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.”