Society is becoming increasingly aware of energy consumption. More than ever it seems, people don’t want to waste energy. According to a recent survey, people want to save energy for three reasons:
- To save money
- To protect the environment
- To preserve quality of life for future generations
It’s wise for business owners to ask how they can take advantage of this emerging trend. Are there products or services in your industry which are more energy efficient that you can sell? By getting in early you can get ahead of the competition and find yourself in a rich vein of demand.
A case study
Ducted Air Perth, an air conditioning company in Perth, Western Australia recently moved towards energy efficient products and saw 500% growth as a result.
After 21 years in the industry, they found many of their customers would complain about how expensive their Air Conditioning units were to run. As a result they cut out all cheap, inefficient brand air conditioners they sold. They decided to only stock and sell premium designed Air Conditioners that were known for their efficiency and performance. Their flagship product became the Actron Air ESP Platinum Reverse Cycle Air Conditioner, which saved users up to $900 in energy costs every year.
The result was huge growth for their company.
5 reasons selling energy efficient products and services makes sense
So why does selling energy efficient products work so well? Here are five reasons.
1. People love the idea of repeat savings
People are clearly sold on the idea of ongoing savings. Even if the initial cost of the product is significantly more. Emotional buyers are drawn to the notion that they can have a winning feeling year after year. Rational buyers know its an economically smart decision. Its an attractive proposition to both types of buyers.
The key is to promote your products in a way that leverages the cyclical benefit against the initial higher price of the product. There’s no doubt that Ducted Air Perth did this very well – often leading promotions with the line “Save $900 every year on your energy bills”. People realise that ultimately it’s smarter and better to spend more now if you repeatedly save more later.
2. Creates a positive perception of your company
Business owners agree that company perception is huge. An energy efficient product line portrays your business as progressive, clean and efficient. Your brand becomes associated with quality which attracts demand.
For 21 years Ducted Air Perth struggled because they sold cheaper yet less efficient systems. Their customer’s experience was a negative one. Not because of poor workmanship or poor installation, but because the products they sold were expensive to run. When they changed to efficient products they found positive customer experience led to more sales through word of mouth.
3. Rising energy costs
In Australia where Ducted Air Perth is based, energy costs have been rising faster than economic growth. As a result the idea of a product that uses less energy is an appealing one. In the US it’s a similar story with costs rising faster than inflation since 2008.
Energy is costing more and this is of concern to many people. People don’t want to depend on something that they have no control over. By providing products that consume less energy, you are helping to alleviate that concern.
4. Increased demand for household power consumption
With the increased use of laptops, phones and smart devices, average household consumption of power has increased. Coupled with rising energy costs, this places pressure on consumers to use less energy. By promoting and selling energy efficient products, you are addressing a problem that is very real for the average consumer.
5. Good Ethics
It is good ethics to sell and promote energy efficiency. You portray your business as responsible, unselfish and thoughtful. This helps establish trust with your customers and value to your brand.
Quite clearly there are many good reasons why your business should become energy efficient. Like Ducted Air Perth, its possible that a move towards energy efficient products could provide a great catalyst for growth in your business.