About Us
The Multiplier Effect
“Give me six hours to chop down a tree and I will spend the first four hours sharpening the ax”
Abraham Lincoln
Sharpening The Ax
Before any task, a Lumberjack will always make sure his ax is sharp enough to do the job. What happens if he were to use a dull ax to cut something. Is his job easier or harder? Does his finished product result in a smooth cut or a rough cut? Does he expose himself to less risk or more risk? Is he successful or unsuccessful? In the same regard, your property’s functionality is based upon the performance of multiple isolated systems, each engineered to perform a specific task and each playing a role in the overall performance of your building. In order for your building to perform as designed, it’s important that each of those isolated systems can communicate effectively and perform at its optimum level. Your building systems are designed to function in tandem with one another. The more well-kept they are and the more precisely they are tuned, functioning as a single unit, the more energy-efficient your property is. Your operational costs are reduced as your property functions more energy efficiently. In turn, this creates an “Energy Multiplier”.The McAfee Energy Process – The Energy Multiplier
According to the U.S. Environmental Protection Agency, 30% of the Energy used in Commercial buildings is wasted. Energy efficiency is reducing energy waste. (which is an expense). You are using less energy to perform the exact same task. How much energy is wasted? In a traditional incandescent light bulb, which is designed for the specific task of creating light, 80% of the electricity it consumes creates heat. Only 20% of the electricity it consumes is used to create light, while 80% is wasted. In Maggie Molina’s 2014 Research Report “ The Best Value for Americas Energy Dollar: A National Review of the Cost of Utility Energy Efficiency Programs she detailed “that energy efficiency programs are holding steady as the least-cost energy resource option that provides the best value for America’s energy dollar. At an average of 2.8 cents per kWh, electric utility energy efficiency programs are about one-half to one-third the cost of alternative new electricity resource options. At an average of 35 cents per therm, natural gas utility energy efficiency programs are less than the current average price of natural gas (39 cents per r therm in 2013)”.The Energy Multiplier
A Multiplier is a vehicle, tool, instrument, strategy, process, or solution that results in exponential growth relative to its investment. The best common example of this is “Compound Interest”. Compound interest is the addition of interest to the principal amount of a loan or deposit, or in simpler words, interest on interest. Compound interest at a constant interest rate provides exponential growth to the capital. Albert Einstein is actually quoted as saying; “ that compound interest is the most powerful force in the universe”. He said, “Compound interest is the 8th wonder of the world. He who understands it earns it; he who doesn’t, pays it.” The McAfee Energy Model is designed to achieve ‘next level of energy efficiency,’ which employs evolution strategies that seek to consistently increase the magnitude of your savings as an evolving practice, diversifying energy efficiency resources and measuring and ensuring the persistence of energy efficiency savings. Our strengths are your strengths. At McAfee Energy, we believe a properly employed energy efficiency strategy will create for its property owners a powerhouse economic effect that will dwarf Compound Interest. In 2014 Silvio Marcacci published an article titled “Energy Efficiency Creates 387% return on Investments for U.S. Southeast. The article detailed a Department of Energy-funded program that completed Energy efficiency retrofits carried out in 16 cities across 8 Southeastern US states from 2010-2013 which created a 387% return on investment (ROI), according to Southeast Energy Efficiency Alliance. What makes this even more compelling is that The Southeastern Energy Efficiency Alliance ranked only 6th out of 41 Department of Energy programs funded nationwide.Consider these three Multiplier examples
1: You purchase a home for $1,000,000.00. you make that purchase with a total down payment of $100,00.00. You own the house for a year and make monthly payments of $3,000.00 per month. Your total investment after one year is $136,000.00. After one year you sell the home for $1,250,000.00. Your $250,000.00 is a gain of 184% over your total investment of $136,000.00.
2: You’re a software video game designer. You invest a total of $3,000,000.00 to create a new software game. To market and package your video game it cost you $3.00 per unit. You sell your video games at $25.00 per unit. You sell 1,000,000 units. Your gross revenue is $25,000,000. Your total development cost was $3,000,000.00 and your additional unit cost for 1,000,000 units was $3,000,000.00. Total cost for your first 1,000,000 units was $6,000,000.00. Your total profit was $19,000.000.00. Also, remember, your development cost gets smaller and smaller with each unit sold.
3: Go to the fridge and get an Apple. If you don’t have one, go to your local Grocery Store and purchase a few Apples. Put the apple on a Cutting Board, cut it open…in fact cut open as many Apples as you want. You will find that the average number of seeds you’ll uncover from an Appel is between five and eight. Without fail between five and eight. Now, consider this…you can count the number of seeds in an Apple but you could never count the number of Apples in a seed. That’s a real Multiplier.
Now consider this Multiplier: Based upon our average result we initially reduce your energy operational cost by 27.4% and according to the U.S. Energy Information Administration (EIA), in the United States electricity prices have increased an average of 1.8% per year over the past 25 years. We’ve transformed your energy consumption model. We’ve reduced your operating cost. We’ve increased your capital asset value and we’ve created an Energy Multiplier for you that will continue to produce returns for you.
How many apples are in a seed?