NOBODY. Well, almost nobody. Invariably when presenting customers with an LED retrofit proposal, the interest is usually very positive, but few actually have BUDGET for an upgrade. Even when presented with a 1-2 year payback, lighting for most is an “afterthought” and since they have already budgeted for their utility expense (and their lights are currently working), the path of least resistance is to “do nothing”.
We try to explain that customers actually DO have budget, they are just looking in the wrong place for it. The budget for the lighting upgrade is being spent every month in the check they write to their utility company! For the same monthly expense, customers can receive all the benefits of a new LED lighting system (improved lighting quality, employee productivity, safety for employees) and even put a little cash BACK into the operating budget.
How is this done? The traditional method is basic equipment lease finance – the “F word” (financing) often gets shut down right away as a basic objection (“we don’t finance anything”). The reality is that 80% of clients finance some kind of equipment within their business operation. To make things easier, there is another way which allows the lighting upgrade to be a true Operating Expense by structuring the payments as a Rental Agreement. This method which can stretch payments over a 2 to 5 year term, allows customers to write off the full payment of their lighting upgrade just as they do their Utility Bill. The best part is there is ZERO cash out of pocket and the upgrade is CASH FLOW POSITIVE.
So, the message I give customers is you can either a) continue to pay your monthly expense and get zero value out of your lighting system or b) pay that SAME amount and enjoy all of the productivity, safety and other benefits LED offers to commercial businesses.
Ask me how you can “get paid to upgrade” under this kind of LED upgrade plan!