20 Mar Lighting as a Service Benefits Businesses Richly
How would you like to pay for your lighting just like your favorite streaming service? Lighting as a Service (LaaS) is your best payment model.
Before Lighting as a Service
With the advent of high-speed Internet, streaming your favorite movies and TV shows has exploded in popularity. People rarely purchase DVDs or VHS tapes any longer. You just power up your favorite cable equipment, laptop, or mobile device and enjoy.
Back in the 1980’s, when your business needed a copy machine, you purchased one and called in a service technician for any needed repairs. This would continue through the copier’s useful life, then it was nothing but scrap. That was until people got wise. Copier technology advanced so quickly that the smart move was to lease the copier and pay a monthly fee. The fee included maintenance and upgrades.
Lastly, data shows that one-third of online users read Blogs on a smartphone. Every two years or so, consumers upgrade their mobile devices. And many of them do so through a monthly payment plan, that spreads out the cost of their new smartphones over 24 months. Then, because mobile phone technology gets better all the time, consumers upgrade again.
Lighting as a Service Benefits
The speed at which LED lighting technology advances and improves lends itself to a subscription or leasing model. It is becoming increasingly attractive to look at renting your lighting delivery system, rather than buying it. The same principles that apply to streaming services, copiers, and smartphones now apply to commercial LED lighting. The money you save on reduced energy costs can cover the monthly costs of your new lighting system, effectively resulting in a free upgrade to your lighting experience.
- Pay No Upfront Investment: By renting your lighting, you avoid large, out of pocket costs.
- Add an Operating Expense, Not a Capital Expenditure: By renting your lighting, you move the cost of a lighting upgrade from a capital cost to an operating expense. This conserves cash and keeps the asset off your balance sheet.
- Reduce Energy Costs Immediately: Efficient LED lighting will reduce your energy costs while improving the working environment for your employees and create a more attractive space for your customers or tenants.
- Create Positive Cash Flow: Payment for your lighting upgrade project is achieved through a monthly-charged service agreement. The monthly fee may be lower than your resulting monthly electric bill savings. The net effect is an immediate positive cash flow.
- Improve Valuation: A fully upgraded building is worth more. As a property owner, you will benefit from an increase in the value of your property and your property will be more attractive to new tenants.
- Avoid Maintenance Costs: During the term of the service agreement, Lumenal will maintain your lighting without additional costs. This includes parts and labor. You never need to concern yourself with lighting issues.
- Technology Improvements: LED lighting is in a constant state of positive evolution. Under the service agreement, further enhancements can occur as technology improves. At the end of the service agreement, a new upgrade can be performed with the agreement simply extended. Again, no upfront costs and you receive improved lighting and improved energy efficiency.
Large industrial property owners with long operating hours and high wattage HID light fixtures will experience the greatest opportunity for positive cash flow.
– Bobbi McLeod, LC, Lumenal Lighting
A Deal by Any Other Name
Whether you call it Lighting as a Service or Lumens as a Subscription or any other clever acronym, this payment model strategically applied to lighting has so many benefits it is hard to know why anyone would not want to have it. No upfront investment, reduced costs, positive cash flow, protection from obsolescence, no maintenance, better working conditions, and increased energy conservation. If there ever were a win-win deal, this is it!
Contact Lumenal Lighting today at (425) 481-5001 to start your Lumenal as a Solution experience!
- Lumenal Lighting – Commercial Lighting Upgrades
- Lumenal Lighting – Commercial Lighting Repair & Maintenance Services
- Linmore LED – LUMENS as a SUBSCRIPTION
Last Modified: August 1, 2020