Here’s an article from CE Pro June 20th 2011 By Jason Knott – his view on Why Digital Home Health Isn’t Selling….what do you think??? To read the article: http://www.cepro.com/article/why_digital_home_health_isnt_selling/
As the residential market continues to flatten and integrators seek out alternatives, why haven’t more dealers looked into digital home healthcare? After taking a full-day GrandCare Systems training recently at Home Controls Inc., here are a few of my conclusions.
The market is growing: There will be 70 million senior citizens by the year 2030, double the number from the year 2000. This one is even more mind boggling: there will be 1 million people over the age of 100 by the year 2050. Almost none of us will able to afford nursing homes.
The systems are profitable: Systems from companies like GrandCare offer healthy margins for dealers.
The systems offer recurring revenue: Dealers can earn solid “alarm-like” recurring monthly revenues from home health systems.
There is an entry-level option: Personal Emergency Response Systems (PERS) offer a lower-cost option to “get your feet wet” in the market.
Systems are easy to install: The GrandCare System is stand alone, it does not and cannot integrate with a home control system. That might be a drawback in terms of providing a totally seamless solution for customers, but is probably not a reason for not even offering these systems. Plus, the installation is way easier than installing a control system or even an A/V system.
There is no liability to the dealer: In the case of GrandCare, the system liability is borne by the manufacturer, not the integrator. Besides, the system is not a PERS. It is not designed to detect when granny falls down the stairs.
Since all the stars seemed to be aligned for aging in place systems, why aren’t they selling? The only conclusion I can come to is that integrators are unwilling to put in the sales effort. For the average integrator, the systems are not easy to sell. The sales process requires educating both the caretaker and/or the family of the elderly client. It can be slow with a lot of hand-holding.
Selling digital home health also means you have to establish relationships with a new set of partners (nurse care, physical therapists, oxygen supply providers, etc.), and A/V guys don’t want to do that.
If you want to put in the work, the home health market is ripe for the picking. If you don’t, then you will be on the outside looking in on a market that is unquestionably going to be huge.
Am I wrong?
CE Pro June 20th 2011 By Jason Knott
About the AuthorJason Knott, Editor, CE ProJason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. Jason graduated from the University of Southern California.
5 CommentsPosted by Paul Self on 06/20 at 10:04 AMPosted by Stephen on 06/20 at 12:41 PMPosted by Paul Self on 06/20 at 01:03 PMPosted by Jason Knott on 06/20 at 01:17 PMPosted by Laura Mitchell – GrandCare Systems on 06/21 at 09:17 AM