Navien turns up the heat in Texas

 

BY MARY JO MARTIN

Editorial director

 

Consumers are more involved than ever in the selection of products and appliances for their homes. With a seemingly endless amount of information at their fingertips thanks to the internet, consumers have become extremely well versed on product capabilities and benefits. As a result, while contractors formerly were the ones who drove sales of appliances and plumbing products for a home, consumers have now tipped the scales — and are often in the driver’s seat for such decisions.

 

While certainly still holding an important role in this scenario, it leaves wholesalers such as Ferguson to balance product offerings to satisfy the interests of both contractors and consumer trends. Houston area sales manager Chris Couvillion noted that Ferguson is always looking at products to set their contractors apart in the market, and that add value for both the customer and the end user. 

 

“We feel like Navien tankless water heaters offers those attributes,” said Couvillion, a 15-year Ferguson veteran. “Consumers are really focused on going green, as well as getting a good return on their investment. These heaters fill the niche for those who are really conscious about energy efficiency, water conservation — and getting the most bang for their buck. Meanwhile, contractors are looking for a good quality product that is reliable and will generate positive discussion in the market. It’s our role as the wholesaler to have the right product on the shelf, in the right place and at the right time.

 

Ty Tipton, principal/owner of manufacturers’ rep firm Tipton Company in Houston, is energized by the demand he is witnessing for Navien.

 

“I was hesitant to take on a line of tankless water heaters,” he said. “But when Navien entered North America and I did some research, I saw they had engineered the product to eliminate some of the common problems associated with tankless models. In all my years in the rep business, I have never had a new product line take off like Navien has in the Texas market.”

 

And Navien president Ted Kwak is convinced that demand will continue to grow — not just in Houston, but throughout the U.S. “The tankless industry as a whole will be down from 2008, but 2010 will better than 2009,” he said. “Navien it­self increased 2.5 times between 2008 and 2009, and we expect to increase sales 100% in 2010. With the current stimulus package in place, Navien will continue to see conversion from tank to tankless in 2010. We believe Navien will continue to gain loyalty and expand our customer base.”

 

Array of benefits

 

According to Tipton, the rule of thumb he uses when promoting Navien tankless water heaters is 50% energy savings. That number can vary slightly based on the number of people in the home, how many fixtures are involved or how many gallons of water are used. The larger the job, the more savings will be realized.

 

Tipton went on to describe some of the key benefits he attributes to the Navien design. “They have a tank and a recirculation pump built in on the heater,” he said. “This eliminates a minimum flow rate to activate the heater. The standard tankless heaters take .6 gpm to activate them to produce hot water. Because Navien uses a small buffer tank to preheat the water, they always have it ready on demand.

 

“Additionally, on a standard tankless water heater there is a delay of around 15 seconds from the time you ask for hot water when you turn on a fixture and when the burner turns on, water heats up and starts coming down the line. This delay causes a cold water sandwich. It happens when you turn it on and turn it off and then turn it on again, as in the case of two family members taking back-to-back showers. The second per­son initially gets the hot water that’s still in the line, but then has to wait for the process to start again so he or she gets stuck with 15 or so seconds of cold water. The Navien unit stores a half gallon of water at 120°, which eliminates this problem.”

 

Kwak said Navien worked very hard to engineer a product that would deliver what wholesalers, contractors, homeowners and other end users wanted. “Our units offer the ability to vent in PVC, cascading and common venting,” he said. “We have a 3-inch Schedule 40 PVC venting system up to 100 feet with maximum of six elbows, 2 inch venting with 12 feet of Schedule 40 solid PVC with two elbows. We also provide one of the industry’s best warranties and built-in leak detection.”

Contractor Kevin Nunez, who owns Retro Plumbing in Houston, got his start as a helper on jobsites when he was just 11. He’s extremely well versed in tankless technology, having attended many training sessions and schools sponsored by manufacturers and wholesalers such as Ferguson, and being named a preferred dealer by both Navien and Rinnai.

“What really sold me on the Navien heaters was that no service is needed on the units,” Nunez explained. “It’s just an easy sell to the consumer. Navien has a superior design, with a downdraft burner assembly and PVC vent pipe rather than more costly vent pipe required by some other manufacturers. These units also reduce the liability of housing large tanks of water in the attic and even have an alarm on the system so it automatically shuts down if there is a leak. With Navien’s re-circulation system, the hot water is at your finger tips. That fast and limitless supply of hot water is a major selling feature.”

Another great benefit with these units is that they don’t have to be de-scaled. While some water heaters have a tendency to accumulate sediment deposits that can hamper their performance, the Navien units are designed with a stainless steel heat exchanger and pre-mixing burner system that doesn’t lend itself to mineral deposit buildup.

 

Changing old habits

 

It has sometimes been thought that contractors are creatures of habit and aren’t always the most accepting of new products or installation requirements. But Couvillion said that is rapidly changing — especially with innovative products like Navien water heaters.

 

“We offer specialized training programs that go beyond the typical training that many wholesalers offer,” said Couvillion. “But with new lines like Navien, we encourage contractors to attend multiple sessions. Our manufacturers’ rep does a great job of training. But field experience and various scenarios always come into these classes, and it helps when contractors can hear real experiences from their peers in the field. We also encourage our associates to attend these classes so they can better advise our customers.”

 

Nunez agreed, emphasizing that installing tankless units involves some trial and error in the beginning. “You’ve got to get out in the field and get your feet wet,” he said. “These Navien units are very service friendly when it comes to installation. Because of their size, contractors have more flexibility and space to work in when installation these tankless units. They’re also very lightweight, so they’re easier to unload and put into place. Venting options are also better, because you can use up to 100 feet of PVC pipe including up to six 90 degree elbows for the vent and you don’t have to worry about it touching a wall or combustibles.”

 

As Tipton — who as a rep serves as the liaison between the manufacturer, wholesaler, contractor and sometimes the end user — noted, it is his job to be the eyes and ears for the manufacturer in the field. As such, he compiles competitive information and other data from all levels within the industry and shares that with his manufacturers so they can be responsive.

 

“Navien tankless water heaters are a perfect example of a product that wholesalers and contractors wanted,” Tipton explained. “Navien listened and produced that product. And while contractors have been used to putting in tank-type heaters for many years, they are starting to really come around and embrace the benefits of tankless units. The tide has definitely turned.”

 

Consumer appeal

 

Tankless water heaters are gaining broad appeal and recognition among consumers for a number of reasons — not the least of which is the tax credit currently being offered. In addition, because of Navien’s recirculating capacity that saves water — upwards of 7,000 gallons per year for the average home, says Tipton — some municipalities in drought-affected areas are offering separate tax credits as a low-consumption appliance.

 

“North America is one of the last countries to adapt tankless technology,” Tipton said. “It has been a 10- to 15-year process to convert consumers. But the tax credits are causing a lot of people who had been concerned about the cost to take a second look. And the fact that people are becoming more concerned about energy efficiency is a key aspect to these units’ popularity.”

 

And, despite the need for some repiping, Couvillion noted that tankless units are in high demand for retrofit applications.

“People are staying in their homes longer these days and they’re willing to make this type of investment in their home,” he explained. “Whether it be a remodel or renovation, this is a product that makes sense. It’s 98% efficient and will save the homeowner money in the long run. These units are built to last 20+ years. We actually see more sales for remodel ap­plications than new construction, as builders are trying to cut costs so they aren’t as willing to put in something that has a higher upfront cost. It’s the homeowners who are going to realize the down-the-road savings.”

 

Applications abound

 

Navien tankless water heaters come in nearly 30 different models and are powered with either natural or LP/propane gas. With a range from 150,000 to 199,000 Btu and with flow rates ranging from 8.5 to 11.2 gpm, they are designed for residential and commercial use. The temp­erature can be adjusted from 80° to 140° for residential dwellings and up to 180° for commercial properties.

 

Their most recent product launch is the Condensing Combi Water Heater, which Tipton describes as “one of the most innovative inventions I’ve seen in the plumbing industry.” A domestic water heater with space-heating applications, it has a Btu input of up to 200,000. The Combi is engineered to perform three tasks:

 

• Handling all the domestic hot water needs for a dwelling
• In-floor radiant heating
• Space heating.

 

“Navien units are ideal for virtually all applications — in homes and restaurants of all sizes, motels/ hotels, hunting camps, hospitals and assisted living centers and more,” Tipton shared. “One of the growing ap­plications is school districts. We’ve put Navien into something as small as a school’s concession stand, to a large fieldhouse or boiler room that runs the hot water for the entire school. School districts are looking for ways to save energy and speaking on average, we can cut a school’s existing energy consumption in half — at a minimum. This saves the taxpayers dollars and allows funds to be directed to other line items that will benefit the students.”

 

Couvillion concurred: “These are on-demand units, so they are great for facilities such as this that don’t have constant use. With the in­creased pressure on budget cutting and growing awareness of the benefits of tankless water heating, it’s definitely an opportunity to grow sales. But you must get all the cogs in the loop — the school boards, the principals and/or superintendents, maintenance staff and contractors. There are some inherent traditions to overcome, and larger upfront costs. But if you can show them the rewards and the ROI, it’s not a difficult sell.”

 

According to Nunez, he regularly fields calls from people with questions about tankless units, and offers a good deal of information about tankless technology on his website. He firmly believes interest in them will continue to grow — and as a result, so will sales.

 

“Tankless products are a great opportunity,” agreed Couvillion. “In an economy like this, you’re always looking for a growing segment. Tankless is offering us that growth and the contractors are getting on board. We owe a huge thanks to our rep Tipton Company, and to Navien for all their support and education. If we’re all working together to sell the product, we’ll all benefit.”

 

To learn more, visit any of these websites: www.navienamerica.com, www.ferguson.com, www.tiptoncompany.com or www.hotwatermaster.com.