Mile High Automation grew out of its founder’s passion for cutting edge technology and his desire to use it to improve our lives. With prior experience in IT and audio, Josh Ferguson found his calling in home automation. What started as a simple hobby soon turned into countless sleepless nights researching and tinkering with every device he could get his hands on.
In 2005, while working on his MBA, Ferguson parlayed his passion and extensive knowledge of home automation into a business: Mile High Automation LLC. Initially providing Colorado residents with fully installed systems, Ferguson noticed an industry trend – systems were getting easier to install but more difficult to design and program. In addition, the average consumer’s understanding and comfort level with technology was rapidly increasing. This prompted Ferguson to move his business online where he could use his expertise in the design, programming and configuration of systems, while providing guidance and tips on installation to the owner or his installer.
Now in its third year, Mile High Automation has skyrocketed to become the worldwide leader in DIY home automation systems. Working one-on-one with homeowners, builders and dealers from around the U.S. and as far away as Sydney, Australia, Mile High Automation has earned both client and industry praise.
While the products have changed, Mile High Automation’s high level of personalized service has not. “We ‘automate’ homes all day long, but the one thing that cannot be automated is the personal relationship with our clients,” states Ferguson. “Each automation system we create is built around the homeowners -- their family, their home, and their unique needs.”
Ferguson continues to stay up late at night researching the latest trends in the industry, as well as scouring conferences and trade shows for new ideas. “The industry is changing and evolving every day; if we become complacent, our clients will suffer,” he says with a smile. Ferguson can’t wait to test out the next great gadget coming down the pike.
Note: Polk audio products are only available to clients in the Denver, CO area.
Mile High Automation News:
Mile High Automation enters Distributorship agreement with Suttle
January 1st, 2008
Mile High Automation has become a distributor for Suttle Soho enclosures and modules. We chose the Suttle for their amazing build quality, "automation friendly" panels, and excellent pricing. MHA is now stocking Suttle enclosures, data switches, phone and video modules, and accessories.
Mile High Automation enters Distributorship agreement with Coleman Cable
December 27th, 2007
Coleman Cable, a leading manufacture of wire and cable has entered a distribution agreement with Mile High Automation to allow us to sell their cable. We now are a stocking distributor and can fill all your low-voltage wire needs. In addition, this agreement allows us to offer FREE WIRE SHIPPING on wire orders over $3,500.
Justin Cooper hired as Project Manager
December 15th, 2007
Mile High Automation is very pleased to bring Justin Cooper onboard as our new Project Manager. Justin will guide clients through the entire process from pre-sale questions to post-installation support.
Justin started as a dealer for Mile High Automation offering complete home automation systems to clients in the greater Memphis area. Justin's impressive blend of personal and technical skills was quickly noticed by MHA. "Justin is an amazing addition to the Mile High team and we are thrilled to have him with us" says Josh Ferguson, Mile High Automation President. "His high customer service standards, love of technology, and drive fit in perfectly with our growing company".
Mile High Automation partners with Barzan Digital in Qatar
December 11th, 2007
Mile High Automation has entered into a partnership with Barzan Digital in Qatar to start the first Home Automation company in the rapidly developing country. In the next 5 years there will be over 250,000 new homes built in Qatar, all with a sales price of over $600,000US.
"We are very excited about this new partnership which will combine our experience and product expertise with Barzan Digital's contacts, resources and talents" states Josh Ferguson, president of MHA.
Jaime Ferguson named Director of Operations
December 1st, 2007
Jaime Ferguson has joined the Mile High Automation team as our new Director of Operations. Jaime will oversee day-to-day activities, further vendor relations, and manage shipping/receiving. Jaime will also be developing our "User Guides" which explain how to use the system, in addition to the "Installation Guides" we currently offer.
Jaime graduated Magna Cum Laude from Albright College. Since then she has had to endure her husband's (Josh Ferguson) interest/obsession in home automation while he systematically adds technology to every nook and cranny in their personal home. In 2007 Jaime attended CEDIA and began her official training in Home Automation attending several courses and meeting with manufacturers.
Mile High Automation enters Distributorship agreement with HAI
October 15th, 2007
Mile High Automation has become an HAI Distributor. This partnership gives us a tighter relationship with HAI, increased support, and better pricing that we can pass on to our clients. It also allows us to offer dealer and builder programs for all HAI products.
Mile High Automation & HelpYouAutomate.com featured in the May 2007 Issue of CEPro Magazine.
IN THE FIELD
A Tale of Two Clients Helping homeowners to install home automation systems is not the same as helping professionals do it. One Web-based design and integration company learned this lesson early on and has since come up with
an appropriate solution— two separate businesses.
Doing business out of Commerce City, CO, MileHighAutomation.com began in 2005. Originally, the online company’s target market was homeowners, or end users, looking to install or upgrade an automated system themselves.
MileHighAutomation.com sought to provide end users with programmed, configured ready-to-install equipment as well as the directions and support to get it up and running.
“We then started getting about 25 percent of our calls from builders and electricians looking to install for another client,” says founder and owner Josh Ferguson. And addressing the needs of builders and electricians proved to be a challenge at the beginning.
The professionals wanted not only installation guidelines, but also marketing and presentation materials to provide their own customers. End-user pricing was another matter. Builders and electricians were looking to make a profit. End users, on the other hand, were looking to invest or just to enjoy.
So, MileHighAutomation.com decided that a separate, second venture, HelpYouAutomate.com, would be the
answer. By providing system plans, installation support with online oversight, design estimates and marketing materials for strictly for professionals, HelpYouAutomate.com could do what MileHighAutomation.com could not. Conversely, MileHighAutomation.com could now focus on the end user, without scrambling to meet the needs of its other client base.
“[HelpYouAutomate.com] can offer lower prices because we’ll be getting repeat business,” Ferguson points out. “They might be working on 20 houses per year, putting a system into each of those.” This pricing adjustment allows HelpYouAutomate.com provide additional services as well.
“We tailor the materials to the builder,” Ferguson says. His company not only creates for builders a plan, a presentation kit and design estimates, it also will put their clients’ logos on the plan to express to potential end users the teamwork involved in any given project.
One customer base that neither Mile High Automation.com nor HelpYouAutomate.com has yet to address fully is that of the new business owner.
“At first, we were getting lots of requests from people just starting their own business,” Ferguson says. “They wanted to know all the product options, all the answers. It was too wide, what they were looking for.”
Providing new business owners with in-depth information and support on any given automation topic isn’t easy, but it’s in demand.“There’s a need for that, but we couldn’t successfully find a way to meet that need,” says Ferguson.
Mile High Automation LLC awarded HAI 5-Star Dealer Status
March 9th, 2007
Mile High Automation LLC, based in Denver, Colorado, has been named to Home Automation Inc.'s Five -Star Dealer list. HAI announced the winners of its Five-Star Dealer program for 2007 on March 8th at their annual Dealer Appreciation Party held during the EH Expo in Orlando, FL. Winners were selected on the basis of sales volume, customer support and proven product expertise. This designation recognizes the top home automation dealers in the country.
Josh Ferguson, president of Mile High Automation, credits a loyal customer base, word of mouth and a growing demand for home automation products for the rapid increase in Mile High Automation's sales volume last year. In a time of home automation companies that spring up and disappear overnight, our customers can rest assured that Mile High Automation is pulling ahead of the pack as an industry leader; we will be around to offer our customers continued support for years to come, Ferguson explains.
Home Automation Inc., the nation;s leading manufacturer of integrated automation and security products since 1985, is based in New Orleans. Though the factory sustained significant damage from Hurricane Katrina in 2005, HAI was able to quickly transfer its operations to a new facility in the area and last year was the company's most successful year ever. The key to that success and growth has been the support of our dealers, says HAI President, Jay McLellan. Thanks to them we're stronger and better than ever and the Five Star Dealer program is all about growing our businesses together.
314 companies were named as 2007 HAI Five-Star Dealers. HAI sells its products through a worldwide network of over one thousand distributors and dealers.
In January of 2007 Mile High Automation, a leading dealer of home automation systems based in Denver, Colorado, launched a new Business-2-Business sales division, HelpYouAutomate.com. This site features the same high level of customer service, product expertise, and complete package philosophy as Mile High Automation, but sells directly to developers, builders and electricians.
As Mile High Automation grew in popularity, we saw an increased demand for our products from real estate professionals and installers. We were getting calls from builders wanting to offer home automation as an option to their buyers, and electricians wanting a reliable line of products they could install. We realized that our business needed to expand in order to fully service this corner of the market, explains Josh Ferguson, company president.
Help You Automate offers builders and installers a complete package of home automation which includes hardware, programming and design: everything but installation. The company also provides builders with customized brochures and sales support for them to use with their clients.
Help You Automate offers the same upper-end product lines as Mile High Automation, selected for proven reliability, performance, enhanced and upgradeable features, and overall value. HelpYouAutomate.com offers products by HAI, Russound, Nuvo and Leviton.
Based on the growing demand for digital homes among a new demographic of tech-savvy home buyers, Ferguson expects his new division to see the same rapid growth as the parent company, Mile High Automation, launched in 2005.
We are very excited about Windows Vista, primarily with the new Windows Media Center touch screen features. This will allow our clients to use larger touch screens with the HAI Media Center Plug-In.
I feel Vista will also provide the bridge between our clients' digital music and their Russound/Nuvo multi room audio systems. With Windows XP this was possible to do, but took a fair amount of tweaking and did not feel like a professional solution.
I strongly believe drivers will become widely available for Russound R-NET and Windows Media Center. This would allow Media Center to push metadata to the keypads throughout the house. Currently, there are ways of doing this via Cinemar's MainLobby, but setup and use are done outside of Media Center and use the program J River Media Center (NOT the same as Windows Media Center).
The only item holding us back from moving to the Vista platform is the lack of Media Center Extender devices. As soon as there are devices (other than the Xbox 360) that enable Vista to be streamed to each room of the house we will jump on board.
Home Builders Outsource their Home Automation Needs
In the nineties it was whirlpool baths and granite countertops that became a necessity and defining feature for all luxury homes on the market. In this decade we are seeing a similar growing demand for home automation, as the technology becomes more refined and attractive to upscale computer savvy home buyers. Some of the latest must-have features in these systems allow the homeowner to view his security cameras over the internet, as well as to call his house from the road to turn on his Jacuzzi, switch off lights or arm the security system.
But for the builder, home automation poses two difficulties. First, most builders do not have the specialized training to design and program these hi-tech systems. And mistakes in this field are expensive; home automation systems start at $5,000 and climb to over a $1,000,000. Secondly, if the builder turns to a local dealer who provides the complete package of service – from custom design and programming, to sales and installation, he will miss out on substantial profits for these large up sells.
The three options open to builders interested in providing home automation systems are as follows:
Hire a local home automation installer to handle the entire project.
Use an independent home automation consultant who provides only the system design and/or programming.
Use an outfit that provides the design, programming and equipment plus provides instruction on how to install the system yourself.
We have already mentioned the first option above. While a local dealer offers the builder peace of mind with a complete design-to-installation package including performance warrantees, the high price tag leaves little room for any additional markup to the client.
The second option of a consultant allows the builder to realize maximum profit from his home automation system. The disadvantage is that the builder has to coordinate purchasing all the customized parts for the system from a different outfit than the company who designs it for him, with little guarantee that the program will work. However, he is able to capture the maximum profit margin. A typical system requires approximately four days of pre-wiring followed by another four days of installation. A licensed electrician is only needed for a very small part of the job – installation of smoke detectors and light switches. All other components of home automation systems are low voltage, requiring no special license to install in most areas.
The third option offers a middle ground for the homebuilder. There are companies that offer contractors full design and programming of home automation systems along with supplying the equipment. These companies cater to builders and electricians who want to sell and install the systems for their clients. They offer full service programming and consultation along with extras such as educating the contractor in how to present the product options clearly to the homeowner, providing marketing materials, and handling service calls. The builder is able to offer his client a system at a fair price and make a sizable profit on his time and effort. When systems are installed in spec homes, the home automation company will customize the system for the new home owner over the internet. This follow up service is included in the price to the builder.
No matter which option the builder selects, equipping his custom home with a quality home automation system is as important in today’s competitive luxury home market as providing top of the line kitchen appliances and whirlpool tubs. With such an investment he will attract the growing demographic of young upwardly mobile professionals who are demanding that their new homes be ‘smarter’.
Recently a friend decided he simply had to have the latest home automation system for his new house in the Florida Keys. The price? $265,000 installed.
Granted, his home is 7,500 sq. ft. and the system included twelve rooms of audio, eight touch screens, and more security cameras than you’d find in the Oval Office; but this estimate was too much even for my friend’s considerably deep pockets.
Undeterred, he went online to shop for other options. His new quote? $80,000 for the same system including design and programming, but not installation. He then found a local security system installer who agreed to put the system in for $30,000. In the end, he spent $110,000 and saved a whopping $155,000, or 58%.
My friend’s story illustrates two current trends affecting the luxury home market. On the one hand, there is a growing appetite for digital “smart” home systems among tech-minded high-end home buyers, and on the other, an increasingly prohibitive dealer price tag for these systems.
But many resourceful homeowners like my are finding a way around this problem, thanks to a new breed of Do-It-Yourself home automation companies.
In the past, DIY home automation companies were limited to selling either very basic structured wiring systems which you could program and install yourself, or adaptive retrofit systems which were easy to install (i.e. they use plug-ins that work through the home’s existing electrical system) but did not provide either the options or performance of a true hardwired system.
But in the past year a new breed of Do-It-Yourself home automation company has emerged that caters to mid and high-end homeowners who want the reliability and performance of structured wiring, along with all the latest digital bells and whistles.
Typically these homeowners find their way to a DYI company website such as Mile High Automation after receiving the shell shock of a local dealer’s estimate. Such Do-It-Yourself companies offer sales, layout and programming of home automation systems but leave the installation up to you.
Before purchasing a system, you need an overview of the various components you are paying for. Most home automation dealers sell a complete package that includes everything from design to installation and future maintenance.
First, it is important to understand that you are buying more than the actual hardware, which is typically the least expensive component of the package. You are also purchasing a customized design which specifies the exact location of various components in your house and provides a wiring diagram for installation.
Next, you are paying for the programming of your system, tailored to your family’s specific needs and tastes. Then, as we saw from my friend’s experience, you are paying for installation. This is where there is the greatest area for savings; dealers typically charge 50% of the total package to install the system.
Lastly, you are purchasing peace of mind: a guarantee that your system will perform reliably and be adaptable to your changing needs in the future.
The homeowner who is game to install his own home automation system is poised to reap the highest savings. By ordering his system through a DIY company and supplying the installation muscle himself, he can save between 40%–60% overall. Even when he hires an electrician or low voltage cabling company to do the installation, there is still a net savings of 20%-40%.
The small new DIY home automation companies provide many of the benefits offered by the manufacturer’s dealers. They are professionally trained and certified, offer expert design and programming, and provide the full manufacturer’s warrantee on parts and their own warrantee on the performance of your programmed system. Further, most of the DIY companies provide guidance and tips on installation.
So how difficult is it to install a home automation system? If your home is already built, don’t attempt a project of this scale on your own. Your walls will thank you for hiring a professional. However, in new construction the installation is relatively simple; it involves pulling wire through the framing of your house, then later mounting touch screens, thermostats, cameras, switch plates and speakers in the walls. General handyman and wiring skills along with free time and a supply of patience are all you need to install a full home automation system.
If my well-heeled friend had tried to install his own mega-system, supposing he possessed the skills and patience, it would have taken him about two weeks to pre-wire and another two weeks to connect all the devices and get the system up and running. In average size installations pre-wiring is typically done in under a week and device installation in 3-5 days.
But since my friend possesses neither the skills nor the patience for such a project, he did the next best thing and found a local installer. There is still plenty of room for savings if you can find an electrician or low voltage contractor who is up for the challenge. The going rate for a systems integrator is anywhere from $75–$250 per hour. Most security and low voltage companies will work for $25–$50 per hour doing the same type of work. While only someone trained in systems integration can design and program your system, anyone can pull wire through studs.
In the end, a homeowner must weigh his potential savings against the real cost — his peace of mind and willingness to roll up his sleeves and get involved. Clearly, the path of least headache is to go through a local dealer for a professionally installed system. You will not strain your marriage by drilling unnecessary holes through your walls or be worried about reliable service in the future. However, this convenience and peace of mind is expensive.
If you are willing to spend a bit of your own time and effort there is a lot of money to be saved. You can either perform the installation yourself with guidance from a DIY company or let your electrician and a DIY company team up.
My friend in Florida has never operated an electric drill and has no intention of learning, but he is thrilled to be saving so much money as a “do-it-yourselfer”. While the installation took a few days longer, the end result was the same as hiring a local dealer. When we last spoke he was lounging by the pool talking about how he could view who’s at the front door, turn off all the lights in the house, and fill the house with music without leaving his chair. He was in tech-heaven…
Mile High Automation grew out of its founder’s passion for cutting edge technology and his desire to use it to improve our lives. With prior experience in IT and audio, Josh Ferguson found his calling in home automation. What started as a simple hobby soon turned into countless sleepless nights researching and tinkering with every device he could get his hands on.
Mile High Automation LLC, based in Denver, Colorado, has been named to Home Automation Inc.'s Five -Star Dealer list. HAI announced the winners of its Five-Star Dealer program for 2007 on March 8th at their annual Dealer Appreciation Party held during the EH Expo in Orlando, FL. Winners were selected on the basis of sales volume, customer support and proven product expertise. This designation recognizes the top home automation dealers in the country.