The Lutron RAFT Business Process & Professional Selling

1. The Lutron RAFT Business Process & Professional Selling

2. The Business Process Including The Professional Sales & System Design Process & Project Management

3. The Business & Project Management ProcessResidential Lighting ControlHigh Level Flow Chart - Project Life Cycle

4. Phase 2 • In Home Consultation • More Customized Selling Process (questions about their lifestyle) • Present Project Portfolio (videos) • Explain “What You Do!” • “What is your budget?” • Turn Key System Estimator • Good, Better, Best “Low High Range” • Concept / Agreement on “Ranges” • Secure Design & Engineering Retainer • Price ranges based on simple fabrics Phase 3 Full System Design & Engineering Process - RadioRA2, HomeWorks & Shade Software (Final Fabric Discussions) Scalable for Good, Better, Best Phase 1 Conceptual Discussion Present Rough Budgetary “off the cuff” Create Price Frame of Reference Discuss Project Scenarios with Process and without Phase 6 Project Planning Operational Timeline Product Procurement Including Engraving Phase 4 Turn Key System Generator Professional Project Proposal Good, Better, Best (Visualizor?) Phase 5 Final Presentation Customer Sign-Off High Level Timeline Phase 9 System Start Up Customer Training (let them use the KP) “Finishing” Make appt for Phase 10 Phase 8 All Phases of Project Installation (Utilize Device Installation Report & As Built Electrical Plan) Programming, Integration Pre-Selected Engraving Installed / Colorization Phase 7 Product-In House Project Staged PM Outlines Final Project Process Tactical Project Timeline Committed Phase 10 “Finishing/System Review” “Free” Post Occupancy Visit “Tweak” Programming – Alter Engraving (Cost built in for first 10) Sell Upgrades/ Add New Products, Including Accessories and Colorization

5. Review “Turn Key System Estimator” • Back-ended system builds all services into the price of a “general component” for “Budgeting Purposes.” • Concept is presented, in a single system concept total, with a “Low High” range • Review all the AWESOME sales, design and quoting tools available – including apps and demos

6. Perceived Necessity technology which we “cannot” live without… • Air Conditioning (Ever have the AC “break” in the Summer?) • TV Remotes (vs. The Goodnight Lighting Scene) • Microwave Ovens • Clothes Dryers • Power Steering / Cruise Control • Power Windows • Keyless Entry (Ever had a dead battery in your key-fob or lose it?) • Heat & Air Conditioning in the Car • Computers / Laptops • The Internet (..or even just Google!) • Email

7. Perceived Necessity technology which we “cannot” live without… • The Cell Phone which became the Smart Mobile Device • The Smart Phone was once only the Blackberry… • now…iPhone, Android • Ever leave your home without your cell phone? • What is the symbol for taking a picture? • iPad / Tablet

8. Lighting Control and Shading Control, can and will become a “perceived necessity”

9. The Father & Son Video Game Story Price Reference – Personal Use – Perceived Value – Lack of Awareness

10. The “RA-Seed” Selling Process & ApproachDifficult to sell, but loved once sold“I cannot live without it now…”“too bad it is only in 3 rooms..”

11. “The Disposable Income Matrix & The Seeding Concept” At First…..

12. After the “RA Seed” is planted…..

13. After the “RA Seed” begins to grow into a full “RA System”

14. The Magical Effect of Light Control…in a single room… • The “good old” Spacer System story, becomes the “Caseta story!” • Selling light control into the single room application, without selling it at all… • If you could add significant value to your complete AV system sale, if you could differentiate your business, if you could bolster the “experience based sales model,” if you could create “WOWness” effect, simply by implementing a one room lighting control system, for a few hundred dollars, would you do it?

15. The Magical Effect of Light Control…in a single room… • “The Light Button” becomes like the “TV Button” • Impact: • The customer is most excited about the lighting system – not the AV! • Your customer “shows off” the light button first ….and for a fraction of the cost • “I want what they have or better” Caseta will sell more Caseta, it will also sell RadioRA! • Lighting control becomes “the favorite” with her – amongst all of the technology products in the home

16. The True Competition • The “true competition” = the 100 old, extremely cheap, unattractive, energy inefficient, archaic light switch • The oldest unchanged electrical device • General lack of awareness of the lighting control option and its benefits • PLUS - there is no learning curve with the light switch

17. The True Competition • The “true competition” is also all of the other “stuff” people spend their disposable income on • Specifically, “home décor” expenditures • … and lack of awareness on how implementing lighting control will enhance their décor!

18. The True Competition • Its all about “disposable income allocation,” what one perceives as having value and the significance of said value • Education Education Education! Educate the customer on the benefits of light control throughout their home

19. The True Competition • Do not sell out of your own pocket • Doing so is a dis-service to your customer • Know your customers’ likes, know what they “value” and advise them on how to enhance their home and their lives, in accordance with their dream and their budget

20. The True Competition • Customer may have the money, you simply must present the value of the product and build the awareness properly • It is not expensive for someone who wants to take care of their valuables and properly showcase them…close “the value gap.”

21. The True Competition • Cabinets • Granite & Marble Counter Tops • Faux Paint • Stainless Steel Appliances (Sub Zero, Viking, Wolf) • Furniture • Art • Bedroom Sets • Landscaping • Pools • Clothes • Cars • Vacations • Boats

22. The True Competition • If a customer can spend $4,000 on a chair, that they will rarely sit on, in the dining room, can that same customer afford $4,000 to enhance the beauty and comfort of the great room the kitchen and the foyer - including their magnificent art? If “Yes,” then this customer can definitely afford a lighting control system • “Lighting control is expensive.” Compared to what? The $1,000 painting?

23. Selling as a Value Added Integrator Sell the system as a whole, sell the final spatial application – do not sell the individual parts The whole is greater than the sum of its parts Sell yourself and your brand, your service – not the manufacturer’s brand Properly assign value to your own work and expertise You are the product Another way to look at it, is that the “end result” experience, throughout the customer’s home, is the product

24. Sell the system as a whole, the whole is greater than the sum of its parts • The Engine Part story

25. “What’s the Price of the Steering Wheel?” • You are buying the complete car, the look and feel of the car, the way it drives down the road, the full experience, not the parts, not the steering wheel! • You get the steering wheel with the car. There is no steering wheel price. • What would this guy say if you asked “so what is the price of the steering wheel?”

26. Sell the Benefit – Not the “Spec” and Not the Feature • Selling “specifications” often times confuses the customer and proves only one thing – that you know more about the topic than they do • This is not an effective way to communicate the benefit (Feature – Benefit – Application) • Sell the “sizzle,” not the “steak”(Benefit) • Articulate with “emotional” “feeling” type descriptors, paint a picture, do not “draw a blueprint”

27. Sell the Benefit – Not the “Spec” and Not the Feature • Leading with a detailed list of features, may not be “as bad” as selling specifications, that said, it is still NOT the optimal approach • It takes a far better presenter to translate specs and features and lead with “what the product will do to make the customer’s life better!” What is the BENEFIT!? • ….the benefit, for your customer, not for an electrical engineer • Simple… Succinct….

28. Sell the Benefit – Not the “Spec” and Not the Feature • You don’t buy a high quality garage door opener for the RF protocol it uses, you buy it, so that you can reliably get into the garage and not get wet, when it is raining outside! • That said, stable RF communication and a robust build, are features, which enable this benefit • Furthermore, there are specific specifications, around the stable RF communication, which can be used to “prove” the feature • So, lead with the benefit, with the application. Follow with a few key features, to support your claim. Have specifications ready, if “challenged”

29. The Interior Designer Sales Story Selling “a concept” – “an idea” – “an emotion” – “a feeling” Selling a “complete experience” Sell YOURvalue

30. The Interior Designer Sales Story Sell the “End Result” – The “Final Spatial Design” as “The Product” Tuscan – American Millennium – Asian Spice – French Chateaux

31. Technology Concierge • Tell them what it is that “YOU DO!” • Sell the fact that, as your customer, they do not have to do anything to make it all work, further, that they have a consultant for their home experience

32. Technology Concierge • They buy “the guaranteed end experience” from you – not DIY parts • And always – ALWAYS – Follow through! • Under promise – over deliver • Exceed expectations, simply “meeting” them is unacceptable • Lifetime customer

33. Technology Concierge • This is your value, this is your fundamental business model / now your “price” makes more sense - you do not compete with DIY, it is not the same product • This is a totally different model, than a standard Retailer

34. Technology Concierge • You are their personal technology concierge. They can count on you always! • If they want to make it all work by themselves, while “digging” for the very lowest price – per part, you are not their best bet • Pay more, upfront, for an expert/professional, save money, long-term

35. Sell a Concept a Vision a Dream.. Sell the Magic an “inspired space” Be your customer’s “Imagineer!”

36. The Trusted Consultant • With your knowledge, skill, ability to communicate benefits and reliable customer service – you become the long-term trusted consultant • Help the customer realize their potential by converging what is possible, from a technology perspective, with their personalized style. Now THAT’s value!

37. The Trusted Consultant • Listen “deeply” to the customer, understand their vision – and then proceed to “connect” their vision to technology • Seek to understand the “thought process” behind the statement, do not simply process the literal statement • They many not know exactly what they are asking for or how to ask for it – but they have a vision • …and you can provide the “path” to that vision

38. The Trusted Consultant • Never “look down on” the customer, as they ask their question • Do not make the customer feel silly, just because they are not the expert and are unsure how to articulate a specific point – that is why they have you! • Would you appreciate your doctor speaking to you in a condescending tone, just because you are not a doctor?

39. The Trusted Consultant • Listen carefully, then apply your knowledge, to help understand their vision • …then help them realize their vision, via “imagineering” • The “in wall radio” story

40. The Trusted Consultant Help them dream a new dream, a dream that is only possible because of your expertise and consultant work. You inspire! This is your model!

41. The Trusted Consultant • And with their budget and preference - not yours and not your last customer’s • You are not “pushing” your style and vision – you are helping them realize their own style and vision – with your expertise • Nothing is farther from a “parts sales person” • Now that is an Integrator business model! …a lighting control system designer business model

42. The Trusted Consultant • Ask exploratory, applications based questions – focusing on lifestyle • Keep questions “open-ended” and limit the “pointed” absolute questions • Consider the answers and “guide” your customer, utilizing proper system design principle and “past benchmarks” – applied to their unique lifestyle

43. The Trusted Consultant • If you ask too many “pointed” absolute questions, due to a lack of knowledge and experience with electronic systems, your customer may lead themselves into “poor design” • Would you ask someone who has not yet learned how to fly a plane, how they would like the controls designed in the cockpit? A blank slate with no benchmark! • Don’t let the customer lead themselves in the wrong direction!

44. The Trusted Consultant • A blank six-button keypad: “let’s walk around together and discuss exactly how you want your scenes programmed.” (Scary!) vs… • “Based on some of our discussions, here is a complete keypad template, which we know will work very well and is intuitive. Let us know how you like it. After you live with it, we will come back and discuss all the custom changes and enhancements that you desire”

45. The Trusted Consultant • The customer does not have to “re-invent the wheel” • Utilize “guided design templates” – based on your discussions • After system start up, “design changes” should be the “exception – not the rule!” • Customer should enjoy their system “day 1” – with only a few adjustments required… Rather than be frustrated with their system “day 1,” with constant adjustments required, in pursuit of making sense of it all! • This should be a logical part of your “integrator consultative selling process”

46. Your Unique System Design Work = Your Patent • “Inside a RadioRA2 Repeater” analogy. • If you alter and cheapen my product, downgrade its cohesive whole, it is no longer my product • Could I sell you the Repeater for the price of the parts? “Whole is greater than the sum of its parts.” • You are not paying for the parts inside of the repeater. So what are you paying for?

47. Your Design = Your Patent • You cannot put your “brand” your “stamp of quality design” on a sub-par, poor performing- “substituted system.” • Substitute sub-par parts in the Main Repeater and I could not sell it with the Lutron logo on it. • This example is true with audio video and lighting control options! This is your product, protect it. Customer will thank you in the end • They will not value your work – if you do not place value on it

48. The Value of Art • What is the cost of the paint? • What is the cost of the canvas? • What is the value of the piece of art?

49. The Chef Story Would you tell a chef from a five star restaurant to cook you up a meal real quick, using ingredients you just picked up from the grocery store?

50. The Chef Story • The parts of your electronic systems are “components” not unlike the various components within a recipe for a fine dinner • You are the “master chef” – you must “cook up” the ingredients, in order for the “cohesive” taste of the dish to be realized, otherwise, it is “just a carrot!” • They pay for the dish, not the carrot!