© 2010 AirAdvice, Inc. Presented by AirAdvice Featuring Dave Hewett & Jim Crowder.

© 2010 AirAdvice, Inc.

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


Energy costs in commercial buildings


Building operating costs

Lost Productivity

Cleaning Administrative

Grounds / Security Energy

Service/Repairs

Equipment Replacement

Hard Costs

Hidden Costs

Soft Costs

Energy and replacements are highest


Building operating costs

70% of energy goes to HVAC and lighting

Heating

35%

Cooling10%

Fans6%

Hot Water 2%

Lighting

25%

Refrigeration3%

Plugs

16%

Exterior3%


Market attitudes towards energy

Energy Efficiency Indicator - North America 2010

By Johnson Controls


Market attitudes towards energy


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


If it’s so obvious……..


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

1. Talk to financial decision-maker2. Speak their language: ROI3. Compare their options for them


Speaking the right language

1. State your benefit - as a solution to problem they’ve indicated they have (i.e. high operating costs)

2. Quantify the benefit (10% of 100k annual energy spend is $10k, this is the minimum we can save you)

3. State this economic benefit in• Payback period• ROI


1. Educate them on their options2. Lay out the complete value picture so they can

assess true costs & benefits

How to sell the VALUE of energy


Compare options: The ROI of Energy Savings

Written in 2010

Study of the ROI of energy projects in Commercial Buildings

Provided 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



Energy has the best ROI overall



NOI: Energy provides the greatest increase


What do CFO’s Expect?


Let’s replace myths with reality


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



• Myth: Capital spending required• Replace: Propose low- and no-cost energy savings

measures



• 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

???

???????

?????

© 2010 AirAdvice, Inc. Presented by AirAdvice Featuring Dave Hewett & Jim Crowder.

Documents

Transcript of © 2010 AirAdvice, Inc. Presented by AirAdvice Featuring Dave Hewett & Jim Crowder.