CE Pro May 2022 - 42

HOME ENTERTAINMENT
According to the research, the most difficult equipment to
obtain are pre-amps, processors, AVRs, media servers, controls/interfaces,
Blu-ray disc players, mounts/screens/seating
and other associated gear.
Those unfinished theaters represent real lost money, as
dealers struck gold in terms of being able to elevate their
home entertainment installation price points. For dedicated
theaters, which can include basements in some cases, the
average end-user price charged in 2021 was a healthy $50,357.
That is an incredible 77% increase compared with 2020, when
the average price point for a dedicated theater was $28,227.
The same trend appears in multipurpose room theaters,
such as dens/family rooms, living rooms, great rooms and in
some cases basements. The average price point for a multipurpose
room setup rose to $27,500, up from $17,312 the previous
year. That is a solid 59% increase.
The data mirrors a similar trend gleaned from the annual CE
Pro State of the Industry Study in January and the CE Pro 2022
Outdoor Entertainment Study in April that showed CE pros
doing fewer jobs but for much higher average prices. CE Pro is
using the same definition for " home theater " that is used by
both the Consumer Technology Association and the National
Association of Home Builders in their annual joint State of the
Builder Technology Market Study, which is a " minimum 42-inch
display with surround sound. "
There are several obvious reasons that CE pros were able to
charge such premiums for their home theaters. First, most integrators
have raised their labor rates due to the pressures of
Custom integrators earned 77% more on home theater
projects in 2021 vs. 2020, but had a median of four projects
uncompleted due to ongoing supply chain woes.
inflation that began hitting the economy in the spring of 2020.
Since inflation is an everyday challenge for consumers with
food, gasoline and other services, it greases the skids for integrators
to boost their rates. Second, the adage that scarcity
breeds demand applies to this situation, enabling integrators
to charge more for the equipment that in some cases is taking
more than six months to be received once ordered. Third, lack
of manpower is continuing to allow dealers to be selective in
the projects they choose. Logically, it makes the most business
sense to choose larger, presumably more profitable projects.
As noted last year when the world was still in the grips of
KEF: THX-Certified Music Lounge Ideal for Dolby Atmos Demos
Currently, consumers are
looking to bring the theater
home, and are willing to
spend big if they're shown
what could be done in their
space, regardless of size. A
proven pitch is to present
a " good/better/best " scenario. Start with the best and give
the client the opportunity to step down.
KEF's Music Lounge in its Marlboro, N.J., office is accessible
to KEF Authorized Dealers to demonstrate a variety of audio
performance levels in an environment akin to a luxury home.
The theater on site, which recently received THX Certification
and is the only publicly accessible certified theater in the
country, is available to show off KEF's theater design chops. It
has been a terrific laboratory, as over the past several months
dealers have brought their clients when the potential for
investment was significant.
In every instance when demonstrating the high-end THX
theater speakers vs. smaller speakers, the customer chose
to immediately switch from the 6.5-inch $300/pair to the
8-inch $800/pair to $1,600/pair option on their own. They
were in awe of the performance. How could they not go for
it? The starting point at which they were willing to invest
increased x2.
We walk around with $800 smartphones that get
traded in every 24 months because the phone companies
have us trained: The words " new technology " mean
" upgrade immediately! " Dolby Atmos is now a commonly
requested audio coding.
When presenting Atmos as " new technology, " you are
triggering something people have been trained to understand.
Atmos speakers are a no-brainer upgrade to an existing room
and a worthwhile addition to a pending theater quote. Show
them what's possible - you won't regret it. -David Kroll, VP
Sales USA, Ci Product Manager Global, KEF
42 | CE Pro May 2022
cepro.com
WHITNEY KAMMAN
http://www.cepro.com
CE Pro May 2022

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