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Corporate profits depend on oil prices. The percentage of total expense that utilities will comprise will continue to dramatically rise, as it has recently. Reducing those expenses now gives you immediate utility savings and also a hedge against dramatically rising costs in the future. In other words, this savings will be far more important later in a higher cost market than we have now.

Here is a likely scenario to consider: (Obviously this is scalable up or down)

Total gross profit		$10,000,000
Total utilities (includes retrofit payoff)		$700,000
Total expenses (excl utilities & retrofit)		$8,300,000
Total net profit	10.00%	$1,000,000

Now, let’s look five years down the road. Assume 5% gross profit gain per year. Assume 4% total expense increase. Assume that utilities double as they are projected to do.

Total gross profit		$12,762,820
Total utilities (includes retrofit payoff)		$1,400,000
Total expenses (excl utilities & retrofit)		$10,098,220
Total net profit	9.91%	$1,264,600

Utility increases ate up your net profit despite your gross profit rising faster than your expenses, excluding utilities. Return on income dropped despite controlling expenses better than growing income.

Make your return grow in line with your increasing business dedication. If this rough example does not fit your business, call us at 1-800-928-6802 to discuss this situation with you. If you are ready to assess your business’ energy use, call us for your free energy audit at 1-800-928-6802. Let’s say that you cut your utilities by 25% and amortize the retrofit investment in two years. Of course, your net worth is increased by the improvements’ asset value increase, too.

Total gross profit $12,762,820
Total utilities (includes retrofit payoff) $12,225,000
Total expenses (excl utilities & retrofit) $10,098,220
Total net profit 11.28% $1,439,600

That is hardly the whole picture! Look at the scenario without Green Your Business.

Consider the competitive advantage to the business who participates, if the competitor does not. How many years could the competition stand up to this disadvantage if all things were equal? People will increasingly catch on to this. It will be a badge of patriotism to say to customers that your business has taken the Green Your Business steps. Virtually every business is already trying to be positioned as an environmentally friendly business. This has added public relations benefits for you. We help you market your participation in saving energy. We have a full media kit to easily make your market aware of your commitment and actions.

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