In this episode of The FlyWheel Effect, host Brent Sonnek-Schmelz chats with Joseph Kolchinsky, the founder and CEO of OneVision Resources. Joey discusses how OneVision streamlines service operations for smart home installers, drawing from his extensive experience in IT services for high-net-worth families. 

He shares how his initial business of tech support led to the realization that there was a significant opportunity in providing ongoing support for smart home installations, leading to the founding of One Vision. 

Joey highlights the importance of building long-term relationships with clients, noting how recurring service models can double or triple the lifetime value of a customer. He explains how integrators can benefit from focusing on service and support, rather than solely on new installations, especially in an era where hardware margins are shrinking. Joey's insights into the evolving smart home industry and the growing recognition of service's value are central themes in this engaging conversation.


Guest-at-a-Glance

💡 Guest: Joey Kolchinsky

Key Insights

Smart Home Integrators Must Embrace Recurring Revenue Models

Recurring revenue models are essential for smart home integrators to maximize client relationships and business value. Traditional project-based approaches, focused solely on new installations, overlook the significant opportunities presented by ongoing service agreements. Recurring service models can double or even triple the lifetime value of a customer, ensuring continuous engagement and satisfaction. By providing regular support and maintenance, integrators can create a more sustainable business model, adapting to the industry's evolving dynamics where hardware margins are shrinking. This shift in focus not only enhances customer loyalty but also stabilizes revenue streams, making integrators more resilient and competitive in the long term.

Service Departments Need to Adjust for Profitability

Integrators need to re-evaluate how they manage service departments to ensure profitability. The traditional structure, which involves sending technicians on site for small issues, can be cost-prohibitive. Integrators must find efficient ways to handle these service calls, such as remote support or optimized scheduling, to reduce overhead costs. By charging appropriately for after-hours and emergency services, and by structuring service contracts to reflect the real value provided, integrators can improve their profit margins. This approach allows for better allocation of resources and ensures that service departments contribute positively to the overall financial health of the business.

Margin Compression Demands Strategic Service Integration

The smart home industry faces significant margin compression on hardware, necessitating a strategic focus on service integration to maintain profitability. Hardware that once provided high margins now yields much less, making it critical for businesses to adjust their financial models. Integrators must recognize that the real value lies in their expertise and the labor they provide, not just in selling hardware. Offering comprehensive service packages that include regular maintenance, troubleshooting, and updates can offset the lower hardware margins. This strategic shift not only provides a new revenue stream but also enhances customer satisfaction and loyalty by ensuring seamless and continuous operation of smart home systems.