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The Leader in Energy Efficient Renovations Service Market Competition Marketing Financials Risks
| Date post: | 13-May-2015 |
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Business |
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The Leader in Energy Efficient Renovations
Service Market Competition Marketing Financials Risks
Service Market Competition Marketing Financials Risks
• Home Energy Audit
– 2007
– $150
– 2 Consultations
– Rebates
– 18 Months
Service
Market Competition Marketing Financials Risks
ReLeaf
Product Sales
Management Fee
Contractor Commissions
Service
Market Competition Marketing Financials Risks
Initial consultation
Budgeting
Contract
Timeline
Estimates
Products
Renovations
Report
• BCIT Part-time Associate Certificate in Construction Operations
• Project Management Professional Certificate
• Work experience • Duties
– In-home consultation– Estimates of the service fee– Develop schedule – Create contract– Timeline – Deliver final report & collect
payment
Service
Market Competition Marketing Financials Risks
• BCIT Marketing Management Program
• Project Management Professional Certificate
• Duties – B2B relationships with
contractors– Connection with home energy
audit companies– Overseeing Renovations– Paying contractors– Final home energy audit
Service
Market Competition Marketing Financials Risks
• BCIT Marketing Management
• Project Management Professional certificate
• Duties – Secretary tasks– B2B relationships– Product expert– Final report
Service
Market Competition Marketing Financials Risks
• Primary – Add value
• Secondary – Saves money
• Market – Homeowners ages 25 –
64
– Employed full-time
– Household income >$80,000
– Homes built before 2003
Service Market Competition Marketing Financials Risks
Service
Market
Competition Marketing Financials Risks
0
5,000
10,000
15,000
20,000
25,000
30,00029,852
13,51012,102
6,114
3,4292,605
Homes built before 2003
• Energy audit approval
• Experience
• Accurate estimates
• Contract agreements
• Payment terms
Service
Market
Competition Marketing Financials Risks
Service
Market
Competition Marketing Financials Risks
• Home Energy Audit Companies
• Referrals
• Word of Mouth
• Advertising tactics
Awareness
• Website
• Testimonials
• Service Cost
• Opportunity Cost
Investigation
• After first consultation
• Create & Sign Contract
• Completed date is outlined
Purchase
• After signed contract
• Each major renovation
• Completion of entire projectPayment
Service
Market
Competition Marketing Financials Risks
• Environmental– Home energy audit is only
available in Ontario and B.C
• Housing– Vancouver sales declined by
42.9%
– Added Value
• Working hours– Increase
– Convenience
• Renovation Companies
• Contractors
• Project Management Companies– Don’t contract out
– High bias
– High pressure
– Charge by % of cost
– Limited geographically
Service Market Competition Marketing Financials Risks
• Individual contractors
– High bias
– May need to find multiple contractors
– Takes more time
– Must oversee the process
Service Market
Competition
Marketing Financials Risks
Service Market
Competition
Marketing Financials Risks
• Non Bias• Low pressure• Niche market
– Saves cost in energy expenses
– Adds value
• Flexibility– Geographically
• Connection to home energy audit companies
Service Market
Competition
Marketing Financials Risks
Service Market Competition Marketing Financials Risks
Referrals
Word of Mouth
Initial Awareness
• Print Media
– Local Newspapers, magazine
• Publicity
– Radio, BCEIA
• Online
– Google AdWords, Website
Service Market Competition
Marketing
Financials Risks
Service Market Competition Marketing Financials Risks
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
Year 1 Year 2 Year 3
Revenues
Expenses
Service Market Competition Marketing
Financials
Risks
11%
45%
45%
Year 1
Service Revenue
Product Revenue
Contractor Revenue
Service Market Competition Marketing
Financials
Risks
55%34%
11%
Year 1
Service Profit
Product Profit
Contractor Profit
• Investment = $30,000
• DOC = $9,587
• WCR = $85,665– 50% error allowance
• Start Up Costs = $95,252
• Total Line of Credit Required = $96,000
Service Market Competition Marketing Risks
Financials
• Year 3
– Hire 1 new project manager
– Double sales
– Minimal expenses
• Year 5
– 3 provinces
Service Market Competition Marketing Financials Future
Service Market Competition Marketing Financials Risks
