It is usually agreed that technological innovators or early adopters will trend toward LED lamps. And the individual persons or companies who financially focused on energy-saving or genuinely committed to going green will also like to try LED lighting technology.
The individual residential customer, who is his own decision-maker, is quite often even more attuned to environmental issues than the double-mocha-big-box sector is.
To the homeowner, a lower electric bill becomes appealing when bolstered by the argument that if service areas cut back on demand, future utility rate hikes could well be avoided. And, in some areas, this argument is even more compelling if the local utility is offering rebates for the installation of LED lighting.
Big players, such as Starbucks and Walmart, have already made massive capital outlays in LED lamps in their stores, not only to save on their electric bills and staff maintenance hours, but to demonstrate to their clients that they are environmentally conscious. Being perceived as being green has become a critical part of the brand image of many multinational corporations, and smaller companies are beginning to follow suit.
Professional LED Lighting Knowledge blog to promote the usage of LED Lamps
The Value Position - Sell LEDs to Customers (3)
While the homeowner market for LED lighting is just beginning to open up, the technology’s use in commercial applications is well-established and continues to grow.
A survey of purchasing and facilities decision-makers conducted late last year by Osram Sylvania revealed that 73 percent of the participants either currently use LED tubes in their buildings or plan to do so in the next few years. These installations include both replacements of other forms of lighting and completely new lighting systems or major renovations. It was also found that those who have evaluated lighting options in the last year or so are more likely to chose LEDs, indicating the increasing acceptance of the technology.
Once again, selling the value proposition is critical, and so is finding the right decision-maker.
“You can have trouble making your argument about long-term economics, depending on whom you engage with,” said John Zimmerman, marketing manager for professional solid-state lighting at Osram Sylvania, Danvers, Mass.
“If it’s a low-level person managing a really tight budget, such as a purchasing manager whose performance is measured on how much money he saves, he probably won’t see beyond the initial cost. As a rule, facilities managers and building owners are more receptive to the strategic value of choosing LEDs. Study the application being considered, and if you can demonstrate a payback within two years, that is a strong selling point even when dealing with a tactical buyer.”
Zimmerman also has this cautionary observation: “Both distributors and contractors have to be aware that allLED lamps are not created equal. There are some companies that have sprung up presenting themselves as being suppliers in the LED lighting marketplace. The supply chain has to understand this technology well enough to distinguish quality, reliable products, and that have Energy Star ratings. Ask the supplier to see his certification data.”
In fact, some of the lingering doubts that skeptical users may have regarding LEDs can be traced to the fact that they purchased cheap, low-power LED lamps at retail stores over the last few years, inferior products that emit a blue or green light.
“Watch out for new entrants into the marketplace,” GE’s Benson said. “There are a lot of bogus claims attached to the marketing of these products, and contractors have to know who they’re buying from and trust that the company will be around in another five years if there are problems with their products. Quality and reliability are the paramount issues.”
A survey of purchasing and facilities decision-makers conducted late last year by Osram Sylvania revealed that 73 percent of the participants either currently use LED tubes in their buildings or plan to do so in the next few years. These installations include both replacements of other forms of lighting and completely new lighting systems or major renovations. It was also found that those who have evaluated lighting options in the last year or so are more likely to chose LEDs, indicating the increasing acceptance of the technology.
Once again, selling the value proposition is critical, and so is finding the right decision-maker.
“You can have trouble making your argument about long-term economics, depending on whom you engage with,” said John Zimmerman, marketing manager for professional solid-state lighting at Osram Sylvania, Danvers, Mass.
“If it’s a low-level person managing a really tight budget, such as a purchasing manager whose performance is measured on how much money he saves, he probably won’t see beyond the initial cost. As a rule, facilities managers and building owners are more receptive to the strategic value of choosing LEDs. Study the application being considered, and if you can demonstrate a payback within two years, that is a strong selling point even when dealing with a tactical buyer.”
Zimmerman also has this cautionary observation: “Both distributors and contractors have to be aware that allLED lamps are not created equal. There are some companies that have sprung up presenting themselves as being suppliers in the LED lighting marketplace. The supply chain has to understand this technology well enough to distinguish quality, reliable products, and that have Energy Star ratings. Ask the supplier to see his certification data.”
In fact, some of the lingering doubts that skeptical users may have regarding LEDs can be traced to the fact that they purchased cheap, low-power LED lamps at retail stores over the last few years, inferior products that emit a blue or green light.
“Watch out for new entrants into the marketplace,” GE’s Benson said. “There are a lot of bogus claims attached to the marketing of these products, and contractors have to know who they’re buying from and trust that the company will be around in another five years if there are problems with their products. Quality and reliability are the paramount issues.”
The Advantage of LED Lighting
LED lighting owns a lot of advantages, I always go to http://www.janus-led.com/ to get the best LED lights
The Value Position - Sell LEDs to Customers (2)
Besides the basic price tag, the proposition involves maintenance and energy usage.
“In a typical return-on-investment (ROI) drill, the contractor has to explain to the customer what the replacement tradeoffs are over a specified period of time,” said Jim Benson, general manager of marketing at GE Lighting, Cleveland. “Over 30,000 hours, one 10-watt PAR30 LED lamp would be used, costing $42. But for that same timespan, 15 incandescent 45-watt R30 bulbs priced at $4 each would be needed, and 10 halogen 50-watt PAR30 lamps each at $7.50. When you factor in maintenance (frequency of changing lamps) and energy use, then the total cost of ownership is $74 for the single LED, $225 for the 15 incandescents, and $245 for the 10 halogen lamps."
Now, these estimates are based on current pricing levels for the three product types, but to make the case for LED lamps even more convincing, it is expected that, as they gain in marketplace acceptance, their prices will come down.
“LED lamp prices are decreasing, and this will be ongoing,” said Peter Soares, director of consumer channel marketing at Philips Lighting Co., Somerset, N.J. “Last November, we planned to introduce a 60-watt equivalent at $50, but by December, the price was revised to $40, and in those states where utility rebates are available, that could push the acquisition price down to $25.
“In addition, that LED bulb uses 12.5 watts of power and will last 25,000 hours, which is 25 times more than the incandescent it will replace, saving the homeowner $140 over the life of the bulb. When you multiply that by the number of lightbulb sockets in the average home, that really adds up.”
Soares also anticipates that there will be a shift in mindset among homeowners with regard to lighting, and it will begin to be considered a major energy-saving purchase decision along with state-of-the-art windows, heating systems and major appliances, not only for the attractive payback, but as a selling feature if the house is put on the market. Contractors should remind customers of this additional benefit when discussing a changeover to LED lamps.
“In a typical return-on-investment (ROI) drill, the contractor has to explain to the customer what the replacement tradeoffs are over a specified period of time,” said Jim Benson, general manager of marketing at GE Lighting, Cleveland. “Over 30,000 hours, one 10-watt PAR30 LED lamp would be used, costing $42. But for that same timespan, 15 incandescent 45-watt R30 bulbs priced at $4 each would be needed, and 10 halogen 50-watt PAR30 lamps each at $7.50. When you factor in maintenance (frequency of changing lamps) and energy use, then the total cost of ownership is $74 for the single LED, $225 for the 15 incandescents, and $245 for the 10 halogen lamps."
Now, these estimates are based on current pricing levels for the three product types, but to make the case for LED lamps even more convincing, it is expected that, as they gain in marketplace acceptance, their prices will come down.
“LED lamp prices are decreasing, and this will be ongoing,” said Peter Soares, director of consumer channel marketing at Philips Lighting Co., Somerset, N.J. “Last November, we planned to introduce a 60-watt equivalent at $50, but by December, the price was revised to $40, and in those states where utility rebates are available, that could push the acquisition price down to $25.
“In addition, that LED bulb uses 12.5 watts of power and will last 25,000 hours, which is 25 times more than the incandescent it will replace, saving the homeowner $140 over the life of the bulb. When you multiply that by the number of lightbulb sockets in the average home, that really adds up.”
Soares also anticipates that there will be a shift in mindset among homeowners with regard to lighting, and it will begin to be considered a major energy-saving purchase decision along with state-of-the-art windows, heating systems and major appliances, not only for the attractive payback, but as a selling feature if the house is put on the market. Contractors should remind customers of this additional benefit when discussing a changeover to LED lamps.
The Value Position of LED Lighting (1)
It’s not often that an electrical contractor has the opportunity to sell a product line that saves a customer time, money and energy; promotes green sustainability; and reduces the load on the nation’s power grid. But that’s what industry observers say LED lamps can do.
There are a number of circumstances coming together right now to create a perfect selling storm for the contractor aware of the market potential of LED technology.
Whether the customer is a multinational corporation or a homeowner, there are compelling arguments to be made for going LED lighting.
However, it is important to understand the customer’s individual needs and not try to sell an LED lighting solution where it doesn’t make sense. A contractor who oversells an LED lighting solution in circumstances where it is not economically appropriate or feasible does so at his or her own risk and endangers professional credibility.
For example, it would be 10 times as expensive to replace a linear fluorescent in a commercial situation with an LED equivalent.
The key to convincing the customer to switch to LED lighting systems is knowing the application specifics and then differentiating between initial price of the product and total cost of ownership over the life of that product. This is often referred to as “the value proposition.”
There are a number of circumstances coming together right now to create a perfect selling storm for the contractor aware of the market potential of LED technology.
Whether the customer is a multinational corporation or a homeowner, there are compelling arguments to be made for going LED lighting.
However, it is important to understand the customer’s individual needs and not try to sell an LED lighting solution where it doesn’t make sense. A contractor who oversells an LED lighting solution in circumstances where it is not economically appropriate or feasible does so at his or her own risk and endangers professional credibility.
For example, it would be 10 times as expensive to replace a linear fluorescent in a commercial situation with an LED equivalent.
The key to convincing the customer to switch to LED lighting systems is knowing the application specifics and then differentiating between initial price of the product and total cost of ownership over the life of that product. This is often referred to as “the value proposition.”
LED Quality Assurance - How to determine what is ture (2)
Can a conventional source do the job just as well? LED lighting is all the rage, offering a high degree of novelty and “cool” to building projects. But, in many cases, it is simply not warranted. There is nothing magic about the LED bulbs, which is, ultimately, just another light source. And as such, the LED must prove its value against incumbent technologies.
Fluorescent, for example, is fighting hard to retain its dominance in commercial buildings. Today’s fluorescent lighting systems are proven, reliable, well understood, highly efficient, controllable and offer rated life up to 10,000 hours.
Ceramic metal halide is also an effective competitor in applications requiring strong intensity from a highly compact light source. Systems as small as 15W, with a form factor approaching low-voltage fixtures, deliver strong punch with high efficacy and long life.
Of course, cost is a major issue here. If an LED lamp is only somewhat better, we must ask if it is worth the premium. The LED product must prove its value by clearly being a better choice.
LED lighting is not cheap. This is a get-what-you-pay-for time in the market for LED technology. Good LED products are highly engineered and, therefore, carry a premium.
Caveat emptor is Latin for “Let the buyer beware.” Industry product testing standards, such as LM79, have been around long enough for reputable manufacturers to be on board; ask for the results of this testing. Ask for details on color quality and life ratings. If the manufacturer cannot back up its claims, it is asking you to accept a higher degree of risk. Ask for demos, try products out and test them for yourself.
If the project has special needs, the manufacturer should be able to demonstrate that it can satisfy them. For example, if the spot light will be dimmed, the LED spotlight must not only be dimmable, but specifically be listed as compatible with the given control. If punch is important, pay attention to center-beam candlepower. If color is important, look at CRI and color temperature, and consider testing the product firsthand. If the product will be used outdoors, ensure that it is specifically built and rated for outdoor use.
Fluorescent, for example, is fighting hard to retain its dominance in commercial buildings. Today’s fluorescent lighting systems are proven, reliable, well understood, highly efficient, controllable and offer rated life up to 10,000 hours.
Ceramic metal halide is also an effective competitor in applications requiring strong intensity from a highly compact light source. Systems as small as 15W, with a form factor approaching low-voltage fixtures, deliver strong punch with high efficacy and long life.
Of course, cost is a major issue here. If an LED lamp is only somewhat better, we must ask if it is worth the premium. The LED product must prove its value by clearly being a better choice.
LED lighting is not cheap. This is a get-what-you-pay-for time in the market for LED technology. Good LED products are highly engineered and, therefore, carry a premium.
Caveat emptor is Latin for “Let the buyer beware.” Industry product testing standards, such as LM79, have been around long enough for reputable manufacturers to be on board; ask for the results of this testing. Ask for details on color quality and life ratings. If the manufacturer cannot back up its claims, it is asking you to accept a higher degree of risk. Ask for demos, try products out and test them for yourself.
If the project has special needs, the manufacturer should be able to demonstrate that it can satisfy them. For example, if the spot light will be dimmed, the LED spotlight must not only be dimmable, but specifically be listed as compatible with the given control. If punch is important, pay attention to center-beam candlepower. If color is important, look at CRI and color temperature, and consider testing the product firsthand. If the product will be used outdoors, ensure that it is specifically built and rated for outdoor use.
LED Quality Assurance - How to determine what is ture (1)
The LED revolution continues to promise many lighting benefits, such as compact size, energy efficiency, long service life with long mean time between failures, no mercury disposal, a resistance to shock and vibration, and no radiated heat or UV output. However, combine high demand for this hot, young technology with rapid product proliferation, continuing emergence of critical standards, and relative lack of industry education and experience, and many installations are failing user expectations.
How can electrical contractors protect themselves and their customers from these risks associated with white LED lighting?
Consider the entire story. The easy path to selecting an LED product is to choose the lowest wattage for the lowest price. That way, the customer can maximize energy savings for the lowest cost. This approach, however, can just as easily lead to poor performance and failed customer expectations.
In lighting design, designers light the space first and then choose equipment that best satisfies the application need. This is a lower risk approach to selecting products because the choice is based on complete project requirements.
Beyond watts, specifiers should account for other basic metrics, such as light output (lumens), resulting efficacy (lumens per watt or LPW), rated life (hours), correlated color temperature (K) and color rendering index rating (CRI). These metrics for LED Flood lights will answer the questions: How much light does it produce? How much light does it produce per watt? How long will it last? What is the color tone—warm, neutral or cool? And how naturally does it render colors and flesh tones in a space?
Even these basic metrics do not tell the whole story of a lighting product. Other attributes include light distribution, glare control, center beam intensity, compatibility with dimmers, ratings for indoor or outdoor use or both, suitability for installation in enclosed spaces or spaces with contact with insulation, the warranty, and others.
Get educated about lighting and LEDs lamps. Translating application needs into LED product selection requires a basic understanding of lighting and specific knowledge about LEDs. The objective is to acquire equivalent or superior performance to conventional sources while gaining the unique advantages of the LED.
For example, LEDs radiate little heat, but the performance is highly sensitive to heat generated inside the LEDs themselves. Some LED lamps may last 100,000 hours as advertised, but by that point, only a fraction of useful light will continue to be emitted. A given retrofit lamp might be touted as equivalent to an incandescent A-lamp but only in certain lighting fixtures where the directional characteristic of the LED improves fixture efficiency.
By understanding all of the lighting metrics applicable to the complete needs of the given application, decision-makers can more easily satisfy those needs by comparing, evaluating and ultimately selecting the right products—while keeping manufacturers honest by seeing through misleading sales claims. Take advantage of manufacturer and independent education. Try a few samples. Get to know the technology.
How can electrical contractors protect themselves and their customers from these risks associated with white LED lighting?
Consider the entire story. The easy path to selecting an LED product is to choose the lowest wattage for the lowest price. That way, the customer can maximize energy savings for the lowest cost. This approach, however, can just as easily lead to poor performance and failed customer expectations.
In lighting design, designers light the space first and then choose equipment that best satisfies the application need. This is a lower risk approach to selecting products because the choice is based on complete project requirements.
Beyond watts, specifiers should account for other basic metrics, such as light output (lumens), resulting efficacy (lumens per watt or LPW), rated life (hours), correlated color temperature (K) and color rendering index rating (CRI). These metrics for LED Flood lights will answer the questions: How much light does it produce? How much light does it produce per watt? How long will it last? What is the color tone—warm, neutral or cool? And how naturally does it render colors and flesh tones in a space?
Even these basic metrics do not tell the whole story of a lighting product. Other attributes include light distribution, glare control, center beam intensity, compatibility with dimmers, ratings for indoor or outdoor use or both, suitability for installation in enclosed spaces or spaces with contact with insulation, the warranty, and others.
Get educated about lighting and LEDs lamps. Translating application needs into LED product selection requires a basic understanding of lighting and specific knowledge about LEDs. The objective is to acquire equivalent or superior performance to conventional sources while gaining the unique advantages of the LED.
For example, LEDs radiate little heat, but the performance is highly sensitive to heat generated inside the LEDs themselves. Some LED lamps may last 100,000 hours as advertised, but by that point, only a fraction of useful light will continue to be emitted. A given retrofit lamp might be touted as equivalent to an incandescent A-lamp but only in certain lighting fixtures where the directional characteristic of the LED improves fixture efficiency.
By understanding all of the lighting metrics applicable to the complete needs of the given application, decision-makers can more easily satisfy those needs by comparing, evaluating and ultimately selecting the right products—while keeping manufacturers honest by seeing through misleading sales claims. Take advantage of manufacturer and independent education. Try a few samples. Get to know the technology.
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