CHANGE FOR THE
BETTER WITH
I ENERGY STAR
Products that earn the ENERGY STAR® prevent
greenhouse gas emissions by meeting strict energy
efficiency guidelines set by the U.S. Environmental
Protection Agency and the U.S. Department of Energy,
www.e n ergystar.gov
Phillips Lighting & Home: Leading
the Market with ENERGY STAR®-An
ENERGY STAR0 Lighting Showroom Project
Chuck Arnold, President of Phillips Lighting & Home, is
determined to be an ENERGY STAR leader. To
accomplish this goal, Chuck is actively displaying and
selling ENERGY STAR qualified residential lighting
fixtures and ceiling fans at Phillips' 30,000 square foot
facility in Modesto, California. During their fifty-five years
in business, Phillips has learned that change is
inevitable and that it is critical to stay tuned to the
changing needs of the lighting market. ENERGY STAR
qualified products positions Phillips as an energy-
efficient lighting leader.
"ENERGY STAR products position Phillips
as a leader in technology, design, and style,
and provide increased sales and profits."
—Chuck Arnold, Philips Lighting & Home
Chuck is eager to point out that ENERGY STAR
qualified product sales grew over 800 percent
compared to last year. This growth is the result of the
aggressive ENERGY STAR qualified fixture marketing
campaign Phillips began in February 2004. Because of
the hot and dry climate of California's Central Valley, a
large part of Phillips' sales comes from ceiling fans.
They currently display over 130 models, many of which
are ENERGY STAR qualified. Philips sells high quality
ENERGY STAR ceiling fans that help increase profits
due to higher upfront costs. Hangtags and posters help
identify ENERGY STAR qualified models and provide
customers an affirmation of the superior quality
(minimum 30-year
motor warranty) and
energy savings that
customers come to
expect from ENERGY
STAR. Using the
lessons learned from
fans, Phillips is now
working with their
ENERGY STAR residential lighting fixture
manufacturers. The marketing strategy includes:
SffiA
United States
Environmental Protection
Agency
training the sales force, stocking a variety of fixtures, and
creating special ENERGY STAR displays. This is
generating additional sales and profits. Chuck states
that, "I am confident that sales of these products will
continue to grow."
Selling the Benefits
The key to Phillips' ENERGY STAR success is
knowledge. Chuck knows that the big box stores cannot
sell products as effectively as his trained employees.
Phillips' trained sales force sells by explaining the
benefits - superior quality, long life, energy savings, and
extended warranty. Phillips uses this "benefits selling
approach" when promoting ENERGY STAR qualified
ceiling fans from manufacturers such as Minka Aire,
Emerson, and Casablanca.
The same philosophy applies to ENERGY STAR
qualified lighting fixtures. Employees explain the
benefits of ENERGY STAR qualified products not only in
terms of energy efficiency, but also in terms of quality
issues like instant starting, reduced heat, and the two-
year warranty. The reduced heat is important for
Chuck's customers because it lowers air-conditioning
costs and makes homes more comfortable.
Philips currently has a 20-unit dedicated ENERGY STAR
display from Sea Gull Lighting that includes interior and
exterior fixtures. Simkar fixtures are also on display,
resulting in an ENERGY STAR offering for every room in
the house. Phillips carries a large inventory in order to

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assure that they can quickly supply the needs of their
customers.
Even with limited display, sales continue to grow.
"ENERGY STAR qualified lighting products currently
represent about one percent of unit sales, but because
of their upfront cost they represent a higher percentage
of dollar sales and profits," states Chuck.
Planning for the Future
Selling ENERGY STAR qualified lighting products has
proven profitable for Phillips Lighting & Home and Chuck
sees additional opportunities in the future. Phillips plans
to work with their advertising agency to improve
ENERGY STAR marketing through ads, posters, and
Phillips' web site. Phillips is very aggressive in fading
out lines that don't sell or are discontinued. They plan to
use some of the emptied space to increase the presence
of ENERGY STAR qualified lighting products.
Chuck believes that blending the ENERGY STAR
qualified products into other displays can increase sales
and profits even more. "For those coming to the store
looking for energy-efficient products the dedicated
display works great. When we blend the ENERGY
STAR bathroom and outdoor fixtures into the general
displays our sales force will have additional opportunities
to sell the benefits," says Chuck.
The Bottom Line
In addition to the 25 fixtures on display and the
numerous ENERGY STAR qualified ceiling fans,
customers have hundreds of other options available on
order.
In 2004, overall sales and profits from ENERGY STAR
qualified lighting products have continued to grow and
now represent one percent of unit sales. Chuck
anticipates that sales and profits will increase even more
in 2005 as manufacturers increase their ENEGY STAR
offerings.
Phillips Lighting personnel are trained and ready to deal
with the California Building Energy Efficiency Standards
(Title 24) that take effect in 2005. Chuck knows that
builders will be looking for any energy efficient
product to meet code. But Philips Lighting is ready
to promote higher quality ENERGY STAR qualified
products that meet customer quality and aesthetic
demands, as well as the code requirements.
This forward thinking will continue to increase Phillips'
sales and profits. The combined approach of training,
product variety, and displays positions Phillips as an
ENERGY STAR leader.
Helpful Hints and Sales Tips
>	Leverage ENERGY STAR support and provide sales
training to showroom staff.
>	Bring the product to the floor! Identify ENERGY
STAR qualified products with hangtags and posters.
>	Use dedicated ENERGY STAR displays as well as
integrated displays to increase selling opportunities.
P Keep sufficient inventory to quickly satisfy customer
needs.
P Work with builders that are also promoting ENERGY
STAR qualified products.
For More Information...
on the business opportunities
of selling ENERGY STAR,
contact Jeffrey Schwartz, ICF
Consulting, at 518-452-5986,
or by e-mail at
jschwartz@icfconsulting.com.
SEPA
United States
Environmental Protection
Agency

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