Clarification of Answer by
claudietta-ga
on
18 Oct 2002 17:56 PDT
Dear P. Smith,
1) Are there even 80 million households in the United States?
Yes, the Choices II program estimates that there are over 99 million
households, information that I think they get from the Census Bureau.
I am personally surprised about the number of households, indicating
that there are plenty of single or one-child households out there. If
in fact the 80 million figure is true, I would think that many would
be putting up their own exterior lighting.
2) Am I to assume from this that all these households do outside
lighting?
I reread the first article by Vierria, on the 80 million figure, and
it is all about outdoor lighting. In fact the main focus is on the
trend that neighborhoods are having outdoor decorating competitions,
and are competing for the 'oohs' and 'aahs' as people drive by.
Here's more of an excerpt (unfortunately, I'm not allowed to post the
whole thing, but you could probably buy it or call the newspaper
directly):
"Outdoor lighting products now include Illuminet ($20), which wraps
around tree trunks; and Pathcicles ($15) and Lawn Stakes ($22 to $45
per set) to outline walkways.
Minami reports an increase of 7 million U.S. households purchasing
outdoor Christmas lights since 1995. And people are buying more lights
than in the past.
"People are buying two more light sets per year," says Adams. "In
1995, they bought two sets; now they're buying four sets." "
Source: Dan Vierria, Holiday outlook electric for many, CHRISTMAS
LIGHTS: About 80 million households expected to switch on this year,
Ventura County Star (Ventura County, Ca.), November 27, 2000, Monday
3) Wouldn't you think this would be all holiday lighting (interior as
well as exterior)?
No, only outside. See part 2).
4) The $1200 annually that customers spend on these services: does
this include both lighting hardware as well as installation?
I reread the second article, and it seems to include all costs. Here
is another excerpt below. I also think that this figure is an average
for those households that actually order these services to begin with.
In other words, a chunk of the 80m households, would do it
themselves. This is not something I did not run into, but you can
probably do demographics to estimate this, e.g. determine the
percentage of households with >$100k/yr & white & executives &
Christian, and so forth, depending on who you think actually buys such
services.
"``It surprises me each year,'' says Bob Martin, president of
Mokena-based Bright Ideas Inc. ``We started out being a commercial
service, and these things that we thought businesses would want,
people want for their homes. We've put up 15-foot-high toy soldiers
and even had to have ComEd come add amps.''
Mr. Martin and his partner, Ted Golebiowski, started Bright Ideas five
years ago as an extension of their landscape lighting business. The
off-season offshoot creates custom exterior displays, hangs the lights
in December, takes them down in January and stores them the rest of
the year.
Business has been so bright, Mr. Martin hopes to start a franchise
program so the 16-employee company will be able to illuminate more of
the city. Serving more than seasonal procrastinators, the company puts
up displays for radio personalities, business executives hosting large
corporate parties and time-strapped parents and professionals.
``These are people who have no business being on a ladder,'' says Todd
Selin, president of Plandscape Inc. in Elburn, which in the past five
years has done elaborate jobs wrapping 1,200 to 1,800 mini-lights on a
single tree.
A custom job from Bright Ideas can cost anywhere from $1,200 to
$20,000 the first year, although some companies have packages that
start at $300. In subsequent years, the tab is typically 50% to 70% of
the first year's because the design work is a one-time charge."
Source: Hiring out to string the lights: Chicago customers typically
spend $1,200/yr on Christmas-lighting services vs $1,000 for the
national average, Crain's Chicago Business, page 48, December 11, 2000
Last, I reread the last article, and the following additional
information may answer more spending habits:
"Last year, he persuaded the folks with the cherry pickers to squeeze
him into their schedule, paying about $125 in his initial outlay. This
year, he doubled the number of lights, as well as the cost, to about
$250.
"I'm getting older. I could break something. And this is so much
easier," he said.
The cost of professional holiday installations depends on the
elaborateness of the display and varies with services provided, such
as taking down the lights and storing them. Companies can generally
provide a range of lights, while some permit owners to use their own,
provided they meet electrical safety codes.
Ric Robertson of RMR Holiday Lighting in Beverly Hills said clients
spend an average of $800 to $2,000. Some, including a few celebrities,
pay as much as $20,000, he said.
Wayne Walker of Trius Construction of Northridge and Palmdale said
displays average about $1,500 per home. Costs range from $75 to $3,000
per tree, "depending on whether the client wants it lit up like the
burning bush of Moses." "
Source: More people paying for holiday light hanging, The Associated
Press State & Local Wire, December 6, 2000
---------------
Anything else you need clarified? Unfortunately, there is little
information on this market. There's plenty on outdoor lighting, but
this would likely not be of help, I suppose.
The Census Bureau does have a lot of information on demographics, and
the Choices II program does have spending habits. If you could pin
some common product as a proxy for Christmas lighting, I'd be happy to
get it.
Let me know,
Claudietta
