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Power-Save Energy is
offering a product that could reduce the electric bill for over 100 million households in
the United States
Energy
(PWVG.PK)
Power-Save Energy Corporation
3940-7 Broad St. #200
San Luis Obispo, CA 93401
Phone: 866-297-7192
Michael Forster
Founder, President
CEO and Director
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
May 18, 2006
BIO:
Michael Forster | Founder, President, CEO, Director
Mr. Forster is an experienced entrepreneur in all facets of business. He has organized and
executed the start-up of companies. He has worked under contract in both the private and
public company sectors to affect corporate and financial restructuring. As well, Mr.
Forster has held senior management level positions at a Fortune 500 company.
Mr. Forster holds a Bachelor of Science Degree in Aeronautical Engineering from California
Polytechnic State University.
Company Profile:
Power-Save Energy Corp. is a marketing company dedicated to the mass-market sale of energy
saving products for homeowners. We intend to market quality, tested products and to
continue to seek out and offer innovative new energy saving products to the consumer.
Power-Save Energy Corp. is utilizing the power of television to market the products. Our
products will be sold via targeted DRTV (direct response television commercial) to
consumers. Power-Save Energy Corp. will market the KVAR PU-1200 via a DRTV television
commercial throughout 2006. The KVAR PU-1200 product is intended to reduce
homeowner’s electricity consumption and therefore reduce their monthly electric
utility bill. In previous installations, some homeowners have enjoyed monthly savings of
up to 25% on their home electric utility bill.
CEOCFO: Mr. Forster, what was your vision for Power-Save and
how has that developed?
Mr. Forster: “A little over a year ago I followed
natural gas prices aggressively. From my past and previous work experience, I realized the
coupling between natural gas and electricity, and realized it was only a matter of time
before electricity was going to start climbing in every state. I set out on a pursuit to
find devices that could be attached to the house that could save the homeowners money. I
hired an attorney to go to the National Patent office and review the patent books to find
new energy saving home products that have been commercialized and can be used and enjoyed
by the homeowner. After contacting many different people with their own patents, ideas or
actual products, I came across several that I pursued; one of them was an inventor out of
Florida who created the product that we now sell; the Power-Save 1200™. This product,
when attached to the house, can save the homeowner up to 25% on their electric bill. It
was patented, tested proven, and it was even available commercially. The problem was, the
gentleman didn’t enjoy high electricity prices, so therefore, the product didn’t
sell well over the decade, but he tried to market and sell it. It is only recently that
electricity prices have come into the news; they are very expensive. The television
commercial featuring the product; it is timely, people are interested in it, and therefore
that is how we are going to sell it.”
CEOCFO: What is the cost
of the product?
Mr. Forster: “It retails on television for $297.00 plus
shipping and handling. If you buy it through the television commercial by calling our
1-800 962 3076 number, we offer a payment program of three easy payments of $99.”
CEOCFO: Will you tell us
how your product works?
Mr. Forster: The Power-Save 1200™ Unit increases power
factor, by reducing the amount of reactive power (KVAR) that the load draws from the
utility company. Power-Save 1200™ Units store the reactive power (kvar) needed for
the creation of the EMF within the inductive load. As the motor operates, this reactive
power is "pulled" and "pushed" to and from the Power-Save 1200™
Unit by the motor. The amount of reactive power purchased from the utility company by
power factor optimization has been greatly reduced, or eliminated.
The technology applied by the Power-Save 1200™ Unit reclaims, stores and supplies
power to inductive motors and loads. This process provides the reactive power (kvar)
required to establish the electromagnetic field (EMF) around the inductive windings of a
motor, while reclaiming and recycling the power during the normal working phase. The power
reclaimed and recycled by the Power-Save 1200™ Unit would normally be pushed back
through the power distribution lines.
In layman’s terms, if you view electricity like fuel, and we use the example like
your car, when you pull into a service station, you have three choices of fuel; high
octane, medium and low. If your car is required to use the high octane, but you always use
the inexpensive stuff, you will notice that your car doesn’t get the same gas
mileage, it runs hotter, and runs less efficiently. Therefore, the analogy is, if you put
dirty fuel, the incorrect or inefficient fuel into a perfectly good car, the car operates
inefficiently. It uses more fuel to get the same job done; it runs hotter, etc. If you
take that understanding and apply it to electricity, if you apply dirty or inefficient
electricity to a perfectly good electric motor, the motor will run hot and inefficiently.
You will use more electricity than was needed. The Power-Save 1200™ unit, takes the
electricity from the grid, cleans it, modifies it, streamlines it, delivers it to the
motors in your house such as the refrigerators, freezers, ceiling fans, garage door
openers, ovens, washers, driers, dishwashers; it goes on and on. It takes the electricity,
cleans it, and provides perfect electricity for each motor so that each motor runs at its
optimal efficiency. It also gathers loose electricity in the house and stores it. Every
time a motor like a refrigerator clicks on for another cycle, it actually electrifies the
magnetic field and gets the motor started. This is how it saves electricity for the
household.”
CEOCFO: How is it
attached?
Mr. Forster: “It is a very simple installation process.
Our Power-Save 1200™ is a little box only six inches by six inches by four inches. It
installs next to the breaker panel either outside or next to the sub panel, which is
usually from the basement of some homes. You attach it to the wall, snake the conduit and
the three wires into your breaker panel; you turn the main breaker panel switch off. The
three wires attach to a new 15 amps breaker and the ground bar, it snaps into the breaker
panel, you put the cover back on and turn the main breaker back on and it is
operating.”
CEOCFO: Does this work
for electric heat?
Mr. Forster: “Yes, and if you have a forced air gas
heater that is turning a fan that forces heated air throughout the house, it saves you
there also. Our Power-Save 1200™ saves money on your air conditioner, forced air gas
heater, dishwasher, washer, dryer, ceiling fan, oven exhaust fan, pool pump, spa pump,
computer cooling fans, garage door opener and the list goes on.”
CEOCFO: What do the
electric companies have to say about this?
Mr. Forster: “The unit is UL (Underwriters Laboratories,
Inc.) listed, ENERGY STARŪ (a government-backed program for protecting the environment
through superior energy efficiency) recognized, so it meets or exceeds all requirements in
the U.S. and Canada because it is CSA (Certified Products Listings) listed as well. It
meets or exceeds all the requirements to be viewed as an appliance and it is an appliance
that is legally allowed to be attached to the home. Our unit attaches to the breaker panel
on the homeowners side of the meter. Therefore, the electric companies view it as just an
appliance. It is no different in their opinion than a lamp fixture or a refrigerator. It
is UL listed, it meets or exceeds requirements, it has been tested, therefore it is safe
to use. Attaching on the home owners side of the panel; it causes no issue with any
utility company.”
CEOCFO: Has the public
been receptive?
Mr. Forster: “We have run a test television commercial;
120 second short form DRTV commercial nationally. The response was very strong and it made
us understand that we had a product, that if we got the formula right, we were going to be
able to sell to consumers quite aggressively. After the initial test, we went back to the
drawing board to reedit the commercial and change the process. What we needed to do was
build from a direct sale; three payments of $99, call now, would be considered a direct
sale, to more of a two-step process. Everyone has seen these commercials that say call now
for more information; that is more of a two-step process. You then get everybody who is
interested in the device and saving money on their electric bill, to call or go to our
website and request additional information. This is what we are changing our campaign to,
to dramatically increase the number of leads and drastically lower the cost per lead. Once
they have received the package or the information, we believe based on experience a large
percentage of the individuals will be converted to sales. We anticipate that this
conversion will continue to stay strong, so therefore what we need to do is drive an even
lower cost per lead or an even more leads for every advertising dollar spent. That is what
we are doing.”
CEOCFO: Why is direct
marketing the best way to go for you?
Mr. Forster: “It is a function of the times. Three years
ago when our electricity prices were low, nobody would have taken five minutes of
attention to our Power-Save 1200™, with respect to a television commercial. The
reality is everybody’s electric bills are going up. Every newspaper in the country
are carrying stories of the local electrical company requesting an increase in the
electric utility rate and the PUCs (Public Utilities Commission) granting them. It is on
the forefront of everybody’s mind at least once a month if not daily. For example,
just the other day, Baltimore announced a 72% increase in their electric prices starting
June 1st (2006) for all the residents of Baltimore. Across the country there is
one local television news cast almost every day if not multiple times a day. The approach
is to take a product that is prices in the comfort zone of a typical consumer or
home owner, let them know that this product exists through mass marketing, and give them
an opportunity to hear the message two, three or four times, and react to it. We feel
strongly that there are over 100 million households in the U.S., and our product belongs
in every single one of them. It is NASA (National Aeronautics and Space Association)
tested, Honeywell International, Inc. (NYSE: HON) tested, UL listed, ENERGY STARŪ
recognized. It has all the credentials. It has been out there for years. We have
testimonial letters coming out our ears and frankly, we believe it is the product of the
times.”
CEOCFO: How are you
funded for the start-up phase?
Mr. Forster: “I am the president and CEO, and I am an
80% shareholder in the company. I actually funded a majority of the money to begin the
venture, and take us, in my opinion, through to profitability; that is the
plan. I have enough money where I believe we can get through the testing phase, get the
commercial correct and begin to market this aggressively, by using national
television.”
CEOCFO: Do you have
additional products in the pipeline?
Mr. Forster: “Yes, we have announced a second product,
which is a replacement bulb for low-voltage landscape lighting. We actually have a
replacement bulb that is an LED (Light Emitting Diode) bulb, which uses only 10% of the
electricity as the normal incandescent bulb. More importantly, it lasts 50,000 hours. The
consumer saves money on the electricity, and they save an enormous amount of money on bulb
replacement. Bulb replacement is the biggest problem with these low voltage landscape
lighting. This is a fantastic product; it has already been released and we are looking
forward to begin running direct response television commercials for it in the future as
well. We are also looking on additional products that we have not released yet.”
CEOCFO: Although you are
80% owner, do you look to reach the investment community?
Mr. Forster: “Of course we are. This will take a series
of steps to get this company into a very large marketing and sales company. An example is
BOWFLEX (Nautilus, Inc. – NYSE: NLS); there is not an American in this country that
has not heard of the BOWFLEX. They were at one point in their life cycle, a one-product
company that used mass-market DRTV television direct response commercials to market their
one product. They are still on the television today; you can see a BOWFLEX commercial
almost everyday. They have come out with additional products, but they have grown and
grown. Frankly, that is the model I would aspire to, and get some legs underneath us with
this product, and continue to pound the television viewers with our commercials and
products, and continue to grow this company. That will take possibly additional investment
capital and when that time comes, I hope that through efforts like our interview with you,
we will have reached the investment community and have grown and matured the
company.”
CEOCFO: What should
potential investors realize about Power Save that they is often overlooked?
Mr. Forster: “The product is a strong product for the
times. The product works, there have been plenty of tests and testimonials. It is not a
gimmicky little product, but an industrial product that has been proven in industrial and
residential applications for years. It is patented, UL listed, ENERGY STARŪ recognized,
and it meets, exceeds and holds all the credentials. It is a matter of is the time right,
and the reality of that is yes! The only challenge at this point is to get the formula
right for the mass-market merchandising on television advertising. I think we are well
down the path there and we will achieve success in that area. Therefore, I think we have
solved all the problems.”
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