The High Cost of NOT Doing an LED Lighting Upgrade

As competitive as business is today, smart managers look for every opportunity to create more sales and reduce costs.

 

If you are an auto dealership, you know there are literally dozens of stores that your potential customers can go to while searching for a new car. And often times they are doing their shopping at night and just want to look at some choices without talking to a salesman. If your lot is dark or underlit, they cannot see the features of the new vehicle and some people will not go into a shadowy underlit lot alone.  Who can blame them?

 

If you are a warehouse type business, packaging and shipping product, you probably have a lot of light fixtures and a lot of dark areas. Employee production drops drastically if there are dark areas they can hide in. If packaging areas are not lit to code, you are in violation and the reduced light causes employee eye strain resulting in mistakes, lower production and possibly injuries.

 

If you are a retail store using fluorescent technology, you have a lot of light fixtures and most likely they vary in output. This causes you to see different shades and different brightness levels, making your store look shabby. Obsolete fluorescent lighting makes people feel uncomfortable. It emits UV rays but more importantly it creates harmonic distortion and possibly flicker. This has an impact on people and makes them want to leave the area. Do you want your customers to feel like they need to hurry up and leave? Or would you prefer they linger longer and spend an average of 5% more?

 

These three examples demonstrate the impact that the wrong lighting can have on sales and costs. Ask any business that has done a lighting upgrade to Solid State Lighting and they will tell you about their positive results.

 

Increased sales and better employee performance from better lighting is not always easy to track. It requires some degree of confidence that you will get the results just by seeing the differences in the ambient lighting. What is easy to see and track is the costs you have and the savings you lose if you do not upgrade.

 

Let’s look at a sample car sales lot:

A 1000w metal halide light in your parking lot that stays on an average of 12 hours a day (nighttime). This light is costing you approximately $16 per week to operate and about $830 per year in energy cost. Maintenance for this light over it’s useful life of 5 years will cost you around $250 or average $50 per year. Total cost per year to operate is approximately $880. This light can be replaced with a 240w LED light with a motion sensor installed. This light, programmed to be on from dusk to dawn and controlled by motion, will average being on at full power for about 3 hours per night and at 1/3 power for about three hours. This calculates to about $1.20 per week or $63 per year. There is no maintenance cost with LED lighting. Can you justify spending an extra $817 per year, per fixture on poor lighting?  How about if you have 50 of these lights?

 

Let’s look at a sample warehouse:

For this example, we will assume you have fluorescent high bay lighting designed with 6 tube T5 high output lights. One fixture is using 354w. If you are running double shifts, these lights are on 18 hours a day. This light cost you approximately $8 a week to operate or $417 per year. Maintenance cost over the useful life of the light averages $25 per year. So annual cost is $442. If you upgrade to the newest warehouse lighting technology with sensors, you will replace this fixture with an LED fixture using 120w. Because of motion sensing, the light will average being on full power about 10 hours a day and 30% power for 8 hours. This luminaire will cost you about $1.87 per week or $97.50 per year in energy use. There is no maintenance cost with LED lighting. Can you justify spending an extra $345 per year, per fixture for poor lighting? How about if you have 150 of these light fixtures?

 

Let’s look at a sample grocery store:

Lighting is so important in grocery sales, especially with regards to fresh meat and produce. The fact is, fluorescent lights cannot illuminate these products properly. Halogen lights do a better job but are very expensive to operate. Let’s assume the lights are on 18 hours per day, and like most retail stores they are 2 lamp fluorescents mounted high on the ceiling. We will compare the operating cost of two of these 4’ fixtures as the LED replacement will only be one luminaire to every 2 fluorescent fixtures. These two existing fixtures are using 144w of light. These fixtures cost you $3.30 per week or $170 per year in energy costs. Maintenance cost over the useful life of the lights averages $40 per year. Annual energy operating cost is $210. If you upgrade to the newest premium Linear LED light using 40w, your energy cost to operate is $ .90 per week or $47 per year. There is no maintenance cost with LED lighting. Can you justify spending an extra $163 per year per fixture for poor lighting? How about if you have 500 of these light fixtures?

 

These three examples give you a good idea of how much money you are spending that you don’t need to spend. Delaying an LED upgrade today is a common mistake made by business managers and our experience shows that this is mostly the result of not understanding the dynamics of LED lighting. Your business can be updated to LED technology for nothing out of pocket, significantly improved cash flow and great employee and customer satisfaction. All you need do is contact a Philips Certified LED Lighting Professional at Lumens For Less, Inc.