How Electrical and HVAC Distributors Can Profit from Surge Protection

For HVAC and electrical distributors, surge protection should be considered an essential element of every installation. Because many of the builders and installers who are your customers may not be aware of the benefits of surge protective devices, this could require some education. However, it is well worth the extra effort on your part. Making an informative recommendation for surge protection with each sale can build profits while increasing customer satisfaction and retention. Here are a few questions you can answer for your customers to help them adhere to best practices for HVAC and electrical system installations.

What is the ROI of surge protection?

Power disruptions are a costly threat to both businesses and residences. A 2018 study shows that the total U.S. cost of sustained power interruptions is $44 billion per year (2015), an increase of 25% since 2002. The majority of the costs (70%) were suffered by commercial sector customers; the industrial sector accounted for 27% of the total cost.

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For any individual user, the absence of surge protection in an industrial environment can be very expensive. A 2015 IDC survey estimates the average hourly cost of infrastructure failure at $100,000, with critical system outages potentially costing $500,000 per hour. For large manufacturing enterprises, a single hour of downtime can top the $5 million mark.

Installing surge protection delivers ROI by shielding vital systems from damage or destruction. This 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.

Who is at risk from power surges?

Every HVAC and electrical system could be at risk of damage or destruction from power surges and spikes. It is a common misconception that all power disruptions are caused by lightning. While it is true that lightning can cause power surges and spikes, the small, everyday external power disruptions, such as those caused by power grid switching or nearby heavy equipment use, 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.

Is surge protection required for compliance?

There are situations in which deployment of surge protective devices is required by code. In 2020, the National Fire Protection Association (NFPA) updated their recommendations for the National Electrical Code (NEC), the benchmark for safe electrical design and installation to protect against electrical hazards. One of the updates includes the addition of a new Section 230.67, which requires the installation of an SPD for all dwelling unit service entrances. This new requirement will both reduce the risk of damage to sensitive electronic systems in residential installations, and increase the market for SPDs.

What is the best way to choose a brand of surge protection?

For the distributor, the best provider is one who can provide support along with the resources you need to increase your sales and revenues with surge protective devices. Of course, the 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.

Discover DITEK Surge Protection for HVAC and Electrical Systems

For your customers, it is important to know 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. They can also recognize the difference in quality between products which are available to all consumers at big-box retailers, and those that are sold only through professional distributers.

Confidence makes the sale

It seems that many contractors and builders are watching costs more carefully than ever right now. However, when you make an educated recommendation, backed by useful information, you deliver exceptional value and build confidence with your customers. When you can demonstrate the ROI of protecting electrical and HVAC systems from damage caused by power surges, the discussion quickly moves from cost to benefit – and you can satisfy your customers while increasing your own revenues.