WER May Have Been Doomed From The Start

Whenever new initiatives are introduced, usually some market research takes place to see if the proposed idea is worth rolling out. So, when I found the following report published by Reuters in mid-March of this year, I started to question the strength of the foundations of the WER scheme:

(Reuters) - British consumers are still thinking about the price of the electronic goods they buy, rather than saving energy, according to a survey commissioned by energy-saving technology manufacturer Energenie on Monday.

Only 16 percent of British consumers said energy efficiency influences their purchasing decisions, whereas 60 percent said price was the main factor, according to research conducted by consultancy Vanson Bourne.

Out of the families surveyed, 73 percent of thought they were doing enough to be considered environmentally friendly and most claimed to have energy efficient devices in their homes.

But out of those, 81 percent had energy-saving light bulbs but much fewer had adopted other energy-saving measures such as double glazing, cavity wall insulation or energy-saving dishwashers or washing machines.

"Using energy-saving light bulbs is a great start, but it is a very passive way of reducing household energy consumption. What this proves is that for people to do something, it has to be simple and easy," Alan J. Tadd, managing director of Energenie, said in a statement.

The research also found that 43 percent of people do not switch electrical appliances off at the mains and one fifth of men admitting they were too lazy to do so.

What this report suggests pretty strongly is that as a nation we are still very far away from making any real effort to create a greener environment for ourselves. In fact it's pretty sad that such a large proportion of those interviewed thought that by having energy saving light bulbs they were doing their bit.

So back to the windows perspective. With the Great British public still so turned off to the idea of being energy efficient, was the WER scheme ever going to work? The evidence suggests not. The BFRC recently said that less than 10% of our industry had actually embraced the WER scheme. And as the report above suggests, only 16% of the buying public consider the energy efficiency of the product when purchasing. So what hope did we have of ever making WER a success? We have been trying to sell it's advantages to a public that just isn't interested, and is being sold by and industry who was never really behind it in the first place!

Will Companies Really Go Bust?

There is a lot of speculation that come 1st October, those who haven't conformed to the new rule changes to Part L will go out of business. But is that a scenario that is likely to occur? I don't think so.

Let's think about this realistically. Will manufacturers really not conform to the new rules and risk going out of business? No, they won't. No matter how much manufacturers don't like the WER scheme, they are going to have to conform to stay in business. It's as simple as that.

I honestly can't see manufacturers objecting to the changes that much that it will put the business in danger. So, lets stop the scaremongering and think a bit more positively!

How Many Of You Out There Are Still Selling 'E' Rated Windows?

There are still many in the industry that report that only a quarter, perhaps a third maximum, of all companies are actually actively promoting and selling energy rated windows. We took the decision a while back to sell only 'A' rated windows as standard, which was made easier by our manufacturers dropping the energy rated surcharge. And since then we have had our competitors producing all sorts of lies and stories to get around the excuse that they simply don't sell energy efficient windows.

So a bit of honesty if you will please. How many of you out there still only sell windows that fall in the minimum 'E' rating catagory? If you are, then why? There is still a lot of questions being asked of the WER system, so explain if it is that. Or are there manufacturing/selling issues?

I want to try and get some idea as to why so much of the industry hasn't lept on such an easy selling tool. In October the bar is being raised to 'C', it's obvious that there is much work to be done if we are to get our house in order.

'A' Rated Windows Doesn't Always Mean Quality

What is becoming quite obvious to me now is that customers are confusing energy efficiency with quality. This is a common misconception. We all now it is quite easy to achieve an 'A' rated window if you have the right ingredients; argon gas, super spacers, low iron, low E etc. But this doesn't mean that the window is very secure, or that it's going to last a long time, or that the frame is reinforced. You get my point. WER's add to the OVERALL quality of the window, and this is what we need to be getting across to customers in order for firms to differentiate themselves.

When you get a customer ring up and say: "well wibbly wobbly windows down the street say they can get just as good an 'A' rated window", we need to be asking/telling them about the other various better qualities of your product, as opposed to just focussing on the energy ratings.

WER's I think have blinded some people into forgetting or just not emphasising enough the other USP's and qualities of the product.

Energy Savings Calculator

One thing that I don't think companies are doing enough is making use of energy savings calculators. We have one we use at the minute and we find it a great help when trying to get across to the customer how our 'A' rated windows could save them significant amounts of money when compared to what they have installed at the minute.

Only on a couple of websites have I seen example of how much money can be saved by installing energy rated windows. To me, this is one of the best tools in which to get across to the customer how much they could potentially save on their energy bills. Customers become much more engaged if they can see an obvious benefit such as the one energy efficient windows can provide.

Perhaps though, companies aren't doing this so much because they are sceptical about how accurate these energy ratings actually are, or how they have been calculated. The last thing this industry needs however is for the public to become aware of the industry's sceptisism. WER's are the best selling angle we have had for a while. Let's not spoil it and really use it to it's full potential, rather than waste it by analysing it to pieces.

I'm A Double Glazing Salesman And WER's Was My Idea

It seems to me that there is going to be a lot more scrutiny of the WER scheme to come. The big question going around is how reliable and accurate are the methods that are used to calculate all the facts and figures needed to judge how efficient a window actaully is. The last thing we need is for the public to think that the window industry doesn't have any confidence is the scheme that we are all (I say all, about 20% of us) are pushing.

Unfortunately, the title above is a lie. I am a double glazing salesman, but I didn't invent the WER scheme. If I had, I would be raking it in right now. I bet the GGF and BFRC can't wait till October. Once Part L has been changed to having to have a WER certificate to show compliance, they will make a fortune in certification fees. Tens of millions in fact.

For all the mountains of money they will make, the question I want to ask is will the window industry see any investment back. Will the GGF give window companies any sort of simplified formula to explain WER's properly. Will we recieve any sales literature to help us with customers. I'm not holding out much hope.

Come New Year 2011, we can expect plenty of bankruptcies, probably from small to medium concerns. Suppliers really have to pull their finger out now otherwise they are going to bite the dust, in a similar way to when FENSA was introduced.

How Many Installers Are Really Pushing Energy Rated Windows?

WER's have done well for the window industry. I know there is an argument about how we actually come to get accurate values to come up with an eventual rating, but that aside, it's given the customer something quantifiable. Just like white goods have the same energy scaling, customers instantly recognise it. But how many of us are really pushing energy efficiency of windows to it's full potential?

The most likely scenario when it comes to energy efficiency is a customer will go into a showroom and get a demonstration from a salesman. He'll show them the usual, locks, profile types, colours, security etc and then briefly touch energy efficiency, he might even tell them the rating their windows have. If the customers is switched on he/she will ask what is the difference between an 'A' rated window to an 'E' rated window. Thats when reps should be able to impress the customer with their expert knowledge of what makes their window so efficient. If he can, good start, but it's nowhere near the end of what he should be telling the customer. From there he needs to be telling the customer/s all the potential benefits energy efficient windows could bring to them. It's also an opportunity to upsell. If the customer that has come in only wants to replace the front of their house, there is instantly an argument for replacing the back.

When we face that scenario, the amount of customers that go from replacing a few windows to all of them is huge. If they see an opportunity to claw back some of the money they spend on extra windows through lower energy bills, you've immediately got their attention. We also have a CD where if we get certain details about the customer's property we can give them an estimation of how much money and CO2 they could save over the course of a year. What does also help is if you fit energy rated windows as standard. We made the decision over a year ago to sell 'A' rated windows as standard. We managed to negotiate with our suppliers and we have not looked back since. But being able to sell 'A' rated windows as standard, and genuinely, not dressed up as an offer, has also been a huge benefit.

Personally, I can't see why others are still selling 'C' or 'B' rated windows when 'A' rated windows cost hardly anything, if any, extra. But, for now, we'll be happy to keep that advantage over others!

WER's Save A Stagnant Industry

What would have happened to the window industry if WER's hadn't come along? Before window energy ratings showed their face, companies were trundeling along, selling their windows and doors on the same selling points: security and aesthetics.

What used to split companies apart was the security that was used in their windows and doors. Luckily for us we always had a fantastic product with great security features. This helped us win orders against companies at the lower end of the market. However, as the industry progressed, other manufacturers began to catch up and the playing field become more level. The market began to merge together again, lines blurred and it became harder to win orders.

When security wasn't doing the trick, the next road to go down was the aesthetics of what you were selling. There was a lot of plain out there. Lots of flat, chunky, boring PVCu frames. Then sculptured frames came along and became a game changer. We were one of the first to start using the sculptured frames, and that immediately set us apart from other competition. But, as with everything, over the years companies caught up and sculptured frames became the norm. The playing field levelled up again. Companies had to search for other selling points to win orders. That came in the form of things such as company history, white/cream/black woodgrain, age of the business, reputation, freebies etc. But nothing was significant.

That was until WER's came along. Suddenly, here was something that was simple, was a clear advantage to installers and customers alike, and something to point an industry lost within itself back in the right direction. And it came just in time. Just as WER's came to prominance, the industry started to decline in a very serious manner. WER's gave struggling companies a lifeline. Something to help promote their products in a new 'green' light. WER's mean't profit margins could be restored, falling conversion rates could be boosted, and optimism grew. However, over the last 2/3 years it has been introduced, still only roughly a third (maybe less) of businesses have taken WER's on board and actively sold the advantages. We use the energy efficiency of our products as our main selling point. When replacing windows in the future, energy efficiency is going to be one the of most important factors. So what has confused me is why so many companies are taking so long to get on board. When sculptured frames came out, companies quickly got on the band wagon, as they did with different coloured wood grains and break secure door cylinders. So, if any one reading this isn't pushing WER's, why? It's given the window industry the jolt it needed, and is going to be the main driving force for many years to come.

Building Regulation Changes To Have Installers Over A Barrel

I said on RCG's blog I wouldn't write a post about the changes to Document L because Kevin Ahern covered my point well. But I'm going to, and I'm going to be blunt!

I think the BFRC and the GGF had all this planned months ago, it's all too convenient! The BFRC set up the OPTIONAL Authorised Retailers scheme to let installers have WER certificates in their own name, which they have to pay for of course. Then the busy bodies who decide on rule changes decide it's a good idea to change the compliance to Part L to needing to have a WER certificate in the installer’s name. How coincidental, so when the changes come into force in 2010, installers will have to buy the BFRC certification and licences anyway!

This just shows just how bent our industry really is, trying to scheme more money out of us, then changing the rules to make it necessary anyway!

SIGN THE WINDOWS SCRAPPAGE SCHEME PETITION NOW!: http://www.petitions.number10.gov.uk/windowscrappage

Rising Energy Costs Are Good For Us

Over the past week the news has been littered with reports and predictions of energy costs rises between 14-25%, with the worst case scenarios of a rise of up to 60%, over the next 5-6 years. All above inflation.

Everyone's immediate reaction might be one of worry and concern. But if you’re in the double glazing industry trying to sell the benefits of new windows and doors, this is the perfect opportunity! With WER's now the main selling point of replacement double glazing, companies can use these dire predictions to their advantage to help sell their products. What this might also do is kick other companies into gear to start selling energy rated windows. This really could stimulate our industry and provide strong, medium to long term growth, providing businesses market their advantages against the price increases correctly, assertively and factually.

This could be a double edged sword however. Energy price increases affect everyone and every company, including systems and glass manufacturers. With the mood Pilkington and the rest of the glass cartel are in; don't be surprised to see more huge price increases in the very near future.

This then may force this country to do more, quicker, to combat the energy crisis which will soon be upon us. We have to invest more time, research and money into making sure that renewable energy will be the main power source for the country when we eventually gut the earth of its fossil fuels.

For the meantime, double glazing companies can get themselves back in to a position of financial stability by tapping into the benefits of rising energy costs.

Authorised Retailers Scheme Update

The WER supplement to the Glass Times magazine has provided information on the costs involved to join the Authorised Retailers scheme. They are as follows:

• There is a one off registration fee of £200
• To licence a single product (per annum): £199
• To licence multiple products (per annum): £399

They do also point out however that between the 1st September and 28th February 2010, there will be an introductory offer of £75 for the one off registration fee. Though I doubt that will swing many undecided firms.

To me the costs are ridiculous. This is just another quick way to try and squeeze yet more money out of retailers, already struggling through the recession. I doubt the uptake on this scheme will be massive. Until installers see this as being a genuinely useful tool, and not another money making plan, few will join.

Authorised Retailer Scheme from the BFRC

As of the 1st September, installers will now be able to install their energy rated windows under their own labels, and not their supplier's. From the selling angle, this is great for installers, as I'm sure many would rather advertise energy rated windows under their own label, and not their supplier's.

For a change there doesn't seem to be much hassle and hard work to gain this status. After early study, to become an Authorised Retailer the installer must purchase the complete product from a licence holding manufacturer (which is what almost all will be doing now), fill in application forms which would be supplied by the BFRC, agree to the T's and C's and pay the relevant BFRC fees. So there shouldn't be much leg work.

Installers will now be able to push their own energy rated window labels to their advantage.

One thing that's lacking is any substantial information on the scheme on the BFRC website, but it may just be that it's waiting to be updated. Personally I've always found the website a bit wishy-washy.

Our Excellent Marketing Campaign

We're over half way through contacting all our previous customers advertising some of the new products, innovations and services we have on offer (putting lots of emphasis on our energy A rated windows). We've had some great feedback already and were only half way through. The key, as most have said, is to make sure you diversify and expand your products and services range to attract new business, which is what we have done, to great effect :).

What Are You Doing To Help!

It's all gone a bit quiet in the window industry in the last couple of weeks, most notably in the efforts to get PVCu back at the forefront of the replacement window market. I still don't think the bigger PVCu installers and fabricators are doing enough. The Fighting Back With Facts campaign doesn't seem to have brought the major players together, it is they who will have the most influence to make changes in this industry i.e. preventing unjustified price increases and getting a 5% VAT rate for WER products campaign going. Instead of holding pally networking events for those who just know each other in the industry, we need a single industry event that will focus on one common goal, to try and galvanise the efforts of everyone who cares about their industry.

Energy Efficient Searches

Had a look on Google Trends to see how the double glazing industry is faring in Google's searches. The terms 'double glazing' and 'conservatories' showed the obvious trends of being busy in the summer, and dead by December. But searching the term 'energy efficient windows' showed something much different:

It shows a huge spike in search activity at the beginning of 2007, and a bigger increase again at the beginning of this year. This is obvious proof of how quickly the double glazing industry is evolving into its new shape. Those who adapted about 12-18 months ago to sell and install WER's will do well as they have already established themselves in the market. Those who didn't will struggle as they will be trying to get a foothold into a market that is already filling up. Those who are able to sell a good energy 'A' rated window will do best in my opinion.