Interesting information on ENERBRITE....
BUSINESS DEVELOPMENT
The business development strategy involves dividing the United States into 7 regions
consisting of 32 distinct sales territories. In year 1, sales territories in Colorado,
Texas and the East Coast will be developed. By the end of year 5, all 32 territories
across the seven regions will be open and operating.
Each sales territory will contain a minimum of 2,000,000 hotel rooms, rental
apartments/condos and classrooms. Therefore, achieving unit sales of just under
300,000 EMS units by the end of year 5 represents a market penetration of only 1%.
As each new sales territory is opened, an experienced energy industry individual will
be recruited to represent the EnerBrite energy management system and will solicit
sales to the markets identified above by encouraging potential clients to evaluate the
EnerBrite products in one of their facilities as a test project. The units will be
installed after an energy audit to determine usage and potential energy efficiency of
the facility. Once the audit is complete, the company will commit to a baseline
energy savings level during the test period. If the benchmark savings are realized,
the client would agree to install the EnerBrite energy management system in the
balance of their portfolio of facilities.
While the energy management system will be developed through sales at the district
level, the life-style system will be promoted at the regional level by techno-savvy
individuals familiar with the requirements of communications management and
systems integration.
Another business development strategy will be to offer volume discounts for large
purchases. While the retail cost of EnerBrite products will vary based on the
components included in the system, volume discounts will range from 10% to 25%.
The company intends to offer an innovative financing option to eliminate a decision
barrier for those clients without the capital budget necessary to commit to purchase.
For these sales opportunities, this program will offer the EnerBrite technology
system (including installation) under a positive cash flow lease program. After the
application of applicable incentives the cost of lease payments could be lower than
the savings realized.
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FINANCIAL ANALYSIS AND SUMMARY
It is expected that over the initial five year period, annual net income before taxes will
increase from a loss of less than $1 million to a pre-tax profit in excess of $15 million
(refer to Appendix B). Depending on the company’s success in lobbying government
and energy suppliers for increased incentives and endorsement of its energy
management technology, the actual results could be significantly higher.
Moreover, it is projected that net cash flow accumulated during this 5 year period will
exceed $21 million.
Sales of SensorStat and the EnerBrite technology system are based upon
conservative projections of 1,200 units per sales territory in year 2 rising to 18,000
units per territory by year 5. The projections do not recognize sales from newly
launched territories during their first year. Each sales territory will be of sufficient size
to actually surpass its targeted sales volume several times.
In addition to the sales of EnerBrite products, the Engineering and Business
Development teams will be evaluating other complementary products that may be
acquired or distributed on an exclusive basis. The financial impact from the sales of
these products has not been included in the projections.
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