It’s a debate as old as the custom integration industry itself: Is there financial opportunity in the mid-market? At Vanco, we’ve argued before that there’s a lot of room for growth in this segment, and CEDIA’s latest Professional Smart Home Market Analysis affirms that integrators are taking on more mid- and broad-market jobs. However, panelists diverged from the data during the State of the Industry session at CEDIA Expo, once again arguing that stability and growth come primarily from the luxury sector. What gives? Is the mid-market just an emerging supplement to integrators’ core business, or can it be a strategic focus?
Bucking conventional wisdom to specialize in mid-market jobs can absolutely work — at least in the experience of Ken Ramsey, founder of Dr. Hook It Up. Ramsey’s business has enjoyed more than 25 years of steady growth in Central Florida while maintaining a nearly exclusive focus on mid- and broad-market residential installs. I recently talked with Ramsey about why he’s happy to take on the small jobs many integrators won’t touch, including how those mid-market jobs have led to commercial and luxury opportunities.
LINDSEY CORBIN: How did you get into the custom integration business?
KEN RAMSEY: I started out as a satellite integrator — one of the first DirectTV integrators in Florida, in fact. During the satellite boom, I had 20 trucks on the road, and my business just kept evolving with the times. We started installing flatscreens; doing subcontracting work for big box stores like Best Buy and Circuit City. When those businesses brought installation in-house with programs like Magnolia Home, I found that there was still a lot of demand from people who just wanted help hooking up everything in their living room. These were relatively small jobs, projects the big integrators and even the big stores didn’t necessarily want. I was used to volume, though — I know how a steady stream of small jobs can keep a business going and growing over time. I moved from subcontracting toward independent integration, and that’s how Dr. Hook It Up was born.
What kinds of jobs does Dr. Hook It Up typically take on?
We do a lot of surround sound systems and basic media room setups. These are $5000 to $10,000 jobs. They’re not huge, but because we take them seriously and apply a high degree of attention to detail, they frequently lead to more business. We also do a fair number of larger jobs, like whole-home audio installs and home theater projects. I’d estimate we do eight to ten small jobs per week along the lines of mounting a TV, and four to five bigger projects a month.
That would put you in the top 1 or 2% of integrators nationally in terms of number of projects per year. How do you sustain that level of customer acquisition?
It’s almost entirely word-of-mouth and repeat clients. My monthly marketing budget is less than $500. I spend a couple hundred dollars on Google Ads and Angi sponsorship, but the vast majority of my business comes from referrals. I also benefit from a lot of “keeping up with the Joneses.” The neighbors will swing by while we’re updating the entertainment system in the living room, and next week, we’ll find ourselves next door doing the same thing. It’s not rocket science: I can handle all my marketing needs myself with just a couple hours of work, and I’ve managed to keep myself booked and busy for more than two decades.
How has that strategy served you during economic downturns? Usually, people look for shelter with less price-sensitive customers when the market looks uncertain.
I know people say that, but it hasn’t been my experience. A lot of the bigger integrators in Central Florida really struggled or even closed during the 2008 housing crash and the 2020 pandemic. The smaller jobs never go away, though. Even when people’s budgets for travel or other luxuries are shrinking, they still want to have great entertainment experiences at home. I built a loyal customer base by offering an affordable service during those times, and when the economy bounced back, they still wanted to work with me. A lot of my housing crisis and pandemic-era customers have since moved into multimillion-dollar homes and opened new businesses. When they move into a new property, I’m one of their first calls.
Does that mean that your business has evolved to encompass more commercial jobs?
It’s never been my goal to be a commercial integrator; I prefer the more personal client relationships you find on the residential side of the business. When I get a cold call about a commercial project, I give those prospects a referral; however, I have found myself doing a fair bit of commercial work for former residential clients. These are people who already trust me and see me as a design partner.
So, you are selective in your clientele — just in a different way than many other integrators.
Right. But that helps me make sure that when I take on a commercial job, it’s still something that I’ll enjoy working on. For instance, I recently installed a custom video wall in the lobby of a former residential client’s brokerage firm. He wanted an impressive, highly professional welcome area for clients that would also work for entertaining: There was a “business by day, party by night” twist to the space. He also expected the system to be cost-effective and simple to operate, just like his home theater.
We installed a 2X2 video wall with a Vanco Evolution Matrix switcher hidden in the reception desk/secret wet bar. The matrix allows the client to show multiple real-time stock market feeds during the day and easily switch to full-screen mode for nighttime events. It’s an incredibly simple signal chain and interface that works perfectly for their needs.
How do your commercial projects differ from your typical residential jobs?
Working exclusively with former residential clients on the commercial side makes sure that the relationship stays positive and communicative. There are certainly differences though, right down to construction materials. That brokerage project was in a building made primarily of cinderblock, so cable management was a real issue. I’m an old-school guy: I want every detail of the project to look perfect, with no exposed or obvious pathways. We made extensive use of Vanco HDMI extenders throughout the space to ensure we could route cables unobtrusively while maintaining a reliable signal with no latency. That approach helped us pull off clean, professional installs not only in the lobby, but for wall-mounted stock market displays in all the broker offices.
Obviously, it really helps to have distributor and manufacturer partners that can help you spec out any kind of job — resi or commercial. I like being able to stick with brands I trust when I cross over into the commercial space.
It sounds like a relatively big job. You don’t see more ROI going after large commercial projects like that?
No. At the end of the day, the residential market is where I’m happiest. Those clients become almost like friends. They truly see me as a partner, and they recommend me to all their neighbors and family members. For every commercial job I take, I may have to turn down 15 to 20 small residential projects, and that business owner isn’t nearly as likely to recommend me to his rivals.
I’m a mid-market guy. It’s how I’ve survived, thrived, and built a business that I love. This steady stream of clients is going to keep me as busy as I want to be for the foreseeable future.
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