There’s no reason not to have LED; it’s all benefit; no downside. The list of reasons why is long and compelling. Here are five of them:

• Your energy savings from Day One will cover the cost of the lights. We’ll provide the financing so that your out-of-pocket cost is ZERO.

• Once paid for, your monthly ROI from the energy savings will be in the thousands of dollars. Much more if you have multiple locations.

• LED generates better light. Your products will look better to your customers.

• Your maintenance costs and business disruption from changing lamps is essentially eliminated.

• Using less energy means that we’re burning less fossil fuel, which, when it comes right down to it, may be the biggest benefit of all.

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LLDP stands for Local Legacy Distribution & Pricing. It’s the source of inevitable and significant cost creep, frustration, and mistakes. And it’s the customer who comes out on the short end. For everyone else in the local supply chain it’s a sweet deal–cozy and extremely profitable. Here’s how LLDP works:

You order lights from the local agent of a manufacturer. The agent gets between +3%-15% commission on those lights.

The agent quotes the price to a lighting supplier who then marks up the price by + 20%-40%.

The lighting supplier quotes the marked up price to the electrical/general contractor who then marks up the price by +5%-15%.

Finally, the project is awarded and placed with a distributor who marks up the price by +15%-20%. The result of the LLPD model is that the customer ends up paying between 43% and up to 90% on top of the original cost of the lights.

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We’ve already explained how the local supply chain marks up lights–without adding a lot of value.

When an order is placed directly through AutoLume, OEM’s compete for the job with National Account Pricing, their local reps are capped at 3% commission, and the distributor’s margin is fixed at 4%–saving the customer a minimum of 15% versus what he would have paid if he would have placed the order through his local EC.

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