3 Ways LED Lighting can reduce costs and increase sales for your car dealership. - INERGY SOLUTIONS
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3 Ways LED Lighting can reduce costs and increase sales for your car dealership.

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As a car dealership owner, manager, or even sales member; you know that getting the cars out is one of the most vital points in your business. On top of that, keeping the expenses as low as possible to simply operate will allow you to take home more income, rather than spending it on things that are just going to waste (like energy usage). When it comes to selling cars, it’s all about presentation, and this is one of the primary reasons auto dealerships are turning to LED lighting. Car dealerships require high quality light. The cars must look good. This means that not only is amount of light important (lumens) but quality of light (CRI). And since it is important to display the cars in the best possible light, it makes sense to covert over to LED. And it’s not just indoor LED lamps that these entities are switching to. They are also finding that outdoor LED lamps are effective at converting to on-the-lot sales.

This technology is most popular for its energy efficiency and its ability to save companies that adopt this lighting technology up to 75% in their lighting utility bill every single month. But on top of that comes other cost saving benefits, as well as benefits that will directly benefit a car dealership and its perceived value. In this post, we are going to cover the ways LED will improve your car dealership: Here is the first on the list, which is also the most popular reason companies are converting to LED in their lots and even indoors:

 

  • Savings


For obvious reasons, a 75% (up to) reduction in energy consumption associated with your lighting system alone is a staggering amount of savings. Since LED is so efficient compared to other lights, by converting away from these technologies over to LED at your car dealership; you will easily see 50% all the way up to 75% reductions in energy consumption associated with the lights you convert. This is real money that you don’t have to spend while maintain the same if not better light levels you currently have. The majority of LED lights are rebate eligible, either registered under DesignLights Consortium (DLC) or Energy Star. Many utility companies offer rebates for DLC Qualified or Energy Star certified products, saving even more money. High use areas often see paybacks in less than a year. By realizing this reduction, you will be able to see positive ROIs from your investment in LED. As a result, your lights actually pay for themselves and cost a lot less overtime than it does to maintain and operate those other outdated luminaires.

 

  • Lifespan


 

LED lighting systems last longer than fluorescents and so owners save in two areas: the cost of the replacement lamps and the labour cost of replacing the bulbs and ballasts. In fact, the lifespan difference can be up to 2-3 times longer with LED vs metal halide and HPS. This brings two major cost saving benefits. First, it allows you to by 2-3 times less replacement lights since you won’t need to replace burnt out lights as often (because they simply last longer). Much of the LED savings comes from lower power usage. But lighting maintenance is also far simpler because LED units last longer than incandescent bulbs. Expected replacement is measured in tens of thousands of hours instead of thousands of hours. Energy savings is sometimes the only calculation that is considered. Energy usage can be very important. But focusing solely on energy is a mistake. In some cases, energy is not even the primary source of savings.

There is more to the cost of replacing bulbs than just these two components. Consider a casino where changing out a single lamp can cost $5,000 or more. The casino must add in the cost of bringing in a lift, cording off the area, readjusting security, and the loss of revenue as people stop playing slots to watch the exciting bulb replacement. Casinos track the revenue of each slot and game over time. The costs of replacing lamps are well documented.

 

An upscale automotive dealership will use group re-lamping to control the costs. Dozens of cars need to be removed from the showroom and then brought back in, so the cost can be significant. A $3,000 charge per re-lamping is not unexpected and you may see this done more than twice per year with the lighting playing a critical role in highlighting the vehicles for customers.  Additionally, by reducing the amount of time you need to spend replacing burnt out lights you also get to reduce the amount of time you have to pay someone to switch out and even maintain your new lighting system. This in turn gives you a “two for one” benefit with less buying of replacement lights along with reduced costs associated with hiring someone to maintain your lighting system.

 

  • Higher Quality of Light:


 

LED is an extremely high quality light source. When you consider car dealership LED lighting, you need to think about both quantity (lumens) and quality (Color Rendering Index – or – CRI).  When your light source is of better quality, you need less quantity. Our eyes perceive more quantity when the light quality is better. And items that are red appear red, unlike objects under High Pressure Sodium, where everything appears yellow or brown. LED lighting has become increasingly popular at auto dealerships as hardware costs fall and the technology matures. Most U.S. utilities, eager to avoid having to build new power plants to meet electrical demand, offer cash incentives to businesses to install power-saving technology.

Often, that can cover most or all of the capital cost of an LED conversion. To put it simply, LED lighting makes vehicles look better. The even lighting distribution that LED lamps emit bring out the glossiness of car paint, helping even older cars to look newer. And it’s also with this lighting that the true colour of cars can be seen both during the day and at night. For auto dealerships that have a specific vehicle they are trying to sell, there’s no better way to illuminate and put the spotlight on the vehicle than by using LED lighting.

 

Hopefully, even though there are only 3, these reasons have helped you understand what LED will bring to your car sales operation. When transitioning to LED lighting in an auto dealership, it is imperative to receive consultancy from an experienced, professional lighting specialist. They can help create a lighting scheme that accentuates each vehicle in a way that it is most likely to sell. The initial cost associated with switching over to LED lighting can be a bit expensive, but the energy savings and revenue possibilities make the transition well worth every dollar spent. Contact us for a free quote and we can even do a customer payback analysis for you on your car dealership lighting products.

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