selling energy efficiency with financing
TRANSCRIPT
1
Road Blocks – Don’t you just hate ‘em?
What’s standing in the way of your success?
2
• “It’s not in the budget”
• “We don’t have the cash right now”
• “Budget approval will take too long”
• “ROI needs to be under 2 years”
Barriers = Objections
3
• Overcome Barriers
• Add Value
• Be different
Opportunity
4
• Sales approach technical / product oriented (comfort zone)
• Strong product knowledge, poor business acumen /empathy
• Fear of the unknown / assumes the customer has the $
• OEM’s not helping with project finance solutions
• Customers do not budget for energy efficiency projects
• Energy efficiency does not compete well for capital budget $
• Closing ratios very low
Problem
5
Sales
6
• Overcome customer’s budgetary & capital objections
• Viable alternative to the cash-sale/ROI model
• Refocus/transform the value proposition
Why Offer Financing?
7
According to the Institute of Building Efficiency, energy efficiency projects are deferred because they lack
capital to pay for measures, want shorter payback times, and are uncertain of the value of the energy savings provided.
Source: Institute for Building Efficiency 2011-13 average for North American respondents.
Capital Availability Barrier
42%Capital
Availability21%ROI
Payback13%
UncertainSavings
8
• Cash sales = worst sales‒ Customer in control
‒ Margins erode due to discounting
‒ Payment terms not favorable to dealer
‒ Creates “aged receivables” problem
‒ Chasing for payment post-installation
• Financed sales = better‒ Dealer in control of sale
‒ Margins higher – discounting eliminated
‒ Favorable payment terms for dealer
‒ Eliminates chasing the customer for payment
‒ Reduces/eliminates “aged receivables” problem
Close More Deals With Better Margins!
9
1. Traditional Financing> Loans, Equipment Leasing, Finance Agreements
2. Shared Savings Solutions
3. Performance Contracting
Documentation Through Funding Process
10
Ross ReidaEnergy Efficiency Finance Guru
Call: (503) 807-2141
Email: [email protected]
Click: www.linkedin.com/in/rossreida