I know it sounds a little “pitchy” but in fact, this is 100% a true story. Our company has recently started a finance program appropriately titled “LouMan Money®” in order to fund Lighting Solutions for our commercial clients. LouMan Money® provides not only the financing for lighting products, but will also include all design, install and even disposal or recycling costs for the products being removed.
So what does this all mean to you? I am glad you asked!
Lets say we use our fancy analysis tool, the Lampinator®, to figure out what you’ve got for existing lighting and what LED products we’ll put in to replace it. For the sake of this example, lets say that we determine we are saving you $10,000 / year with an initial cost of $20,000 in product, installation, etc. So, that’s pretty easy math, right? $20,000 will take exactly two years to reach “payback”. Then, we can dig a little deeper and calculate ROI (Return On Investment) based on the expected life of the state-of-the-art LED products. Lets use 10 years for the sake of this example. So how does the math look so far?
- Investment: $20,000
- Annual Savings: $10,000
- Payback Period: 2 years
- Life of new LEDs 10 years
So based on the above, your eventual ROI (not including rate increases, inflation, etc) will be (savings) 10,000 X (life in years) 10 – (Investment) 20,000 = $80,000. Yes, it’s true. In 10 years, you will have earned a profit of 80,000 on your initial investment of 20,000. Sure, some will say “but what if those products don’t last the full 10 years”… well, even though the rating on the lamps may be as long as 20+ years, lets say they ONLY last the 5 year warranty… you’re still looking at a $30,000 profit on the 20,000 investment.
The argument then can only be “well, we’ve been through a rough 5 or 6 years with this crazy economy. For our business to put $20,000 into lighting products, when our lights are working perfectly makes little sense to us”. I understand. Trust me, in my own businesses, it’s hard to justify investments in anything other than staff and inventory.
The answer is this. “Invest someone else’s money!” This is where we come in. LouMan Money® allows our clients to pay for the entire project, from start to finish, with other people’s money. We match the payment closely to the savings, then give you all sorts of options on what you want to do. Lets say for example:
- Project Total: $20,000
- Monthly Savings: $833
- Down Payment: $0
- LouMan Money 24 mos: $891
- LouMan Money 36 mos: $612
- LouMan Money 12 mos: $1,726
So, using this example, if you pay for the lights over 36 months, you’re seeing Positive Cashflow from month 1 of $221 from the very first month. You’ve paid nothing out of pocket, there are no personal guarantees (in most cases) and only the LED lighting serves as collateral. Yet, you are realizing savings month one!
You also have options to pay for the lights in a shorter, or sometimes even a longer period. The flexibility is there.
LouMan Money® offers so many more benefits including easy application process, the availability of master lines (allowing you to approve multiple locations at once, but ship only as needed), and much more. Heck, we can even easily finance governments and municipalities! The goal is only to provide as many businesses as possible with better lighting solutions, improving the world and your bottom line while we do it.