Everywhere we look now we are seeing a new ‘Subscription-Based Economy‘ form before our eyes. No longer do we pay Sprint or Verizon for a new cell phone—instead, we pay a monthly subscription fee for the device rather than paying upfront. In the past, we would all have to buy the full Microsoft Office software package online or at retailer every two or three years in order to get the latest version—now we pay for a software subscription and download the software directly with Microsoft with free updates. In the startup world we’ve even seen subscription-based businesses change the way we buy everything from prom dresses to razor blades.
How has this concept become so sticky in such a short period of time? The answer is twofold. First, a subscription model removes the onerous upfront cost associated with acquiring a new product. In the Microsoft example, I remember having once been in a frenzy as a new college graduate and cash-strapped 22-year-old when I realized it was going to cost me $175 to get Word, Excel, and PowerPoint on my new computer. The 22-year-old me would’ve been thrilled that, with no upfront cost, I could have acquired all of those applications for a $10 monthly subscription. Second, the other major benefit is that instead of being the “owner” of a product—and being forced to take it upon myself to keep up with the latest tech or industry trends—a subscription means that someone else with the needed expertise is always working on my behalf to make sure I have the latest and greatest tool, service, or app.
Returning to my personal example—after forking over the cash for Office 2007, I was pretty much stuck with that product until the day my computer died. In Microsoft’s new Office subscription service, Office 365, I regularly receive all the needed maintenance, updates, and fixes to the software that I could ever ask for. Ultimately, a subscription allows me to live at the cutting edge, even while my bank account statement suggests I should instead shop in the bargain bin.
Our Subscription Model
It is this very subscription concept that we are bringing to the market for energy efficiency at EMPEQ. Our innovative, first-in-class Simple Energy Subscription℠ (SES), brings all the benefits of the subscription economy to the commercial energy efficiency marketplace. As with all other subscriptions mentioned, the SES ensures that the required leading experts in the field prescribe the correct package of energy-efficient technologies for every building while taking over all post-installation maintenance—at no upfront cost.
However, the main difference in what we offer here at EMPEQ is that, because of the energy-efficient nature of the products being installed—unlike other subscriptions—we are actually lowering a company’s operating expenses going forward. This is because, under our model, even though customers are signing up for a monthly subscription, this new subscription plus their newly reduced utility bill still does not equal their pre-subscription utility bill expenses. In other words, it would be like telling 22-year-old me that not only could I get every new Microsoft product I wanted without any upfront costs, but that the subscription would also offset a portion of my monthly credit card bill that I racked up from buying my new computer.
This is exactly why we’re so passionate about what we’ve created here at EMPEQ—we are bringing something to the market that is an exceedingly rare win-win-win-win. Customers, our partners, our company, and our environment can reap the benefits of our Simple Energy Subscription. Changes in energy efficiency technology and pricing have made a concept that, just three or four years ago, would’ve been too good to be true as real as it gets.