Podcast Summary: The Economics of Everyday Things

Episode 119: Christmas Lights
Host: Zachary Crockett (Freakonomics Network)
Date: December 22, 2025

Overview

This episode explores the surprisingly complex and lucrative world of professional Christmas light installation. Host Zachary Crockett investigates how the industry emerged, how it currently operates, and what makes it a successful seasonal business. He interviews Dean Lyons, CEO of Bright Nights Lighting Company, and Chuck Smith, a passionate Christmas-light enthusiast, to illuminate (pun intended) the industry’s economics, technology, trends, and holiday magic.

Key Discussion Points & Insights

1. Origins of the Christmas Light Installation Business

• Dean Lyons’ Story
  • Lyons stumbled into professional holiday lighting in 1991 when a neighbor paid him $20 to remove lights—a much better rate than his construction wages.

    “I just made $20 in 10 minutes. And that's really interesting because I'm slaving all day to make 50 bucks.” —Dean Lyons (03:13)

  • Despite being on the pre-med track, Lyons started a company, Bright Nights, and found surprising demand; his first season brought in $17,000 in just two months.

2. From Side Hustle to Major Operation

• Lyons’ company grew to operate in major cities across the U.S., hiring hundreds of seasonal workers and running a complex logistics operation.
• Early clients were largely found via direct mail to wealthy neighborhoods—a marketing tactic that’s been data-refined over time:

  “We have it down to a science.” —Dean Lyons, on targeting by home value (06:44)

• Word-of-mouth is key: having one prominent, well-decorated home often triggers a “snowball effect” in a neighborhood.

3. Year-Round Business and Custom Solutions

• Despite being a seasonal service, planning and preparation for Christmas lights is a year-round effort: ordering supplies, finding recruits, and refining territory strategies.
  • Demand starts as early as September but peaks post-Halloween.
• Bright Nights uses commercial-grade, custom-manufactured lights (produced in China and cut to fit each house).

  “On the roofline, it's custom cut. The guys just pull it off, cut it, bulb it up, and then install it and wire it all in.” —Lyons (08:39)

• Pricing can range from $2,500 for a basic display to $400,000 for massive, estate-scale installations.

4. Technology and Operational Efficiency

• The company is developing AI tools to optimize installation, such as a camera that estimates the number of lights needed for any tree (09:27).
• Bright Nights tracks jobs in real-time with GPS and custom apps to maximize efficiency and ensure quality.

5. Changing Technology in Holiday Lighting

• Chuck Smith discusses the move from incandescent bulbs to LEDs, which are dramatically more energy-efficient and enable creative, color-changing effects (RGB pixel lighting).

  “LED-based lights only use, like, 10 to 20% of what an incandescent light uses.” —Chuck Smith (18:08)

• Despite technological advances, professionals mostly stick to warm, white lights due to ease of supply, consistency, and repair.

6. The Art and Science of Installations

• Lyons and Smith explain the design standards: symmetrical, measured spacing (e.g., 4 inches between tree wraps), all-white aesthetic, and a focus on outlining architectural features.

  “The vast majority of professionally done installs are all white lights. If it's all the same color, then it makes it much easier on the company...” —Chuck Smith (19:37)

• A typical $2,500 job can be finished in about two hours by a two-person crew; massive projects may require weeks.

7. Logistics: Takedown, Storage, and Recycling

• Crews return in January/February to remove decorations—often much faster than installation.
• All materials are labeled and re-stored for reuse; if unused, the copper in custom-cut lights is routinely recycled.

  “You can get at some points a buck per pound or whatever because it's just all copper.” —Dean Lyons (22:43)

8. Business Economics & Resilience

• Companies often use three-year contracts; the first year covers upfront material costs, with subsequent years yielding higher margins.
• Despite economic downturns, the business is recession-resistant:

  “Man, I have been through like three recessions and people still did lighting.” —Dean Lyons (24:34)

• Bright Nights runs with a 10-20% profit margin, installing lights at thousands of homes each year.

9. The Joy (and Competition) of Christmas Decorating

• Enthusiasts like Chuck Smith have amassed massive home displays (>260,000 lights), drawing crowds and even causing neighborhood-wide ripple effects (sometimes stifling others’ efforts).
• Lyons sums up the value:

  “I think that people actually get mesmerized by the lights. This is like, let's forget about whatever's happening and let's just enjoy these lights for a few minutes.” —Dean Lyons (24:48)

Notable Quotes & Memorable Moments

• On the early days:

  “I just made $20 in 10 minutes... I'm slaving all day to make 50 bucks.” —Dean Lyons (03:13)

• On marketing strategy:

  “Our direct mail campaign is built around home values. We have it down to a science.” —Dean Lyons (06:44, 06:58)

• On client impact:

  “Anytime you get one good house in the neighborhood, lights turning on literally is your number one source of new revenue for Bright Nights.” —Dean Lyons (07:06)

• On technological progress:

  “LED-based lights only use, like, 10 to 20% of what an incandescent light uses.” —Chuck Smith (18:08)

• Professional installation uniformity:

  “The vast majority of professionally done installs are all white lights... It's a very consistent look.” —Chuck Smith (19:37)

• Emotional impact:

  “This is like, let's forget about whatever's happening and let's just enjoy these lights for a few minutes.” —Dean Lyons (24:48)

Timestamps for Important Segments

• 03:01: Dean Lyons’ Origin Story
• 04:17: Business Growth and Client Acquisition
• 06:44: Direct Mail and Demographic Targeting
• 07:49: Year-Round Operation, Peak Season Timing
• 08:13: Custom Manufacturing and Installation Process
• 09:27: Development of AI & Technology
• 10:14: Pricing for Basic and Premium Installations
• 16:11: Chuck Smith on Extreme Enthusiast Displays
• 17:45: From Incandescent to LED
• 18:43: RGB Pixel Innovations
• 19:37: Professional Decorator Aesthetic Standards
• 22:20: Post-Holiday Takedown & Storage
• 23:46: The Economics of Yearly Contracts
• 24:34: Recession-Resistant Industry

Conclusion

Crockett reveals a fascinating look at the holiday light industry—one that thrives on efficiency, logistics, and a touch of magic. Far from a simple seasonal side gig, professional Christmas lighting is a multimillion-dollar business bolstered by tradition, innovation, and the enduring joy people find in a home glowing in the winter night.

Final thought:

“People actually get mesmerized by the lights... let's forget about whatever's happening and let's just enjoy these lights for a few minutes.” (24:48)

For more episodes & updates from Zachary Crockett, visit: zcrockett.com