LED Industry Growing at $10 Billion a year in USA Alone

[rc08234]

I'll have to finally chime in here because there is 1 aspect of this that bothers/concerns me.



This is exactly my issue. Our gov has created laws banning the incandescent bulb, 1 step at a time. Just look it up. The gov should not be picking the winners & losers in this market, or any other for that matter! The cost/benefit of the product and the choices of the customer should be determining which products survive & which fail! If the producers of alternative lighting can produce a product that the customer values, they will get the business & they will grow. No regulation from the gov is necessary.

When the gov tries to circumvent the preferences of the customer and force a product out of existence, the product(s) whose monopoly is being established will be susceptible to future failure. They are leaning on the long arm of the law to support their industry. Look for future changes in the regulation to dynamically affect the producers and lead to market instability. Meaning...regulations will likely change/grow and force other players out too. Regulation will be required from now on to maintain stability/control of the market because the customer will always be looking for a product that better suites their preferences.

I understand @Ubermensch's eagerness to be involved in this industry. There is a lot of wealth being transferred from 1 segment of the market to another. That makes an opportunity for some to snag a huge chuck of wealth in the process. See the changes coming and position to take advantage of the shift. (Now see, this has not been entirely about regulation, but also about business opportunity.) However...Rand would not be pleased.

The customer was forced into using the alternate product. The customer is denied the freedom to choose, and thus the freedom to make their lives the best lives for themselves. End of Rant.

I had the same thoughts when I first heard of the law being passed. First it's light bulbs, then trans fats, then gas burning cars, then guns!!!

 

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[Ubermensch]

I'll have to finally chime in here because there is 1 aspect of this that bothers/concerns me.



This is exactly my issue. Our gov has created laws banning the incandescent bulb, 1 step at a time. Just look it up. The gov should not be picking the winners & losers in this market, or any other for that matter!

And yet, our government behaves as it does, and neither of us can do anything about it.

An entrepreneur with a global mindset should pay close attention to regulation-hungry economies. The decline of capitalism in the United States - and the rise of government control - provides many opportunities for the discerning capitalist.

One may defend capitalism, the philosophy, with words and debate. How much better it is to profit from the anti-freedom actions committed by a government, rather than engaging in useless and pointless dialogue.

If the producers of alternative lighting can produce a product that the customer values, they will get the business & they will grow. No regulation from the gov is necessary.

When the gov tries to circumvent the preferences of the customer and force a product out of existence, the product(s) whose monopoly is being established will be susceptible to future failure. They are leaning on the long arm of the law to support their industry. Look for future changes in the regulation to dynamically affect the producers and lead to market instability. Meaning...regulations will likely change/grow and force other players out too. Regulation will be required from now on to maintain stability/control of the market because the customer will always be looking for a product that better suites their preferences.

The situation in the United States is a mixed economy, as your surely must know.

As Ayn Rand correctly observed, monopolies only exist because government creates them. The electric utility market is a perfect example. Electric utilities hold government-mandated monopolies, and are forced by the federal government to provide financial incentives ("rebates") to end-users that replace their inefficiency lights with efficient lights.

In regards to energy efficiency, the USA is quite far behind, and the government continues to create legislation - like PACE - to spur energy efficiency.

Which is better: Debating and complaining about the unchangeable intrusion of government, or capitalizing off of the situation?

I understand @Ubermensch's eagerness to be involved in this industry. There is a lot of wealth being transferred from 1 segment of the market to another. That makes an opportunity for some to snag a huge chuck of wealth in the process. See the changes coming and position to take advantage of the shift. (Now see, this has not been entirely about regulation, but also about business opportunity.) However...Rand would not be pleased.

Rand spoke of Galt's gulch, perhaps a metaphor for living free and abroad. The United States is just one nation, just one nation that now turns against its once strong capitalistic nature.

There are governments all over the world, passing legislation and laws that Ayn Rand would not approve.

I see little point in debating the situation, and far more point in making money off of it.

I had the same thoughts when I first heard of the law being passed. First it's light bulbs, then trans fats, then gas burning cars, then guns!!!

America is simply no longer the great nation it once was. Today, the USA only leads the world in prisoners per capita and obesity rates.

Profiting from the energy efficiency boom in the United States is a lot like Tyler Durden making money by selling women's fat back to them in the form of soap. All of the wasted kilowatt hours - the "fat" in America's energy sector - are recaptured with energy efficiency.

We are changing out all 2x2 and 4x2 units with led fixtures that are 0 maintenance. It's only happening as new construction happens though.

We have not changed Abby outside lighting because the retro fit bulbs either work like shit or are too expensive.

If you really want to sell it easier to the LL, offer to handle all of the rebate work from the local power company or even factor it into the price add a line item.

Sent from my Nexus 6P using Tapatalk

Indeed, the processing of rebates - and on-bill financing - is standard operating procedure for LED providers.

 

[Ubermensch]

You'll now have the do-gooder crowd come in here to espouse the benefits of the new bulbs.

Fortunately for me, it is literally irrelevant as I am not kidding about my light bulb stash. I did it in part a personal protest, and in part to avoid the mercury-laden disaster that was hoisted on unsuspecting consumers. I can't remember ever in my life an entire industry intentionally selling a product with hidden and harmful benefits (other than maybe cigarettes and alcohol.) I am sure there are others. Hazmat lightbulbs were nothing I was interested in.

Now it's just a fun quirk of mine. I enjoy being outside of the system that was forced on everyone else.

But I agree with Uber that there is money to be made in the conversion, and in new energy platforms. The consumer and commercial markets are radically different.

The benefits of LED's is purely in the math. Lower wattage = lower kWh consumption = significant cost savings = lower operational costs = increased property value.

The environmental benefits are secondary to the numbers, payback and ROI.

 

[LightHouse]

The benefits of LED's is purely in the math. Lower wattage = lower kWh consumption = significant cost savings = lower operational costs = increased property value.

The environmental benefits are secondary to the numbers, payback and ROI.

So the lower energy consumption is a by product to the real return, which is maintenance at a property. If you lower maintenance costs, you lower CAM charges and can sustain better rates over the long term. In commercial interior, a good portion of an technicians week is spent locating and replacing burnt bulbs. it is always random and a pain in the butt. LED's are resilient to vibration and overall have a longer lifespan. Now the fixture costs are comping down at volume that they are actually cheaper to install as well.

For residential, I am crossing over now that there are reliable 2700k bulbs at about $3/pc. the biggest benefit to me is the vibration resistance which was killing standard incandescent's constantly. The newer 2700 k bulbs look exactly like standard bulbs so i don't have that "pure white light"(5,000 k) effect like florescence that everyone hates.

 

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[Ubermensch]

So the lower energy consumption is a by product to the real return, which is maintenance at a property. If you lower maintenance costs, you lower CAM charges and can sustain better rates over the long term. In commercial interior, a good portion of an technicians week is spent locating and replacing burnt bulbs. it is always random and a pain in the butt. LED's are resilient to vibration and overall have a longer lifespan. Now the fixture costs are comping down at volume that they are actually cheaper to install as well.

For residential, I am crossing over now that there are reliable 2700k bulbs at about $3/pc. the biggest benefit to me is the vibration resistance which was killing standard incandescent's constantly. The newer 2700 k bulbs look exactly like standard bulbs so i don't have that "pure white light"(5,000 k) effect like florescence that everyone hates.

Remarkably, solar window film paybacks and ROI's are even better than LED retrofits.

 

[axeconnor]

What really are the "bottom of the marketplace" prices?

 

[Oztrepreneur]

Remarkably, solar window film paybacks and ROI's are even better than LED retrofits.

An interesting area I have been looking at. There are newer easier to apply films coming out that I think I could sell for almost half the price of regular thermal films. Need to understand the normal ROI's for films and see if consumers would be interested. Perhaps a combo business doing LED's, thermal coatings, and solar powered ceiling extractor fans (ceiling space heat is a big issue in summer in Oz)...sell the install as a combo to homeowners.

 

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[Ubermensch]

An interesting area I have been looking at. There are newer easier to apply films coming out that I think I could sell for almost half the price of regular thermal films. Need to understand the normal ROI's for films and see if consumers would be interested. Perhaps a combo business doing LED's, thermal coatings, and solar powered ceiling extractor fans (ceiling space heat is a big issue in summer in Oz)...sell the install as a combo to homeowners.

The ROI will obviously vary by location, because electricity prices change with geography and utility territory.

The price per kWh in California is 20 - 25 cents per kWh. The price in Puerto Rico and Hawaii is often above 30 cents per kWh.

10 cents per kWh (written mathematically as: $0.10 per kWh) is the average.

The ROI will also depend on whether or not the local utility cuts the customer a check for using film. Most utilities in the United States do this sort of thing. @SteveO knows of a client of mine that is receiving a six-figure sum of money from a utility, for completing a PACE project that included LED, roofing (and, potentially window film in the final stage).

Aside from the above caveats, you will find that the ROI for commercial applications will be 12 to 60 months, often falling in the lower range, sometimes even dropping below one year.

Energy efficiency technology keeps improving.

Competition in these unregulated industries (capitalism, alive and well, despite those among us who would see the system dead) drives manufacturing improvements, which increases the end-user motivation.

In other words, LED manufacturers keep making better technology, lamps and fixtures with longer warranties, better features, lower costs.

The same goes for film.

@Oztrepreneur your statements about the improving film technology strike a nerve with me. There aren't many widely known manufacturers of film, and some of the technology that I have seen blows me away.

@SteveO and @MKHB , consider this: For the PACE project we reviewed, with the $2,000,000 roofing project and the $600,000 LED project.

The $2,000,000 roofing portion of the project has energy efficiency benefits. The energy savings from the roofing project will increase by over 300%, if solar window film is "tagged" into the project. This information came via the roofing construction company, not the film sales guys.

The ROI on the window film project will be even better than the $600,000 LED project done on the same building.

Even without PACE, the LED project required zero upfront capital, because its short payback period can fit into a standard 5-year equipment lease. The same goes for window film.

In the energy efficiency marketplace, between 60% - 80% of projects never happen due to capital concerns (the client is either unable or unwilling to make the significant upfront purchase of material, not to mention the cost of installation).

Energy efficiency financing solves for this, and can play profitably with window film technology (for both commercial and residential applications).

What really are the "bottom of the marketplace" prices?

It is a simple fact that some negotiating strategies are better than others.

Or, in Orwellian, all negotiating techniques are equal, but some are more equal than others.

There exist empirically proven methods of obtaining the "bottom of the marketplace" price for any service and/or product, provided that A) There exist at least three or four suppliers/vendors that offer the products and/or services to be bid upon and B) the purchase volume (total spend - in the form of purchase orders - that a supplier can expect to receive during the client engagement) is high enough for the supplier to "sharpen its pencil" when it's bid time.

A Fortune 100 or Fortune 500 company will have a "procurement" staff - and, typically, a Director of Procurement, a team that uses these strategies. The team's compensation largely depends upon its ability to empirically and objectively document their ability drive cost savings to the bottom line.

Even still, companies of this size miss opportunities all of the time. When I made $185,000 in a week, I did so by brokering an electricity contract between Abercrombie & Fitch's corporate head quarters and an electricity supplier.

A "bottom of the marketplace" price is the price obtained through these Fortune 100/Fortune 500 purchasing practices. You can tell if it is a "bottom of the marketplace" price if you are trained to see specific corollary markers. For example, you can know that you've obtained a "bottom of the marketplace" price is the numerous bids from numerous bidders are within 0.5% and 3% of each other.

 

[Lukebrisbane]

Started 2017 inspired by this thread, cold called some LED light buisnesses in Sydney, Australia and eventually got ahold of the national commercial manager for one, had a short phone interview with him and he wants to give me an interview, then another one after that. So thanks Uber! You've really given me direction in terms of a career to chase.

I had some questions, so i remember you mentioning somewhere forget the networking events, that's still very true when i start, theres not much point?

I still want to chase referral partners, i also read how you suggested to setup a referral fee exchange, how would you arrange that? Would 10% of my net profit on a deal entice other professionals, then take 10% of theirs if i refer them? How do you usually bring this up in conversation, are you outrightly marketing your referral partners services to prospects or is it only really when you see fit, say they are selling a property and you have a commercial real estate agent friend.

Following on from that, i plan on calling some young professionals that i can somewhat tell are doing well to setup referral partnerships, I'm thinking i can go through real estate, mortgage broker magazines and find the young guns and fast starters to approach, In your opinion uber, what are the best professionals to go after in terms of setting up referral partnerships that have the possibility to refer business? I was brain storming pest control inspectors, possibly builders, are there any that worked for you well?

Also, I know you've mostly talked about selling other construction products on a split of the net profits, you mentioned window film and solar, which i think once i get this job and am making steady profit on a commision/salary hopefully i'll move towards selling too. I wanted to know, what are some other construction industries that could also fit in well in my sales options down the line. I was researching construction chemicals, but that seems to require a fair bit of technical knowledge, maybe glass doors? Any you'd suggest?

I'm abit far ahead, but i am just trying to think long term. I hope I get the job, the guy was pretty impressed i called directly which i have to thank 478 script he told me for.

Anyway again, so thankful for this advice and sharing. Can't want to close some deals, my sales experience isn't huge, but i've read the books you've suggested and am going through more online training.

 

[Scuur]

@Ubermensch I am a work at a underwater led company http://macrisindustries.com/ its a small and quickly growing company my ceo whos 27ish// I am 21 almost 22. We are always looking for new opportunities, I am also just trying to learn as much as possible about the led industry. Only been invloved sense summertime. would love to talk to you more about the led industry.

 

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[Ubermensch]

@Ubermensch I am a work at a underwater led company Macris Industries – Underwater Lights: The Best and the Brightest its a small and quickly growing company my ceo whos 27ish// I am 21 almost 22. We are always looking for new opportunities, I am also just trying to learn as much as possible about the led industry. Only been invloved sense summertime. would love to talk to you more about the led industry.

You in the states?

Hit me up. 312.483.3138.

Or on Instagram at whealthandpower.

 

[nyc123]

@Ubermensch Ive worked in the energy efficiency turnkey market for the past few years and recently opened an energy brokerage company. Would love to hear some of your insight to the procurement side. What's the best way to contact you?

 

[Ubermensch]

@Ubermensch Ive worked in the energy efficiency turnkey market for the past few years and recently opened an energy brokerage company. Would love to hear some of your insight to the procurement side. What's the best way to contact you?

You in the states?

Hit me up. 312.483.3138.

Or on Instagram at whealthandpower.

Is there an echo in here?

 

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