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Road Blocks – Don’t you just hate ‘em?

What’s standing in the way of your success?

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• “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

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• Overcome Barriers

• Add Value

• Be different

Opportunity

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• 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

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Sales

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• Overcome customer’s budgetary & capital objections

• Viable alternative to the cash-sale/ROI model

• Refocus/transform the value proposition

Why Offer Financing?

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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

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• 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!

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1. Traditional Financing> Loans, Equipment Leasing, Finance Agreements

2. Shared Savings Solutions

3. Performance Contracting

Documentation Through Funding Process

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Ross ReidaEnergy Efficiency Finance Guru

Call: (503) 807-2141

Email: rossreida@gmail.com

Click: www.linkedin.com/in/rossreida