Monday, 15 August 2016
The Bottom Line of LED Lighting

The myriad financial benefits of a well-designed LED lighting system can be organized into 2 categories - obvious and non-obvious.   

The obvious financial benefits include lower utility and maintenance expenses (i.e., for lighting and HVAC) as LED fixtures consume less energy, last longer, and radiate less heat than their legacy counterparts.  These cost reductions are magnified when intelligence features are added.  

The non-obvious financial benefits include increased workforce and workplace productivity.  A workforce operating in an optimized environment tends to be healthier, shows up for work more frequently with a higher capacity to focus, making fewer costly mistakes.  

A well-lit workplace attracts more customers, retains employees and tenants, and commands higher base rents.  To be clear, the non-obvious benefits are derived entirely by good design; quality LED light fixtures just give the designer significantly better tools with which to work.

Benefits to Value
The obvious benefits boost net profit by reducing operating expenses (e.g., utility and maintenance costs), of course.  The real value, however,  is that they pay for the quality LED system that puts a company in position to realize the value of the non-obvious benefits with very little risk.      

In terms of impact to the bottom line, the non-obvious benefits are higher leverage by a couple orders of magnitude.  A workplace and workforce improvement as small as 1% can widen the gap between revenue and operating expenses as much as the obvious benefits combined, which is why Valet places major emphasis on design.

In sum, both sets of benefits work in concert to reduce expenses and boost revenue, ultimately increasing profitability.  


Posted on 08/15/2016 2:46 PM by Valet Energy
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