Green Dealer Support


Taking it to the Next Level – Energy Use Reduction
March 31, 2013, 7:26 pm
Filed under: Going Green | Tags: , , , , , , , ,

header-logo2Almost everyone is interested in reducing expenses and in a car dealership the reduction of energy use is a great place to do that. In fact some dealers I talk to tell me that if an action does not save money they do not want to take on that activity, at least right now. Well I am all for saving money and the more the better but I am also really interested in all the little things that people can do that are good for the environment and most of them can save you some money. Activities that save smaller amounts of money can add up and the combined efforts do a lot for the environment.

Metal HalideHere is an example of what I am talking about. A dealers decides to make a sizeable investment in exterior lighting and changes the lighting for the exterior vehicle display area from Metal Halide (1000 watts per bulb) to LED  for 20% of the electricity cost. It is a good LED-Shoebox-Light-120Winvestment and even with the high price of LED will have a payback of 2-3 years. Not only that but the quality of the light on the vehicles is better and there will not be any bulb replacement for years, far better than the metal halide bulbs. Sound like a good investment, you better believe it and the saving will go to the bottom line for years to come. But when we visited that dealership on a summer day with the sun high in the sky and those LED lights were all on and burning a lot of electricity. Albeit the LED’s were using less electricity than the Metal Halide but just the same there was waste of a valuable resource and not doing anything positive for the environment. How did that happen, possibly because of something as simple as photocell that is not being used or one that had become non-functional.photocell

There are a lot of situations like this where the little things don’t get done and when your customers and employees see these things it puts the question in there mind as to why you took one important step and ignored the little things.

Here are a few of the actions dealers are taking to save the big bucks:

  • Moving to LED lighting (exterior and interior) rather than Metal Halide
  • Eliminating T12 fluorescent lights in favor of T8 or LED
  • Eliminating Incandescent bulbs in favor of CFL’s, fluorescent or LED
  • Upgrading HVAC systems to later designs that use less energy for the same output

These are important items that reduce energy usage and the saving go straight to the bottom line in a hurry. But what about some of the smaller things that can add up to the same savings. Here are a few examples:

  • Motion detectors not installed in all rooms that are only sometime occupied
  • Janitorial activities that leave on lights when not needed
  • HVAC units that are not maintained in accordance with their needs
  • A process in the shop that leaves the overhead door open one extra minute each time a car is brought in or leaves the building
  • Leaking compressed air lines that bleeds off some air any time the compressor is on
  • Hot water heater lines that are not insulated
  • Computers and printers that are not turned off or put in the sleep mode
  • Vending machines that stay lit 24/7

The point of all this is that reducing energy usage is a combination of the big things and the little things.

If actions are taken that address the big things that is a great starting place. If activities are in place to identify the small things in a consistent manner that is the icing on the cake. If nothing is being done a large opportunity exist.

Dealers work hard everyday to sell an additional vehicle or write more repair orders so they can drive more money to the bottom line. That is what everyone is working for every day. But if that bottom line is reduced because of unnecessary expenses albeit even the little ones, it still does not allow the dealership to have the profit structure that is possible.

So who is responsible and who can do something about this. It seems that everyone in the dealership feels that at best they are only responsible for a small portion of what goes on. In the dealership with the LED lights on in the middle of the day we learned that there was no photocell but rather those lights were on a timer. As the days got longer no one had adjusted the timer and there were several hours in the morning and evening when the lights were on unnecessarily. It seemed that everyone was aware of it but nobody was responsible for it, at least that we could find. Personnel turnover eventually ended up being the culprit. Even in a dealership that has a facilities manager, they may not be aware or in charge of process related actions that could be saving energy.

green teamThe answer seems to be that everyone in the dealerships needs to take responsibly for identifying those things, especially the little ones, that could be wasting energy. Studies across the sustainability landscape have shown that reducing energy usage of any business including car dealerships is best done by developing a Green Team made up of  members from every department. These people working together are able to identify areas where energy is being wasted and suggest possible solutions. In most cases they are not the final decision makers and usually do not have the technical knowledge to fix some of these problems. They do know however that leaving all those lights on an extra 4 hours each day can’t be good for the dealership profits.

GREEN-DEALER-SUPPORT-A (Custom) (3)These Green Teams have a much broader sustainability than just reducing the use of energy in areas such as purchasing practices, waste, selling green products, recycling, community involvement and communications. This team could be one of the most important thing going on in the dealership when it comes to the long success of the dealership. Green Dealer Support’s website at www.greendealersupport.com is always a great source to generate ideas from our findings and the actions of other dealers and businesses.

Energy Star logoSo when it comes to Energy use Reduction a great plan would be for management to charge the team with the responsibility of reducing energy usage by a % during the coming year or two. A good goal would be 10% but even 5% would be a big impact. Studies by Energy Star have shown that a 10% reduction in a businesses energy usage can usually be accomplished without any capital investment. Go to the www.energystar.org website for additional insights on saving energy.

For our next blog we will be taking it to the next step for Waste Reduction. Many companies are aggressively pursuing this with a goal of near zero landfill. It may be harder than a 10% reduction in Energy Usage but it can still be a lot of fun and it is doing what is right for the environment for our kids and their kids.

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What is the ROI?
July 24, 2012, 10:18 am
Filed under: Going Green | Tags: , , ,

Dealers I talk to are always telling me that if they are going to do something “green” they would like to have a good Return On Investment (ROI).  In principal, we agree with the need for investments to have a good ROI. The challenge is always how to measure the ROI  By definition ROI is the performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. 

The formula is pretty straight forward:

Most Investments have some sort of direct $ cost and so that part may be easy to figure. It is the Gain from Investment that is often a challenge.

Take the replacement of an Incandescent 100 watt bulb with a 23 watt CFL. The needed wattage was derived from the n:vision Energy Efficient Lighting Chart. The cost should not be too hard to calculate, next time you are at Home Depot or your local hardware store, figure out the size and color rendition and any other unique characteristics and you will find the cost is $3-7 each. Now you know the cost, let’s call it $5.00.

The Gain from Investment becomes a little harder to figure. Here are some of the items to include:

  • The reduced use of electricity (the easy calculation)
  • The CFL bulb last more than 13 longer than it’s Incandescent replacement
  • The CFL generates a limited amount of heat (AC load)
  • In hard to reach location it requires replacement much less often
  • The image of your business projects to customers and employees
  • The impact on the environment

So the Gain from Investment is a little more complex but in most cases can still be calculated and become part of the ROI calculation.

But making decisions on the impact of ROI on being “green” frequently does not stop with an ROI study. For example in the above calculation some additional things to consider are:

  • What about disposal of CFL bulbs which contain trace amounts of mercury
  • Under some circumstances CFL perform differently than Incandescent bulbs
  • What about other alternatives such as LED
  • What about considerations for ways to keep lights turned off when not needed or harvesting natural light.

Decisions about being “green” are not just a matter of saying you want a good ROI.

Green Dealer Support focuses on helping car dealers become greener and sort through the sometimes complex issues related to the all important ROI.




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