April 25, 2024

Solar Industry Borrows a Page, and a Party, From Tupperware

“It’s just wonderful, the savings that we’ve had on our bills,” Pat Peaper, one of the hosts, told the crowd as it sipped iced tea and lemonade and picked at cookies and crudités.

“We have a neighbor next door,” her husband, Jim, added, “who’s averaging $350 a month” in energy bills without solar. “If they put it in, they can certainly cut that, probably by two-thirds.”

Environmentalists, government officials and sales representatives have been trying to get Americans to go solar for decades, with limited success. Despite the long push, solar power still represents less than 1 percent of electricity generated in the United States. Home solar panel setups, which typically run $25,000 or more, are considered by many consumers to be the province of the rich or idealistic.

So now solar companies are adhering to a path blazed by Tupperware decades ago, figuring that the best sales people are often enthusiastic customers willing to share their experiences with friends and neighbors — and perhaps earn a referral fee on any sales that result.

In Arizona, a nonprofit marketing company called SmartPower has had surprising success building networks of neighbors who install solar in their homes and then spread the gospel at promotional gatherings like the Peapers’ party.

Solar companies, like SunWize Technologies and SolarCity, are running party-plan programs of their own, which makes it easier and cheaper for them to find new customers.

The effectiveness of such marketing is apparent in Pebble Creek, the gated community for older adults where the Peapers live. About 10 percent of the roughly 6,000 homes in the community, which is just west of Phoenix, have installed solar arrays, and more are about to sign up.

“You might or might not believe the salesperson,” said Ted Lindhorn, a guest at the Peapers’ September party who was considering a purchase. “But if it’s a friend or a neighbor that has nothing to gain for it, you’re going to believe them.”

In many cases, those friends and neighbors do have something to gain: they can earn bonuses for steering customers to installation companies. SolarCity offers $400 for each residential referral, while a local Arizona outfit called SolarParty.org advertises paying $250.

For SmartPower, which gets the bulk of its income from foundation grants and government and utility contracts, the parties are part of its effort to promote renewable energy and energy efficiency. After a pilot program in Connecticut, the group challenged 13 Arizona towns in 2011 to install solar on 5 percent of owner-occupied homes by 2015. A town reaching that goal gets a sign designating it an “Arizona Solar Community,” a reward meant to encourage both communal spirit and extramural competition.

The group, under the direction of its vice president, Toni Bouchard, created a Web site and hired solar coaches, local experts who can advise customers on which installation companies they can use and what kinds of rate plans would maximize their savings. The coaches also help recruit solar ambassadors like the Peapers: ordinary residents who have solar and are willing to organize parties to encourage their friends and neighbors to do so as well.

Almost half the towns have already exceeded the 5 percent solar goal, with Goodyear and three others passing 10 percent. SmartPower is now expanding its program in New England.

“On-the-ground outreach tied to the online communication is really what’s making the difference here,” said Brian F. Keane, president of SmartPower. “You need to meet people in the communities where they live, work and play.”

The party-plan model has traditionally been aimed at women, selling products for the home, bedroom and body, from Botox injections to Longaberger baskets. But the solar parties are intended to sell big-ticket items and appeal to men as well.

Just as Tupperware failed to fly off store shelves without a salesperson showing customers how to work the airtight seal, which inspired the party-plan model, solar panels often require demonstration and explanation to make the sale.

“If you can talk to someone who’s gone through it who has a positive view, then they could really alleviate some of the concerns,” said Bryan Bollinger, an assistant professor of marketing at the Stern School of Business at New York University who has studied patterns of solar adoption.

Mr. Bollinger found that people were more likely to install solar once their neighbors had. He said it was not clear what was behind that phenomenon, known as the peer effect, but it could be the combination of a conspicuous way of being green with the momentum of word-of-mouth.

That dynamic has been particularly strong in Pebble Creek, which has an active online network where residents offer referrals and advice.

“People here are real big on references,” said Joe Wallace, one of the Peapers’ guests, who said that he and his wife had thought about installing solar for a long time but decided to take the plunge only after learning more from their neighbors.

Dru Bacon, a former Solar Coach who lives in Pebble Creek and has been a driving force behind solar adoption there, said that while the promised savings on electricity had spurred many customers to install solar, that was not all that motivated them.

“I’ve had at least 10 people say, ‘I have the biggest solar system in the community,’ ” he said. “They don’t say, ‘I have the lowest electric bill.’ ”

Article source: http://www.nytimes.com/2012/12/01/business/energy-environment/solar-industry-borrows-a-page-and-a-party-from-tupperware.html?partner=rss&emc=rss

Patricia Kluge Loses a Fortune, But Not Her Resolve

After filing for bankruptcy in June, she has a day job.

Not an ordinary job though. She is working for Donald Trump, who scooped up the winery and vineyard that she had built on the Virginia estate — a high-risk venture that drained all her money until she had to seek protection from her creditors in court.

And she is living no ordinary life. Instead, she rents a 6,000-square-foot home with a swimming pool and five bedrooms decorated by a celebrity designer, David Easton, in what was intended to be the first house in an exclusive gated community down the road from her old mansion.

Her vision for an estate and business and gated community was certainly outsize. But the undoing of Ms. Kluge (pronounced KLOO-gy, with a hard “g”) was not so different from that of many Americans who maxed out their credit cards and their home loans during boom times. She borrowed heavily. It’s just that she had so much more to leverage.

While her financial straits have been documented as banks closed in on her, she is speaking publicly at last about her bankruptcy, sounding resolute, reassuring herself about the future — without the liveried servants that once attended to guests at her hunting parties.

“I loved the life I lived at Albemarle. Are you kidding? But it does not define who I am,” she says, dressed in cotton slacks and a T-shirt from the Mount Kenya Safari Club. “If you can get a job, you can build another fortune,” she adds. “That is what I focus on.”

For now, Ms. Kluge, 62, and her husband, William Moses, 64, will make about $250,000 under a one-year contract to work for Mr. Trump at the winery. She handles winemaking, bottling and marketing, and Mr. Moses oversees legal and other matters part time. Roughly a third of their money goes to rent.

Lest anyone think that Ms. Kluge’s worries are entirely over, her lawyer points out that the future is unclear. “They are walking out of bankruptcy with nothing,” said the couple’s lawyer, Kermit A. Rosenberg, a partner at Butzell Long Tighe Patton. When they filed for bankruptcy, the couple listed $2.6 million in assets and $47.5 million in liabilities.

From her living room, she points to the few items that are hers: the photographs — her son in St.-Tropez two decades ago and her 2000 wedding to Mr. Moses — and her dogs, a Labrador retriever and a Tibetan terrier.

“No one should feel sorry for us,” Ms. Kluge added later. “I have a great family, a wonderful marriage and loving children and friends. We are not looking at this bankruptcy as if our life has ended. We see this as an opportunity to recreate ourselves.”

In business, she says, she went down a familiar path learned from Mr. Kluge. During the 1980s, he sold his highly leveraged media properties to a variety of buyers, most notably Rupert Murdoch, for more than $3 billion. “John was a huge borrower,” Ms. Kluge recalled. Her strategy was similar, attract equity investors to pay off the debt, make the business cash-flow positive and then sell.

Over a decade, she bet more than $65 million, using her own money at first and then borrowing more, on the winery, a notoriously risky and capital-intensive business. When the economy turned down, she could not make her payments, and the banks forced her to sell her estate, her winery, her jewels and the land she had acquired for the gated community. The jewelry and home furnishings raised nearly $20 million in a pair of auctions.

“It is Shakespearean in that Patricia aimed so high and did not make use of the kind of financial advice that would have increased the chances of making the vineyard work and minimized her financial exposure from the outset,” said Les Goldman, a business adviser and former partner at the law firm of Skadden, Arps, Slate, Meagher Flom.

Article source: http://feeds.nytimes.com/click.phdo?i=0ebd0f603019212247b79834fb3861f3