J ANUA R Y VOL . 7 7 N O. 0 1 EDI TO R ' S N O T E EDITORIAL STAF F
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Fewer Gallons, But Plenty of Opportunity
Keith Reid
industry. It's a change impacting the range of heating fuels, but it has special prominence with heating oil. Higher-efficiency units offer a com-
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pelling alternative (with the associated margin) to typically cheaper, lower-effi- ciency units especially during the current period of higher oil prices. Where conver- sion is an option for the homeowner who likes the other advantages of oil heat, it offers an alternative that will lower heating costs. There is an emotional appeal as well to being "green." The comfort factor can be enhanced. Of course, each homeowner has to do a cost benefit analysis based on anticipated residency time, etc. The downside is that there are going to
be fewer gallons sold. But, that downside is inevitable. The more progressive dealers and marketers I have spoken with take that in stride as simply the new face of doing
TEVE BENNETT'S ARTICLE ON HIGH- efficiency furnaces illustrates one of the dynamic changes in the
business and plan accordingly. They focus on diversification of the business model to where the fuel delivery component remains a core operational requirement, but spread the revenue out with the HVAC operations taking on more prominence or integrating additional business ventures that still leverage core competencies. This reality is not all that new to the
industry. Nor is it unique. Closer to home, the motor fuels side is seeing fewer gal- lons dispensed in the short term due to the recession, but also long-term due to the increased CAFE mileage standards and alternative powered vehicles. Many other non-related industries have had to make significant adjustments as new technolo- gies, mainly digital of late, have changed the basic structure of their business models. By embracing the change and working
an effective transition, life goes on. In fact, those that execute this change the best move into the new future as leaders and with opportunities for growth. l FON
Editor Keith Reid 847/720-5615 kreid@m2media360.com
Managing Editor Debra Reschke Schug 847/720-5618 dschug@m2media360.com
Columnists Charles Bursey, Sr. John Griffin George Lanthier
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