Monday, October 15, 2012

There's Good News and Bad News


The good news: Prices continue to drop at box stores, which benefit the consumer. The bad news: Consumer reach and education are not quite keeping up.

While LED prices continue to drop—gradually—end-users are embracing the benefits of a maturing technology in the form of price decreases in retail products. LED products are available at big box stores at better prices. For example, Philips’ 60 W replacement is offered in Home Depot stores in California (the San Francisco Bay Area) at $17.97, and CREE’s Ecosmart 65E replacement LED downlights are available at $24.97. In a presentation at a DOE workshop, Home Depot confirmed the continuous drop in pricing for several categories of LED products in their stores. In-store promotional campaigns also testify to their commitment to advancing LED products.

However, the shift in consumer mentality does not occur at the same rate the industry progresses. New ways of selling LED products are needed, and the immediate need of consumer education can be addressed in the stores.

Because residential lighting in the U.S. is purchased at big box stores (Home Depot, Lowers, Target, WalMart, Ikea), they play the role of gatekeeper and have direct access to the consumer. The decision-making process happens while the consumer is standing in front of the shelf, evaluating the product. Consumers usually come prepared, as they heard about/ saw/ read about LED lamps, but the motivation behind the buying decision is personal. Based on my conversations with sales staff at the box stores ( as well as personal observation) it seems clear that sales support and clear explanations of the benefits of LED technology—and a comparison of different LED solutions—do add value to the purchase and could be critical factors in the decision-making process.

Manufacturers provide a lot of useful information about their products on their websites, but consumers are not spending time studying and comparing product specifications. So, the critical go/no-go decision happens in the store, in front of the bulb. It’s time to transfer the knowledge on to the floor and, more importantly, translate it into simple and clear terms.