Sales Training Workshop

1
EPA Energy Star Homes
SAVING THE EARTH. SAVING YOUR MONEY.

• Sales Training Workshop

2
Energy Star Homes Sales Workshop Agenda

• Introduction
• Increasing Profitability
• Adding Value
• Sales Tools
• Wrap-up

3
Introduction
4
What is an ENERGY STAR Home?

• An ENERGY STAR Home is a blend of energy saving
  Features that
• Deliver at least 30 greater energy efficiency
  than standard homes (RESNET)
• While maintaining or exceeding indoor air quality
  (ASHRAE) guidelines and
• Result in lower ownership costs

5
EPAs Track Record
EPA Greenlights 1990 Present 7.0 Billion sq.
Ft. 1 in 12 buildings
ENERGY STAR Buildings 1995 Present 250
Million sq. Ft. 20-40 rate of return
ENERGY STAR Computers 1994 Present 14 Million
units 100 of all manufactured
ENERGY STAR Homes 1995 Present 14,000
Homes 10 of all homes by 2000 95 of all homes
by 2010
6
Why ENERGY STAR Homes?

• Homeowners get more (features and comfort) for
  less (positive cash-flow day-one).
• Builders make a profit selling more energy
  features.
• Sales agents can more effectively close deals.
• Lenders sell more product (money) at less risk.
• EPA prevents significant amounts of pollution.

7
How are ENERGY STAR Homes Sold?

• Real Cost!
• Every consumer product has three sticker prices
• ? First cost
• ? Operational
• ? Maintenance

8
Real Cost
What does a light bulb really cost?
Incandescent Bulb CFL .50
15.00 60.00 15.00
3.5 0.00 64.00
30.00 0 48
First Cost 10 Year Operational Cost 10 Year
Maintenance Cost Total Cost After Tax ROR
9
Real Cost
What does an ENERGY STAR Home really cost?
Standard ENERGY STAR Home Home 0
2,500 60
125 1,315 1,335 115
85 1,430 1,420 0 48
Extra First Cost Extra Up-Front Cost Monthly
Mortgage Monthly Utility Bill Total Monthly
Cost Investment Return
10
Increasing Profitability
11
Increasing Profitability Home Sales Professional
Benefits
Less
More Value
Good Feelings

• GREATER PROFITABILITY

12
Increasing Profitability
Offer Less Cost

• Lower cost to own every month
• Lower cost mortgages
• Reduced closing costs
• Increased stretch ratios

13
Increasing Profitability
Offer More Value

• More Comfort
• More Quiet
• More Assurance of Good IAQ
• More Durability
• More Safety
• More Resale Value
• More Peace of Mind

14
Increasing Profitability
Provide Good Feelings

• Feels good getting a great deal
• Feels good in a more comfortable, quiet home
• Feels good paying lower utility bills
• Feels good helping the environment and bottom
  line at the same time

15
Increasing Profitability
Home Sales Professional Benefits

• Quicker time to close with product
  differentiation
• Increases Future Business with more satisfied
  customers/referrals
• Reduced service complaints
• Increased revenues selling more energy efficient
  features

16
Adding Value
17
Adding Value
ENERGY STAR Homes Features/Benefits

• Features Benefits
• Tight Construction Lower Monthly Costs
• Improved Insulation Improved Comfort
• High-Performance Windows Improved Indoor Air
  Quality
• Sealed Ducts Increased Durability
• High-Efficiency AC Less Maintenance
• Less Obsolescence

18
Adding Value
Benefits of ENERGY STAR Upgrades
19
Adding Value
ENERGY STAR Homes Builder Guide

• A Systems Approach to More Profitable Homes
• Increase Profits
• Improve Energy Efficient Features
• Reduce Downstream System Costs
• Improve Product

20
Sales Tools
21
What tools can help close ENERGY STAR Home Sales?

• FINANCIAL TOOLS

22
ENERGY STAR Homes Sales Tools

• ENERGY STAR Mortgages
• Preferred Terms
• Cash Back at Closing
• Higher Qualifying Ratios
• Assured Appraised Values
• Free Interest Rate Lock
• Discounted Interest Rates

23
ENERGY STAR Homes Sales Tools

• ENERGY STAR Mortgages Partners
• PHH
• Chase Manhattan Mortgage
• Countrywide Mortgage
• FHA-EEM
• Local Banks