Thursday, March 12, 2009

Motorized Shades - Lutron QED Pricing Discussion


Lutron QED Shades - Pricing Discussion

Lutron's proprietary motorized shades, called Sivoia QEDs (QED = Quiet Electronic Drive) are an excellent product. They are very well made; from the shade material and bracketing components to the quiet motors and reliable controls. No other company provides a comparable 'end to end' solution like Lutron. Lutron makes the motors, the shades, the controls and even the wire for its products. Most motorized shades are made by combining motors from one company, brackets from another and shades from still another. Introducing multiple vendors leaves more room for product variability and specifically can mean that the overall look is not as 'finished' as a Lutron solution. (to be fair, frequently, shades are mounted in locations where much of this cannot be seen, but the 'finished' look concept extends further to Lutron's offering, as I will explain below)

In terms of performance, Lutron's motorized shades offer more features than other products. First of all, they are very quiet - hence the 'Q' in QED. Other motor manufacturers have since closed the gap on the quiet issue, but not totally. Lutron's QEDs also have intelligence (a microchip) in the motor which allows the control to 'know' where the shade is at any given time (this is called feedback). Other motor companies have similar capabilities but only in certain applications. Feedback enables two things, first the controller can show in percentage terms exactly where the shade is located, even if it is in a different location than the control. This is a bit gimmicky, I agree but the second feature is quite impressive. Namely, multiple Lutron shades can be almost perfectly aligned (something they call 'intelligent hembar alignment'). In rooms with multiple shades on different size tubes, this offers a very 'finished' (there's that word again) look. (to be fair, not all people care if there shades are perfectly aligned and non Lutron systems can come very close but like the quiet feature, not quite as close)

An analogy may (perhaps) be useful here. Lutron procures and combines the key ingredients and cooks the food for its dealers. It has excellent kitchen facilities and chefs that are proven. Its dealers then simply serve this delectable food to their client. Other motorized shade solutions are more like parts of the meal and the dealer must prepare (or at least combine) the food and serve the meal to client. Typically, the Lutron dealers pay more for a pre-cooked meal and charge more for this product in absolute terms (not necessarily in percentage terms). It is fair to say that if price is was not such a driving factor in many if not most cases, clients would switch to Lutron's cooking.

Lutron has perfected the sales and presentation of its products for its dealers. To extend my analogy, they help their dealers by preparing and printing the menus for them. Their quotes are done with a custom designed software program called the Shade Configuration Tool (SCT) which provides useful diagrams and details other non Lutron solutions do not match. Lutron provides food samples that are known to entice diners. Lutron marketing pieces are excellent, both visually appealing and informative. Lutron provides quality sample binders that are complete and professionally assembled. Lutron has upgraded the motorized shade selection experience and removed much of the possible variation out of motorized shade purchasing.

Other posts will discuss the rationale behind Lutron's unique sales approach and business model. This post addresses only the rationale for pricing differences. Lutron does cost more in most cases - this post attempts to explain why. Some of the key differences that result in the product commanding a premium price may not be sufficiently important to a client depending upon their needs, wants and budget.

Finally, it is very important to note that with any product that requires installation, the best product can dissappoint if the company installing is not competent and professional. Meaningful depth of installation expertise and high standards of customer service are the keys to any successful motorized shade job.

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