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Presented by AirAdvice Featuring Dave Hewett & Jim Crowder. Introductions . Dave Hewett: Former Chairman of BOMA International 25 year vet of commercial real estate industry Jim Crowder: CEO & President of AirAdvice
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Presented by AirAdvice Featuring Dave Hewett & Jim Crowder
Introductions • Dave Hewett: • Former Chairman of BOMA International • 25 year vet of commercial real estate industry • Jim Crowder: • CEO & President of AirAdvice • Provider of BuildingAdvice, industry-leading platform for building service providers to grow sales of service and retrofits by delivering cost savings for their clients.
Agenda • Energy Costs in Commercial Buildings • Market Attitudes Toward Energy • Myths About Energy Efficiency • The Value of Energy Efficiency • Selling the Value of Energy Efficiency • Open Discussion
Energy costs in commercial buildings • Buildings responsible for: • 39% of all energy used in the U.S. • 76% of all electricity
Building operating costs Soft Costs Hidden Costs Hard Costs Energy and replacements are highest
Building operating costs 70% of energy goes to HVAC and lighting
Market attitudes towards energy Energy Efficiency Indicator - North America 2010 By Johnson Controls
Market attitudes toward energy “A couple of years ago rent appreciation had a major impact on asset values. Operating costs were not at the top of building owner’s 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
Common myths about energy • Not a controllable cost • Requires capital investment • My building’s fine. I’m not wasting much. • Savings are always less than promised
Other concerns of facilities managers • Don’t have the time to dedicate to it • Lack the required skills • Emergencies always get in the way
Why HVAC? • Your access to underserved market • You know and understand major energy-consuming systems in buildings • You’re in buildings every day
Where the market is heading All sorts of players coming to building owners with promise of $ savings • Utility bill auditors • Insurance co’s • Financial consultants • Elevator manufacturers (and other OEMs)
Where the market is heading Need to differentiate and to show value • Benchmark to immediately show your aptitude • Low- and no-cost savings to prove your value • Propose projects using ROI of energy savings • Prove savings with ongoing meter monitoring
Keys to selling energy services Talk to financial decision-maker Speak their language: ROI Compare their options for them
Speaking the right language • State your benefit - as a solution to problem they’ve indicated they have (i.e. high operating costs) • Quantify the benefit (10% of 100k annual energy spend is $10k, this is the minimum we can save you) • State this economic benefit in • Payback period • ROI
How to sell the VALUE of energy Educate them on their options Lay out the complete value picture so they can assess true costs & benefits
Compare options: The ROI of Energy Savings Written in 2010 Study of the ROI of energy projects in Commercial BuildingsProvided by the IFMAFoundation, a leader in education and research for the commercial real-estate market
The ROI of Energy Savings Payback comparison : Energy has the shortest payback overall
The ROI of Energy Savings Energy has the best ROI overall
The ROI of Energy Savings NOI: Energy provides the greatest increase
Replace myths with reality • Myth: My building is fine, we can’t be wasting that much • Replace: Energy Benchmarking to show them exactly how much
Replace myths with reality • Myth: Capital spending required • Replace: Propose low- and no-cost energy savings measures
Replace myths with reality • Myth: Savings are always over-promised • Replace: Don’t over-promise. SHOW the financial payback info, then prove the ongoing savings
Key takeaways • Be systematic but patient • Don’t swing for the fences every time • Start with a pilot, then take to other buildings • Be proactive, and do in small steps • Then use the savings instead of the capital budget to fund the next step • Get paid to prospect • Explain a process to your clients & prospects • Don’t just heave promises of energy savings at them. They get enough of this.
Open for questions ? ?? ??? ???? ?????