Nexxus entered the consumer LED market in March with an agreement to sell its Array brand of LED bulbs through the Lowe’s retail chain.
It’s been slow going.
“Overall sales of Array products to the consumer have been below what we had anticipated,” the Charlotte, N.C., company said when it recently announced a loss of $1 million on sales of $2.1 million for the third quarter ended Sept. 30.
“In response, and in partnership with our major customer, we are exploring additional opportunities to increase retail sales and in-store inventory turns,” it added, without naming Lowe’s.
With more than a hint that prices are too high for the average consumer, it explained that, “These opportunities may include utility rebate programs, price concessions, sales initiatives, marketing programs, advertising campaigns, training sessions and point-of-sale educational materials.”
Although the price of LED bulbs is starting to decline, they generally sell for between $25 and $50 – a hard sell when the consumer can buy a traditional incandescent bulb for sometimes less than a dollar.
Thus, Nexxus and other lighting companies including Philips and Cree have recently reported difficult business in consumer LEDs, even though the bulbs save consumers a bundle over time because they consume only about 20 percent of the electricity of an incandescent. In theory they virtually eliminate replacement bulb costs because they last for a purported 25 years, although many consumers dispute that longevity.
Image: Svilen.Milev via Wikimedia
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