Presenting ROI Helps Sell Surge Protection
These days it can seem as if budget is the primary planning consideration for customers purchasing or upgrading electrical and HVAC systems. Organizations of all kinds are watching costs more carefully than ever, and cutting back where they feel expenditures are not absolutely necessary.
However, customers who are reluctant to add costs to a Bill of Materials (BOM) will think differently about additional products when they are shown how they deliver a positive Return on Investment (ROI).
Surge protective devices are an excellent example of this. Making a case for the need to add surge protection is not difficult – and when the ROI is shown, it becomes an easy way to satisfy your customer while increasing your own revenues. The discussion quickly moves from the cost of surge protection to realizing a return on investment by protecting electrical and HVAC systems from damage caused by power surges.
Power disruptions are an expensive risk
You can make a compelling case beginning with the fact that the cost of power disruptions has risen sharply over the last several years. A 2018 study reported the total U.S. cost of sustained power interruptions at $44 billion per year (2015), a 25% increase since 2002. The majority of costs (70%) were suffered by commercial sector customers; the industrial sector accounted for 27% of the total cost.
It’s important for your customers to understand that every electronic system is at risk of damage or destruction from power surges and spikes. Many may believe that lightning is the only cause of power disruptions. However, in reality it is the small, everyday external power disruptions, such as those caused by power grid switching or nearby heavy equipment use, which are much more common. Even inductive load switching in an HVAC system can produce damaging power surges. These tend to go undetected while they silently shorten the life of electrical, HVAC and other critical systems, and decrease their reliability.
Installing surge protection delivers ROI by shielding these vital systems from damage or destruction. Further, the ROI of surge protection goes beyond just the costs of replacing those systems, which may not be covered by insurance. There are additional business impacts, including overall downtime, loss of customer confidence and lost business. There could even be liability if someone is hurt during a security or life safety system outage. This is why surge protection makes sense for every one of your customers.
Choosing the right provider
Electrical supply distributors and HVAC distributors may not be well-versed in how to sell surge protection. It is important not to simply look at it as an add-on – it is a vital component of a dependable system. The best provider is one who can support you and provide the resources you need to increase your sales and revenues with surge protective devices.
Many customers appreciate knowing that the products they are purchasing were made in the USA. This is an indicator of quality that can be highly significant and even make the difference that leads to a purchase. Of course, products need to be available immediately from stock – a factor that is more meaningful now than ever, as supply chain problems continue to plague many providers. And finally, there is a difference between products which are available to all consumers at big-box retailers, and those that are sold only through professional distributers. For your customers, it is an indicator of quality. For you, it both builds customer confidence and helps to protect your margins.
DITEK delivers all of these benefits, and more. Our surge protection solutions deliver a cost-effective and highly efficient way to protect users’ electrical and HVAC systems, while helping electrical and HVAC system distributors build their business.