You’ve outlined the retrofit project, discussed the benefits, showed them before-and-after shots of previous projects, and provided case studies. Then, the CFO speaks up, asking whether this project makes good investment sense.
Whether you’re the lighting retrofit company, or the internal champion lobbying to get a project approved, this is the make-or-break moment. If you can prove value to the people holding the purse strings, you’ve conquered the biggest hurdle in your path.
Everybody’s talking about lighting as a service. After all, it seems perfect on paper: Steady income and a steady relationship with the client, who in turn, benefits from hands-off maintenance of their lighting and a much easier cash flow.
So why isn’t everybody offering it?
“Is it safe to let people into my building to do work?”
“What will our cash flow look like in the next six months?”
“What will our business even look like a year from now?”
Fear is one of the most powerful levers for how we think, how we act, and how we respond to situations. And right now, there is definitely no shortage of fear and uncertainty out there, as facility owners deal with the massive question mark the COVID-19 pandemic has placed on the rest of this year’s calendar.
2020 has been … unpredictable.
Lighting retrofit businesses that thought they had their year’s projections all planned out have since had the rug yanked out from under them. And they’re still finding their footing on slippery new ground.
But as each of us tries to figure out where this new path is taking us, it’s interesting to stop and reassess the lighting retrofit market as a whole. To help with this, we spoke with three industry experts who have previously contributed to our Insights articles: David Ingram of DLL, Steve LoJacono of Graybar, and Walter “BJ” Pidgeon of GE Current.
Companies are being cautious with their dollars right now. This is perfectly understandable: The COVID-19 pandemic has taken a large bite out of many industries’ financial standings. Unfortunately, this tenuous financial ground has tempted many companies to delay their much-needed lighting retrofit projects.
Is there anything lighting retrofit companies can do, other than try to wait out the storm and hope for better days on the horizon?
You’ve carefully assessed your potential client’s needs and have spent hours putting together a comprehensive proposal that, if agreed-upon, will be the first step on the path of transforming that client’s lighting efficiency.
It should be an easy win. But right now, even the most well-thought-out and desperately needed projects are met with, “Well…not right now, but maybe we can look at this next year.”
Cash flow is on everybody’s mind. And if your clients are worried about their cash flow, your proposals may get shelved or even turned down completely.
Energy efficiency is typically embraced by organizations with foresight—people who think long-term and understand the wisdom of investing in sustainability.
Lately, long-term thinking is difficult, as we deal with the immediacy of the COVID-19 pandemic. While many organizations are still very interested in having conversations about implementing energy efficiency measures, there are also a lot of questions.
Think about a successful project.
The clients are on board, everything is delivered when it is supposed to be, communication is smooth, and progress is tracked. There are no surprises, and the job is completed on time and within budget.
That’s the dream.
But that doesn’t always happen. Projects can go awry, with materials, labor, costs and the client relationship flying out of control. Fortunately, one of the best ways to prevent a project from going off the rails is by practicing great project management.
For large commercial buildings, manufacturing facilities, and enterprise-wide portfolios, lighting and sensor upgrades have the capacity to deliver one of the highest returns on investment out of all efficiency projects. Not only can a lighting retrofit result in energy savings of up to 65% on average, the enhanced lighting quality from modern fixtures delivers improved occupant comfort from glare reduction, the fixtures’ longer lifespan reduces maintenance costs, and the simple payback on the project is frequently achieved well within three years – and sometimes in a few as eighteen months.
However, not all upgrades are created equal. In order to help you get the most out of your efficiency project, we’ve compiled this list of ten costly mistakes to avoid when embarking on a lighting retrofit. Keeping these points in mind can help you get the highest possible return on your investment.
We all have blind spots when it comes to running our businesses. Those spots might be big or small. It might sting a little to hear about them.
And it’s easy enough to dismiss them.
“This is just how we do business,” you might tell yourself. “And we’re doing all right.”
But are you really? And honestly, did you get into the energy-efficient lighting retrofit business to just “do all right”?
