IMP RO V I N G E F F I C I E N C Y
contractor does not have to worry about what kind of pump he or she has on the truck; the wholesale distributors love it because their inventory management has been made much simpler; and from our standpoint, we are not in the business of keeping inventory on our shelves for five or 10 years, so it makes our inventory management easier as well." So far, the flange solution is limited to the company's higher tier ECO
series. The reason comes down to economics. The eco-technology pumps are more expensive than a standard pocket circulator or a more base-level single or three-speed pump, and in that market segment the added cost is easier to absorb and the benefit becomes a true value add to both the distributor and the installer. "If the cost of the pump is higher and our margin percentages are still the same, but we have more margin dollars in the equation, it is easier for us to add this benefit and not substantially increase the price of the pump," said Thompson. "With the more com- modity pumps, you get into the same issues the residential water heater guys face where there is very little margin in it and you have a bunch of manufacturers battling for that high-volume space. That makes it difficult to throw in this extra, really good feature. But we don't have a lot of extra room in there to increase the value of the product." Thompson noted that the reaction since launch has been very strong.
"Once we came out with it, a lot of people, contractors especially, looked at it and said, 'Why didn't somebody come out with this before?'" l FON
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Email: sabbate@cetane.net 20 NOVEMBER 2011 | FUEL OIL NEWS | www.fueloilnews.com
