Integrator Q1 Sales Data Shows Limited Tariff Effect
In the first quarter of 2025, integrator sales data from over 51,500 proposals and 19,300 contracts via D-Tools Cloud showed a 20% increase in average proposal values driven mainly by labor costs rather than product price hikes, a 1% decrease in average signed contract values, and minimal impact from fluctuating tariffs that mostly took effect after March, highlighting ongoing negotiation dynamics and pricing uncertainties amid tariff-related supplier updates.
"What tariffs?" might be the question asked when looking at the sales data for the first three months of 2025. According to aggregate data from D-Tools Cloud software, there was a significant 20% spike in the average value of proposals in the first quarter of the year, but that increase does not appear to have come from increased product costs. More of the increase is attributed to labor than products.
Interestingly, while proposal values spiked, the average signed contract value actually decreased by 1%. The gap between proposal values and contract values continues to widen, indicating that value engineering and negotiation between integrators and clients is active.
These mixed results indicate that there was limited effect, if any, from the on-again/off-again seesaw tariff situation. Many of the tariffs did not take effect until April.
These insights are based on more than 51,500 proposals and nearly 19,300 signed contracts in D-Tools Cloud in the first three months of 2025. The end-to-end software solution is used by more than 3,000 integrators to build proposals and manage their operations.
The ever-changing tariff situation has likely caused concern among integrators as they create proposals using products from the D-Tools Integrated Product Library. Suppliers are actively updating their pricing information in the Library to keep it as current as possible. The worry for integrators is specifying a product with a price today that might be totally different several months from now when they plan to purchase the product just prior to installation. It is not feasible for most integrators to buy products for a project many months in advance to store in their inventory and possibly disrupt their cash flow.
Q1 2025 Benchmark Datapoints from D-Tools Cloud
The Q1 2025 data from D-Tools Cloud can provide benchmarks for integrators to gauge the state of their own businesses against the general market. Some of the specific datapoint takeaways are:
-
8% – The average number of proposals generated by an integration company rose 8% to 45 proposals for Q1 2025 vs. Q1 2024. The increase shows that demand remains strong for integrators’ installation services, and by using software like D-Tools, dealers are able to produce more quotes.
-
$43,837 – The average proposal value increased 20% in Q1 this year versus last year. Some of that is the result of the rising cost of labor and products. The amount of the increase due directly to tariffs is unknown.
-
5% – The average number of installation contracts signed per dealer was 23 in Q1, up 5% from the first three months of last year.
-
$18,211 – The average value of an installation contract fell by 1% to $18,211 in Q1 compared to 2024. This reverses a trend from last year where dealers targeted larger projects. Although contract values were flat, it still represents a 7% increase over the past 4 years.
-
26% – The percentage of a contract devoted to labor was 26% in Q1, up from 24% last year and from 22% four years ago. The increasing percentage of a contract for labor shows that tariffs affecting product prices had little to no effect in Q1.
On May 27, D-Tools will present an exclusive webinar for i3 Partners that delves into more details on this data, including the product category that is now the most commonly installed, surpassing TV displays.
Related
D-Tools Cloud After Dark Webinar: Features We Love Part 2
The D-Tools Cloud After Dark Webinar Part 2 highlights key features such as Avalara tax integration for streamlined compliance, the use of alternates for flexible proposals, auto-applied adjustments to enhance proposal accuracy, management of multiple site addresses for complex projects, and additional tips to maximize efficiency within the D-Tools Cloud platform.
New and Returning i3 Partners in March 2026
In March 2026, D-Tools welcomed new and returning i3 Program partners including DOMEX, a smart home system specializing in elegant architectural wall switches and comprehensive control via app, and PMC, a renowned audio manufacturer with Emmy®-winning studio monitors used by top broadcasters, mastering houses, and in major films and TV shows, whose product data is now freely available to D-Tools System Integrator users.
D-Tools CEO Town Hall Covers Future Vision, Economic Outlook
At the D-Tools User Conference in Atlanta, outgoing CEO Randy Stearns and incoming CEO G Paul Hess discussed the company's strong growth—highlighting nearly 500 new customers last year and over 1,000% recurring revenue growth in a decade—the optimistic 2026 economic outlook driven by AI and robotics innovations, and the future product roadmap amid a stable post-pandemic business environment.
D-Tools Appoints Industry Veteran Utz Baldwin to Lead Data Solutions Initiative
D-Tools has appointed industry veteran Utz Baldwin, former CEDIA CEO and VP of Innovation at Builder Homesite Inc., as Head of Data Solutions to lead the development of its Industry Information & Insights (I3) initiative, leveraging his extensive experience in connected home technology, market research, and data-driven digital transformation to enhance actionable market intelligence and analytics for the systems integration ecosystem.
i3 Testimonial: Fortress Seating
Fortress Seating, a leading manufacturer of luxury home theater seating, partners with D-Tools and its i3 Partner Program to leverage a vast dealer database and proprietary dashboard that provides insights into dealer sales activity, market share, and order status, enabling the company to effectively promote its products, support integrators, and manage inventory within the custom installation industry.
Customer Success Story: D-Tools SI Helps Modern System Concepts Achieve 28 Years of Success
Modern System Concepts, a Houston-based systems integrator with over 28 years of experience and $5 million in annual revenue, attributes its sustained success and efficient project management—including proposal creation, drawing integration with AutoCAD and Visio, and repeatable processes like cloning and templating projects—to the continuous innovation and comprehensive capabilities of the D-Tools System Integrator software platform.