Reduce electric use & cost while generating positive annual cash flow, starting month 1, equal to 20% of the cost of the new motors & fan blades.
CFO for Fridgewize, a great retrofit electric motor system company!
Did you know your company can reduce its operating costs for refrigeration and cooling, dramatically? A project to seriously consider completing before 2019 enters its final quarter, upgrade your electric motors and fan blades (and consider adding monitoring sensors to track issues before they become problems, for “extra credit”).
The new EC motors are just better, more efficient motors– they operate on 18% to 23% of the electricity of the current PSC motors when combined with a better replacement fan blade– and from the CFO and CEO point of view, a cost savings of 77% to 82% with ROI greater than 50%, that has to be close to the top of the list of Impact and Profit Improving To do’s to get done!
The savings are real and completely auditable. Fridgewize (www.fridgewize.com) has over 40,000 installed motors and the electric use and savings are very consistent, year after year.
On top of reducing your company’s operating expenses going forward, we have attractive rate financing (as in 4%-6% a.p.r.) that results in positive added cash flow for your company starting month 1. For example, from a project analysis last week, customer wanted motors and blades for 100 store groups (convenience stores) — annual electric cost $ saved projected to be $177,450. Annual lease or Performance Share payment was $105,181. Net added cash flow $72,269 per year (and that may/will increase as electric costs increase each year). Total turnkey installed system cost $369,600.
That Net added cash flow is 20% of the system cost. (not including the 2019 tax benefit of the purchased equip!) AND that 20% is NET cash after making the lease payments (and the lease was a 4 yr, $1 buyout lease!) The savings continue for the next decade + after year 4– net cash flow of $177,450 + for years 5 forward sounds like a great financial decision! Note: we also have funding opp’s for Opportunity Zone and Impact Funds. A solid option to invest and have liquid capital back ready to re-invest after year 2-3! #opportunity #sustainability
Bill O’Connor is a CPA with over 30 years of experience in financial management and analysis. Bill has advised over 350 middle market and Fortune 500 companies on cost reduction and profit improvement, via real-world process engineering.