Increasing Profitability Through Energy Services

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Increasing Profitability Through Energy
Services A Comprehensive Program To Deliver
Energy and Sustainability Services
? 2009 AirAdvice, Inc.
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Enhancing Energy Efficiency Modules
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Module 1 An Overview of Energy Services
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Why Now Building Owners Pain

• Financial pressure
• Tight capital budgets
• Need to reduce operating costs
• Market demand for green, sustainability

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• A couple of years ago rent appreciation had a
  major impact on asset values. Operating costs
  were not at the top of building owners priority
  list. Today, as rent growth has slowed, reducing
  operating costs can have a significant impact on
  the value of a building. Energy efficiency has
  now become a priority.
• - Mark Fitkin
• CB Richard Ellis

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Pain in the buildings A target-rich environment
Energy
Energy
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Target-rich environment

• 2007 version available on the Building Advisor
  blog http//airadvice.com/buildingblog
• 2009 version coming this summer

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Where to Attack Resources
Source Building Owners and Managers Association
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Why Now Contractors Perspective

• New construction slow
• Project backlogs decreasing
• ROI compression
• Service contracts under pressure

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• If you do the same thing in 2009 as you did in
  2008 and think you can expect the same result,
  youre crazy. You have to do something
  different.
• - Jeff Souza
• EMCOR Facilities Services

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• Energy and sustainability services are the
  catalysts to
• Protect and grow your service base
• Harvest retrofit opportunities

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Big players. Big projects.
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If this is so easy, why arent more energy
services being provided today?
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Building demographics
98
100
90
80
70
58
60
No. of Bldgs
Cumulative Distribution -
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Energy Use
40
30
20
10
0
5k to 10k
Over 500k
10k to 25k
25k to 50k
50k to 100k
100k to 200k
200k to 500k
Less than 5k
Building Size - sq. ft.
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Technology has not been geared toward scale
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Economics of energy service delivery
Assume 40 hrs _at_ 150/hr Savings Potential
0.30 per sq. ft.
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Why are HVAC contractors better positioned to
capitalize on this opportunity?
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1. Youre in the buildings every day
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2. Your Solutions are Cost-Effective
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3. Service infrastructure in place
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Positioning Service Agreements as Energy Service
Agreements Benefits Your Business

• More revenue per customer
• More profit per service contract
• Preserve service base

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Getting started in energy services

• Treat as sales initiative
• Focus on financial buyer
• Define your services
• Define your mission/vision

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Energy Services Delivery Model
Level III Audit / Retro- Commissioning
Benchmark Energy Performance
Propose and Implement Retrofits
On-Site Energy Audits
Monitor and Verify Savings
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• Business Benefits of Benchmarking
• Start the energy discussion
• Qualify your prospects
• Builds your early sales funnel

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Topics for Energy Benchmarking webinar

• ENERGY STAR Portfolio Manager
• Benefits
• Challenges
• Benchmarking alternatives
• Utility bill-paying services
• Packaging and selling benchmarking services

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Energy Services Delivery Model
Level III Audit / Retro- Commissioning
Benchmark Energy Performance
Propose and Implement Retrofits
On-Site Energy Audits
Monitor and Verify Savings
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• Business Benefits of Energy Audits
• Generate incremental service revenue
• Quantify energy savings opportunities
• Build foundation for future projects

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Types of Energy Audits ASHRAE Definitions

• Level I Walk-Through Analysis
• Level II Energy Survey and Analysis
• Level III Detailed Analysis

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Methods Used for Level I Audits

• Walk-Through w/ Checklists
• Worksheets / spreadsheet analyses

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Methods for Level II Audits

• Use of data loggers to collect environmental
  data
• Energy metering
• Spreadsheet analyses
• BuildingAdvice Assess

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Benefits of Level II Audits

• Technology and automation reduce delivery cost
• Customers can now afford efficiency studies
• Builds financial case for services and retrofits
• Establishes a proactive sales strategy
• Gets you around gatekeepers
• Positions you as a strategic partner

New price point opens new market opportunity
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Integrated reporting
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Integrated reporting
Receptionist had a space heater under her desk!
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Integrated reporting
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Energy Services Delivery Model
Level III Audit / Retro- Commissioning
Benchmark Energy Performance
Propose and Implement Retrofits
On-Site Energy Audits
Monitor and Verify Savings
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• Goal of Level III Energy Audit
• Detailed analysis to support major capital
  investment decisions

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Methods for Level III Audits
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Energy Services Delivery Model
Level III Audit / Retro- Commissioning
Benchmark Energy Performance
Propose and Implement Retrofits
On-Site Energy Assessment
Monitor and Verify Savings
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Propose and Implement Retrofits

• Financial focus ROI
• Supported by engineering calculations

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Closing the service retrofit sale webinar topics

• Session 5, July 15th
• Getting by gatekeepers
• Targeting multiple decision makers
• Financial justification
• Objections and overcoming them

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Energy Services Delivery Model
Level III Audit / Retro- Commissioning
Benchmark Energy Performance
Propose and Implement Retrofits
On-Site Energy Audits
Monitor and Verify Savings
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• Business Benefits of Monitoring and Verification
• New service revenue opportunity
• Stay connected to customer
• Ensuring savings are met

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Methods for Monitoring and Verification
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• Topics for LEED Webinar
• Session 7, August 12th
• LEEDs relevance to service contractors
• LEED credits addressed by energy efficiency
• Positioning your company to participate in LEED
  projects

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• Topics for Marketing Webinar
• Session 8, August 19th
• Segmentation, targeting
• Branding, messaging
• Marketing process, activities
• Campaigns to existing and new customers

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Summary

• Your customers need your help
• MSCA best positioned to help
• Tremendous opportunity to harvest service and
  retrofits in your base
• Energy Services Webinar Series establishes you as
  the expert in your market
• Webinar series is a roadmap to transition you to
  the new market
• Take the reins!

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Enhancing Energy Efficiency Modules
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Next

• 1) Bookmark the Building Advisor blog
  http//airadvice.com/buildingblog
• Regular updates, addition of materials and
  documents
• Join the conversation we want to hear from you

• Look for email in 1 day
• Recorded version of this webinar
• Register for upcoming sessions
• More