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Events2HVAC: Expense or Income?

Jan 21

Written by:
1/21/2020 11:43 AM  RssIcon

People often think of Events2HVAC as an expense. But you should be thinking of it as potential income.

True, software subscriptions are generally considered an operating expense. You will find them included in Operating Expenses on a Profit & Loss Statement. So, you might be tempted to consider the cost of Events2HVAC as a typical expense that will ADD to your operating expenses and potentially make your organization less profitable.

But because Events2HVAC directly reduces other operating expenses such as energy and labor costs, it will SUBTRACT from your operating expenses, leaving you with a net operating income compared to your original level of operating expenses.

Consider the chart below:

Events2HVAC is designed to save more in energy and labor expenses than it costs. So, when reviewing an Events2HVAC proposal, don’t think to yourself, “This is a new expense. How will I pay for it?” Instead, think “How can I choose the best rooms to integrate to Events2HVAC to maximize energy and labor savings and get the maximum operating income in return?”

Here are some guidelines to help you choose the best rooms:

  • If you are switching to Events2HVAC from a weekly building schedule, rooms with the lowest occupancy rates will provide the most energy savings. And large rooms with low occupancy rates will provide more savings than small rooms with low occupancy rates. So prioritize large rooms with low occupancy rates.
  • If you are switching to Events2HVAC from a manual process of scheduling HVAC at the room level, rooms with the most variable schedules will provide the most labor savings. Offices that need to be kept on a 9-5 schedule would be a low priority, while conference rooms that are used randomly throughout the week with no regular pattern would be a high priority.
  • If you are working for a K-12 school district, you might want to prioritize spaces that are commonly used for after school and weekend events so that the rest of the school can remain “unoccupied” while those spaces are “occupied” for scheduled events.

Picking and choosing the best rooms for Events2HVAC integration will reduce your expenses the most and maximize your operating income. After you have the best rooms integrated, you can consider whether it is in your best interest to expand Events2HVAC to more rooms to gain incremental operating income.

For detailed examples of savings achieved with Events2HVAC, see Case Studies.

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Founded in 1998, Streamside Solutions provides software products, solutions and services for the building automation industry.


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