# Water Heater Price Increase



## woberkrom (Nov 19, 2010)

My supplier said prices on water heaters are expected to rise by 30% next year and attached these two fliers.


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## Coolcanuck (Jan 30, 2012)

I noticed the new pro g series from rheem. Is that going to be the model going forward? In Canada we're not changing anything until 2016, but that doesn't mean we won't be forced to follow the US.


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## SchmitzPlumbing (May 5, 2014)

thank you government. if they didnt own the oil, and recently chevy, they would mandate vehicles to actually get decent milage and not worry about water heaters.:yes:


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## supakingDFW (Aug 19, 2014)

I was wondering why they were making room in the shop at my company for an 18 wheeler load of A.O. Smith heaters....


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## Cal (Jun 17, 2008)

Big changes coming April 2015 on water heaters! From what I understand from my suppliers they are also adding 2 inches of girth on all water heaters to accommodate more insulation. That ought to be a lot of fun in those really tight spaces and doorways.


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## supakingDFW (Aug 19, 2014)

Well my purchaser informed me that he's been instructed to order about 5000 water heaters from our suppliers before the rate hike...must be nice to have that kind of scratch to pull off a move like that...Wow


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## justme (Jul 4, 2012)

supakingDFW said:


> Well my purchaser informed me that he's been instructed to order about 5000 water heaters from our suppliers before the rate hike...must be nice to have that kind of scratch to pull off a move like that...Wow


 you work for one of the rooters or ben franklin ?


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## Master Mark (Aug 14, 2009)

Cal said:


> Big changes coming April 2015 on water heaters! From what I understand from my suppliers they are also adding 2 inches of girth on all water heaters to accommodate more insulation. That ought to be a lot of fun in those really tight spaces and doorways.


 
I went through that with the Rheem heaters back in 2003.... that was rough and nearly impossible to change out some heaters......

will probably have ot go out and measure every heater we install or we will get ourselves in trouble....


I am gonna buy a bunch of heaters on the last day that 
is allowed by Rheem...


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## Plumber (Jan 18, 2009)

The BW 40g, nat gas cost us $415.00 yesterday. Price increase of $120.00 will be $535.00.

Hot water is for the rich. Seriously, does the feds think we all have money stashed in the basement?


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## Will (Jun 6, 2010)

I could care less for the price increase, but in my areas that extra 2" won't fit in the tight closet that current water heaters are in.


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## Plumber (Jan 18, 2009)

Will said:


> I could care less for the price increase, but in my areas that extra 2" won't fit in the tight closet that current water heaters are in.


Aye, but making room for the new unit will cost, too. It will add up quick.


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## Will (Jun 6, 2010)

Plumber said:


> Aye, but making room for the new unit will cost, too. It will add up quick.


Not a matter of cost, it's just not going to fit. Here most water heaters are in a closet in the garage with the HVAC system and there is no space left for a bigger tank


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## SchmitzPlumbing (May 5, 2014)

you will probably have to get a 30 instead of a 40 gallon


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## Letterrip (Jul 28, 2013)

Or retrofit to tankless.


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## Plumber (Jan 18, 2009)

Will said:


> Not a matter of cost, it's just not going to fit. Here most water heaters are in a closet in the garage with the HVAC system and there is no space left for a bigger tank


You're pretty much f*cked.


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## justme (Jul 4, 2012)

You would think with all the engineers they would have this covered by just increasing the height of the tank to make up for the extra 2" in diameter. Guess we will just have to wait and see.


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## Will (Jun 6, 2010)

justme said:


> You would think with all the engineers they would have this covered by just increasing the height of the tank to make up for the extra 2" in diameter. Guess we will just have to wait and see.


Either that or make the recovery faster and use a smaller tank. Can fly a man to the moon but can't make a hunk of steel more efficient...


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## jmc12185 (Aug 27, 2013)

justme said:


> You would think with all the engineers they would have this covered by just increasing the height of the tank to make up for the extra 2" in diameter. Guess we will just have to wait and see.


 Doing that may screw you with the flu outlet for gas heaters. You are screwed either way

Sent from my iPhone using PlumbingZone


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## Tommy plumber (Feb 19, 2010)

Will said:


> Not a matter of cost, it's just not going to fit. Here most water heaters are in a closet in the garage with the HVAC system and there is no space left for a bigger tank












FL had a run on geniuses who became engineers and builders. And some of those geniuses deisgned homes with the W/H in the attic. On occasion, we plumbing professionals run into some that do not fit down the scuttle hole. Last one I ran into was a 22" or so diameter 40-gallon low boy and the scuttle hole opening was 21" and change {that was with the trim and moulding removed from the scuttle hole}. There was no way, no how that tank was going to squeeze through the trusses and downstairs.


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## Coolcanuck (Jan 30, 2012)

Tommy plumber said:


> FL had a run on geniuses who became engineers and builders. And some of those geniuses deisgned homes with the W/H in the attic. On occasion, we plumbing professionals run into some that do not fit down the scuttle hole. Last one I ran into was a 22" or so diameter 40-gallon low boy and the scuttle hole opening was 21" and change {that was with the trim and moulding removed from the scuttle hole}. There was no way, no how that tank was going to squeeze through the trusses and downstairs.


Makes me appreciate the winter more, no plumbing in attics.


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## Master Mark (Aug 14, 2009)

Tommy plumber said:


> FL had a run on geniuses who became engineers and builders. And some of those geniuses deisgned homes with the W/H in the attic. On occasion, we plumbing professionals run into some that do not fit down the scuttle hole. Last one I ran into was a 22" or so diameter 40-gallon low boy and the scuttle hole opening was 21" and change {that was with the trim and moulding removed from the scuttle hole}. There was no way, no how that tank was going to squeeze through the trusses and downstairs.


that is when you pull out the chain saw and "modify"
things....


it makes me wonder how much more money it cost to get a heater into the attic over a normal water heater in the garage...

how much more do you charge for that feat of manhood?


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## justme (Jul 4, 2012)

Will said:


> Either that or make the recovery faster and use a smaller tank. Can fly a man to the moon but can't make a hunk of steel more efficient...


There's only one way to make the recovery quicker and thats with more energy.


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## Cal (Jun 17, 2008)

justme said:


> There's only one way to make the recovery quicker and thats with more energy.


And there in lies the problem. They are doing all this for energy efficiency. But not thinking ahead as to the cost it will eventually get to the customer. Who can't afford it anyway!
They are doing away with 80 gal electric and 75 gal gas . Ok fine but ,,, what do I tell a lot of my customers with multiple kids and multiple bathrooms? If we have to go to tankless, and they don't have the gas volume or a way to vented how much more is it going to cost just to have hot water? 
I have had some really good success with the AO Smith 50 gal high recovery heaters in place of 75 or a regular 50. That does not change the problem for customers who don't have gas ! What do we tell them ?? Guess they'll have to have a 66 gal and learn to live with it.


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## Master Mark (Aug 14, 2009)

*A sotry from the past for you all*



justme said:


> There's only one way to make the recovery quicker and thats with more energy.


 
the whole thing is totally stupid....because they have done all this before but just dont remember.. 

During the energy crunch of the 70s, A.O.Smith made a very efficient gas water heater back in 1975 called a "sub -chamber" It was a totally re-designed heater with the burner blasting into the side of the tank instead of in the bottom... It cost a lot more money to make but it worked very well....

Then some little dumb ass grunt on the assembly line asked the question... so what if.... 
So what if we just take one of the cheapest heaters we make and *install a water heater blanket* on it and see how it compares to the "sub chamber" for gas savings...using meters to see how what a simple 10 dollar blanket does.??? They wanted to see when the payback for the extra cost would ahppen....how many years??

so they did the experiment and they found that the water heater blanket made the cheap water heater get almost exactly the same or better cost savings as the very expensive sub-chamber.. There was no savings at all for the sub chamber heater vs a water heater blanket...... :thumbsup::laughing::laughing:

This made their enjineers and r+d department look like a bunch of total dumb ass fools, because they had already spent the money and geared up this whole assembly line and water heater plant without doing this one simple experiment.. :laughing::laughing: very smart boys...:yes::yes:

This turned out to be an advertiseing disaster for Smith and after a very short while they canned the whole sub chamber line , closed down the plant, and probably fired all the enjineers....

On occcasion we still run into a sub chamber that we installed in the late 70s.. they worked very well and never gave us any trouble.....


I feel that we are going down the same road again with the dumb asses in the government mandateing all this without doing any simple research into what works best...... 

and they are not going to take the advice of a dumb ass plumber like me...... they are gonna go marching head strong right off the cliff again....:thumbup:


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## plbgbiz (Aug 27, 2010)

Master Mark said:


> .. how much more do you charge for that feat of manhood?


Used to see a lot of them here but not as often nowadays. It was a common design in the'50s and '60s.

Depending on the circumstances, the add-on could be from $600 to double (or more) than the typical garage change out.


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## Plumber (Jan 18, 2009)

I looked to my catalog, dated 01/01/1947, for options:


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## Tommy plumber (Feb 19, 2010)

Master Mark said:


> that is when you pull out the chain saw and "modify"
> things....
> 
> 
> ...










Extra help on site for removal of tank $ 165.00
Repair in attic $ 103.12
Limited accessability-major $ 206.25

Total $ 474.37


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## Will (Jun 6, 2010)

Texas had attic water heaters and still do.guy I worked for would charge a extra guy out on them. Beleive it was around 320, but I'd do more than that if it was my company. Probably 400-500 more than normal


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## supakingDFW (Aug 19, 2014)

justme said:


> you work for one of the rooters or ben franklin ?


No, we're not a service company...New commercial construction, lot's of high-rise condo/multi-family, college dorm buildings that sort of thing...We're starting 1500 units in 3 different buildings from one GC so that'll take a chunk of those


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## Phat Cat (Apr 1, 2009)

If you believe all the rumors, supposedly supply houses will be stock-piling inventory, as well as the major box chains. 

If plumbing companies do the same, what is in it for us? With so much inventory on the market, I would think that would keep prices low for an extended period of time. Is that really the best use of a plumbing company's capital?

Why not promote the newer products, i.e. the hybrids? Our local electric company is offering rebates on them, and rumor has it that the hybrids will go down in price once the manufacturers stop production of the 80 gallon tank heaters.

I think the gov't mandate is BS - what isn't that comes out of Washington?

There will be situations where the customer will be in for a shock due to space limitations and price increases in labor, BUT, why are we so quick to make this our problem? We didn't create this mess. It's our job to solve the problem and at the same time be compensated for it.

With the new Hybrids, it will be harder for the handymen to take work that belongs to the plumbing professionals. I cannot wait for the old inventory to disappear because I think that will open up more opportunities for plumbing professionals.

Thoughts?


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## tims007 (Aug 31, 2013)

Well said


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## GrtLksPlbr (Aug 12, 2014)

SchmitzPlumbing said:


> you will probably have to get a 30 instead of a 40 gallon


I can see having to go with a smaller tank and cranking up the temp and adding a tempering/anti-scald valve to get the temp back down at delivery point to meet code.


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## Coolcanuck (Jan 30, 2012)

Looks like we are going to stock some tanks and charge more for them for the impossible jobs going forward. It will be interesting to see what people think about warranty replacements when the cost of moving everything out weighs tankless. We might get some free tanks from our upper end customers. Win win win.


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## Cal (Jun 17, 2008)

PC , I agree with you . However , many of these installs will take some real planning & time . For us One & Two man shops that is the hardest part ,, it's always " WHEN,WHEN,WHEN " . Time is not something we have extra of. 
Now that sizes are changing along with pricing , this will dramatically affect our installation time thus our costs. As we all know, few customers plan ahead for a new heater . Most call the day or two after it starts leaking. 
Love to see everybody go to Eternal Water Heaters and the world just be a happy, warm & fuzzy place ,,,,, but I'm too old to be that stupid. Most folks can't afford the good stuff now, when this change comes there will be so many folks looking for a cheap alternative to what they already have ,, will we be able to provide ?


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## Gargalaxy (Aug 14, 2013)

I got this from Ferguson, also a couple more emails about this but is in pdf format and I don't know how to post it (including one with 164 pages about all faucet stems and washers). If someone know how to post it or are interested, pm me and I'll send it by email.


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## Gargalaxy (Aug 14, 2013)

.....











View attachment 33178




View attachment 33179


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## Master Mark (Aug 14, 2009)

Phat Cat said:


> If you believe all the rumors, supposedly supply houses will be stock-piling inventory, as well as the major box chains.
> 
> If plumbing companies do the same, what is in it for us? With so much inventory on the market, I would think that would keep prices low for an extended period of time. Is that really the best use of a plumbing company's capital?
> 
> ...


 



my thoughts... 


back in 2003 I made out real well when I bought a semi truck load of Rheem heaters in 40 and 50 gallon sizes.... 
after the cut off date the old inventory began to dry up fast and I had 200 of them stacked to the gills in my office......:thumbup:


I kept buying up old stock that I could find and we made it well into 2005 still selling old stock....

And like I guessed, the new FVIR heaters turned out to be a disaster at first with lint issues and THE HUGE SIZE that Rheem made their units,,,,,
and the price was about 90 dollars more per heater.....


I plan on doing the same thing again in the spring... with Rheem 40 and 50 gas.. I dont want to be their "*crash test dummmy*" so when they start to have troubles into the fall of next year with the new FVIR product.....profusely sweating and condensating, , I will still be selling the old stock...
but of course I will sell them at the higher price that everyone else will be chargeing in town for the new stuff, and folks would rather have the older stock over retrofitting their homes with the new dog crap that will be on the market......:thumbup:


I might have to take out a loan to get a semi truck load of them but for me anyway, its a win-win deal... my only concern is wether I should buy electrics this time......

when I run out of heaters in the fall of 2016 or spring of 2017,,,, 
I think I would rather retire than start to retro-fit homes to get water heaters into them.......


Take my word for it...
this will be a huge ...massive....cluster-fu/k.


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## Plumber (Jan 18, 2009)

Master Mark said:


> .......
> 
> 
> Take my word for it...
> this will be a huge ...massive....cluster-fu/k.


Most of our law makers don't know what a water heater looks like, much less any problems associated with them. 

We---all the plumbers---should say something. This new law will hurt my lower middle class customer base, most of who use credit cards to pay for the new water heater.


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## dhal22 (Jul 30, 2010)

Plumber said:


> Most of our law makers don't know what a water heater looks like, much less any problems associated with them.
> 
> We---all the plumbers---should say something. This new law will hurt my lower middle class customer base, most of who use credit cards to pay for the new water heater.



Your lower middle class customers still need hot water. They will just put a bigger charge on their credit cards...........


David


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## Phat Cat (Apr 1, 2009)

Plumber said:


> Most of our law makers don't know what a water heater looks like, much less any problems associated with them.
> 
> We---all the plumbers---should say something. This new law will hurt my lower middle class customer base, most of who use credit cards to pay for the new water heater.


Do you honestly believe Washington cares? The lower middle class does not contribute enough to election campaigns to warrant any real representation.


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## Cajunhiker (Dec 14, 2009)

Here's a thread on the subject from a few weeks ago.
http://www.plumbingzone.com/f6/changes-water-heater-efficiency-sizes-30404/


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## Plumber (Jan 18, 2009)

25%-40% price increase for the new models, per manufacturer rep. Our cost will be close to 600 for a 50g, nat gas


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## Redwood (Sep 8, 2008)

Sounds like a pay raise to me...
I make money off the parts markup...:thumbup:


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## supakingDFW (Aug 19, 2014)

^^^^^The more I hang around this place, the more I like this guy!^^^


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## Phat Cat (Apr 1, 2009)

My supplier took me too lunch today and we went over the changes. 

The biggest impacts for us:

1. No more 80 gallon - we've known that for over two years.

2. No more 50 gallon low boys - that was a surprise.

3. New 40 gallon low boys will be 3" more in diameter! Condo owners are screwed. WH in closet, with HvAC above. We already have trouble with some replacements because the condos were built before wh had so much insulation.


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## Redwood (Sep 8, 2008)

Phat Cat said:


> My supplier took me too lunch today and we went over the changes.
> 
> The biggest impacts for us:
> 
> ...


So what are your solutions?
Was your supplier offering any suggestions...


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## Master Mark (Aug 14, 2009)

Phat Cat said:


> My supplier took me too lunch today and we went over the changes.
> 
> The biggest impacts for us:
> 
> ...


 

your supplier failed to mention that there will be no more 75 gallon natrual vented heaters,,, so if you have one in warranty down the road it will have to be switched out with a 75 power vent unit...(ouch)
or a 75 replacement will have to be a power vent..


50 gallon gas low boys are not a big demand item in our neck of the woods, so I dont care too much about that model...


I suggest you stock up while you still can--if you can .... I got my price list wednesday and they want a decision from me by mid november


I found out from my Rheem salesman today that basically Rheem is ahead of the curve this time because they have been selling the PRO line for years and that will be the norm when the change over takes affect...


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## Tommy plumber (Feb 19, 2010)

Phat Cat said:


> My supplier took me too lunch today and we went over the changes.
> 
> The biggest impacts for us:
> 
> ...












I'm trying to find confirmation of the phasing out of 50-gallon lowboys and cannot find anything. I have been reading that the under 55 gallon models don't have to comply. 

Does anyone have a link with a definitive chart? I looked at the DOE {Dept. Of Energy} website but I don't want to read pages and pages of text which is useless.


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## Gargalaxy (Aug 14, 2013)

Type in Google NAECA 2015.


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## Redwood (Sep 8, 2008)

Master Mark said:


> I found out from my Rheem salesman today that basically Rheem is ahead of the curve this time because they have been selling the PRO line for years and that will be the norm when the change over takes affect...


Yea... Bradford White only has 66 models that meet the requirements... :laughing:

http://www.youtube.com/watch?v=XB3kpNB1Hrg


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## Master Mark (Aug 14, 2009)

Redwood said:


> Yea... Bradford White only has 66 models that meet the requirements... :laughing:
> 
> http://www.youtube.com/watch?v=XB3kpNB1Hrg


well, then he must have bee lieing to me....


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## Phat Cat (Apr 1, 2009)

MM - we don't do gas water heaters, so that is not an issue for us. 

Solution = 30 gallon lowboys. Contacting our customers that it will be affecting. Supplier said at least it will buy them time. Hopefully technology will catch up. 

Tommy - A.O. Not making the 50 lowboy anymore. Not sure about other manufacturers.


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## jmc12185 (Aug 27, 2013)

Phat Cat said:


> MM - we don't do gas water heaters, so that is not an issue for us.  Solution = 30 gallon lowboys. Contacting our customers that it will be affecting. Supplier said at least it will buy them time. Hopefully technology will catch up. Tommy - A.O. Not making the 50 lowboy anymore. Not sure about other manufacturers.


 Just out of curiosity, why don't you do gas water heaters ?

Sent from my iPhone using PlumbingZone


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## Master Mark (Aug 14, 2009)

jmc12185 said:


> Just out of curiosity, why don't you do gas water heaters ?
> 
> Sent from my iPhone using PlumbingZone


Yes, what is that all about.... you dont do gas heaters??


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## Phat Cat (Apr 1, 2009)

Master Mark said:


> Yes, what is that all about.... you dont do gas heaters??


Almost no gas (less than 1%) in our service area. Some new developments are getting gas, and they are all tankless.

As for gas fireplaces - propane tanks. Any work on those lines has to be done by the propane suppliers. That's the law.


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## Plumber (Jan 18, 2009)

Phat Cat said:


> Almost no gas (less than 1%) in our service area. Some new developments are getting gas, and they are all tankless.
> 
> As for gas fireplaces - propane tanks. Any work on those lines has to be done by the propane suppliers. That's the law.


Are you in coal country? Coal is still the biggest producer of electricity, I think.


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## Master Mark (Aug 14, 2009)

I just found out today...
With Rheem, It turns out that this friday is the cut off date to place orders for water heaters if you were going to stock up on the smaller sized ones....


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## Coolcanuck (Jan 30, 2012)

Master Mark said:


> I just found out today...
> With Rheem, It turns out that this friday is the cut off date to place orders for water heaters if you were going to stock up on the smaller sized ones....


Are the pro series from rheem bigger? I've been installing them for a month or 2 now and not noticed.


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## Master Mark (Aug 14, 2009)

Coolcanuck said:


> Are the pro series from rheem bigger? I've been installing them for a month or 2 now and not noticed.


the pro series is the size that Rheem heaters will be at with the .62 rating..

the pro works ok but they are a good 2 1/2 inches bigger than standard units.....


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## Phat Cat (Apr 1, 2009)

Master Mark said:


> I just found out today...
> With Rheem, It turns out that this friday is the cut off date to place orders for water heaters if you were going to stock up on the smaller sized ones....


How many are you ordering?


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## SchmitzPlumbing (May 5, 2014)

i dont understand the idea of ordering a bunch of the current water heaters. if every faucet or toilet manufacturer said they will raise their prices 20%, big deal. if pvc goes up 50%, whatever. gas went up a while back, did you buy bulk storage tanks and 50,000 gallons? pass the cost on. its gonna happen either way. if you can sell a water heater cheaper for the next year because you have it in stock, you arent any better than the unlicenced plumber doing work cheaper than you, but you are both saving the customer money so you are the same. 2 years from now, it wont matter. my 2 pennies. fire away at me. i dont care. (i am not going after anyone that posted here. just stating my thoughts)


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## Master Mark (Aug 14, 2009)

SchmitzPlumbing said:


> i dont understand the idea of ordering a bunch of the current water heaters. if every faucet or toilet manufacturer said they will raise their prices 20%, big deal. if pvc goes up 50%, whatever. gas went up a while back, did you buy bulk storage tanks and 50,000 gallons? pass the cost on. its gonna happen either way. if you can sell a water heater cheaper for the next year because you have it in stock, you arent any better than the unlicenced plumber doing work cheaper than you, but you are both saving the customer money so you are the same. 2 years from now, it wont matter. my 2 pennies. fire away at me. i dont care. (i am not going after anyone that posted here. just stating my thoughts)


 
No one is fireing back at you .....it all boils down to numbers

I have been beating it about for a week now and I could go either way on it... 

It really all just depends on how many you install in a month and how much cheaper it is to buy a load of them....we do about 10 a week 
My cost would be about 30 bucks cheaper per heater
but they are all supposed to go up on average %30 next spring.....industry wide....

do the math, its just a matter of where you want to park your money ...

no body said I would be passing on the savings to 
anybody.... if someone needs a tall skinney 40 gallon gas. to fit into a tight spot, or a 50 gallon, or a 75 gallon, .they are gonna pay through the nose...:thumbup:


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## Pacificpipes (Oct 1, 2013)

SchmitzPlumbing said:


> i dont understand the idea of ordering a bunch of the current water heaters. if every faucet or toilet manufacturer said they will raise their prices 20%, big deal. if pvc goes up 50%, whatever. gas went up a while back, did you buy bulk storage tanks and 50,000 gallons? pass the cost on. its gonna happen either way. if you can sell a water heater cheaper for the next year because you have it in stock, you arent any better than the unlicenced plumber doing work cheaper than you, but you are both saving the customer money so you are the same. 2 years from now, it wont matter. my 2 pennies. fire away at me. i dont care. (i am not going after anyone that posted here. just stating my thoughts)


 I believe the theory is customers will pay a premium for the current w/h as an option instead of more costly mods for larger models. Making us more money for the same w/h. Smart business not unlicensed under cutting.


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## plbgbiz (Aug 27, 2010)

So the client pays more to make mods to the closet, or pays more for an old WH that fits. I'd rather just let'm face the music and get a modern appliance fresh out of the factory.

Based on the size of a WH, the real estate needed to store them, and the huge cash outlay to garner the inventory, I won't go to the trouble of buying old units. I will not make EPA mandates my financial burden any more than absolutely necessary. 

This will remain the consumer's tribulation, not mine.


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## Master Mark (Aug 14, 2009)

plbgbiz said:


> So the client pays more to make mods to the closet, or pays more for an old WH that fits. I'd rather just let'm face the music and get a modern appliance fresh out of the factory.
> 
> Based on the size of a WH, the real estate needed to store them, and the huge cash outlay to garner the inventory, I won't go to the trouble of buying old units. I will not make EPA mandates my financial burden any more than absolutely necessary.
> 
> This will remain the consumer's tribulation, not mine.


 
thanks for the advice.... 

there is also the possibility that a lot of customers might want the more newer efficient models over the old stock.... sometime a few months after april of 2015 and the old stock dries up, this could become an issue too......

In a situation where both would fit then you would have to offer them both or you might hear complaints about it after the fact.........


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## plbgbiz (Aug 27, 2010)

Master Mark said:


> ..In a situation where both would fit then you would have to offer them both or you might hear complaints about it after the fact.........


Not sure I follow you Mark. How might we "hear complaints"?


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## SchmitzPlumbing (May 5, 2014)

plbgbiz said:


> Not sure I follow you Mark. How might we "hear complaints"?


i said i wanted a new truck. i meant a 2015, not a leftover 2014.


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## Coolcanuck (Jan 30, 2012)

30% price increase, sell the old ones at the same price as the new ones with same mark-up. Customer wins by having a choice/option. Can't make that kind of money on short term investments. Of course it depends on the demand of your market, if they're just going to sit there put your money in stocks and gamble.


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## Phat Cat (Apr 1, 2009)

Two thoughts:

1. Making 'great' money off stock - piled inventory = RISK! You took a risk investing money in old inventory, so you should be able to capitalize on it. However, you are also taking the risk of being viewed as a price gouger in your town. Good reputations can be dismantled in short order, and building a reputation back up takes years.

2. Outdated tanks, do not carry the same 6 year warranty. From my understanding, they will be pro-rated and the tank cost will be credited toward the new tanks. The customer who bites the bullet and gets the new inventory has a true 6 year tank replacement warranty.

IMO, the risk is not worth the possible reward.


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## dhal22 (Jul 30, 2010)

Master Mark said:


> thanks for the advice....
> 
> there is also the possibility that a lot of customers might want the more newer efficient models over the old stock.... sometime a few months after april of 2015 and the old stock dries up, this could become an issue too......
> 
> In a situation where both would fit then you would have to offer them both or you might hear complaints about it after the fact.........



Noticed a 16 yr old water heater this week in a tight tight space. Told the customer to hurry and have one installed or he will be looking at a mandatory tankless install. Fifteen minutes later he knew what a tankless was and signed the proposal.

I told a customer 4 yrs ago his water heater was 15 yrs old, today I told him it was 19 and prices were going up due to efficiency requirements. He wants the higher efficiency and agreed that waiting is a risk.

You can win anyway you choose with the new heater issue.

David


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## Big cheez (Jan 11, 2012)

Time to sale the hell out of tankless heaters I can't wait


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## Master Mark (Aug 14, 2009)

*did not pull the trigger*



plbgbiz said:


> Not sure I follow you Mark. How might we "hear complaints"?


The complaints would be from someone wanting the higher efficiency if it would fit....over the older unit that cost about another 50 bucks a year to heat....

back in 2003 --2005 no one cried about getting a 2003 
standard heater over the FVIR design.......


I decided not to pull the trigger on this....The whole deal would save me money but I was not getting all that excited over the whole thing....

buying 100 heaters to save about 25 bucks a heater is not incentive enough for me to cough up that much money....(30k) Sure enough a week after we did the deal a truck would blow a motor or something bad would happen..... 

we bought 120 of them in 2003 and made out like bandits at about 120 each, now the up front cost has gone up almost three times.. and I am not really in the mood to cram them all into the building either.......

I am not sure it will work out the same this time so I will just stock up towards the end and just pay more for them

I will buy a couple of 75 heaters and stock them away for the day someone comes a-begging because it will certainly happen


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