Cost of Light

Specialised Lighting Solutions are committed to providing ongoing cost savings for all customer contracts. It is always our intention to source superior product for our customers, which will not only save them money but at least be equal in quality and performance to the existing product in use. As we have no particular allegiance to any brand or supplier, we are in a true and realistic position to do this. Manufacturers do not have this flexibility or access to the market.

As a true distributor, it is the job of SLS to recommend and provide the best product for the application irrespective of brand. SLS focuses not only on capital cost, but the ongoing cost of light. Energy consumption and maintenance make up 90% of the total cost over the lift of a lamp. Therefore, SLS concentrates not only on product capital cost, but the energy consumption and lamp life.

ENERGY CONSUMPTION The moment a light source is installed it consumes energy. Therefore, when you consider a typical 60w GLS lamp, which has a capital cost of around $0.50, obviously the 60w of electricity it consumes whilst it is running is the bulk of the cost that this product will produce. For example a 1,500 hour life, 60w GLS lamp will typically cost a user as follows: 0.06kw x $0.10 per kW per hour (typical rate) = $0.006 per hour 1,5000 hours x $0.006 per hour = $9.00 electricity cost over lamp life

The above example is a very simple method that shows that a standard 60w, 1500 hour standard GLS lamp, will cost $9.00 in electricity over product life, yet only has an up front capital cost of $0.50.

Aside from the running cost of the lamp, a lower wattage product will also produce less heat, which will produce a reduced load on air conditioning thermostats and in turn save further money.

This example clearly shows that electricity consumption should be a major consideration of any lamps installation. This is not simply due to the lamp itself but also environmental concerns associated with conserving our power, which is already under pressure across Australia to cope with demand.

MAINTENANCE

Another Major factor in the total cost of light is maintenance. To replace the same $0.50 GLS lamp mentioned in the above example, the lamp needs to be ordered, received and checked, the existing lamp replaced, the new lamp installed and the new lamp paid for in an accounts process.

The lamp may also be situated in an area requiring scaffolding or lifting equipment to access it, and may have to be performed by a contractor. This work is generally done outside of business hours so it does not disrupt the business environment and reduces safety concerns. This generally incurs expensive penalty rates from the contracted maintenance staff.

In fact the average lamp replacement cost for most retail businesses is costed at $5.00 per lamp replacement. This is ten times the cost of the $0.50 GLS lamp we have used as an example.

Therefore to minimise maintenance costs, administration processes, disruption to business activity and reduction of safety hazards it is imperative that long life products are used in the maintenance process of lighting systems.

HIDDEN COST SAVING & BENEFITS

Specialised Lighting Solutions consider it their obligation to regularly investigate the entire lighting market world wide for cost savings solutions from which our customers will benefit. Recommendations for alternative product solutions based on these investigations are presented in the form of a cost saving analysis business case to customers for evaluation.

In addition to the obvious cost savings detailed above, there are other benefits associated with longer life lamps including the following:

• Consolidation of multiple SKUs into reduced inventory list
• Increased safety for customers, staff and maintenance people due to less lamp changes and therefore less people on ladders and lifting equipment
• Increased beautification of the site as less lamps are not burnt out
• Reduced administration costs with reduced purchasing of lamps, reduced booking in of stock and reduced processing and payment of supplier invoices
• Reduced disruption to the operation of the business caused by lamp changes
• Reduced air conditioning costs as a direct result of less heat produced due to the use of lower wattage lamps and cooler electronic control equipment