- What are customers’ general sentiments toward the prices of lighting control hardware, software, and services?
- How do labor costs affect purchasers’ reactions to lighting controls prices?
- What biases influence consumers’ tendency to undervalue lighting controls?
- How can manufacturers adjust their business practices to increase the acceptability of the prices of lighting control systems?
- How can the design of lighting control components positively influence users’ perceptions of their value?
Overcoming Lighting Controls Pricing Pushback
The market for lighting controls is growing and they are an increasingly important source of revenue for manufacturers. Nonetheless, the sentiment among many customers is that lighting controls are overpriced. Lighting controls manufacturers must both understand the basis of consumer apathy and accommodate their negative reactions to prices. Specific lighting industry business practices, as well as pervasive biases that influence consumer attitudes and decision-making, negatively affect purchasers’ perceptions of the value of lighting controls.
A range of strategies can help manufacturers overcome consumer pushback against lighting control equipment prices, including modifying the design of lighting control components to engender increased value in the minds of users, challenging industry norms, and adjusting corporate pricing strategies. Furthermore, equipment manufacturers must better understand, acknowledge, and account for the vital contributions of a range of lighting professionals involved in the successful deployment of advanced control systems. This labor affects costs incurred by customers, but also creates opportunities for new stakeholder partnerships.
This Guidehouse Insights report analyzes the basis of consumers’ tendency to undervalue lighting control hardware, software, and services, leveraging research from a range of disciplines on consumer behavior. It also provides detailed and actionable recommendations for lighting control developers and manufacturers to increase consumers’ perceptions of the value of control systems.
- Lighting control manufacturers
- Designers of lighting control equipment
- Lighting industry associations
- Investor community
- Energy efficiency advocates
Lighting Customers Undervalue Controls
Lighting Controls Manufacturers Must Understand Consumer Apathy
Users Care About What a Control System Does, Not How It Does It
Inadequate Price Transparency Affects Price Expectations
Labor Costs Associated with Lighting Controls Are Particularly Problematic
The Intangible Nature of Many Lighting Control Components Undermines Their Valuation
Lighting Controls Manufacturers Need to Accept and Accommodate Consumer Reactions to Prices
Decision-Makers Need Access to Transparent Lighting Controls Price Information
Lighting Controls Are Not Just Products—the Critical Role of Labor Needs to Be Embraced
Manufacturers Should Focus on Functionality When Setting Prices
Strengthen the Tangible Aspects of Lighting Controls to Increase Value to Consumers
Lighting Controls Do Not Need to Be Ugly and Boring