When you sell a normal sized warehouse system like that to them, what does it cost?
Each warehouse is different, each system is different. We usually talk to customers about our cost per square meter. We wouldn’t go out and say the system is going to cost you a hundred dollars. We might say the system will cost you, let’s say somewhere between 10 and 20 dollars per square meter for a warehouse.
Is that the real cost?
Yes. Say we’re doing a 20,000 square metre warehouse, it depends on what’s required in the warehouse, but the cost could be between 200,000 and 400,000 dollars to them for that warehouse. Where is gets real interesting is the return on investment for the customer, then it becomes quite attractive. We usually say a payback period of between 12 months to 36 months for those sites. So if it’s costing them, let’s say $300,000, then we’re probably on average saving them between a hundred to two hundred thousand dollars per year on energy savings.
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