Case Studies in Selecting a Differentiated Ultra Low Temperature Freezer

Neill Lane, Stirling Ultracold

All mechanical ultra low temperature freezers are commoditized and rely upon the same cooling technology with very little difference in performance from one brand to another. Freezers of this type are typically sold through multiple competing channels either singly or in volume on a relationship basis with significant discounts offered.

In 2013 Stirling Ultracold introduced the SU780U, a unique full-size 27.5 cu. ft ultra low temperature freezer cooled by a Stirling engine. This freezer combines industry leading freezer performance, a broad operating range (-86°C to -20°C), unmatched temperature stability, ability to run on any voltage, less than half the energy use of competing units and lowest total cost of ownership combined with an environmentally friendly refrigeration system. The traditional deeply discounted sales approach for undifferentiated ultra low freezers is not appropriate for this freezer technology. Rather it should be evaluated on total cost saving, environmental sustainability and outstanding quality of cold benefits to multiple stakeholders within an organization.

Historically purchasing decisions have been made by a combination of users and procurement. The criteria for purchase have been the users' comfort with the brand and freezer features, and procurements' ability to extract the largest possible discount. In contrast selling a differentiated freezer requires engagement with users, lab and facility managers, energy purchasers, energy suppliers, sustainability officers, procurement and finance.

This presentation illustrates the different purchasing approaches using 3 case studies where organizations are adopting the Stirling freezers. A large biotech company, an internationally recognized cancer research center and a top US research university. Each case offers a unique combination of factors that justify the adoption of the freezers. These factors include total cost of ownership, utility rebates, internal rebates, institutional environmental compliance requirements, institutional sustainability goals, and freezer performance requirements.

For each case study the combination of factors and engagement points within each customer are illustrated.

The selling of a substantially differentiated, cost saving, environmentally sustainable product in a well-established undifferentiated commoditized market may offer parallel lessons associated with the introduction of other new green laboratory products.

Learning Objectives

  • Understand the comparative performance, power use, sustainability and total lifetime cost differences between undifferentiated traditional freezers and the Stirling engine cooled units.
  • Understand who needs to be engaged and with what information at the potential customer. This group includes users, lab and facility managers, energy purchasers, energy suppliers, sustainability officers, procurement and finance.
  • Understand for each of the 3 case studies the unique combination of benefits and customers within the organization which will drive the adoption of these differentiated freezers.

Biography:

Neill Lane is the CEO of Stirling Ultracold in Athens, Ohio. Stirling Ultracold manufactures award winning, environmentally friendly, Stirling engine cooled, ultra low temperature freezers. Previously he co-founded and was the President of BtB LLC, an Ohio developer of large-scale solar installations. He served as Executive-in-Residence with TechGROWTH Ohio, a pre-seed fund providing funding to early stage, innovative technology companies, and for 10 years as President and CEO of Sunpower Inc.

 

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