Bluestone L.E.D. Retail

Lighting Up Sales AtLighting Up Sales At

A presentation byA presentation by

Retailer/Mass Merchant

Presentation GoalsPresentation Goals

To demonstrate how Bluestone Lighting To demonstrate how Bluestone Lighting products would be beneficial for…. products would be beneficial for….

To demonstrate how Bluestone Lighting To demonstrate how Bluestone Lighting products would be beneficial for…. products would be beneficial for….

History of Bluestone LightingHistory of Bluestone Lighting

A division of Heatron, a custom A division of Heatron, a custom manufacturer of heating subassembliesmanufacturer of heating subassemblies

Heatron developed advanced methods Heatron developed advanced methods for dissipating heat from LEDs for dissipating heat from LEDs

Heatron perceived larger potential for Heatron perceived larger potential for LED technologies in lighting – launched LED technologies in lighting – launched Bluestone Lighting brand to market Bluestone Lighting brand to market LED-based productsLED-based products

A division of Heatron, a custom A division of Heatron, a custom manufacturer of heating subassembliesmanufacturer of heating subassemblies

Heatron developed advanced methods Heatron developed advanced methods for dissipating heat from LEDs for dissipating heat from LEDs

Heatron perceived larger potential for Heatron perceived larger potential for LED technologies in lighting – launched LED technologies in lighting – launched Bluestone Lighting brand to market Bluestone Lighting brand to market LED-based productsLED-based products

Bluestone Lighting OverviewBluestone Lighting Overview

Bluestone Lighting is an innovation and Bluestone Lighting is an innovation and marketing company, headquartered in marketing company, headquartered in Leavenworth, KansasLeavenworth, Kansas

Bluestone offers LED-based products in Bluestone offers LED-based products in three categories…three categories…

Bluestone Lighting is an innovation and Bluestone Lighting is an innovation and marketing company, headquartered in marketing company, headquartered in Leavenworth, KansasLeavenworth, Kansas

Bluestone offers LED-based products in Bluestone offers LED-based products in three categories…three categories…


LED Replacement Light BulbsLED Replacement Light BulbsLED Replacement Light BulbsLED Replacement Light Bulbs


LED Architectural Lighting FixturesLED Architectural Lighting FixturesLED Architectural Lighting FixturesLED Architectural Lighting Fixtures


LED Flashlights and Light ToolsLED Flashlights and Light ToolsLED Flashlights and Light ToolsLED Flashlights and Light Tools

Lighting Option ComparisonLighting Option Comparison

Why is LED lighting better than Why is LED lighting better than conventional incandescent or compact conventional incandescent or compact florescent (CFL) lighting?florescent (CFL) lighting?

Why is LED lighting better than Why is LED lighting better than conventional incandescent or compact conventional incandescent or compact florescent (CFL) lighting?florescent (CFL) lighting?


IncandescentIncandescent lighting is inherently lighting is inherently inefficient inefficient

90% of energy used is converted to 90% of energy used is converted to heat; only 10% converted to lightheat; only 10% converted to light

Expensive to use, generate heat, Expensive to use, generate heat, require frequent replacement, phase-out require frequent replacement, phase-out has been mandated by U.S. has been mandated by U.S. governmentgovernment

IncandescentIncandescent lighting is inherently lighting is inherently inefficient inefficient

90% of energy used is converted to 90% of energy used is converted to heat; only 10% converted to lightheat; only 10% converted to light

Expensive to use, generate heat, Expensive to use, generate heat, require frequent replacement, phase-out require frequent replacement, phase-out has been mandated by U.S. has been mandated by U.S. governmentgovernment


Compact FlorescentCompact Florescent (CFL) uses less (CFL) uses less electricity than incandescents, but more electricity than incandescents, but more than LEDsthan LEDs

Lasts longer than incandescents, but Lasts longer than incandescents, but not as long as LEDsnot as long as LEDs

Environmentally unfriendly - contain Environmentally unfriendly - contain mercurymercury

Temperature and humidity sensitiveTemperature and humidity sensitiveAnnoying delay when turning onAnnoying delay when turning on

Compact FlorescentCompact Florescent (CFL) uses less (CFL) uses less electricity than incandescents, but more electricity than incandescents, but more than LEDsthan LEDs

Lasts longer than incandescents, but Lasts longer than incandescents, but not as long as LEDsnot as long as LEDs

Environmentally unfriendly - contain Environmentally unfriendly - contain mercurymercury

Temperature and humidity sensitiveTemperature and humidity sensitiveAnnoying delay when turning onAnnoying delay when turning on


LEDLED bulbs are highly energy efficient; a bulbs are highly energy efficient; a 7-watt LED bulb produces light similar 7-watt LED bulb produces light similar to an incandescent 50-watt bulbto an incandescent 50-watt bulb

LED bulbs convert 90% of energy used LED bulbs convert 90% of energy used into light (inverse of incandescents)into light (inverse of incandescents)

Designed to last 15 years – Designed to last 15 years – 40 times longer than incandescent, 40 times longer than incandescent, 5 times longer than CFL 5 times longer than CFL

LEDLED bulbs are highly energy efficient; a bulbs are highly energy efficient; a 7-watt LED bulb produces light similar 7-watt LED bulb produces light similar to an incandescent 50-watt bulbto an incandescent 50-watt bulb

LED bulbs convert 90% of energy used LED bulbs convert 90% of energy used into light (inverse of incandescents)into light (inverse of incandescents)

Designed to last 15 years – Designed to last 15 years – 40 times longer than incandescent, 40 times longer than incandescent, 5 times longer than CFL 5 times longer than CFL


LEDs are environmentally-friendly – LEDs are environmentally-friendly – mercury-free and lead-freemercury-free and lead-free

Durable – no filament or glass to breakDurable – no filament or glass to breakCool to the touch – emit minimal heatCool to the touch – emit minimal heatQuiet, no-hum operationQuiet, no-hum operation Instant on – no warm-up period requiredInstant on – no warm-up period requiredEasy to install – same size and Easy to install – same size and

shape as conventional bulbsshape as conventional bulbs

LEDs are environmentally-friendly – LEDs are environmentally-friendly – mercury-free and lead-freemercury-free and lead-free

Durable – no filament or glass to breakDurable – no filament or glass to breakCool to the touch – emit minimal heatCool to the touch – emit minimal heatQuiet, no-hum operationQuiet, no-hum operation Instant on – no warm-up period requiredInstant on – no warm-up period requiredEasy to install – same size and Easy to install – same size and

shape as conventional bulbsshape as conventional bulbs


Source: EarthEasy.comSource: EarthEasy.comSource: EarthEasy.comSource: EarthEasy.com


Esthetic considerations:Esthetic considerations: Florescent light generally disliked by designers, Florescent light generally disliked by designers,

architects, and others responsible for creating architects, and others responsible for creating visually-pleasing environments, both indoors and visually-pleasing environments, both indoors and outdoorsoutdoors

LED light is considered to be of higher quality than LED light is considered to be of higher quality than florescent; similar in quality to incandescent lightflorescent; similar in quality to incandescent light

Most florescents and current LED bulbs are non-Most florescents and current LED bulbs are non-dimmable; new Bluestone LEDs are dimmable; new Bluestone LEDs are dimmabledimmable

Esthetic considerations:Esthetic considerations: Florescent light generally disliked by designers, Florescent light generally disliked by designers,

architects, and others responsible for creating architects, and others responsible for creating visually-pleasing environments, both indoors and visually-pleasing environments, both indoors and outdoorsoutdoors

LED light is considered to be of higher quality than LED light is considered to be of higher quality than florescent; similar in quality to incandescent lightflorescent; similar in quality to incandescent light

Most florescents and current LED bulbs are non-Most florescents and current LED bulbs are non-dimmable; new Bluestone LEDs are dimmable; new Bluestone LEDs are dimmabledimmable

Market Info on LED BulbsMarket Info on LED Bulbs

U.S. Department of Energy has U.S. Department of Energy has “developed a strategy to accelerate the “developed a strategy to accelerate the development and market introduction of development and market introduction of solid-state [LED] lighting for general solid-state [LED] lighting for general illumination.”illumination.”

Government has also mandated the Government has also mandated the phase-out of incandescent bulbs, phase-out of incandescent bulbs, beginning in 2012.beginning in 2012.

U.S. Department of Energy has U.S. Department of Energy has “developed a strategy to accelerate the “developed a strategy to accelerate the development and market introduction of development and market introduction of solid-state [LED] lighting for general solid-state [LED] lighting for general illumination.”illumination.”

Government has also mandated the Government has also mandated the phase-out of incandescent bulbs, phase-out of incandescent bulbs, beginning in 2012.beginning in 2012.

Baseline product: A-base LED Baseline product: A-base LED replacement lamps (6 SKUs)replacement lamps (6 SKUs) 4-LED model: Equivalent of up to 40 watts; 4-LED model: Equivalent of up to 40 watts;

dimmable; 3 colors - cool, neutral or warmdimmable; 3 colors - cool, neutral or warm 6-LED model: Equivalent of up to 60 watts; 6-LED model: Equivalent of up to 60 watts;

dimmable; 3 colors - cool, neutral or warmdimmable; 3 colors - cool, neutral or warm

Baseline product: A-base LED Baseline product: A-base LED replacement lamps (6 SKUs)replacement lamps (6 SKUs) 4-LED model: Equivalent of up to 40 watts; 4-LED model: Equivalent of up to 40 watts;

dimmable; 3 colors - cool, neutral or warmdimmable; 3 colors - cool, neutral or warm 6-LED model: Equivalent of up to 60 watts; 6-LED model: Equivalent of up to 60 watts;

dimmable; 3 colors - cool, neutral or warmdimmable; 3 colors - cool, neutral or warm

Recommendations for Retailer/Mass MerchantRecommendations for Retailer/Mass Merchant

Recommendations for Retailer/Mass MerchantRecommendations for Retailer/Mass Merchant

Additional products in developmentAdditional products in development PAR 20 & 30 (pending UL approval)PAR 20 & 30 (pending UL approval) MR16 (pending UL approval)MR16 (pending UL approval) Other products being developed for future Other products being developed for future

release, including PAR 38 and G10release, including PAR 38 and G10

Additional products in developmentAdditional products in development PAR 20 & 30 (pending UL approval)PAR 20 & 30 (pending UL approval) MR16 (pending UL approval)MR16 (pending UL approval) Other products being developed for future Other products being developed for future

release, including PAR 38 and G10release, including PAR 38 and G10

Recommendation for Retailer/Mass MerchantRecommendation for Retailer/Mass MerchantProjected margin for retailers, first 2 Projected margin for retailers, first 2

yearsyears Average 9 A-based bulbs per store per Average 9 A-based bulbs per store per

monthmonth 108,000 bulbs nationwide over 2 years108,000 bulbs nationwide over 2 years Minimal margin of $10 per bulbMinimal margin of $10 per bulb $1.08 million annual margin first 2 years$1.08 million annual margin first 2 years

Projected margin for retailers, first 2 Projected margin for retailers, first 2 yearsyears Average 9 A-based bulbs per store per Average 9 A-based bulbs per store per

monthmonth 108,000 bulbs nationwide over 2 years108,000 bulbs nationwide over 2 years Minimal margin of $10 per bulbMinimal margin of $10 per bulb $1.08 million annual margin first 2 years$1.08 million annual margin first 2 years

Display & Packaging OptionsDisplay & Packaging Options

Clamshell-plus-wrap Clamshell-plus-wrap premium packaging premium packaging (retail sales only):(retail sales only):

Clamshell-plus-wrap Clamshell-plus-wrap premium packaging premium packaging (retail sales only):(retail sales only):


Standard blind Standard blind packaging:packaging: Standard blind Standard blind packaging:packaging:


Shelf talkersShelf talkers Tray systemsTray systems Full freestanding Full freestanding POPs and POPs and endcaps:endcaps:

Shelf talkersShelf talkers Tray systemsTray systems Full freestanding Full freestanding POPs and POPs and endcaps:endcaps:

ConclusionConclusion

Product demand for LED general Product demand for LED general lighting is strong and growinglighting is strong and growing

Demand is being heightened by Demand is being heightened by government-mandated phase-out of government-mandated phase-out of incandescent lightingincandescent lighting

Product demand for LED general Product demand for LED general lighting is strong and growinglighting is strong and growing

Demand is being heightened by Demand is being heightened by government-mandated phase-out of government-mandated phase-out of incandescent lightingincandescent lighting

ConclusionConclusion

Bluestone Lighting offers: Bluestone Lighting offers: Quality productsQuality products Favorable pricingFavorable pricing Popular lighting stylesPopular lighting styles Dependable supplyDependable supply Retail promotion assistanceRetail promotion assistance Customer-focused brand development campaignsCustomer-focused brand development campaigns Unique product features (dimmable LEDs, Unique product features (dimmable LEDs,

spot-to-flood focus on PARs)spot-to-flood focus on PARs) First-to-market opportunityFirst-to-market opportunity

Bluestone Lighting offers: Bluestone Lighting offers: Quality productsQuality products Favorable pricingFavorable pricing Popular lighting stylesPopular lighting styles Dependable supplyDependable supply Retail promotion assistanceRetail promotion assistance Customer-focused brand development campaignsCustomer-focused brand development campaigns Unique product features (dimmable LEDs, Unique product features (dimmable LEDs,

spot-to-flood focus on PARs)spot-to-flood focus on PARs) First-to-market opportunityFirst-to-market opportunity

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Bluestone L.E.D. Retail