What Are Energy Efficient Solutions?
A great way to build a business is utilizing your knowledge to build a business selling energy efficient solutions for business owners. Businesses are looking for ways to save money, and energy efficiency is one of the best ways to help them do that.
Are you a contractor?
Are you a distributor?
What are you going to do about it? Let's look to see what contractors can do in order to take advantage of the Green movement.
Electrical Contractors Will Benefit From Government Policy
As the title says, according to one of the recent Kiplinger letters, Vol. 87, No. 18, www.kiplingerbiz.com they commented on energy efficiency and use:“Washington is also ratcheting up incentives for businesses to cut energy use. Look for Congress to add rebates for commercial and apartment building owners who upgrade heating and air-conditioning systems, lighting, windows or insulation. The two year program will provide $.50 per square foot for energy efficient lighting, $8 per 1,000 British thermal units per hour of capacity for natural gas water heaters and $200 per ton of cooling capacity for AC/heat pump units. Owners can double dip by continuing to take advantage of other federal tax incentives for energy savings."
The MOST IMPORTANT SENTENCE THOUGH, ” The program will be a boon to small business electrical contractors. About 90% of the companies that install energy equipment are small firms.”
If your an electrical contractor, there are 6 steps you can do now to take advantage of the Energy Efficiency market;
1 – Don’t do anything
Just sit back, wait for the phone to ring and hope that your customers will someday call you up and have you come in and install new, more efficient systems.
Just remember, there are other people out there talking to your customers about this very subject. We are entering markets that we have no physical presence and taking 10, 20, 60 and 80,000 dollar projects every day.
2 – Talk to your existing customers
Go to them, don’t wait for them to come to you. EVERY business is looking for ways to reduce costs and reducing the energy bill is something that you can help with.
If your nervous about doing this, just remember that you have to know what you are doing in order to be in this business.
Just ask them if they are happy with how much they currently spend in energy.
3 – Join a Networking Group
BNI is one of the best groups out there. I have done Chambers and I have done BNI. I got far more from the BNI group than I ever did with the Chamber. It will cost you around $400.
Just pay it, get out of bed early AND take advantage of all the training that is available for your membership. Just remember, you won’t be writing up a contract after 2-3 visits to a meeting.
It may take a year to build the right relationships. The group needs to get to know you.
You will build personal relationships with many of the attendees so over time you will be the go to person for energy efficiency.
Place yourself as the expert, because YOU ARE!
4- Talk to the businesses you frequent regularly
Pay attention to the businesses that you are in every day and even the times on the weekend when you are “off the clock”. Once you understand all of the options for upgrades, you will quickly identify money saving opportunities nearly everywhere you go.
Just ask the manager if the owners would be interested in saving on energy costs because you can clearly see some options that would save them some money.
5- KNOW YOUR STUFF
Lighting upgrades are relatively easy. It is simple math. You take down a 458 Watt metal Halide and replace it with a 200 Watt High Bay Fluorescent. The fixture burns 258 fewer watts. Simple Math.
Then Common Sense, the less watts, the smaller the energy bill. It is just that simple.
Do research on the types of fixtures that are out there, types of incentive programs and the federal programs available or coming soon and understand how to apply them.
6 - Ask yourself “Would I make this investment if I owned the building?”
Don’t get greedy. Remember everyone is struggling at this time. Only propose options that make good business sense.
If you try doing unnecessary add ons to pump up the sales price, you will lose. Just imagine the place is yours and you had to consider doing the upgrades you propose.
We have told several clients that an upgrade just didn’t make good business sense.
The owners thanked us for our honesty!
Now is the time to be thinking energy efficiency if you haven’t already. There are numerous resources out there that can help you get started, www.energystar.gov, and www.energy.gov will get you started with valuable information.
The secret is out, Energy Efficiency is in. The secret now is How do you get the customer before the other guy? Take a look at the outline of the system we utilize to generate leads for our family electrical contracting firm.