Energy Automation Systems, Inc. Former Affiliate/Dealer: October 2008

Wednesday, October 29, 2008

Maryland Orders EASI to Offer Refunds to Eleven Affiliates

Readers,

I have added a link to the recent Consent Order from the State of Maryland which requires EASI to offer refunds to eleven affiliates in Maryland.

If you are aware of any successful legal actions against EASI that you do not see posted here on this blog, please let me know about them by commenting this post.

Thanks!
HVW

Some Things to Consider

Are you considering becoming an EASI Authorized Affiliate (Dealer)?

Consider this -

If you are able to find steady employment with gross earnings of $60K/yr, you would need to generate $240K/yr in revenue to equal that as an EASI Dealer, assuming an overall 25% profit margin on your business. While EASI will tell you that the profit margin on a given job can be up to 50%, you likely will not see that margin as a new dealer, and your margin for the business as a whole will be lower due to business overhead costs. I think 25% is being generous to EASI.

I have met many dealers and it is my opinion that very, very few EASI dealers in the United States are generating that level of sustained revenue. Ask Joe or Paul what the average dealer in your part of the US earns each year, and most importantly in their first year. Do not settle for "the average job is a $125K sale". You need to know for your area of the United States. Ask them what is the calculated average of how long it takes for a new affiliate in your region to make their first sale. They have the ability to get this data to you. If they don't give it to you, it is because they don't want you to have that information.

If it takes you a year to sell your first job (ie - first year revenues = $0), then you now have to earn even more in subsequent years to make up for what you would have earned had you just stuck with the $60K/yr job. You have to make up that $240K somewhere else down the line, otherwise, you are losing money.

If you cannot earn $60K/yr and buying a dealership sounds like a great opportunity to you - then here is another consideration for you. Instead of paying EASI $45K to become a dealer, you could easily afford a masters degree with that money and increase your earning potential that way. It's a much more certain way to increase your value and earnings potential.

I regret having placed my trust in EASI. It cost me much more money than just the dealer fee. Good luck in your decision, and feel free to contact me if you want to discuss it.

Energy Automation Systems, Inc. Former Affiliate/Dealer

Wednesday, October 29, 2008

Maryland Orders EASI to Offer Refunds to Eleven Affiliates

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