i3 - March/April 2020 - 47

By Steve Smith

Business

R E TA I L ST R AT EG I E S

The 'Last 50 Foot' Challenge
for Dealers, Suppliers
profitable installation models, [dealers]
are going to find themselves in a really
tough spot because they won't be able
to subsidize that from other parts of
their business."
Regional retailers and specialty
dealers are challenged because "the
largest retailers are changing the landscape and the way business is done. It
can't be concentrated around storefronts anymore," Pidgeon says. "Plenty
of players are reaching out to their
customer bases online. Regional
retailers need to be armed with the
tools these larger competitors are now
using" which increasingly includes
quality installation.
n the home technology business, the most crucial
Based on its experience last year,
Goodman covered 61% of the U.S. poppart of the sale and installation of a system or service
ulation with its trained
is "the last 50 feet" and that once installed, the
employee workforce. He
"quality of experience" (QOE) for consumers in their
says that Goodman will
homes is crucial. Of course, the perpetual shortage of
hire "1,000 new techniexperienced technicians and the cost of sending them
cians this year to support
to consumers' homes is a major issue as well.
existing business," and
that their U.S. population
coverage could grow to
it redefined how it would
Enter Daniel Pidgeon, a veteran industry
78% by the end of 2020.
use its existing installer
retailer and former CTA chairman, who
Brands are
Many networked prodbase. "We took that
recently joined Goodman Networks as
ucts are described as
defined by
unprofitable part so we
president of home services. His operaplug-and-play. However,
can provide some revetion can help alleviate many of these
how their
nue. And they can center
issues for retailers and their suppliers.
products make Pidgeon says, "While they
may be 'smart,' they are
on what they do best,"
Goodman is a field services company
consumers
not 'simple' to set up." A
says Pidgeon.
that for 20 years has historically done
feel.
disappointed consumer
AT&T and DirecTV installations. Starting
Daniel Pidgeon, President of Home
with a low QOE after an
last year it has been doing 'white glove,'
The Premium Market
Service, Goodman Networks
installation is serious.
last-mile installation and maintenance
Pidgeon notes that
He says, "Brands are
services for major national retailers and
regional or specialty
defined by how their
brands moving into the smart home and
retailers "always looked
products make consumers feel." A
connected device categories. "We did
at the sale" of a home system as a whole.
major part of that is the installation
10,000 last year, with a major portion of
There was profit in the products which
of these new connected home systems.
it small IoT," Pidgeon says.
subsidized the installation group, but he
The retail veteran is turning to regional notes that business plan "is coming to an Pidgeon says Goodman's program
working with dealers and suppliers
retailers and specialty dealers, as well as
end quicker than most people thought."
will help consumers experience and
buying groups and suppliers as new cusAs more involved home automation,
enjoy their new systems, without havtomers to do these typically low-margin
smart appliances and IoT systems grow
ing to think about the installation.
and costly installations. For one retailer,
in popularity, he warns, "Without

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