Startup's deal with Mariah puts the wind into its sales

Paul Phillipson is pretty sure he knows why consumers pony up $15,000 to buy and install one of the Windspire wind-generation appliances sold by his company.

The tough part, Phillipson says, is figuring how to reach them.

Phillipson, the vice president of operations for Reno-based Planet Safe Systems, a pioneering dealer for Mariah Power Co. and its Windspire, says buyers fall into one of three camps:

* Utility haters who want to generate their own electricity to spite the power company.

* Green consumers who are willing to dig deep into their pockets to do the right thing for the environment.

* Skinflints who want to produce as much as 2,000 kilowatt hours a year of electricity from a free resource northern Nevada's wind.

Planet Safe Systems was incorporated early this year by Phillipson, a longtime northern Nevada businessman, and Tim T. Brown, the owner of ATB Excavating.

The firm was among the first to land a dealership to sell the Windspire system developed by Reno-based Mariah Power.

Brown and Phillipson added a new wrinkle to Mariah's business plan, meanwhile, as they figured how to pre-assemble the Windspire systems in a shop for easier installation at a buyer's location. Initially, the systems were designed for on-site assembly.

The owners of Planet Safe Systems have set a goal to sell two Windspire Systems a week by the end of 2009, and they figure that sales will gain momentum as potential buyers see the 30-foot-high, vertical-axis wind turbines in operation around their neighborhoods.

And that, Phillipson says, puts a premium on sales in high-visibility locations.

A couple of weeks ago, Planet Safe Solutions completed installation of Windspire units at neighboring homes in Pleasant Valley. It's planning installation of units at a new lodge under construction at Mt. Rose-Ski Tahoe. It's planning installation outside new schools under construction in Fernley.

Along with calls from curious consumers who've seen a Windspire in operation, Planet Safe Systems relies on the Mariah Power Co. Web site to generate sales leads.

"That's one of our biggest sources," Phillipson says.

News articles also generate leads, and more come from word-of-mouth buzz among consumers.

While the company's approach using existing installations to draw interest from potential new customers is slow, Brown and Phillipson can afford to be patient.

"We've bootstrapped this," Phillipson says. "We don't owe anybody anything."

On the other hand, the limited working capital on the books of the start-up company means vendors keep tight reins on Planet Safe Systems.

Another challenge, Phillipson says, comes from the very newness of the technology. Because it's unfamiliar, he says, building inspectors have had difficulty establishing ground rules for the installation of the Windspire systems.

Phillipson, whose background combines engineering with finance and management, is enthralled with the Mariah Power technology.

"It's elegant engineering," he says. "It's made from recycled materials. It's everything you want it to be."

Planet Safe Systems employs only two persons Brown and Phillipson. It contracts installation to workers at Brown's primary business, ATB Excavating, who otherwise would be idle during the recession.