Dear Fellow Entrepreneur:

My name is Joseph Merlo. My friends and associates call me Joe. I am the founder and CEO of Energy Automation Systems, Inc. The acronym is EASI. I founded my company in 1978 with one product (the predecessor to today’s EasiLiner, a product that saves energy on motors). Although, by today’s standards, electricity was still inexpensive back then, we had already been through one oil embargo in 1973 and energy costs were on the rise. I believed energy conservation was going to be the way of the future. I made a lucky guess because in 1979 there was a second oil embargo and electricity costs began to sky-rocket; a trend which continues to this day with no end in sight.

I decided to focus my efforts on businesses of all types because this is where I believed we could have the greatest impact. During my first year we completed several hundred installations in the New York area with electric bill savings averaging around 20%. I also discovered something very interesting. While it was technology that was responsible for the savings, most customers were interested in only two things. They wanted to know how much they could save, and how much it will cost. I realized that the correct sales approach is not technical, but financial. So, the key terms in my presentation became terms like “payback period,” “rate of return,” “positive cash flow above the lease payment,” not words like “amperage,” or “voltage”.

Beginning in our second year we hired electrical engineers to help design new technology that would save additional energy on lighting, air conditioning, and other electrical loads. This began our evolution into the full systems, turnkey approach we use today.

For our first seven years we employed direct sales people who sold EASI systems to end-user businesses throughout the northeastern United States. During this time we completed thousands of installations in virtually every kind of business you can imagine. In 1985, to meet the rapidly growing demand for our products and services, I decided to change our business model to sales through a trained, Authorized Affiliate network of independent business owners. Today we have hundreds of Affiliates in over 60 countries.

I’m convinced that we have developed a near-perfect business model. EASI is a manufacturer and purveyor of a wide range of proven electricity saving technologies. Our Affiliates own independent businesses that provide energy saving solutions to other businesses and organizations including government agencies, hospitals and schools. They combine as many of our technologies as possible into a complete, turnkey, integrated system for a specific business. This can result in electric bills plummetting by as much as 30%. The savings are guaranteed and underwritten by Lloyd’s of London.

An Affiliate can make money in two ways. The Affiliate serves as a consultant and offers his/her services to businesses of all types and sizes. The Affiliate receives consulting fees for performing an energy audit/survey and project design. These fees can range from a thousand dollars to hundreds of thousands, depending on the size of the business. The Affiliate is responsible for interacting with the customer and gathering the data that EASI will need to prepare the project design and proposal. The proposal is prepared with the Affiliate’s cooperation. Affiliates determine the purchase price and profit margins on their own sales.

The report and proposal is sent to the Affiliate and the Affiliate presents it to his client. When the client authorizes the project the Affiliate is paid directly by the clients and orders the needed equipment from EASI. In most cases it’s shipped directly to the job site where a local electrician (chosen and managed by the Affiliate) will install it. Some Affiliates will credit the project design fee toward the cost of the project. This is purely optional for the Affiliate since the Affiliate has ultimate control of profits.

EASI systems are generally large sales with the average-sized sale in the six-figure range. Gross profit margins are also generous, averaging nearly 50 percent.

Once a project is completed, EASI will assist the Affiliate with post installation savings analyses. Many times the Affiliate is given the opportunity to install other locations owned by the customer and/or create additional sales through referrals.

As an Authorized EASI Affiliate you will have complete control over your income and even the opportunity to create real wealth. You can operate your business from a home office without any employees. Any help you’re likely to need is on EASI’s payroll or available from a local contractor of your choosing. You set your own pace and work as many (or as few) hours as you want and have the ability to take time off whenever you want. You are accountable only to yourself. This is also a business of which you can feel proud because you are helping others. The money you save companies can be used to retain or hire more employees, expand their market, etc. You’re also helping to reduce pollution, depletion of our natural resources, and freeing up electricity to meet the growing demand for energy — a true win-win for you and your clients.

I encourage you to read Dr. Paul Bleiweis’ letter elsewhere on this Web site for his unique perspective both as a former EASI Affiliate and as president of EASI and of all the exciting things taking place today. We also have consultants on staff who will be pleased to help you in your decision and answer your questions.

This business is not for everyone (there is a one-time fee to enjoy the benefits of becoming an EASI Authorized Affiliate and we screen our prospective Affiliates carefully). For over 30 years I have found this business to be both profitable and interesting. It’s allowed me to visit places I’ve never been and witness the inner workings of some fascinating businesses. If I could not be the CEO of EASI, there is only one other thing I would like to do: be one of our Affiliates.

Best wishes,

Joseph C. Merlo,
CEO and Founder