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EcoPower 4
Contractor’s Orientation and Marketing Plan
© 2008 by Jeffrey Klein
Identifying the “Customer”
The EcoPower 4 by EcoQuest has one of the broadest markets of any product available in the United States, Canada and soon Europe and South America. The reason is that it is universal in its application, operating identically for ever customer.
Our highest value prospect is the typical single family, living in a detached single family home, having school-aged children. The second highest value prospect, is any combination of people living in a detached single family home larger than 2,500 square feet, especially if they have an emergency generator that is hard-wired to the main circuit breaker panel of the home.
The only technical parameter for the equipment is that it is limited to Single-Phase” electric service, provided through a single panel having a maximum capacity of 200 amps or less. If there is more than one panel in the home or business, it will require a EcoPower 4 to be installed on each [primary] panel.
Some other highly motivated demographics:
· People with average monthly electric bills that are $200 or greater
· People with swimming pools or water features
· People who own “older” or “historic” homes
· People who are “Going Green”
The Company
Since 1986 EcoQuest International has been a world leader in the development, manufacturing and distribution of technology products that are superior in their industrial categories, even gaining the right to display the official “Space Foundation” (NASA) logo on an entire product line whose primary operating component is “Space Technology”.
Since being acquired by Aerus LLC in March 2009, the company is now headquartered in Dallas, Texas; however, the EcoPower 4 is actually manufactured in the parent company’s 400,000 square foot manufacturing facility in Bristol, Virginia.
The EcoPower 4 became available for sale through the EcoQuest dealer network at the end of March 2008, and began shipping on April 30, 2008. The demand was enormous, and in just the first year we have sold over 40,000 residential units all over the United States and Canada, resulting in our immediately becoming the dominant player in this market category.
The company is now the general licensed distributor for the commercial products line, through the ActivTek Commercial Division of EcoQuest, which is quickly establishing a dominant role in this category as well. In order to market, sell and distribute the commercial line, they pass the commercial certification course test.
Product Knowledge
The “defining factors” that differentiate the EcoPower 4 from the competition is that it has all three components (not just one as with the competition) critical to having a complete home energy system:
1. “Harmonic Resistant Capacitors”: which capture, store and recycle what would otherwise have been “wasted electricity”; this increases the “Power Factor” (how efficiently the home uses the electricity purchased) of the average American home to 98%, from the 77% national average.
2. “Metal Oxide Varistors-MOVs”: which begin “clamping down” immediately in the event of any surge, but that are also designed to “sacrifice” themselves in the event of a “catastrophic” surge, such as a direct lightning strike, to prevent the charge from being distributed throughout the home and destroying all of the appliances and electronics.
3. “Harmonic Filtration”: which filters “noise” and static currents, created by computers, FAX machines and Copy Machines which use variable frequency “pulse” or “non-linear” electrical loads, which damages sensitive electrical equipment. The result is that everything runs cooler and therefore lasts longer.
The EcoPower 4 components are all “classic technologies” that were initially invented well over 100 years ago, and have been in use for decades. The operation and performance of them has been well documented over time, especially by the US Department of Energy (DOE), and independent laboratory testing.
The patent-pending aspect applies to the architecture of this multiplex, three-component system, whereby the components operate in harmony, depending upon certain operating conditions, to produce a greater benefit than if different such components were installed in the home separately, at nearly twice the cost!
Finally, the EcoPower 4 has an unmatched 10 Year Warranty, a $25,000 Financial Guarantee against damage from Surge, and an expected lifespan of 20 years.
Product Application
The general parameters of application in a residence or small business using single-phase electric current are as follows:
1 EcoPower 4 unit per Panel having a maximum 200 amp capacity
This configuration represents the majority of the residential environments that will be encountered across the United States. In larger homes where multiple panels are present, each panel would require a separate EcoPower 4 unit; however, because of the significantly larger electric bill the financial dynamics will likely result in a SHORTER payback period.
Product Installation
The EcoPower 4 is designed and intended to be installed by a properly licensed Electrician, as electrical current of this type does pose a health hazard that can result in severe injury or death if not handled properly.
The EcoPower 4 is a “sealed unit” and therefore should not require a building or installation permit of any kind; but as always, that is a matter for the Electrician and homeowner to determine in their own jurisdiction.
The two basic scenarios that will be encountered while installing the EcoPower 4, regardless of whether the panel is located in the garage or inside the home, generally near an exterior door or entry point of the main electric supply line from the street or pole, is either a surface-mount or a recess-mount situation, the selection of which will generally follow the way the panel has been installed.
Obviously the surface-mount scenario indicated on the installation instructions, included within the box of every unit shipped, is the preferred, quickest and cheapest method of installing the EcoPower 4.
However, in approximately 50% of the applications the panel is recess-mounted inside the home, where aesthetics may play a role in the installation method chosen. In that case the EcoPower 4 may be recess mounted with the parts included in the box. The particular details, including price, of recess mounting site and method must be left up to the homeowner and installer(s) to agree upon, as trade appropriate skill and material pricing will play a role in having a satisfactory installation; especially as there may be a drywall or other material repair and surface restoration involved.
The EcoPower 4 may be recess-mounted on the opposite side of the wall on which the panel is mounted, which may in fact provide the best aesthetic solution, as this may be the back or side wall of a closet, or some other less “obtrusive” position.
Market Knowledge
There are now a number of “Power Factor” correction devices being sold in the marketplace, mostly by newly formed “direct marketing” or “re-sellers” companies, whose products perform only the one function, and are smaller, lighter and of inferior construction.
There are three main companies of which I am aware:
KVAR: MSRP $349.00. This is a small privately owned manufacturing company, founded in 1995 by the owner who still single-handedly manages the company, and is located in Orange City, Florida. They also use the network marketing business model, and sells both residential and commercial units. The owner claims that everyone else is “ripping off” his idea-and his patent on the technology, and doesn’t mind slandering them on his ordinary looking website. In reality, he does own a patent, but it only applies to a simple “pre-historic” device that uses a series of 8 to 10 common light switches, often mounted to a board, side-by-side in a row, for the dealer to alternately engage capacitors of different sizes, until the correct amount of capacitance is determined by using Power Factor readings. The company then builds the unit to that particular specification.
Winning Defenses:
1. These units only contain a capacitor. Therefore they cannot provide any meaningful surge protection or power filtration.
2. The company website states they have a 5 year factory warranty. However, we have witnessed that in the printed material manufactured by the dealers, it states they have a 12 year warranty; either the dealer themselves (who are typically ordinary) are providing the additional 7 years, or a court may ultimately subject the company to a 12 year warranty.
3. The company states that it is approaching $20 million in annual sales, indicating that they are about 4% the size of our company, and the warranty is only as strong as the company providing it. Remember, this company is still owned and operated by its founder, whereas our company has a legacy management structure and is at least 10 years it’s senior.
Power Save. MSRP of $299.99, but has a gross margin of just $72 and a manufacturers warranty of just 5 years. As they do not affirmatively admit or claim to have 3 separate components to provide all three of the benefits, that assumption cannot be made, especially in view of the unit price, and warranty period. It is not clear whether Power Save manufacturers its own products. As a privately owned company and there is no available information on their financial strength, as a relatively recent newcomer to the market, driven by the efforts of an unknown number of re-sellers that they are most certainly significantly smaller than Aerus.
Winning Defenses:
1. Warranty period is only 5 years, compared to our 10 year warranty.
2. They do not offer any guarantee or insurance against surge damage, which also indicates the lack of the component (MOVs), and lack of financial largesse.
3. Again, the warranty is only as strong as the company.
4. They do not claim to have the 3 components necessary to provide total energy management, i.e. surge protection or harmonic filtration.
Xedia. MSRP $299.95, but has a small $100 gross margin, a 1 year limited warranty and expected life of just 7 years. Their product is a smaller, lighter plastic cylindrical device that weighs less than one pound, plugs into a regular wall outlet (which has to be determined, by someone, as being closest to the inductive load) and costs They are relatively new, admittedly use a “contract manufacturer”-they do not own the manufacturing company that actually produces the product, which has a direct bearing on the solidarity of their warranties. Xedia is simply a network marketing organization, and although they are privately owned, we assume that as a relative newcomer to the industry, their financial prowess is minuscule to that of Aerus, which is probably why their warranty period is minuscule, as well. They actually were under a “Cease and Desist Order” from the Texas Attorney General for a period of months in late 2008 and early 2009, barring the company and their sales force from any sales activities, whatsoever, anywhere in the United States. They now operate under a strict settlement agreement with the Texas AG.
Winning Defenses:
1. There 1 year limited warranty, versus our 10 year warranty.
2. They do not provide all 3 benefits.
3. The dealer has to use an amp meter, on every outlet in the home, to determine which outlet to plug the device into.
4. The seller is not the manufacturer, so there is no affirmative QC.
None of these companies or their products has the ability to win in a “heads up” competition against the EcoPower 4 due to it’s:
· Industrial grade pedigree
· Multiplex platform of Power Saving, Surge Protection and Harmonic Filtering
· 10 Year Unconditional Warranty (full replacement after lightning strike)
· 20 year expected life.
· Manufactured by the US based distributing company.
· $25,000 Financial Guarantee
· English speaking customer Service from the US company, not India.
· Warranty and Repair backed by a privately held 80 year old international manufacturing and distribution company in the USA!
Marketing and Distribution Channels
Advertising
First, do a mass mailing to your pre-existing customer base, using a one-page cover letter on your company stationary (so it will be instantly recognized by your customers), plus a full color EcoPower 4 brochure available for sale in quantity from EcoQuest, to let them know that this product exists, and that you are a proud authorized distributor. And if you are an electrical contractor, so much the better, as you will install it for them, as well!
Second, a small, simple ad in the local church Sunday Bulletin (picked up by most members every week), which is incredibly inexpensive and an act of “community goodwill” as that is also an income source for the church. I recommend polling employees and getting into as many different editions as the budget will afford, as these church members have, on balance, the perfect PowerwoRx e3 demographics!
Third, many metropolitan areas have small, free 6 x 9 “pick up magazines”, which get into the hands of tens of thousands of people each month! The objective is to choose one whose audience characteristics most closely align with those of our target market. Advertising in such publications is also very inexpensive, especially on an annual contract.
I have designed a sharp horizontal business card-sized advertisement that will fit perfectly into the church bulletin and the pick up magazine, and will change the ID specifics to those of your company. Further, I will assist in any necessary approval process through the EcoQuest Media and Ethics Department, as I already have a great relationship with them.
Inserts and ads like this are designed to accomplish two objectives. First, to raise “top of mind awareness” among the readers who see them regularly; this means informing them that your company has the EcoPower 4, which will reduce their monthly electric bills! Second, they will serve as a “call to action”, for them to initiate contact with you, and eventually purchase a unit to reduce their monthly “financial pain”!
Technical Authority
Your company and its staff will be recognized by the readers of these advertisements as being the “technical authority” on this subject; and for those readers who are already your customers the company is also their “trusted authority”!