U.S. Environmental Protection Agency

ENERGY STAR ENERGY STAR Homes Homes

CONSUMER VIDEO

What You’ll LearnWhat You’ll Learn

• What is ENERGY STAR?

• What are the Advantages of Building ENERGY STAR Homes?

• What Makes ENERGY STAR Builders Successful?

• How Do I Join ENERGY STAR?

What is EWhat is ENERGYNERGY S STARTAR??

Have You Seen This Have You Seen This Label?Label?

The Symbol for Energy Efficiency

Commercial Buildings

The EThe ENERGYNERGY S STARTAR

Family of ProgramsFamily of Programs

ENERGY STAR Homes

Insulation

Windows

HVAC

Residential Lighting

Office Equipment

Consumer Electronics

Exit Signs

Appliances

30% more efficient than Model Energy Code (MEC)

Third party verified

What is an What is an EENERGY NERGY SSTARTAR Home? Home?

EENERGYNERGY S STAR TAR Homes Homes Typical Features:Typical Features:

Envelope

– Improved Insulation

– Tight Construction

– Advanced Windows

Mechanical Equipment

– High Efficiency HVAC

– Right-Sized HVAC

– Whole House Ventilation

Tried and true technologies Tried and true technologies requiringrequiringnono design changes! design changes!

Distribution Systems

– Tight Ducts

EENERGYNERGY S STARTAR Homes: Homes:Transforming the MarketTransforming the Market

EENERGYNERGY S STAR TAR Homes:Homes:Growing FastGrowing Fast

1,000 ENERGY STAR Builders across the U.S.

45 new Builders per month

600 ENERGY STAR Homes Allies: Home Energy Raters Utilities Manufacturers Distributors Lenders Realtors * As of 04/02/99

What Are the What Are the Advantages of Building Advantages of Building EENERGYNERGY S STARTAR Homes? Homes?

EENERGYNERGY S STARTAR Homes Homes What’s in it for You?What’s in it for You?

Sell More Homes Increase Profits Reduce Callbacks Increase Referrals Enhance Reputation

EENERGYNERGY S STARTAR Homes HomesBuilder AdvantageBuilder Advantage

MoreValue

LessCost

+ =

EENERGYNERGY S STARTAR Homes HomesMore ValueMore Value

MoreValue

LessCost

+ =

We Know Home Buyers Want ...We Know Home Buyers Want ...

Great Locations Top-notch Schools Desirable Architectural Designs Spacious Layouts Gourmet Kitchens Generous Storage

… and the list goes on

But Why Not Offer More ...But Why Not Offer More ...

Comfort Quiet Improved Indoor Air Quality Durability Resale Value

… for Less Cost!

EENERGYNERGY S STARTAR Homes HomesLess CostLess Cost

MoreValue

LessCost

+ =

Standard Compact Incandescent Fluorescent

Sticker Price $ 0.50 $ 12.0010 Yr. Operating Cost $ 60.00 $ 12.0010 Yr. Replacement Cost $ 3.50 $ 0.00

Total Costs $64.00 $24.00Net Savings: $40.00

The Real Cost of The Real Cost of Ownership:Ownership:How Much Does a Lightbulb Cost?How Much Does a Lightbulb Cost?

Standard ENERGY

Home STAR Home

Sticker Price $170,000 $173,000Monthly Mortgage $ 1,435 $ 1,455Monthly Utility Bill $ 135 $ 95

Monthly Costs $1,570 $1,550Net Monthly Savings: $20

The Real Cost of The Real Cost of Home OwnershipHome Ownership

Calculate the Savings Calculate the Savings for Your Customersfor Your Customers

EENERGYNERGY S STARTAR Homes HomesPreferred FinancingPreferred Financing

Higher Qualifying Ratios

Cash Back at Closing

Other Incentives Chase Manhattan Countrywide FHA EEM Local Banks

Preferred TermsPreferred Terms

Current Current PartnersPartners

EENERGYNERGY S STARTAR Homes HomesBrand AdvantageBrand Advantage

MoreValue

LessCost

+ =

What is the Value of a Brand?What is the Value of a Brand?

Easy Consumer Decision

Increased Market Share Increased Markup

Increased Profits$10 Billion$10 Billion

$7 Billion$7 Billion

$43 Billion$43 Billion

$18 Billion$18 Billion

Is Every New Home Is Every New Home Energy Efficient?Energy Efficient?

Not any more!

EENERGYNERGY S STARTAR Brand Brand Awareness and Marketing Awareness and Marketing EffortsEfforts

Homes Program Public Service Ad

(PSA) Campaign

Homes Program Editorial Campaign

in Target Cities

National Brand Campaign

Ally Sponsored Ads

EENERGYNERGY S STARTAR Homes HomesBuilder AdvantageBuilder Advantage

MoreValue

LessCost

+ =

What Makes EWhat Makes ENERGYNERGY SSTARTAR Builders Builders Successful?Successful?

What Makes EWhat Makes ENERGYNERGY S STARTAR Builders Successful?Builders Successful?

Sell Added Value

Sell Low Cost, Not Low Price

Differentiate Your Product with the ENERGY STAR Brand Name

Sales PrinciplesSales Principles

1. People buy benefits, NOT features!

2. People buy on emotion, then justify with the facts.

So, … Sell benefits & make the facts obvious!

Sell Benefits, Not FeaturesSell Benefits, Not Features

FeaturesTightly Sealed

ConstructionTightly Sealed DuctsMore/Improved InsulationEnergy Efficient WindowsEnergy Efficient

Equipment

BenefitsComfortQuiet Improved Indoor

Air QualityDurabilityResale Value

Make the Facts ObviousMake the Facts Obvious

Testimonials ENERGY STAR Plaque & Certificate ENERGY STAR Labels Technology Displays “Benefit” Labels Checklists Consumer Fact Sheets Home Calc Reports

EENERGYNERGY S STARTAR Homes Homes

More Value for Less Cost!More Value for Less Cost!

The Competition:

$1570/Month*

ENERGY STAR Homes:

$1550/Month*

* based on monthly mortgage, utilities and taxes

How to Get Brand Value How to Get Brand Value Without Spending $Millions Without Spending $Millions

Co-Brand with ENERGY STAR!

Logos Specialty Items Consumer Tools Advertising Samples Media Tools

How Do I Join the How Do I Join the EENERGYNERGY S STARTAR Homes Homes

Program?Program?

How Do I Become an How Do I Become an EENERGYNERGY S STARTAR Partner? Partner?

Sign the Memorandum of Understanding (MOU)

KEY POINTS: It’s free. It’s voluntary. No obligation unless it meets your

business objectives. Use the ENERGY STAR logo properly.

EENERGYNERGY S STARTAR Homes HomesFREE MaterialsFREE Materials

ENERGY STAR Brand Marketing Toolkit Home Calc Software ENERGY STAR Financing Sales Training Workshop Consumer Video, Fact Sheets,

Seminars Information Packs & Brochures Builder Guide

HOME CALC DEMONSTRATION

Home CalcHome Calc

SummarySummaryReportReport

EENERGY NERGY SSTAR TAR Homes Homes For more information ...For more information ...

Program details & info on the Internet:www.energystar.gov/homes

Order Materials from the ENERGY STAR Hotline: 1-888-STAR YES

Call your ENERGY STAR Homes Ally

Or call your Account Manager