Discussing P&L Benefits Effectively

 DiscussingPLBenefitsEffectively.jpg

Energy efficiency can affect many line items on a business’ Income Statement (also known as the “Profit and Loss Statement” or “P&L”). If you look at the full picture through the lens of business acumen, you’ll see how effective it can be to discuss the potential P&L benefits of your efficiency project with your prospects. The following list gives you an idea of the types of line items that you may choose to discuss: 

  • More sales: If you install attractive LED lighting in a grocery store, for example, the store will likely see an increase in grocery sales.
  • Less payroll: If your efficiency solution increases productivity (as we have discussed in previous blogs), employees may be able to do more work in less time.
  • Less repairs/maintenance: A new, high-efficiency product usually requires less maintenance than an old, soon-to-fail one.
  • Less scrap: You may recall a story I told about the aluminum windows and doors manufacturer that reduced scrap rate by 25%, effectively turning a 4.2-year payback into a 39-day payback.
  • Lower utilities: Of course, your efficiency product will probably have a positive effect on the utility bill, so this one will be included in virtually every case.
  • Higher rental rates: With all of the added benefits of efficiency, your prospect may be able to increase rental rates without deterring potential tenants.
  • Better tenant retention: An efficient building is more comfortable, more attractive, and requires less maintenance. All of these factors help retain existing tenants who might otherwise choose to move to a building that features the high-end amenities you are offering to your prospect.
  • Better tenant attraction: As in the case above, an efficient building is more comfortable and attractive than an inefficient one. Add in an ENERGY STAR® or LEED certification and you’ve got yourself a recipe for tenant attraction.
  • Less need for Cap Ex Reserves: This is a topic that warrants further discussion, so stay tuned for more on this on Tuesday!

 Love one of our blogs? Feel free to use an excerpt on your own site, newsletter, blog, etc. Just be sure to send us a copy or link, and include the following at the end of the excerpt: “By Mark Jewell, Wall Street Journal best-selling author of Selling Energy: Inspiring Ideas That Get More Projects Approved! This content is excerpted from the Sales Ninja blog, Mark Jewell's daily blog on ideas and inspiration for advancing efficiency. Sign up at SellingEnergy.com.”

Want our daily content delivered to your inbox? Subscribe to the Sales Ninja blog

Subscribe

By info@SellingEnergy.com (Mark Jewell, President of Selling Energy | www.SellingEnergy.com) | | financials, planning, presentations, prospecting, sales tips |
next post → ← previous post