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.
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