---
title: P&L Benefits
description: The following list gives you an idea of the types of line items on the P&L statement that you may choose to discuss with your prospect.
---

[Selling Energy Blog ](https://www.sellingenergy.com/blog)

# [P&L Benefits](https://www.sellingenergy.com/blog/p-l-benefits)

 Written by [Mark Jewell](https://www.sellingenergy.com/blog/author/mark-jewell) | December 14, 2017

Energy efficiency can affect many line items on a business’ Income Statement (also known as the “Profit and Loss Statement” or “P&L”). If you look at the full picture through the lens of business acumen, you’ll see how effective it can be to discuss the potential P&L benefits of your efficiency project with your prospects. The following list gives you an idea of the types of line items that you may choose to discuss: 

- **More sales:** If you install attractive LED lighting in a grocery store, for example, the store will likely see an increase in grocery sales.
- **Less payroll:** If your efficiency solution increases productivity (as we have discussed in previous blogs), employees may be able to do more work in less time.
- **Less repairs/maintenance:** A new, high-efficiency product usually requires less maintenance than an old, soon-to-fail one.
- **Less scrap:** You may recall a story I told about the aluminum windows and doors manufacturer that reduced scrap rate by 25%, effectively turning a 4.2-year payback (calculated using only the energy savings) into a 39-day payback (calculated using the aluminum scrap savings as well).
- **Lower utilities:** Of course, your efficiency product will probably have a positive effect on the utility bill, so this one will be included in virtually every case.
- **Higher rental rates:** With all of the added benefits of efficiency, your prospect may be able to increase rental rates without deterring potential tenants.
- **Better tenant retention:** An efficient building is more comfortable, more attractive, and requires less maintenance. All of these factors help retain existing tenants who might otherwise choose to move to a building that features the high-end amenities you are offering to your prospect.
- **Better tenant attraction:** As in the case above, an efficient building is more comfortable and attractive than an inefficient one. Add in an ENERGY STAR® or LEED® certification and you’ve got yourself a recipe for tenant attraction.
- **Less need for Cap Ex Reserves: **This is a topic that warrants further discussion, so stay tuned for more on this tomorrow!

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