Based on conversations with luminaire & lamp OEMs, you are likely generating most of your revenue from individual sales contracts. You bid, win, fulfill the contract, are paid once, and then move to the next customer. In this scenario, you typically do not have the opportunity gain additional revenue from that installation. It’s “one and done.”
By adding an SLC solution to your installations, you add two things that fundamentally change the financial equation: data capture and a direct connection to the end customer.
Since devices (e.g. luminaires, lamps, sensors, networking devices, etc.) in an SLC configuration are networked, your SLC solution has the inherent ability to capture information from these devices. That data can be saved, analyzed and used to create a limitless number of value-added, subscription based internet services.
Furthermore, new services can be delivered using these networked devices such as location-based services (LBS), artificial intelligence (AI) driven energy & space optimization services, etc. Although these types of services are only now starting to emerge, imagine the possibilities in the future.
Perhaps by partnering with a software-as-a-service (SaaS) and data analytics firm, you begin offering a subscription based service for optimizing energy efficiency and cost-savings. The sensors from your installed SLC solution provide real-time usage data of and when people are in or out of the building, combined with data on existing sunlight levels. The solution then consistently and automatically adjusts luminaire brightness levels in the building to achieve the lowest energy usage without sacrificing productivity.
Most of the management of the system is done remotely over the web and through mobile devices, enabling you to offer the service nationally or even internationally. In this example, perhaps an end-customer pays you a monthly subscription of $10, for a total of $120 annually. In return, they save $160 in energy costs each year, so the solution pays for itself. If you were to win 1,000 such contracts, you’d have added $120,000 in highly profitable software revenue that recurs annually.
You add recurring revenue, they reduce costs, everybody wins.
This is just one example of the infinite types of subscription-based revenue opportunities that SLC can usher in.
Now is the time to expand your business beyond lamps, luminaires and accessories. Industrial, office and manufacturing plants and facilities are rapidly moving to an IoT model. Smart Lighting Control technology is here and for your business to be competitive and successful, you need to be able to take advantage of this new wave of market opportunity.