QT SERIES COMMERCIAL GENERATORS

With power outages affecting so many commercial enterprises and receiving increased media attention, standby power is on the minds of business owners nationwide. Those in storm-prone areas are the most often affected, but no area is immune to the possibility of an extended power interruption.

Power Outages Affect the Bottom Line

When the electricity goes out for more than a couple of hours, commercial businesses are particularly hard hit. Without backup power, employees are idled, cash registers stop working, heating and air conditioning systems shut down, computers quit and refrigerated goods start to spoil. Costs mount quickly. The longer the outage persists, the greater the financial impact.

But there is another aspect to consider. Without a standby generator, businesses that have spent considerable amounts of time and money to build their brand and carefully cultivate their customer base are unable to provide goods or services. Though the cost of this cannot be calculated, it’s obvious that the image of any business is adversely affected when it cannot serve its customers. If a competitor with backup power is open for business, the negative effects are even greater as once-loyal customers take their business elsewhere.

A Huge, Untapped Market

According to a 2004 study by Frost & Sullivan, an independent research firm, 80% of small businesses experienced an outage during the prior 12 months. Of those, 29% were without power for more than eight hours and 19% for more than sixteen. Despite this ongoing threat, 62% of small businesses did not have any type of backup power supply. Even more remarkably, 75% of business owners said that electrical interruptions were a threat to their business, but only 22% felt very prepared to deal with an outage. Obviously, there is a huge and largely untapped market for standby power that presents an extraordinary opportunity to manufacturers, sellers and installers of these products.

The QT Solution — A Real Profit Opportunity

With the introduction of the QT Series of commercial standby generators from Generac Power Systems, business owners now have a clean, quiet and cost-effective solution to the threat of power outages. The QT Series also gives electrical contractors a powerful opportunity to profit from both the sale and installation of these products. QT gensets are available through a growing number of electrical distributors, with direct delivery from the manufacturer to the contractor’s jobsite.

“We’ve designed the ordering process to be as easy as possible,” says Ryan Jeske, Generac’s vice president of sales. “Our website, www.mygenerac.com, provides full product information and specifications, as well as the suggested retail price for each model. The latest product news is on display there, along with information on sales promotions and availability. The products themselves are readily available at very competitive prices from an array of electrical distributors.”

Generac is also providing additional support to this channel through a multi-faceted marketing campaign. “As a manufacturer, we are doing all that we can to promote these products,” Jeske says. “We believe that a well-informed contractor is our best representative in the field, because he or she can provide the best and most cost-effective solution to the customer. To help contractors learn about selecting, selling and installing our generators, we conduct free seminars around the country. Through the distributors, we also provide pocket guides with information on sizing and installation, as well as product brochures that contractors can give to customers who are contemplating a purchase.”

Being able to both sell and install these products has given electrical contractors a real boost, according to Jeske. “Installing a generator can be a profitable job for a contractor, but when that contractor is also the seller of the product, the profit opportunity is doubled. If they wish, contractors can also offer package pricing to their customers, quoting an installed price for each model in a typical installation. The margins are good and the demand is growing. We’ve seen some electrical contractors who are doing extremely well by devoting attention and resources to building their generator business. The ones who are devoted to this business are reaping the rewards.”

The QT Success Story

Generac, the #1 manufacturer of automatic home standby generators, tackled this market head-on with its release of the QT Series in the summer of 2005. By leveraging its success in the residential segment — where the company sells more systems than all other manufacturers combined — Generac has made its QT Series the best solution for commercial businesses that need backup power.

“These offerings include an array of gaseous-fueled generators that range in output from 20 to 150 kilowatts, making them ideally suited for a wide variety of small and medium-sized businesses,” says Mike Carr, Generac’s manager of marketing communication. “Retail enterprises such as drug stores, restaurants, gas stations, convenience stores, supermarkets and other kinds of storefront businesses find them particularly cost-effective compared to previous backup power options. The QT Series has definitely filled a need in the commercial sector of the market. Looking back over the past year, this has been one of the most successful new product launches in our history and sales continue to grow at an amazing rate. The response to this product line has been remarkable.”

Three Ways Better

It’s easy to see why. In analyzing the commercial market for standby power, Generac did its homework to determine why so few retail businesses had purchased backup generators, then designed its products accordingly.

“Our research uncovered three primary reasons why business owners had not invested in standby power — cost, sound and the environmental concerns related to diesel fuel,” Carr says. “We knew that a backup power solution that addressed all of those aspects and was easy to install would revolutionize the market, so that became the design rationale behind the QT Series. Its success so far tells us that we’ve taken the right approach.”

Cost Effective Business Protection

By making the new products especially affordable, Generac is bringing standby power within reach of an expanding market. For many enterprises, it’s simple to compute the payback by comparing the installed price of a standby power system with the hourly loss of sales dollars during a blackout.

“For any business that is vulnerable to a loss of power, it’s an easy cost / benefit decision,” Carr says. “ Consider the example of a high volume drug store that takes in approximately $1,425 an hour at the cash registers. The installed cost of a 100 kilowatt QT Series genset is about $25,000, with enough power to keep the pharmacy open, the lights on and the registers operational. It’s obvious that the generator will pay for itself during the first outage that lasts more than 18 hours, or one business day. If that’s not convincing enough, consider the fact that it’ll provide standby power — and effective loss prevention — for another twenty years or more. If you own that kind of business, how could you afford not to make that investment to protect your bottom line?”

Quieter By Design

Tackling the sound issue required some serious design efforts by Generac’s engineering team. “Considerable attention has been devoted to reducing the noise characteristics of these generators,” says Mike Roll, engineering manager. “Everyone thinks about the sound of the engine, but it’s much more than that. The movement of intake and exhaust air creates a greater amount of sound than most people realize. To minimize that, properly designed pathways, baffles and mufflers are essential. In addition, the design, selection and integration of fans and radiators have been given special attention to maximize cooling effectiveness and reduce fan noise.” All QT models feature a sound attenuated enclosure that is designed and manufactured by Generac with enhanced absorption characteristics.

Because generators typically run for 15 to 20 minutes once a week during a self-exercising routine, noise outputs during that time can be a concern. To obviate harsh or unpleasant sound emissions, Generac developed its industry-exclusive Quiet-Test™ exercise feature

The Quiet-Test routine is initiated whenever the genset is operating while normal utility power is present. The generator starts up and operates at a reduced speed during exercise, reducing sound output by as much as 15 decibels for units that normally run at higher speeds under load. This enhancement is especially beneficial in commercial areas where retail stores are clustered or residences are nearby.

The Environmentally-Friendly Solution — Gaseous-Fueled Gensets

For standby power systems, gaseous fuels — natural gas or liquid propane (LP) vapor — are vastly superior to diesel fuel, for a variety of reasons.

Disadvantages of Diesel Fuel

 

• Diesel tanks require refueling, which may be problematic during an extended power outage.
• Diesel fuel requires storage on-site in expensive double-walled tanks.
• Placement of a diesel fuel tank requires local permits.
• On-site fuel storage may be limited by local ordinance.
• On-site diesel fuel presents a risk of spillage.
• Diesel fuel requires maintenance to prevent deterioration over time.
• Underground diesel storage tanks are subject to increasingly stringent restrictions.
• Diesel fuel emits an odor.

Advantages of Gaseous Fuel

 

• Natural gas is delivered reliably and continuously underground.
• Natural gas demand drops significantly during a power outage, assuring more than adequate supply.
• Historically, natural gas has cost less than diesel fuel.
• Gaseous engines are quieter than diesel engines in terms of noise, vibration and harshness.
• Spark-ignited engines start more easily than diesel engines in cold climates.
• Gaseous engines emit far fewer pollutants than diesel engines and are considered a “green” solution.

Easy Installation

Because the QT Series was created as an entirely new product line, all models are designed for easy installation. “Our goal was to develop a product that would be easy to connect and start up,” engineer Mike Roll says. “Not only are the connections and controls very manageable, but there is no longer a need for a generator technician to commission the unit. A properly trained electrical contractor can handle the entire process in a matter of hours, reducing both the cost and time required for installation.”

Modular System Capabilities

Two modular QT models in the line (100 and 150 kW) offer an optional paralleling digital controller. That configuration gives them onboard paralleling capability, making them fully compatible as elements of a Generac Modular Power System (MPS). This means that multiple gensets of this or any other MPS type can be easily combined and paralleled to create higher output systems. Because of their more complex nature, modular QT installations are done in conjunction with a Generac industrial dealer.

This capability is particularly effective in creating MPS natural gas systems that cost significantly less than large, single engine alternatives. For instance, a traditional 450 kW natural gas generator from another manufacturer costs about $450,000. Generac’s modular alternative comprised of three 150 kW QT units, operating in parallel, is available at approximately half the cost. This is a significant breakthrough that opens up countless standby power applications to the natural gas solution. The MPS approach also provides additional benefits at no extra cost — redundancy, scalability, flexibility and quicker availability.

UL Listed Products

All QT Series products are UL2200 Listed. The UL2200 Listing is a comprehensive safety standard encompassing the design, construction and performance of stationary engine generators producing up to 600 volts. It is also an independent verification of the electrical output of such generators and ensures that they are capable of producing power equal to their claimed kilowatt rating. Not all manufacturers offer UL Listed generators, making their kilowatt output ratings questionable without it.

Bigger Jobs, Bigger Profits

One year after its introduction, the QT Series has already established it as the top product in the commercial generator market. Its remarkable success has caught the attention of a growing number of electrical contractors and put a smile on their faces. “The demand for these generators continues to accelerate,” Ryan Jeske says. “By being able to sell and install these higher-ticket products, electrical contractors are able to take on larger, more profitable jobs. That kind of business improves both their top and bottom line, which explains why they are so enthusiastic about QT products.”