Welcome once again to my business blog, where my goal is always to inform potential clients and general consumers in the Pacific Northwest, specifically Portland, about the ins and outs of exterior cleaning and its nuances.
Today, however, I felt compelled to write given the time of year—the holiday season—and my newfound understanding of Christmas lights, specifically commercial-grade Christmas lights and their role as a marketable service. (To those celebrating Hanukkah, I apologize for the lack of inclusivity in my wording.)
What Are Commercial-Grade Christmas Lights?
Let’s start with the assumption that these lights are unfamiliar to most readers. Commercial-grade Christmas lights are distributed by manufacturers specifically catering to contractors. They differ significantly from the lights you find at big-box stores like Home Depot. These lights are LED, waterproof, shatterproof, energy-efficient, low amperage, extremely long-lasting, and easily customizable to fit various residential and commercial architectural features.
The Problem with Awareness and Pricing
Why, then, are so many people still using low-quality, poorly installed lights for the holiday season? After meeting with clients over the past two Decembers, I’ve identified two primary reasons: personal style preferences (a runner-up) and, more importantly, a general lack of awareness about the existence of these superior lights. This unawareness is likely perpetuated by companies that gatekeep these lights behind a hefty price wall.
Unfortunately, many companies that offer this service employ pricing strategies I find toxic and often predatory. The most concerning is the premium pricing strategy, which involves marking up products arbitrarily to give the illusion of luxury and exclusivity. While premium pricing is common across industries (diamonds, clothing, etc.), its application here feels particularly excessive and exploitative.
Installation Simplicity: Why the Markup?
Let’s examine the installation process to understand why these lights shouldn’t cost what many companies charge.
First, commercial-grade lights are designed with user-friendliness in mind. They use SPT-1 18-gauge wire, which can be cut with basic scissors. Connecting the ends is simple: male and female connectors feature copper blades that pierce the wire when pressed together. Once secured, the connection is complete. Voilà! You’re a professional Christmas light installer.
The modular design allows for easy customization. Lights can be connected from a single source to multiple strands, forming a network tailored to your home’s design. Even the clips are thoughtfully designed, securing lights between the socket and bulb for a clean, wind-resistant installation.
Thanks to their durability and smart engineering, these lights can be installed in a few hours and removed in minutes. Removal is especially easy—these lights are tough enough to be pulled off gutters and rooflines without damage to either the lights or your home.
Breaking Down the Costs
For the average home, when bought in bulk, commercial-grade lights cost around $1.75 per foot. Yet many companies charge clients $10 or more per foot for light rental, installation & take-down services. Let’s break this down in a conservative hypothetical:
The average home has 100–200 linear feet of roofline and gutters. At $10 per foot, that’s $1,000–$2,000 for installation, takedown, and storage.
The actual cost of lights for such a home is $175–$350.
Labor costs for a technician earning $30/hour to install lights on three homes (100 feet each) in a day totals $240.
Including storage fees (minimal, as these lights fit neatly in compact boxes), companies still achieve massive profit margins.
For example, if a technician installs lights for three homes in an 8-hour day, the company earns $3,000 in revenue. After subtracting $525 for lights, $240 for labor, and even factoring in a $140 monthly storage fee, the company nets over $2,200 in profit—per day.
Over an average 40-day installation season, excluding take-down labor cost, a single technician could generate $89,400 in profit. With two technicians, that number doubles. Clearly, the markups are extraordinary.
My Frustration with the Industry
As someone passionate about providing value, I find this pricing model inherently unfair. While I understand the desire for profit, I believe everyone deserves the chance to enjoy a beautifully lit home during the holidays without feeling gouged. Holiday lights are a luxury, yes, but should they be priced as an unattainable one?
Recommendations for Consumers
So, how should you approach this as a consumer? That depends on your situation:
For those who value convenience: If climbing a roof isn’t feasible for you, consider purchasing lights directly from a distributor and hiring a contractor for custom-cutting, installation, and takedown. This allows you to own the lights outright and avoid excessive annual rental fees.
For DIY enthusiasts: These lights are simple to install and maintain. If you have the time and tools, you can enjoy a professional-quality setup at a fraction of the cost.
For those with no financial concerns: If budget isn’t an issue, choose a contractor who offers fair pricing and transparent practices.
In the end, my goal isn’t to shame other businesses but to empower you, the consumer, with knowledge. The holidays are a time of peace, joy, and community. Everyone deserves a little brightness in their home—without the shadow of unnecessary expense. As a business owner, I hope I can back up this perspective in the years to come.
Thank you for reading, and albeit late in the year, I hope this helps you make an informed decision for the holiday season and the seasons to come.
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