When Jim McVaugh sees an opportunity to improve his business, he doesn’t waste any time. Shortly after hearing about a turnkey home theater system sold by Owens Corning, the builder signed on to become the product’s exclusive distributor in his Houston market. “It’s a theater in a box,” he explains. “It comes with everything.” He’s not kidding: The theaters, which cost between $40,000 and $90,000, arrive by truck at the jobsite complete with lighting, seating, projector, 98-inch perforated screen, and molding and pillars containing hidden wiring. A room doesn’t have to be prewired for the theater to be installed, and no technical knowledge is required to set the system up. “You can install it in three days, in any room that is at least 12 to 13 feet wide,” says McVaugh.
McVaugh’s embrace of the “theater-in-a-box” concept has helped his business in more ways than one. It gives him a way to provide extra value to the 10 percent to 20 percent of his buyers who purchase the product. “You cannot find a bigger bang for the buck,” he says. “Normally these types of theaters would cost $150,000 to $200,000.” But it also acts as a sales and marketing tool, a way to differentiate himself from other builders.
Owens Corning sold its home theater operation, known then and now as Visionaire F/X, a year ago. McVaugh, still an authorized dealer, is bullish on the dozens of new customization options developed under the current ownership. “You can also go into existing homes and put the theaters into them,” he says. “It’s a perfect fit for a custom home builder.”
McVaugh Custom Homes Houston Type of business: custom builder/developer; Years in business: 13; Employees: 18; 2002 volume: $9.5 million; 2002 starts: 25
