have run upward of $8,000. Integrators typically charge between $50 and $175 an hour for home calls, depending on the location and the job. "We do it so dad doesn't have to take his daughter's laptop to the IT guys at his company. It also helps the clients realize that their home theater installers can also fix their computers and home networks," King said of his pricing strategy, which he hopes to expand and clarify by offering a menu of fixed-priced services. "By explaining the charges upfront, the customer knows how much something will cost and that they do have to pay for certain results."

Not all solution providers, pro audio/video installers and integrators, however, want to deal with the headaches of servicing home PCs and networks. Still, many have adjusted their business models to handle such business, finding that the service builds customer loyalty and often leads to additional home and commercial sales.

"You always get repeat business and referrals from your good customers, and those people also know somebody who has a business," Nelson said.

For example, Nelson started his company 10 years ago with a focus on the home, found it didn't pay and quickly turned to the small-business arena. But in recent years, he and other integrators have delved back into the home tech market by providing security solutions, wired and wireless network setups, system repairs and optimization, broadband connections, consulting and troubleshooting, and data transfers. Those service calls frequently result in extra sales of computer and A/V products.

Today, Friendly Computer Service's home customers account for 10 percent of its business, according to Nelson. He said he expects that number to surge as his company completes phases of a 3,000-home subdivision in Brandenton, Fla., in which it's providing cabling and other technology through a partnership with CompUSA's Digital Living division.

"Now we're thinking of different ways to work with a whole new group of home users," Nelson added.

For more coverage sign up for CRN's Digital Connect home integration e-mail newsletter.